Proposal for a Council Decision adapting the Act of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia and the adjustments to the Treaties on which the European Union is founded, following the reform of the common agricultural policy
Date: 2003-10-27
Institutions: European Commission
Subjects: accession to the European Union, application of EU law, enlargement of the Union, reform of the CAP

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 27.10.2003
COM(2003) 643 final

2003/0253 (CNS)

Proposal for a

COUNCIL DECISION

adapting the Act of Accession of the Czech Republic, Estonia, Cyprus, Latvia,
Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia and the adjustments
to the Treaties on which the European Union is founded, following
the reform of the common agricultural policy

(presented by the Commission)

EXPLANATORY MEMORANDUM

CAP REFORM AND ENLARGEMENT ADAPTATION EXERCISE

1.

Introduction

On 29 September 2003, the Council adopted a CAP reform package which makes significant
changes to the acquis on which the accession negotiations were based. In their current form
the  CAP  reform  texts  take  no  account  of  the  results  of  those  negotiations  or  indeed  of
enlargement itself. There is therefore a need to adapt both the Act of Accession and the CAP
reform  texts  before  accession  to  ensure  that  the  two  are  complete  and  compatible,  i.e.  to
ensure that they can function in an enlarged community. Specifically, there is a need to:

– 

– 

adapt the CAP-related annexes of the Act of Accession so that the negotiation results
fit  with  the  new  acquis  (this  will  be  necessary  where  references  in  the  Act  of
Accession are rendered obsolete or where the negotiation results are not immediately
compatible with the reformed CAP);

adapt the CAP reform texts so that they can be applied to the new Member States and
so that they incorporate  any negotiation results that would otherwise (in  the  future)
be lost.

To achieve these two objectives the Commission has prepared two legislative proposals for a
Decision  and  a  Regulation  respectively.  Both  texts  are  based  on  the  following  guiding
principles:

– 

– 

– 

– 

the  fundamental  character  and  principles  of  the  package  agreed  in  Copenhagen
should be maintained, and applied to any new elements. There should be no 'erosion'
of the terms of accession negotiated by the acceding countries;

where  the  CAP  reform  introduces  new  elements  that  were  not  covered  during  the
accession  negotiations  on  agriculture,  the  new  Member  States  should  be  treated
similarly  to  the  current  Member  States,  except  where  that  conflicts  with  the
overriding principle described above;

adaptations should be limited to what is absolutely necessary;

the  new  Member  States  should  be  integrated  smoothly  into  the  reformed  CAP  as
soon as possible.

The  present  proposal  sets  out  the  adaptations  to  the  Act  of  Accession  which  have  become
necessary as a  consequence of  the  reform  of  the  Common  Agricultural  Policy.  Accordingly
the proposed decision is based on Article 23 of the Act of Accession.

2.

Description of the proposal

Phasing-in of direct payments

The  CAP  Reform  introduces  new  direct  payments  for  energy  crops  and  nuts.  It  also
introduces an additional price cut in the dairy sector, on top of  what was  agreed in  Agenda
2000, and thus increases the compensatory direct payments for dairy (which incidentally will
now  start  in  2004  not  2005).  In  order  to  maintain  the  general  approach  taken  on  direct
payments in Copenhagen, these new direct payments should not be granted in full to the new
Member States but should be subject to the phasing-in schedule for all other direct payments
(25%, 30%, 35% etc.). This is consistent with the fact that the Act of Accession refers to the
direct payments mentioned in Article 1 of Regulation (EC) No 1259/1999 at the level "then

2

applicable", meaning this is a dynamic reference that was open to amendment at any time. It
is also consistent with the need to stay inside the Brussels ceiling and with the agro-economic
arguments for the phasing-in approach (for example the desire to facilitate rather than hamper
restructuring).

Single Area Payment Scheme (SAPS)

Despite the coming introduction of the Single Farm Payment (SFP), the SAPS set out in the
Act of Accession should be maintained. This is justified on the grounds that:

– 

– 

– 

– 

SAPS has been agreed in the negotiations;

SAPS  remains  significantly  simpler  than  the  SFP:  all  utilised  agricultural  area  is
included, no coupled payments are maintained for specific sectors and there is no set-
aside;

it would be difficult to have new Member States applying the SFP from 2004 when it
only enters into force in the EU-15 from 2005;

even if that were desirable, new Member States would not have enough time to make
the necessary preparations

For  these  reasons the  proposals  maintain  SAPS within the framework  of  the  reformed  CAP
and make the technical adjustments necessary for it to apply in the form negotiated. In doing
this  the  proposals  make  clear  that  the  temporary  'opt-out'  from  the  SFP  that  applies  to  the
current Member States until the end of 2006 does not apply to the new Member States – in
other  words  the  new  Member  States  will  not  be  able  to  move  'back'  from  SAPS  to  the
classical direct payment scheme before 2007, but only move 'forward' to the SFP.

Complementary national direct payments ('topping-up')

So  as  to  maintain  the  principle  of  topping-up  in  the  framework  of  the  reformed  CAP,  the
current proposals provide for three different scenarios:

– 

– 

– 

topping-up under classical scheme until the end of 2006,

topping-up under the SFP from 2005,

topping-up under SAPS.

The proposals also take account of the two different topping-up formulae set out in the Act of
Accession, namely:

– 

– 

the  30%  formula,  i.e.  increase  the  direct  payments  available  from  the  EU  by  30%
points (this gives farmers a maximum of 55% points in the first year, 60% points in
the second, 65% in the third etc); or

the pre-accession formula, i.e. increase the direct payments available from the EU up
to the pre-accession support level plus X% points (X = 10% points for all countries
except Slovenia, for which X is 10% in 2004, 15% in 2005, 20% in 2006 and 25%
points from 2007).

Finally, the proposal takes advantage of the fact that the changes wrought by the CAP reform
provide an opportunity to simplify, from 2005, the topping-up arrangements under SAPS that
were agreed in the accession negotiations. This simplified option, which is described below, is
desirable insofar as it reduces the  administrative burden that is otherwise imposed on SAPS
by the topping up rules and insofar as it renders the topping-up arrangements fully compatible
with the main principles of the CAP reform.

3

In concrete terms, the current proposal therefore ensures the following:

For topping-up under the classical scheme, which remains possible until the  end  of  2006,
the rules in the Act of Accession are maintained essentially unchanged.

For topping-up under the new SFP, the arrangements would be slightly different depending
on which formula the new Member State chose. Under the 30% formula, all payments could
be increased across the board by a maximum of 30% points, regardless of whether they were
payments  based  on  entitlements,  payments  for  coupled  schemes,  or  ceilings  for  partially-
coupled  schemes.  Under  the  pre-accession  formula,  payments  under  the  schemes  that
remained  coupled  could  be  topped-up  as  planned,  i.e.  up  to  the  pre-accession  level  +  X%
points  (see  above).  For  those  schemes  that  were  merged  into  the  single  farm  payment,
topping-up  would  be  a  little  more  complicated,  and  would  be  carried  out  in  two  steps.  The
first  step  would  be  to  add-up  all  the  pre-accession  direct  support  granted  for  the  sectors
concerned  (increased  by  X%  points)  and  see  how  much  higher  this  was  than  the  baseline
direct  payments  available  from  the  EU.  The  difference  would  constitute  the  total  'envelope'
available for topping up in the region concerned. The second step would then be to divide this
envelope  between  the  farmers  in  the  region  on  a  per-hectare  basis.  In  the  event  of  partial
implementation  of  the  SFP,  the  envelope  referred  to  above  would  have  to  be  calculated
according to the extent of decoupling applied.

For topping-up under SAPS, the arrangements in the Act of Accession (i.e. top-ups granted
from  sector-specific  envelopes)  would  apply  unchanged  for  2004.  Given  that  the  'classical'
direct  payment  system  remains  a  possibility  until  the  end  of  2006,  the  topping-up
arrangements  in  the  Act  of  Accession  would  also  apply  until  the  same  date.  For  those
countries that wished, a simplified option would be applicable from 2005 (see above). Under
this option the new Member States would be allowed to pay top-ups not from sector specific
envelopes,  but  from  a  single  envelope  reflecting  the  difference  between  the  SAPS  support
level  and  the  topping-up  margin  (+30%  points  or  pre-accession  level).  From  this  envelope,
top-ups  would  be  granted  per  hectare  for  the  entire  area  eligible  under  SAPS,  except  for
permanent crops. There would be no obligation to produce. Sector-specific top-ups would still
be possible in respect of schemes that remain fully or partially coupled.

Milk

The  CAP  reform  package  repeals  the  regulation  establishing  a  levy  in  the  milk  and  milk
products  sector  and  amends  the  regulation  on  the  CMO  of  the  market  in  milk  and  milk
products  before  1  May  2004.  There  is  therefore  a  need  to  make  quite  extensive  (albeit
technical) changes to the Act of Accession in this area so that the negotiation results refer to,
and fit with, the new acquis. The proposals therefore include changes such as the adaptation
of dates for the establishment of individual reference quantities and the reference period for
the reduction of the total amount of individual reference quantities eligible for premium. They
also  include  the  addition  or  modification  of  various  tables,  for  example  to  set  the
representative fat content for the new Member States or to include the appropriate quotas for
deliveries and direct sales.

Rural development

In  the  accession  negotiations  a  new  measure  'Compliance  with  Community  standards'  was
created for the new Member States to help their farmers "to adapt to standards established by
the  Community  —  until  such  time  as  the  required  standard  is  due  to  be  met".  This  was
intended to support farmers’ efforts to reach EU standards during the transition period granted
by giving them additional transfers to offset  the  costs  of compliance.  The CAP reform now
introduces  a  general  "meeting  standards"  measure  intended  to  help  farmers  adapt  to  the

4

operating  costs  resulting  from  newly  introduced  EU  standards.  The  proposal  deletes  the
separate  "compliance  with  Community  standards"  measure  in  order  to  avoid  any  overlap
whilst maintaining the possibilities available to the new Member States under the compliance
measure.

Transition periods

During the accession negotiations various transition periods (e.g. on the definition of suckler
cows) were granted to new Member States, generally as a derogation from existing acquis. In
certain  cases  the  CAP  reform  package  repeals  the  regulations  from  which  such  derogations
were  made,  meaning  that  there  will  be  transitional  arrangements  in  the  Act  of  Accession
(i.e. primary law) that are without effect. The proposals therefore amend the Act of Accession
so as to give continuing effect to any transition periods accorded.

Special Market Policy Programme for Maltese Agriculture (SMPPMA)

The SMPPMA as provided for in the Act of Accession makes numerous references to sectoral
(market)  regulations.  As  some  of  these  regulations  will  be  repealed  by  the  CAP  reform
regulations  there  is  a  need  for  quite  extensive  (though  purely  technical)  amendment  to  the
relevant section of the Act of Accession, so that the provisions of the SMPPMA refer to the
correct acquis. The necessary amendments form part of the current proposals.

5

2003/0253 (CNS)

Proposal for a

COUNCIL DECISION

adapting the Act of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania,
Hungary, Malta, Poland, Slovenia and Slovakia and the adjustments
to the Treaties on which the European Union is founded, following
the reform of the common agricultural policy

THE COUNCIL OF THE EUROPEAN UNION,

Having  regard  to  the  Treaty  of  Accession  of  the  Czech  Republic,  Estonia,  Cyprus,  Latvia,
Lithuania,  Hungary,  Malta,  Poland,  Slovenia  and  Slovakia,  and  in  particular  Article  2(3)
thereof,

Having  regard  to  the  Act  of  Accession  of  the  Czech  Republic,  Estonia,  Cyprus,  Latvia,
Lithuania, Hungary, Malta, Poland, and Slovakia and the adjustments to the Treaties on which
the European Union is founded, and in particular Article 23 thereof,

Having regard to the proposal from the Commission1,

Having regard to the opinion of the European Parliament2,

Whereas:

(1)

(2)

(3)

The  common  agriculture  policy  (CAP)  reform  and  notably  Council  Regulation  (EC)
No 1782/2003 establishing common rules for direct support schemes under the common
agricultural  policy  and  establishing  certain  support  schemes  for  farmers3,  introduces
significant changes to the acquis on which the accession negotiations were based.

There is therefore a need to adapt the Act of Accession so that the negotiation results
are  compatible  with  the  new  acquis,  especially  where  references  in  the  Act  of
Accession  are  rendered  obsolete  or  where  the  negotiation  results  are  not  compatible
with the new agricultural regulations.

In making the necessary adaptations to the Act of Accession the fundamental character
and principles of the negotiation results should be maintained and applied to any new
elements. Moreover, the adaptations of the Act of Accession should be limited to what
is absolutely necessary.

(4)

Council Regulation (EC) No 1787/2003  amending  Regulation  (EC)  No  1255/1999  on
the  common  organisation  of  the  market  in  milk  and  milk  products4  and  Council

1

2

3

4

OJ C …, …, p. …
OJ C …, …, p. …
OJ L 270, 21.10.2003, p. 1
OJ L 270, 21.10.2003, p. 121

6

                                                
(5)

(6)

(7)

(8)

(9)

(10)

Regulation  (EC)  No  1788/2003  establishing  a  levy  in  the  milk  and  milk-products
sector5 introduce significant changes in the acquis in the milk sector. There is therefore
a  need  to  make  technical  adaptations  to  the  Act  of  Accession  in  this  area  so  that  the
negotiation results refer to, and fit with, the new acquis.

The  new  measures  'Compliance  with  Community  standards'  created  for  the  new
Member  States  during  accession  negotiations  and  'meeting  standards'  introduced  by
Council  Regulation  (EC) No  1783/2003 amending  Regulation  (EC)  No  1257/1999  on
support for rural development from the European Agricultural Guidance and Guarantee
Fund (EAGGF)6 should be amalgamated in such a way as to avoid an overlap between
them whilst maintaining the possibilities available to the new Member States under the
compliance measure.

LEADER  type  activities  should  be  supported  for  the  new  Member  States  through  a
measure  integrated  into  the  Structural  Funds  programmes  rather  than  a  separate
programme.

Regulation  (EC)  No  1782/2003  repeals  Council  Regulation  (EC)  No 1259/1999  of
17 May  1999  establishing  common  rules  for  direct  support  under  the  common
agricultural policy7. It is therefore necessary to incorporate the provisions related to the
introduction  of  direct  payments  in  the  new  Member  States  and  to  the  single  area
payment scheme in Regulation (EC) No 1782/2003.

In  order  to  maintain  the  negotiation  results  there  is  a  particular  need  to  make  the
necessary adaptations to ensure that the statutory management requirements of the cross
compliance  provisions  of  Regulation  (EC)  No  1782/2003  are  optional  for  the  new
Member States that apply the single area payment scheme.

New Member States should apply the single payment scheme at the end of the period of
application of the single area payment scheme.

In  order  to  maintain  the  coherence  of  the  complementary  national  direct  payments,
some adaptations have to be made following the introduction of the new single payment
scheme. Specifically, it is necessary to adjust the arrangements in the act of accession to
ensure  that  such  complementary  payments  can  function  as  intended  under  three
different scenarios: firstly  the  'classical'  direct  payment scheme, secondly the  regional
option of the new single payment scheme, and thirdly the single area payment scheme.

(11)

The Act of Accession should be adapted so as to give continuing effect to any transition
periods accorded when regulations from which such derogations were made have been
repealed,

HAS DECIDED AS FOLLOWS:

Article 1

Chapter  6.A.  of  Annex  II  to  the  Act  of  Accession  of  the  Czech  Republic,  Estonia,  Cyprus,
Latvia,  Lithuania, Hungary, Malta, Poland, Slovenia and  Slovakia and  the  adjustments to the

5

6

7

OJ L 270, 21.10.2003, p. 123
OJ L 270, 21.10.2003, p. 70
OJ L 160, 26.6.1999, p. 113.

7

                                                
Treaties  on  which  the  European  Union  is  founded  (referred  to  hereinafter  as  the  'Act  of
Accession') is adapted as follows:

1.

Point 13 is replaced by the following:

"13.  32003  R  1788:  Council  Regulation  (EC)  No  1788/2003  of  29  September  2003
establishing  a  levy  in  the  milk  and  milk  products  sector  (OJ  L  270,  21.10.2003,
p. 123)"

(a)

In Article 1 the following paragraphs (4) and (5) are added:

"4.

For  the  Czech  Republic,  Estonia,  Latvia,  Lithuania,  Hungary,  Poland,
Slovenia and Slovakia a special restructuring reserve shall be  established
as set out in Table (g) of Annex I. This reserve shall be released as from
1 April 2006 to the extent that the on-farm consumption of milk and milk
products in  each  of these countries  has  decreased  since  1998  for  Estonia
and Latvia and 2000 for the Czech Republic, Lithuania, Hungary, Poland,
Slovenia  and  Slovakia.  The  decision  on  releasing  the  reserve  and  of  its
distribution  to  the  deliveries  and  direct  sales  quota  shall  be  taken  by  the
Commission in accordance with the procedure referred to in Article 42(2)
of  Regulation  (EC)  No  1255/1999  on  the  basis  of  an  assessment  of  a
report to be submitted by the Czech Republic, Estonia, Latvia, Lithuania,
Hungary,  Poland,  Slovenia  and  Slovakia 
the  Commission  by
31 December  2005.  This  report  shall  detail  the  results  and  trends  of  the
actual restructuring process in the country’s dairy sector and, in particular
the  shift  from  production  for  on-farm  consumption  to  production  for  the
market.

to 

5.

For  the  Czech  Republic,  Estonia,  Cyprus,  Latvia,  Lithuania,  Hungary,
Malta,  Poland,  Slovenia  and  Slovakia  the  national  reference  quantities
shall include all cow’s milk or milk equivalent delivered to a purchaser or
sold  directly  for  consumption  irrespective  of  whether  it  is  produced  or
marketed under a transitional measure applicable in these countries."

(b)

In Article 6(1) the following subparagraphs are added:

"For  the  Czech  Republic,  Estonia,  Cyprus,  Latvia,  Lithuania,  Hungary,  Malta,
Poland,  Slovenia  and  Slovakia  the  basis  for  the  individual  reference  quantities
referred to are set out in table (f) of Annex I.

In the case of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary,
Malta,  Poland,  Slovenia  and  Slovakia  the  twelve-months  period  for  the
establishment of the individual reference quantities shall commence on: 1 April
2001 for Hungary, 1 April 2002 for Malta and Lithuania, 1  April  2003 for the
Czech  Republic,  Cyprus,  Estonia,  Latvia  and  Slovakia  and  1  April  2004  for
Poland and Slovenia.

However, in order to apply Article 95 of Regulation (EC) No 1782/2003, where
the  case  may  be,  Poland  and  Slovenia  may  establish  provisional  individual
reference  quantities  based  on  the  twelve  months  period  which  commences  on
1 April  2003  and  they  shall  establish  definitive  individual  reference  quantities
by 1 April 2005. Until 1 April 2005 Articles 3 and 4 of this Regulation are not
applicable in Poland and Slovenia.

8

For  Poland  the  distribution  of  the  total  quantity  between  deliveries  and  direct
sales shall be reviewed on the basis of its actual 2003 figures on deliveries and
direct  sales  and,  if  necessary,  adjusted  by  the  Commission  in  accordance  with
the procedure referred to in Article 42(2) of Regulation (EC) No 1255/1999."

(c)

In Article 9(2) the following subparagraph is added:

"For  the  Czech  Republic,  Estonia,  Cyprus,  Latvia,  Lithuania,  Hungary,  Malta,
Poland, Slovenia and Slovakia, the reference fat content referred to in paragraph
1  shall  be  the  same  as  the  reference  fat  content  of  the  quantities  allocated  to
producers on the following dates: 31 March 2002 for Hungary, 31 March 2003
for  Malta  and  Lithuania,  31 March  2004  for  the  Czech  Republic,  Cyprus,
Estonia, Latvia and Slovakia and 31 March 2005 for Poland and Slovenia."

(d)

In Annex I, tables (a) to (g) are replaced by the following:

"(a)

period 2004/05

For  the  Czech  Republic,  Estonia,  Cyprus,  Latvia,  Lithuania,  Hungary,  Malta,  Poland,
Slovenia and  Slovakia  the  national  reference  quantities  referred  to  in  Article  1(1)  are
applicable from 1 May 2004 to 31 March 2005.

Member State

Quantities (tonnes)

3 310 431,000
2 682 143,000
4 455 348,000
27 864 816,000
624 483,000
820 513,000
6 116 950,000
24 235 798,000
5 395 764,000
10 530 060,000
145 200,000
695 395,000
1 646 939,000
269 049,000
1 947 280,000
48 698,000
11 074 692,000
2 749 401,000
8 964 017,000
1 870 461,000
560 424,000
1 013 316,000
2 407 003,324
3 303 000,000
14 609 747,000

Belgium
Czech Republic
Denmark
Germany
Estonia
Greece
Spain
France
Ireland
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Slovenia
Slovakia
Finland
Sweden
United Kingdom

9

(b)

period 2005/06

Member State

Quantities (tonnes)

Belgium
Czech Republic
Denmark
Germany
Estonia
Greece
Spain
France
Ireland
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal*
Slovenia
Slovakia
Finland
Sweden
United Kingdom

3 310 431,000
2 682 143,000
4 455 348,000
27 864 816,000
624 483,000
820 513,000
6 116 950,000
24 235 798,000
5 395 764,000
10 530 060,000
145 200,000
695 395,000
1 646 939,000
269 049,000
1 947 280,000
48 698,000
11 074 692,000
2 749 401,000
8 964 017,000
1 920 461,000
560 424,000
1 013 316,000
2 407 003,324
3 303 000,000
14 609 747,000

(c)

period 2006/07

Member State

Quantities (tonnes)

Belgium
Czech Republic
Denmark
Germany
Estonia
Greece
Spain
France
Ireland
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Slovenia
Slovakia
Finland
Sweden
United Kingdom

10

3 326 983,000
2 682 143,000
4 477 624,000
28 004 140,000
624 483,000
820 513,000
6 116 950,000
24 356 977,000
5 395 764,000
10 530 060,000
145 200,000
695 395,000
1 646 939,000
270 394,000
1 947 280,000
48 698,000
11 130 066,000
2 763 148,000
8 964 017,000
1 929 824,000
560 424,000
1 013 316,000
2 419 025,324
3 319 515,000
14 682 697,000

(d)

period 2007/08

Member State

Quantities (tonnes)

Belgium
Czech Republic
Denmark
Germany
Estonia
Greece
Spain
France
Ireland
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Slovenia
Slovakia
Finland
Sweden
United Kingdom

3 343 535,000
2 682 143,000
4 499 900,000
28 143 464,000
624 483,000
820 513,000
6 116 950,000
24 478 156,000
5 395 764,000
10 530 060,000
145 200,000
695 395,000
1 646 939,000
271 739,000
1 947 280,000
48 698,000
11 185 440,000
2 776 895,000
8 964 017,000
1 939 187,000
560 424,000
1 013 316,000
2 431 047,324
3 336 030,000
14 755 647,000

(e)

period 2008/09 to 2014/15

Member State

Quantities (tonnes)

Belgium
Czech Republic
Denmark
Germany
Estonia
Greece
Spain
France
Ireland
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Slovenia
Slovakia
Finland
Sweden
United Kingdom

11

3 360 087,000
2 682 143,000
4 522 176,000
28 282 788,000
624 483,000
820 513,000
6 116 950,000
24 599 335,000
5 395 764,000
10 530 060,000
145 200,000
695 395,000
1 646 939,000
273 084,000
1 947 280,000
48 698,000
11 240 814,000
2 790 642,000
8 964 017,000
1 948 550,000
560 424,000
1 013 316,000
2 443 069,324
3 352 545,000
14 828 597,000

(f)

Reference  quantities  for  deliveries  and  direct  sales  referred  to  in  the  second
subparagraph of Article 6(1)

Member State

Reference quantities for

deliveries

(tonnes)

Reference quantities for
direct sales (tonnes)

Czech Republic
Estonia
Cyprus
Latvia
Lithuania
Hungary
Malta
Poland
Slovenia
Slovakia

2 613 239
537 188
141 337
468 943
1 256 440
1 782 650
48 698
8 500 000
467 063
990 810

68 904
87 365
3 863
226 452
390 499
164 630
–
464 017
93 361
22 506 "

(g)

Special restructuring quantities referred to in Article 1(4)

Member State

Special restructuring quantities (tonnes)

Czech Republic
Estonia
Latvia
Lithuania
Hungary
Poland
Slovenia
Slovakia

55 788
21 885
33 253
57 900
42 780
416 126
16 214
27 472 "

*

Specific  increase  by  50 000  tonnes  for  exclusive  attribution  to  the  producers  of  the
Azores."

12

(e)

In Annex II the table is replaced by the following:

"Reference fat content

Member State

Reference fat content

(g/kg)

Belgium
Czech Republic
Denmark
Germany
Estonia
Greece
Spain
France
Ireland
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Netherlands
Austria
Poland
Portugal
Slovenia
Slovakia
Finland
Sweden
United Kingdom

36,91
42,10
43,68
40,11
43,10
36,10
36,37
39,48
35,81
36,88
34,60
40,70
39,90
39,17
38,50
42,36
40,30
39,00
37,30
41,30
37,10
43,40
43,40
39,70 "

2.

Point 15(c) is replaced by the following:

«(c)

Article 5 is replaced by the following:

‘Article 5

A premium of EUR 22,25 per tonne of starch produced shall be paid to undertakings
producing potato starch for the quantity of potato starch up to the quota limit referred
to  in  Article  2(2)  or  2(4),  provided  that  they  have  paid  to  starch  producers  the
minimum  price,  referred  to  in  Article  4a,  for  all  the  potatoes  necessary  to  produce
starch up to that quota limit.’»

3.

Point 25 is replaced by the following:

"25.  32003  R  1782:  Council  Regulation  (EC)  No  1782/2003  of  29  September  2003
establishing common rules for direct support schemes under the common agricultural
policy  and  establishing  certain  support  schemes  for  farmers  (OJ L 270,  21.10.2003,
p. 1)"

(a)

In Article 95(2) the following subparagraph is added:

"For Poland and Slovenia, the amount per tons for the dairy premium for 2004
shall be multiplied by the individual reference quantity available on the holding
on 1 April 2004."

13

(b)

In Article 95(4) the following subparagraphs are added:

"For  the  Czech  Republic,  Estonia,  Cyprus,  Latvia,  Lithuania,  Hungary,  Malta,
Poland,  Slovenia  and  Slovakia  the  total  quantities  referred  to  in  the  first
subparagraph  are  set  out  in  table  (f)  of  Annex  I  of  Regulation  (EC)
No 1788/2003.

For  the  Czech  Republic,  Estonia,  Cyprus,  Latvia,  Lithuania,  Hungary,  Malta,
Poland,  Slovenia  and  Slovakia  the  12  months  period  referred  to  in  the  first
subparagraph shall be that of 2004/05."

(c)

In Article 96(2) the table is replaced by the following:

"2. Additional payments: global amounts expressed in EUR million:

Belgium
Czech Republic
Denmark
Germany
Estonia
Greece
Spain
France
Ireland
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Slovenia
Slovakia
Finland
Sweden
United Kingdom

2004

12,12
9,817
16,31
101,99
2,286
2,31
20,38
88,70
19,20
36,34
0,531
2,545
6,028
0,98
7,127
0,178
40,53
10,06
32,808
6,85
2,051
3,709
8,81
12,09
53,40

2005

24,30
19,687
32,70
204,53
4,584
4,63
40,86
177,89
38,50
72,89
1,066
5,104
12,089
1,97
14,293
0,357
81,29
20,18
65,796
13,74
4,114
7,438
17,66
24,24
107,09

2006 and 2007*

36,45
29,530
49,05
306,79
6,876
6,94
61,29
266,84
57,76
109,33
1,599
7,656
18,133
2,96
21,440
0,536
121,93
30,27
98,694
20,62
6,170
11,157
26,49
36,37
160,64

* And, in case of application of Article 70, for the following calendar years.

In  the  new  Member  States  the  global  amounts  shall  be  applied  in  accordance
with the schedule of increments as set out in Article 143a."

4.

Point 26 is adapted as follows:

(a)

The title is replaced by the following:

"26. 31999 R 1257: Council Regulation (EC) No 1257/1999 of 17 May 1999 on
support  for  rural  development  from  the  European  Agricultural  Guidance  and

14

Guarantee  Fund  (EAGGF)  and  amending  and  repealing  certain  Regulations
(OJ L 160, 26.6.1999, p. 80), as amended by

– 32003  R  1783:  Council  Regulation  No  1783/2003  of  29  September  2003
(OJ L 270, 21.10.2003, p. 70)"

(b)

point 1 inserting Chapter IXa of Title II is amended as follows:

(i) Article 33c is deleted;

(ii) Article 33f(2) is replaced by the following:

"2.  Support  may  be  granted  for  the  adoption  of  integrated  territorial  rural
development  strategies,  of  a  pilot  nature,  prepared  by  local  action  groups  in
accordance  with  the  principles  laid  down  in  points  12,  14  and  36  of  the
Commission  notice  to  the  Member  States  of  14  April  2000  laying  down
guidelines for the Community initiative for rural development (Leader+)*. This
support  shall  be 
is  already  sufficient
to  regions  where 
administrative  capacity  and  experience  of  local  rural  development  type
approaches.

limited 

there 

* OJ C 139, 18.5.2000, p. 5"

(iii) Article 33h is replaced by the following:

"Article 33h
Complements to direct payments

1.

2.

3.

As  a  temporary  and  sui  generis  provision  support  may  be  granted  to
farmers eligible for complementary national direct payments or aids under
Article  143c  of  Regulation  (EC)  No  1782/2003**  during  the  2004–2006
period only.

The support granted to a farmer in respect of the  years 2004, 2005, 2006
shall not exceed the difference between:

(a)

(b)

the level of direct payments applicable in the new Member States for
the  year  concerned  in  accordance  with  Article  143a  of  Regulation
(EC) No 1782/2003, and

40% of the level of direct payments applicable in the Community as
constituted on 30 April 2004 in the relevant year.

The  Community  contribution  to  support  granted  under  this  Article  in  a
new  Member  State  in  respect  of  each  of  the  years  2004,  2005  and  2006
shall not exceed 20% of its respective annual allocation. However, a new
Member State may replace this 20% annual rate with the following rates:
25% for 2004, 20% for 2005 and 15% for 2006.

4.

Support granted to a farmer under this Article shall be counted:

(a)

(b)

in the case of Cyprus, as  complementary national direct aid for the
purposes of applying the total amounts referred to in Article 143c(3)
of Regulation (EC) No 1782/2003;

in  the  case  of  any  other  new  Member  State,  as  complementary
national  direct  payments  or  aids,  as  applicable,  for  the  purposes  of

15

applying  the  maximum  levels  set  out  in  Article  143c(2)  of
Regulation (EC) No 1782/2003."

**

OJ L 270, 21.10.2003, p. 1"’

(iv)

In Article 33l, the following paragraph is inserted after paragraph 2:

‘"2a.  By  way  of  derogation  from  Article  21b,  for  agricultural  Community
standards  for  which  a  transitional  period  has  been  granted  according  to  the
Annexes referred to in Article 24 of the Act of Accession the temporary support
may  be  granted,  from  the  date  of  eligibility  of  expenditures  under  the  rural
development  programming  document,  to  farmers  who  comply  with  these
standards, for a period not exceeding five years."’

(c)

in point 6 inserting Chapter IVa of Title III, Article 47a(1)(c) is deleted.

(d)

In point 10 adding Annex II, the row related to Article 33c is deleted.

5.

Point 27 is replaced by the following:

"27.  32003  R  1782:  Council  Regulation  (EC)  No  1782/2003  of  29  September  2003
establishing common rules for direct support schemes under the common agricultural
policy  and  establishing  certain  support  schemes  for  farmers  (OJ  L  270,  21.10.2003,
p. 1)"

(a)

In Article 1, after the second indent the following indent is inserted:

"–

a  transitional  simplified  income  support  for  farmers  in  the  new  Member
States (hereinafter referred to as the 'single area payment scheme')";

(b)

In Article 2 the following point (g) is added:

"(g)

'new Member States' means the Czech Republic, Estonia, Cyprus, Latvia,
Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia,";

(c) After Title IV, the following Title IVa is inserted:

"Title IVa

IMPLEMENTATION OF SUPPORT SCHEMES IN THE NEW MEMBER STATES

Article 143a

Introduction of support schemes

In  the  new  Member  States  direct  payments  shall  be  introduced  in  accordance
with the following schedule of increments expressed as a percentage of the then
applicable level of such payments in the Community as constituted on 30 April
2004:

16

– 
– 
– 
– 
– 
– 
– 
– 
– 
– 

1.

2.

3.

4.

25% in 2004,
30% in 2005,
35% in 2006,
40% in 2007,
50% in 2008,
60% in 2009,
70% in 2010,
80% in 2011,
90% in 2012,
100% as from 2013.

Article 143b

Single Area Payment scheme

The new Member States may decide not later than the date of accession to
replace the direct payments during the period of application referred to in
paragraph  9  with  a  single  area  payment  which  shall  be  calculated
according to paragraph 2.

The single area payment shall be made once a year. It shall be calculated
by  dividing  the  annual  financial  envelope  established  according  to
paragraph 3 by the agricultural area of each new Member State established
according to paragraph 4.

For  any  new  Member  State,  the  Commission  shall  establish  an  annual
financial envelope:

– 

– 

– 

as  the  sum  of  the  funds  that  would  be  available  in  respect  of  the
calendar  year  concerned  for  granting  direct  payments  in  the  new
Member State,

according  to  the  relevant  Community  rules  and  on  the  basis  of  the
quantitative  parameters,  such  as  base  areas,  premium  ceilings  and
Maximum  Guaranteed  Quantities  (MGQ),  specified  in  the  Act  of
Accession  and  subsequent  Community  legislation  for  each  direct
payment, and

adjusted using the relevant percentage specified  in  Article 143a for
the gradual introduction of direct payments.

The  agricultural  area  of  a  new  Member  State  under  the  single  area
payment scheme shall be the part of its utilised agricultural area which has
been  maintained  in  good  agricultural  condition  at  30 June 2003,  whether
in  production  or  not  at  that  date,  and,  where  appropriate,  adjusted  in
accordance with the objective criteria to be set by that new Member State
after approval by the Commission.

"Utilised  agricultural  area"  shall  mean  the  total  area  taken  up  by  arable
land,  permanent  grassland,  permanent  crops  and  kitchen  gardens  as
established by the Commission (EUROSTAT) for its statistical purposes.

5.

For  the  purpose  of  granting  payments  under  the  single  area  payment
scheme, all agricultural parcels corresponding to the criteria provided for
in paragraph 4 shall be eligible.

17

The minimum size of eligible area per holding for which payments may be
requested  shall  be  0,3 ha.  However,  any  new  Member  State  may  decide,
on the basis of objective criteria and after approval by the Commission, to
set the minimum size at a higher level not exceeding 1 ha.

6.

There  shall  be  no  obligation  to  produce  or  to  employ  the  factors  of
production. However, farmers may use the land referred to in paragraph 4
for  any  agricultural  purpose.  In  the  case  of  production  of  hemp  falling
(EC)
within  CN  code  5302 10 00,  Article  5a(2)  of  Regulation 
No 1251/1999,  Article  7b  of  Regulation  (EC)  No 2316/1999  as  well  as
Article 52(1) of this Regulation shall apply.

Any land benefiting from payments under the single area payment scheme
shall  be  maintained  in  good  agricultural  condition  compatible  with  the
protection of the environment.

As from 1 January 2005 the application of Articles 3, 4, 6, 7 and 9 shall be
optional  for  the  new  Member  States  insofar  as  these  provisions  relate  to
statutory management requirements.

7. Where  in  a  given  year  the  single  area  payments  in  a  new  Member  State
would  exceed  its  annual  financial  envelope,  the  national  amount  per
hectare  applicable 
that  new  Member  State  shall  be  reduced
proportionately by application of a reduction coefficient.

in 

8.

The Community  rules on the integrated system laid down respectively in
Council  Regulation  (EEC)  No 3508/92 *,  and  in  particular  Article 2
thereof,  and  in  Chapter  4  of  Title  II  of  this  Regulation,  and  in  particular
Article  18  thereof,  shall  apply  to  the  single  area  payment  scheme  to  the
extent  necessary.  Accordingly,  any  new  Member  State  choosing  this
scheme shall:

– 

– 

– 

– 

prepare  and  process  farmers'  annual  aid  applications.  Such
applications  shall  contain  data  on  applicants  and  on  declared
agricultural parcels (identification number and area);

put in place a land parcel  identification  system  so as to ensure that
the  parcels  for  which  aid  applications  have  been  made  can  be
identified  and  their  area  established,  that  the  parcels  concern
agricultural  land  and  that  they  are  not  the  subject  of  another
application;

have  in  place  a  computerised  database  for  agricultural  holdings,
parcels and aid applications;

check the aid applications pertaining to the year 2004 in accordance
with  Articles  7  and  8  of  Regulation  (EEC)  No 3508/92  and  those
pertaining to any year as from 2005 in accordance with Article 23 of
this Regulation.

The  application  of  the  single  area  payment  scheme  shall  not  in  any  way
affect  the  obligation  of  any  new  Member  State  with  regard  to  the
implementation of Community rules on the identification and registration
of  animals  as  provided  for  by  Council  Directive  92/102/EEC **  and
Regulation  (EC)  No 1760/2000 of  the  European  Parliament  and  of  the
Council***.

18

9.

For  any  new  Member  State  the  single  area  payment  scheme  shall  be
available  for  a  period  of  application  until  the  end  of  2006  with  the
possibility  of  renewal  twice  by  one  year  at  the  new  Member  State's
request. Subject to the provisions of paragraph 11, any new Member State
may  decide  to  terminate  the  application  of  the  scheme  at  the  end  of  the
first or the second year of the period of application with a view to applying
the  single  payment  scheme.  New  Member  States  shall  notify  the
Commission of their intention to terminate by 1 August of the last year of
application.

10. Before  the  end  of  the  period  of  application  of  the  single  area  payment
scheme, the Commission shall assess the state of preparedness of the new
Member State concerned to apply fully the direct payments.

In  particular,  by  the  end  of  the  period  of  application  of  the  single  area
payment  scheme,  the  new  Member  State  shall  have  taken  all  necessary
steps to set up the integrated system as referred to in Article 18 for running
properly the direct payments in the form then applicable.

11. On the basis of its assessment, the Commission shall:

(a)

or

(b)

note  that  the  new  Member  State  can  enter  the  system  of  direct
payments  applied  in  the  Member  States  of  the  Community  as
constituted on 30 April 2004,

decide to extend the application of the single area payment scheme
by  the  new  Member  State  for  the  period  estimated  necessary  to
allow  for  the  necessary  management  and  control  procedures  to  be
fully in place and to function properly.

Before  the  end  of  the  extended  application  period  referred  to  in
point (b) of the first subparagraph, paragraph 10 shall apply.

Until  the  end  of  the  5  year  period  of  application  of  the  single  area
payment  scheme  (i.e.  2008),  the  percentage  rate  set  out  in
Article 143a  shall  apply.  If  the  application  of  the  single  area
payment scheme is extended beyond that date pursuant to a decision
taken  under  point  (b)  of  the  first  subparagraph,  the  percentage  rate
set out in Article 143a for the year 2008 shall apply until the end of
the last year of application of the single area payment scheme.

12. After  the  end  of  the  period  of  application  of  the  single  area  payment
scheme,  the  direct  payments  shall  be  applied  according  to  the  relevant
Community rules and on the basis of the quantitative parameters, such as
base area, premium ceilings and Maximum Guaranteed Quantities (MGQ),
specified in the Act of Accession for each direct payment and subsequent
Community legislation. The percentage rates set out in Article 143a for the
relevant years shall subsequently apply.

13. New  Member  States  shall  inform  the  Commission  in  detail  of  the
measures  taken  to  implement  this  Article  and  in  particular  the  measures
taken pursuant to paragraph 7.

19

Complementary national direct payments and direct payments

Article 143c

1.

2.

For  the  purposes  of  this  Article:  "CAP-like  national  scheme"  shall  mean
any  national  direct  payment  scheme  applicable  prior  to  the  date  of
accession of the new Member States under which the support was granted
to farmers in respect of production covered by one of the direct payments.

The new Member States shall have the possibility, subject to authorisation
by the Commission, of complementing any direct payments up to:

(a) with  regard  to  all  direct  payments,  55%  of  the  level  of  direct
payments  in  the  Community  as  constituted  on  30 April 2004  in
2004,  60%  in  2005  and  65%  in 2006  and  from 2007  up  to
30 percentage  points  above  the  applicable  level  referred  to  in
Article 143a in the relevant year. However, the Czech Republic may
complement direct payments in the potato starch sector up to 100%
of the level applicable in the Community as constituted on 30 April
2004.

or

(b)

(i) with  regard  to  direct  payments  other  than  the  single  payment
scheme, the total level of direct support the farmer would have been
entitled  to  receive,  on  a  product  by  product  basis,  in  the  new
Member State in the calendar  year 2003 under  a  CAP-like  national
scheme  increased  by  10  percentage  points.  However  for  Lithuania
the reference year shall be the calendar  year 2002 and for Slovenia
the  increase  shall  be  10  percentage  points  in  2004,  15  percentage
points  in  2005,  20  percentage  points  in  2006  and  25 percentage
points from 2007.

(ii)  with  regard  to  the  single  payment  scheme  the  total  amount  of
complementary national direct aid which may be  granted by  a new
Member  State  in  respect  of  a  given  year  shall  be  limited  by  a
specific  financial  envelope.  This  envelope  shall  be  equal  to  the
difference between:

– 

and

– 

the  total  amount  of  CAP-like  national  direct  support  that
would  be  available  in  the  relevant  new  Member  State  in
respect of the calendar year 2003 or, in the case of Lithuania,
of  the  calendar  year  2002,  each  time  increased  by  10%.
However,  for  Slovenia  the  increase  shall  be  10  percentage
points  in  2004,  15  percentage  points  in 2005,  20  percentage
points in 2006 and 25 percentage points from 2007.

the national ceiling of that new Member State listed in Annex
VIIIa  adjusted,  where  appropriate, 
in  accordance  with
Articles 64(2) and 70(2).

For the purpose of calculating the total amount referred to in the first
indent  above  the  national  direct  payments  and/or  its  components
corresponding  to  the  Community  direct  payments  and/or  its

20

components  which  were  taken  into  account  for  calculating  the
effective ceiling of the new Member State concerned in accordance
with  Article  71c  (see  new  Annex  VIIIa),  64(2)  and  70(2)  shall  be
included.

For each direct payment concerned the new Member States may choose to
apply one of the two abovementioned options (a) and (b).

The  total  direct  support  the  farmer  may  be  granted  in  the  new  Member
States  after  accession  under  the  relevant  direct  payment  including  all
complementary  national  direct  payments  shall  not  exceed  the  level  of
direct  support  the  farmer  would  be  entitled  to  receive  under  the
corresponding direct payment then applicable to the Member States in the
Community as constituted on 30 April 2004.

3.

Cyprus  may  complement  direct  aid  paid  to  a  farmer  under  any  direct
payments  listed  in  Annex  I  up  to  the  total  level  of  support  the  farmer
would have been entitled to receive in Cyprus in 2001.

The Cypriot authorities shall ensure that the total direct support the farmer
is  granted  after  accession  in  Cyprus  under  the  relevant  direct  payment
including all complementary national direct payments in no case exceeds
the  level  of  direct  support  the  farmer  would  be  entitled  to  receive  under
that direct payment in the relevant  year  in  the Community  as  constituted
on 30 April 2004.

The  total  amounts  of  complementary  national  aid  to  be  granted  shall  be
those indicated in Annex XII.

The  complementary  national  aid  to  be  granted  shall  be  subject  to  any
adjustments  which  may  be  rendered  necessary  by  developments  in  the
common agricultural policy.

The provisions of paragraphs 2 and 5 shall not apply to Cyprus.

If a new Member State decides to apply the single area payment scheme,
that  new  Member  State  may  grant  complementary  national  direct  aid
under the conditions referred to in paragraphs 5 and 8.

In  respect  of  the  year  2004,  the  total  amount  per  (sub)sector  of
complementary national aid granted in that year when applying the single
area payment scheme shall be limited by a specific financial envelope per
(sub)sector. This envelope shall be equal to the difference between:

– 

– 

the  total  amount  of  support  per  (sub)sector  resulting  from  the
application  of  the  points  (a)  or  (b)  of  paragraph  2,  as  appropriate,
and

the  total  amount  of  direct  support  that  would  be  available  in  the
relevant  new  Member  State  for  the  same  (sub)sector  in  the  year
concerned under the single area payment scheme.

In respect of any year as from 2005 the requirement to operate the above
limitation  by  means  of  applying  (sub)sector  specific  financial  envelopes
shall not apply. However, the new Member States shall retain the right to

4.

5.

21

apply  (sub)sector  specific  financial  envelopes,  provided  that  such  a
(sub)sector specific financial envelope may only relate to

– 

– 

the direct payments combined to the single payment scheme, and/or

one  or  more  of  the  direct  payments  that  are  excluded  or  may  be
excluded  from  the  single  payment  scheme  in  accordance  with
Article 70(2) or may be subject to partial implementation as referred
to in Article 64(2).

6.

The new Member State may decide on the basis of objective criteria  and
after authorisation by the Commission, on the amounts of complementary
national aid to be granted.

7.

The authorisation by the Commission shall:

8.

9.

– 

– 

– 

where  point  (b)  of  paragraph  2  applies,  specify  the  relevant
CAP-like national direct payment schemes,

define the level up to which the complementary national aid may be
paid,  the  rate  of  the  complementary  national  aid  and,  where
appropriate, the conditions for the granting thereof,

be  granted  subject  to  any  adjustments  which  may  be  rendered
necessary by developments in the common agricultural policy.

No  complementary  national  payments  or  aid  shall  be  granted  for
agricultural activities in respect of which direct payments are not foreseen
in the Community as constituted on 30 April 2004.

Cyprus  may,  in  addition  to  the  complementary  national  direct  payments,
grant  transitional  and  degressive  national  aid  until  the  end  of  2010.  This
State  aid  shall  be  granted  in  a  form  similar  to  Community  aid,  such  as
decoupled payments.

Taking into account the nature and amount of national support granted in
2001, Cyprus may grant State aid to the (sub)sectors listed in Annex XIII
and up to the amounts specified in that Annex.

The State aid to be granted shall be subject to any adjustments which may
be rendered necessary by developments in the common agricultural policy.
Should  such  adjustments  prove  necessary,  the  amount  of  the  aid  or  the
conditions  for  the  granting  thereof  shall  be  amended  on  the  basis  of  a
decision by the Commission.

Cyprus  shall  submit  an  annual  report  to  the  Commission  on  the
implementation  of  the  State  aid  measures,  indicating  the  aid  forms  and
amounts per (sub)sector.

10. Latvia  may,  in  addition  to  the  complementary  national  direct  payments,
grant  transitional  and  degressive  national  aid  until  the  end  of  2008.  This
State  aid  shall  be  granted  in  a  form  similar  to  Community  aid,  such  as
decoupled payments.

Latvia may grant State aid to the  (sub)sectors listed in  Annex  XIV  up to
the amounts specified in that Annex.

22

The State aid to be granted shall be subject to any adjustments which may
be rendered necessary by developments in the common agricultural policy.
Should  such  adjustments  prove  necessary,  the  amount  of  the  aid  or  the
conditions  for  the  granting  thereof  shall  be  amended  on  the  basis  of  a
decision by the Commission.

Latvia  shall  submit  an  annual  report  to  the  Commission  on  the
implementation  of  the  State  aid  measures,  indicating  the  aid  forms  and
amounts per (sub)sector.;

*

**

***

Council  Regulation  (EEC)  No  3508/92  establishing  an  integrated  administration
and  control  system  for  certain  Community  aid  schemes  (OJ  L  355,  5.12.1992,
p. 1).
Council  Directive  92/102/EEC  on  the  identification  and  registration  of  animals
(OJ L 355, 5.12.1992, p. 32).
Regulation  (EC)  No  1760/2000  of  the  European  Parliament  and  of  the  Council
establishing a system for the identification and registration of bovine animals and
regarding  the  labelling  of  beef  and  beef  products  and  repealing  Council
Regulation (EC) No 820/97 (OJ L 204, 11.8.2000, p.1).";

(d)

In Article 145 after point (d) the following point is inserted:

"(d)a)detailed  rules  relating  to  the  implementation  of  the  provisions  in

Title IVa,";

(e)

The following sentence is added to the fourth paragraph of Article 153:

"The  simplified  scheme  referred  to  in  Article  2a  of  that  Regulation  shall  not
apply to the new Member States.";

(f)

In Annex I, the following line is inserted after the line 'Single payment':

"Single area payment

Title  IVa,  Article  143b  of
this Regulation

Decoupled  payment  replacing  all
the direct payments referred to in
this Annex"

(g) The following Annexes XII, XIII and XIV are added:

23

"ANNEX XII

Table 1 – Cyprus: Complementary national direct payments where the normal schemes for direct payments apply

Schedule of
increments

Sector

25%

2004

30%

2005

35%

2006

40%

2007

50%

2008

60%

2009

70%

2010

80%

2011

90%

2012

Arable crops (durum
wheat excluded)

7 913 822

7 386 234

6 858 646

6 331 058

75 881

4 220 705

3 165 529

2 110 353

1 055 176

Durum wheat

2 256 331

2 059 743

1 888 505

1 743 235

1 452 696

1 162 157

871 618

581 078

290 539

Grain legumes

30 228

28 273

26 318

24 363

20 363

16 362

12 272

8 181

4 091

Milk and dairy

887 535

1 759 243

2 311 366

2 133 569

1 777 974

1 422 379

1 066 784

711 190

355 595

Beef

3 456 709

3 226 262

2 995 814

2 765 367

2 304 473

1 843 578

1 382 684

921 789

460 895

Sheep and goat

8 267 087

7 715 948

7 164 809

6 613 669

5 511 391

4 409 113

3 306 835

2 204 556

1 102 278

Olive oil

Tobacco

Bananas

Dried grapes

Almonds

5 951 250

5 554 500

5 157 750

4 761 000

3 967 500

3 174 000

2 380 500

1 587 000

793 500

782 513

730 345

678 178

626 010

521 675

417 340

313 005

208 670

104 335

3 290 625

3 071 250

2 851 875

2 632 500

2 193 750

1 755 000

1 316 250

877 500

104 393

49 594

86 562

30 878

68 732

12 161

50 901

15 241

–

–

–

–

–

–

–

–

–

–

–

Total

32 990 086

31 649 237

30 014 153

27 681 672

23 040 943

18 420 634

13 815 476

9 210 317

4 166 409

Complementary national direct payments under Single Payment Scheme:

The total amount of complementary national direct payments that  may be granted under the  Single Payment Scheme  shall be  equal  to  the  sum  of  the  sectoral  ceilings
referred to in this table relating to the sectors that are covered by the Single Payment Scheme to the extent that the support in these sectors is decoupled.

24

Table 2 – Cyprus: Complementary national direct payments where the single area payment scheme for direct payments applies

Single area payment scheme

Sector

2004

2005

2006

2007

Arable crops (durum wheat excluded)

6 182 503

2 654 980

27 346

1 153 380

4 608 945

3 997 873

2 469 490

20 566

2 323 212

4 608 945

2 687 095

2 358 196

16 498

3 501 948

4 608 945

1 303 496

2 240 719

12 204

3 492 448

4 608 945

2008

–

2 018 131

4 068

3 474 448

4 608 945

10 932 782

10 887 782

10 860 782

10 832 282

10 778 282

7 215 000

6 855 000

6 639 000

6 411 000

5 979 000

182 325

4 368 300

1 049 000

176 715

4 358 700

1 046 750

173 349

4 352 940

1 045 400

169 796

4 346 860

1 043 975

163 064

4 335 340

1 041 275

Durum wheat

Grain legumes

Milk and dairy

Beef

Sheep and goat

Olive oil

Dried grapes

Bananas

Tobacco

TOTAL

38 374 562

36 745 034

36 244 154

34 461 726

32 402 554

25

Sector

Arable crops (durum wheat excluded)

Durum wheat

Grain legumes

Milk and dairy

Beef

Sheep and goat

Olive oil

Dried grapes

Bananas

Tobacco

ANNEX XIII

State aid Cyprus

2004

6 182 503

2 654 980

27 346

1 153 380

4 608 945

2005

3 997 873

2 469 490

20 566

2 323 212

4 608 945

10 932 782

10 887 782

7 215 000

182 325

4 368 300

1 049 000

6 855 000

176 715

4 358 700

1 046 750

2006

2007

2008

2 687 095

2 358 196

16 498

3 501 948

4 608 945

10 860 782

6 639 000

173 349

4 352 940

1 045 400

1 303 496

2 240 719

12 204

3 492 448

4 608 945

10 832 282

6 411 000

169 796

4 346 860

1 043 975

–
2 018 131

4 068

3 474 448

4 608 945

10 778 282

5 979 000

163 064

4 335 340

1 041 275

TOTAL

38 374 562

36 745 034

36 244 154

34 461 726

32 402 554

STATE AID

Sector

Flax

Pigmeat sector

Sheep and goats

Seeds

2004

654 000

204 000

107 000

109 387

Total

1 074 387

ANNEX XIV

State aid Latvia

2005

523 200

163 200

85 600

87 510

859 510

26

2006

392 400

122 400

64 200

66 110

645 110

2007

261 600

81 600

42 800

44 710

430 710

2008

130 800

40 800

21 400

23 310

216 310 "

Article 2

Chapter 4 of Annex VI to the Act of Accession is adapted as follows:

1.

Point (2) is replaced by the following:

‘"2. 31999 R 1254: Council Regulation (EC) No 1254/1999 of 17 May 1999 on the
common organisation of the market in beef and veal (OJ L 160, 26.6.1999, p. 21), as
last amended by:

– 32003  R  1782:  Council  Regulation  (EC)  No  1782/2003  of  29  September  2003
establishing common rules for direct support schemes under the common agricultural
policy and  establishing  certain support schemes for farmers (OJ L 270, 21.10.2003,
p. 1):

By way of derogation from Article  3(f) of Regulation (EC) No 1254/1999,  Estonia
may until the end of the year 2004 consider cows of the breeds listed in Annex I to
Commission  Regulation  (EC)  No 2342/1999  laying  down  detailed  rules  for  the
application of Council Regulation (EC) No 1254/1999 on the common organisation
of  the  market  in  beef  and  veal  as  regards  premium  schemes*,  as  eligible  for  the
suckler  cow  premium  under  subsection  3  of  Regulation  (EC)  No 1254/1999,
provided they have been covered or inseminated by bulls of a meat breed.

2a.  32003  R  1782:  Council  Regulation  (EC)  No  1782/2003  of  29  September  2003
establishing common rules for direct support schemes under the common agricultural
policy  and  establishing  certain  support  schemes  for  farmers  (OJ L 270,  21  October
2003, p. 1):

By way of derogation from Article 122(d) of Regulation (EC) No 1782/2003, Estonia
may until the end of the year 2006 consider cows of the breeds listed in Annex I to
Commission  Regulation  (EC)  No 2342/1999  laying  down  detailed  rules  for  the
application of Council Regulation (EC) No 1254/1999 on the common organisation
of  the  market  in  beef  and  veal  as  regards  premium  schemes*,  as  eligible  for  the
suckler cow premium under Article 125 of Regulation (EC) No 1782/2003, provided
they have been covered or inseminated by bulls of a meat breed.

* OJ L 281, 4.11.1999, p. 30."

2.

Point (3) is deleted.

Article 3

In Chapter 5.A of Annex VII of the Act of Accession, the following point 5 is added:

"5.

32003  R  1782:  Council  Regulation  (EC)  No  1782/2003  of  29  September  2003
establishing common rules for direct support schemes under the common agricultural
policy and  establishing  certain support schemes for farmers (OJ L 270, 21.10.2003,
p. 1):

By  way  of  derogation  from  Article  131(1)  of  Regulation  (EC)  No  1782/2003,  in
Cyprus  the  application  of  the  stocking  density  shall  be  gradually  phased  in  on  a
linear  basis  from  4,5 LU  per hectare  for  the  first  year  after  accession  to  1,8 LU
per hectare five years after accession."

27

Article 4

In Chapter 4.A of  Annex VIII to the Act of Accession, point 3 is replaced by the following
text:

"3.

31999  R  1254:  Council  Regulation  (EC)  No  1254/1999  of  17  May  1999  on  the
common organisation of the market in beef and veal (OJ L 160, 26.6.1999, p. 21), as
last amended by:

– 32003  R  1782:  Council  Regulation  (EC)  No  1782/2003  of  29  September  2003
establishing common rules for direct support schemes under the common agricultural
policy and  establishing  certain support schemes for farmers (OJ L 270, 21.10.2003,
p. 1):

By  way  of  derogation  from  Article  3(f)  of  Regulation  (EC)  No  1254/1999,  Latvia
may until the end of the year 2004 consider cows of the breeds listed in Annex I to
Commission  Regulation  (EC)  No 2342/1999  laying  down  detailed  rules  for  the
application of Council Regulation (EC) No 1254/1999 on the common organisation
of  the  market  in  beef  and  veal  as  regards  premium  schemes*,  as  eligible  for  the
suckler  cow  premium  under  subsection  3  of  Regulation  (EC)  No 1254/1999,
provided they have been covered or inseminated by bulls of a meat breed.

4.

32003  R  1782:  Council  Regulation  (EC)  No  1782/2003  of  29  September  2003
establishing common rules for direct support schemes under the common agricultural
policy and establishing certain support schemes for farmers (OJ L 270, 21.10 2003,
p. 1):

By way of derogation from Article 122(d) of Regulation (EC) No 1782/2003, Latvia
may until the end of the year 2006 consider cows of the breeds listed in Annex I to
Commission  Regulation  (EC)  No 2342/1999  laying  down  detailed  rules  for  the
application of Council Regulation (EC) No 1254/1999 on the common organisation
of  the  market  in  beef  and  veal  as  regards  premium  schemes*,  as  eligible  for  the
suckler cow premium under Article 125 of Regulation (EC) No 1782/2003, provided
they have been covered or inseminated by bulls of a meat breed.

* OJ L 281, 4.11.1999, p. 30"

Article 5

In Chapter 5.A of Annex IX to the Act of Accession, point 3 is replaced by the following text:

"3.

31999  R  1254:  Council  Regulation  (EC)  No  1254/1999  of  17  May  1999  on  the
common organisation of the market in beef and veal (OJ L 160, 26.6.1999, p. 21), as
last amended by:

– 32001  R  2345  Commission  Regulation  (EC)  No  2345/2001  of  30.11.2001
(OJ L 315, 1.12.2001, p. 29)

By way of derogation from Article 3(f) of Regulation (EC) No 1254/1999, Lithuania
may until the end of the year 2004 consider cows of the breeds listed in Annex I to
Commission  Regulation  (EC)  No 2342/1999  laying  down  detailed  rules  for  the
application of Council Regulation (EC) No 1254/1999 on the common organisation
of  the  market  in  beef  and  veal  as  regards  premium  schemes,  as  eligible  for  the
suckler  cow  premium  under  subsection  3  of  Regulation  (EC)  No 1254/1999,
provided they have been covered or inseminated by bulls of a meat breed.

28

4.

32003  R  1782:  Council  Regulation  (EC)  No  1782/2003  of  29  September  2003
establishing common rules for direct support schemes under the common agricultural
policy  and  establishing  certain  support  schemes  for  farmers  (OJ L 270,  21.102003,
p. 1):

By way of derogation from Article 122 of Regulation (EC) No 1782/2003, Lithuania
may until the end of the year 2006 consider cows of the breeds listed in Annex I to
Commission  Regulation  (EC)  No 2342/1999  laying  down  detailed  rules  for  the
application of Council Regulation (EC) No 1254/1999 on the common organisation
of  the  market  in  beef  and  veal  as  regards  premium  schemes*,  as  eligible  for  the
suckler cow premium under Article 125 of Regulation (EC) No 1782/2003, provided
they have been covered or inseminated by bulls of a meat breed.

* OJ L 281, 4.11.1999, p. 30."

Article 6

Chapter 4.A of Annex XI to the Act of Accession is adapted as follows:

1.

The first paragraph of point 1(b) is replaced by the following text:

"By way of derogation from Article 21 of Regulation (EEC) No 2759/75, Article 23
of  Regulation  (EC)  No  1784/2003  (cid:1)repealing  Regulation  (EC)  No  1766/92  on  the
common  organisation  of  the  market  in  cereals(cid:2),  Article  24  of  Regulation  (EC)
No 1785/2003 (cid:1)repealing Regulation (EC) No 3072/95 on the common organisation
of  the  market  in  rice(cid:2),  Article  23  of  Regulation  (EC)  No  2201/96,  Article  40  of
Regulation No 1254/1999, Article 38(1) of Regulation No 1255/1999 and Article 45
of  Regulation  (EC)  No  1260/2001,  Malta  may  grant  special  temporary  State  aid  to
support  the  purchase  of  imported  agricultural  products  which  before  accession
benefited from export refunds or which were imported from third countries without
duties  provided  that  Malta  provides  a  mechanism  to  guarantee  that  the  support  is
effectively passed on to the consumers. The  aid shall be  calculated on the basis of,
and  must not  exceed,  the  price differential between EU prices (including transport)
and the world market ones, and shall take into account the level of export refunds."

2.

Point 2 is replaced by the following text:

"2.

32003 R 1788: Council Regulation (EC No 1788/2003 of 29 September 2003
establishing an additional levy in the milk and milk products sector (OJ L 270,
21.10.2003, p. 123):

By  way  of  derogation  from  Article  8  of  Regulation  (EC)  No  1788/2003,  the
reference  fat  content  of  milk  shall  be  determined  for  Malta  after  a  period  of
five years from the date of accession.

Until the reference fat content is determined the comparison [or adjustment] of
fat  content for the  purpose  of  calculating  the  additional  levy  for  deliveries  as
laid  down  in  Article  9  of  Regulation  (EC)  No  1788/2003  shall  not  be
applicable in Malta."

3.

After point 5 the following point 5a is inserted:

"5a. 32003 R 1782: Council Regulation (EC) No 1782/2003 of 29 September 2003
establishing  common  rules  for  direct  support  schemes  under  the  common

29

agricultural  policy  and  establishing  certain  support  schemes  for  farmers
(OJ L 270, 21.10.2003, p. 1):

By  way  of  derogation  from  Article  131(1)  and  (2)  of  Regulation  (EC)
No 1782/2003,  in  Malta  the  application  of  the  stocking  density  shall  be
gradually phased in on a linear basis from 4,5 LU per hectare for the first year
after  accession  to  1,8  LU  per  hectare  five  years  after  accession.  During  this
period, for determining the stocking density on the  holding, account shall not
be taken of dairy cows needed to produce the total reference quantity of milk
allocated to the producer.

Malta  shall  submit  a  report  on  the  implementation  of  this  measure  to  the
Commission by 31 December 2007."

Article 7

Chapter 6.A of Annex XII to the Act of Accession is adapted as follows:

1.

Point 4 is replaced by the following text:

"4.31999  R  1254:  Council  Regulation  (EC)  No  1254/1999  of  17  May  1999  on  the
common organisation of the market in beef and veal (OJ L 160, 26.6.1999, p. 21), as
last amended by:

32003  R  1782:  Council  Regulation  (EC)  No  1782/2003  of  29  September  2003
establishing common rules for direct support schemes under the common agricultural
policy and establishing certain support schemes for farmers (OJ L 270, 21.10.2003,
p. 1):

By  way  of  derogation  from  Article  3(f)  of  Regulation  (EC)  No  1254/1999,  Poland
may until the end of the year 2004 consider cows of the breeds listed in Annex I to
Commission  Regulation  (EC)  No 2342/1999  laying  down  detailed  rules  for  the
application of Council Regulation (EC) No 1254/1999 on the common organisation
of  the  market  in  beef  and  veal  as  regards  premium  schemes*,  as  eligible  for  the
suckler  cow  premium  under  subsection  3  of  Regulation  (EC)  No 1254/1999,
provided they have been covered or inseminated by bulls of a meat breed.

* OJ L 281, 4.11.1999, p. 30."

2.

The following point 5 is added:

"5.32003  R  1782:  Council  Regulation  (EC)  No  1782/2003  of  29  September  2003
establishing common rules for direct support schemes under the common agricultural
policy and establishing certain support schemes for farmers (OJ L 270, 21.10.2003,
p. 1):

By way of derogation from Article 122(d) of Regulation (EC) No 1782/2003, Poland
may until the end of the year 2006 consider cows of the breeds listed in Annex I to
Commission  Regulation  (EC)  No 2342/1999  laying  down  detailed  rules  for  the
application of Council Regulation (EC) No 1254/1999 on the common organisation
of  the  market  in  beef  and  veal  as  regards  premium  schemes*,  as  eligible  for  the
suckler cow premium under Article 125 of Regulation (EC) No 1782/2003, provided
they have been covered or inseminated by bulls of a meat breed."

* OJ L 281, 4.11.1999, p. 30."

30

Article 8

This  Decision  shall  be  drawn  up  in  the  Spanish,  Czech,  Danish,  German,  Estonian,  Greek,
English,  French,  Irish,  Italian,  Latvian,  Lithuanian,  Hungarian,  Maltese,  Dutch,  Polish,
Portuguese,  Slovak,  Slovenian,  Finnish  and  Swedish  languages,  all  twenty  one  texts  being
equally authentic.

Article 9

This  Decision  shall  enter  into  force  on  1  May  2004  subject  to  the  entry  into  force  of  the
Treaty of Accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus,
the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of
Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic.

Done at Brussels,

For the Council
The President

31

FINANCIAL STATEMENT

BUDGET HEADING:
Subsection B1

APPROPRIATIONS:
44 762,45 Mio €

TITLE:
Proposal for a Council Decision on the adaptation of the Act concerning the conditions of accession of
the  Czech  Republic,  the  Republic  of  Estonia,  the  Republic  of  Cyprus,  the  Republic  of  Latvia,  the
Republic  of  Lithuania,  the  Republic  of  Hungary,  the  Republic  of  Malta,  the  Republic  of  Poland,  the
Republic  of  Slovenia  and  the  Slovak  Republic  and  the  adjustments  to  the  Treaties  on  which  the
European Union is founded, following the reform of the Common Agricultural Policy

LEGAL BASIS:
Act of Accession – Article 23

AIMS:
To adopt the Accession Treaty following the decision on CAP Reform.

12 MONTH
PERIOD

(EUR million)

CURRENT
FINANCIAL
YEAR 2004
(EUR million)
0

FOLLOWING
FINANCIAL
YEAR 2005
(EUR million)
–15,6

FINANCIAL IMPLICATIONS

CHARGED TO THE EC BUDGET

NATIONAL AUTHORITIES
OTHER

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

NATIONAL

OWN RESOURCES OF THE EC

1.

2.

3.

4.

5.

5.0

5.1

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE

5.2 METHOD OF CALCULATION:

See Annex (Heading 1A)

2006
–32,0

2007

2008

2009

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?

6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?

YES

YES

NO

NO

OBSERVATIONS:

The  figures  in  the  Annex  have  been  established  in  comparison  to  the  financial  estimates  made  at  the  end  of
enlargement negotiations in Copenhagen in December 2002.
In the Financial implications presented by the Commission  following the Council agreement of June 2003 in
Luxembourg on the CAP Reform, the most important changes had already been taken into account.

32

Copenhagen

0

Proposal

Copenhagen

Proposal

Annex: Heading 1A

Copenhagen 1999 prices

Copenhagen current prices

DAIRY

Premium

Difference

Market expenditure

Difference

Increase Protein MGA

Copenhagen (9.5€/t * yield)

Increase MGA (200 000 ha * 55€/t)

Difference

NUTS

Difference

DURUM WHEAT

Difference

Dried fodder

Difference

RICE

Difference

Copenhagen

Proposal (10 400 ha * 120.75)

Copenhagen

Proposal

Copenhagen

Processing aid (new and old)

Proposal decoupled farm aid

Copenhagen

Proposal coupled payment

Proposal decoupled payment

Total changes compared to COPENHAGEN

Of which already included in CAP-reform
calculation in Luxembourg

33

mio €

2004

2005

2006

327

361

2032

2288

2322

2667

Current prices

0

54

54,0

392

316

46

130

84,0

452

332

–76,0

–120,0

1,5

2,8

1,3

0

1,3

1,3

1,1

1,1

0,0

7,2

7,2

3,6

3,6

0,1

0,3

0,2

0,3

1,8

3,3

1,5

0

1,3

1,3

0,0

1,0

1,0

7,2

3,5

3,6

–0,1

0,2

0,3

0,2

0,4

–15,6

–32,0

–22,0

–36,0

0,0

154

154

0,0

0

0

0,0

0

0,0

0,0

0

0

0,0

2,8

2,8

0

0,0

0

0

0

0,0

0,0

0,0