WRITTEN QUESTION E-0033/04 by Jan Mulder (ELDR) to the Commission. Distortion of competition by the introduction of regional premiums.
Date: 2004-01-20
Institutions: European Parliament, Provisional data
Subjects: Denmark, Germany, accession to the European Union, aid per hectare, common agricultural policy, horticulture, restriction on competition

3.4.2004

EN

Official Journal of the European Union

C 84 E/527

up operation and, second, from extending the other areas of [their] holding planted with apple trees (other
than cider-apple trees), pear trees (other than perry-pear trees), peach trees and/or nectarine trees’ (1). This
requirement, not aimed at any particular variety of dessert apple, was necessary in order to give the
grubbing up operations the full economic effect desired and avoid wasting Community funds.

(1) See Article 3(2) of Commission Regulation (EC) No 2467/97 of 11 December 1997 laying down detailed rules for
the application of Council Regulation (EC) No 2200/97 on the improvement of the Community production of
apples, pears, peaches and nectarines, OJ L 341, 12.12.1997.

(2004/C 84 E/0602)

WRITTEN QUESTION E-0022/04

by Mario Borghezio (NI) to the Commission

(20 January 2004)

Subject: Support for the Po Valley dairy farmers’ campaign

Does the European Commission not consider that the current milk quota scheme, is particularly hard on
dairy producers in the Po valley as Italy is the only one of the Member States where consumption is much
higher than production quotas?

Is the European Commission aware that this anomaly has had serious repercussions on farmers in the
Po Valley who are even now still being forced to leave their farms to take part in demonstrations or man
roadblocks in Milan and Rome to demand that the Italian Government safeguard the rights of Po Valley
dairy production at European level?

Answer given by Mr Fischler on behalf of the Commission

(23 February 2004)

Milk quotas were introduced by the Council in 1984 to reduce the imbalance between supply and demand
in the milk sector. The production quotas were allocated on the basis not of consumption per geographical
area but of the output of each individual producer over a specified period. That was the only way of
avoiding discrimination between producers.

Since introduction of the quota scheme the reference quantities allocated to Italy have been increased
considerably, by 19,6 % over the period 1984 to 2004, whereas in most of the other Member States
quotas have been either stabilised or reduced.

We consider that the milk quota scheme holds out the prospect of stable production and income security
to farmers without impeding restructuring of milk production in the Union, and take the view that full and
correct application is a guarantee of its being comprehensively effective.

(2004/C 84 E/0603)

WRITTEN QUESTION E-0033/04

by Jan Mulder (ELDR) to the Commission

(20 January 2004)

Subject: Distortion of competition by the introduction of regional premiums

Chapter 5 of the new Council Regulation (EC) No 1782/2003 (1) concerning direct support schemes gives
Member States the option of introducing regional premiums. Denmark and Germany are reported to be
about to introduce such an arrangement.

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Official Journal of the European Union

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3.4.2004

1. What premium per hectare will be paid in regions where this arrangement is introduced? Can the
Commission provide its own overview of payments by land-area on the basis of comparable (temporary)
arrangements in the new Member States?

Does the Commission share the view that the option, under this arrangement, of using subsidised
2.
land to grow crops that are not covered by the rules for direct support schemes will damage fair
competition and return European agricultural policy to national control?

In Article 60 of Regulation (EC) No 1782/2003 restrictions are imposed on growing vegetables, fruit
3.
and potatoes in such regions. How does the Commission intend to monitor the production of crops
growers are normally free to produce? What reductions and fines will be imposed on producers and
regions if these de facto quotas are exceeded?

4. What action will the Commission take to guarantee fair competition for other market-gardening
products and for other agricultural products that are not covered by the direct support scheme?

Having regard to the foregoing, how can the Commission reconcile these regional premiums with

5.
the principle of a single European agricultural policy, as laid down in the Treaty?

(1) OJ L 270, 21.10.2003, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(2 March 2004)

In accordance with Article 58(1) of Council Regulation (EC) No 1782/2003 of 29 September 2003
1.
establishing common rules for direct support schemes under the common agricultural policy and
establishing certain support schemes for farmers, the Member States may decide to apply the single
payment scheme (SPS) at a regional level until 1 August of the year preceding the first year of application
of the SPS. At the present stage, the Commission does not know exactly under what conditions the
Member States will apply the single payment scheme on a regional level.

Nor can the Commission indicate the expected per hectare premiums for the new Member States at the
present stage. The transitional Single Area Payment Scheme (SAPS) payments are defined as the total
budget for direct payments in a year divided by the eligible area. Neither the national envelopes nor the
eligible areas under SAPS have been established yet.

The Commission does not think that decoupled support will

2.
lead to unfair competition in the
agriculture sector or that such support would lead to a re-nationalisation of the agricultural policy. Instead,
the decoupling of support will encourage farmers to produce crops or products that are best suited to the
(local) conditions and for which they have the best market opportunities.

The control of the respect of the limits set in Article 60 of the above-mentioned Council Regulation

3.
will be similar to existing control procedures for coupled direct payments.

4. Most horticultural production is characterised by a high value output per hectare. Even under the
regionally applied single payment scheme direct support for horticulture will be relatively low. Therefore,
the Commission does not expect significant competitive effects. However, if necessary, the Commission
will make appropriate proposals to remedy any disturbance of
the markets in accordance with
Article 60(8) of the above Council Regulation.

The reformed Common Agricultural Policy (CAP) creates a common framework to support the agricultural
sector in all its diversity across Europe. To that end, the necessary flexibility has been left to the Member
States in the application of this common framework in specific local circumstances.