Proposal for a Council Regulation amending Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and Regulation (EC) No 1788/2003 establishing a levy in the milk and milk products sector (presented by the Commission)
Date: 2004-10-25
Institutions: European Commission
Subjects: Austria, Germany, agricultural quota, aid to agriculture, milk, milk product, regulation of agricultural production

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.10.2004 
COM(2004) 710 final 

2004/0253 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1782/2003 establishing common rules for direct support 
schemes under the common agricultural policy and establishing certain support schemes 
for farmers and Regulation (EC) No 1788/2003 establishing a levy in the milk and 
milk products sector 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

Due  to  the  geographic  location  of  the  Kleinwalsertal  (Community  of  Mittelberg)  and  the 
Community of Jungholz, which are situated within the Austrian territory and only accessible 
by road from Germany, the milk of their producers (988 712 kg) has been delivered to German 
buyers. 

Since  the  start  of  the  Community  milk  quota  system  in  1984  the  milk  marketed  by  these 
producers  has  been  taken  into  account  in  the  establishment  of  the  German  milk  reference 
quantities. 

After  Austria’s  Accession  to  the  European  Union  in  1995,  direct  payments  under  the 
prevailing common agricultural policy (head-age premiums, arable crops) have been granted 
to  the  milk  producers  in  Kleinwalsertal  (Community  of  Mittelberg)  and  the  Community  of 
Jungholz and administered by the Austrian authorities. 

Regulation  (EC)  No  1782/2003  has  introduced  direct  payment  for  the  dairy  sector  (dairy 
premium)  starting  from  the  calendar  year  2004. These payments are based  on  the individual 
reference quantities of producers concerned which are administered by Germany whilst, under 
that  Regulation  the  payment  regarding  the  dairy  premium  should  be  carried  out  by  the 
Austrian  authorities  within  the  limit  of  their  national  reference  quantity  and  their  budgetary 
ceiling. Both the reference quantity and the ceiling have been calculated for  Austria  without 
taking into account the individual reference quantities for those regions. 

To permit a practical and correct administration of the dairy premium and its inclusion into the 
Single  Payment  Scheme  (in  Germany  from  2005),  Council  Regulation  (EC)  No  1782/2003 
needs to be amended in such a way that the reference quantities and the budgetary ceiling for 
Germany and Austria  take  into account the milk  reference  quantities of the  producers of the 
regions  concerned.  Consequently,  the  German  reference  quantities  of  producers  concerned 
under  Council  Regulation  (EC)  No 1788/2003  have  to  be  converted  into  Austrian  reference 
quantity as from milk quota year 2004/05. 

The proposed amendments are clearly only technical adaptations that became necessary due to 
the recent reform of the milk sector. 

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2004/0253 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1782/2003 establishing common rules for direct support 
schemes under the common agricultural policy and establishing certain support schemes 
for farmers and Regulation (EC) No 1788/2003 establishing a levy in the milk and 
milk products sector 

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) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas: 

(1) 

(2) 

(3) 

1 

2 
3 

4 

Due  to  the  geographic  location  of  the  Kleinwalsertal  (Community  of  Mittelberg)  and 
the Community of Jungholz, which are situated within the Austrian territory and only 
accessible  by  road  from  Germany,  the  milk  of  their  producers  has  been  delivered  to 
German buyers. 

Since  Regulation  (EEC)  No  804/68  of  the  Council  of  27  June  1968  on  the  common 
organisation  of  the  market  in  milk  and  milk  products1,  as  amended  by  Regulation 
(EEC)  No  856/842,  has  introduced  the  Community  milk  quota  system,  the  milk 
marketed  by  these  producers  has  been  taken  into  account  in  the  establishment  of  the 
German milk reference quantities. 

Council  Regulation  (EC)  No  1782/20033  has  introduced  direct  payment  for  the  dairy 
sector  starting  from  the  calendar  year  2004.  These  payments  are  based  on  the 
individual  reference  quantities  of  producers  concerned  which  are  administered  by 
Germany  whilst,  under  that  Regulation,  the  payment  of  the  dairy  premium  should  be 
carried  out  by  the  Austrian  authorities  within  the  limit  of  their  national  reference 
quantity  for  the  12-month  period  of  1999/2000  set  out  in  Annex  I  to  Council 
Regulation  (EEC)  No  3950/924  establishing  an  additional  levy  in  the  milk  and  milk 

OJ  L  148,  28.6.1968,  p.  13.  Regulation 
(OJ L 160, 26.6.1999, p. 48). 
OJ L 90, 1.4.1984, p. 10. 
OJ  L  270,  21.10.2003,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  864/2004 
(OJ L 161, 30.4.2004, p. 48). 
OJ  L  405,  31.12.1992,  p.  1.  Regulation 
(OJ L 270, 31.12.2003, p. 123). 

repealed  by  Regulation 

repealed  by  Regulation 

(EC)  No  1788/2003 

(EC)  No  1255/1999 

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products  sector  and  a  budgetary  ceiling  provided  for  in  Article  96(2)  of  Regulation 
(EC) No 1782/2003. Both the reference quantity and the ceiling have been calculated 
for  Austria  without  taking  into  account  the  individual  reference  quantities  for  the 
Kleinwalsertal (Community of Mittelberg) and the Community of Jungholz. 

Article  47(2)  of  Regulation  (EC)  No  1782/2003  provides  for  the  inclusion  of  dairy 
payments  in  the  single  payment  scheme  provided  for  by  that  Regulation  in  2007. 
Article 62 of the same Regulation authorises however the Member States to anticipate 
the  inclusion  of  such  payments  from  2005.  The  inclusion  of  the  dairy  premium  is 
foreseen in Germany as from 2005, while in Austria it will take place at a later stage. 

To permit a practical and correct administration of the dairy premium and its inclusion 
in the Single Payment Scheme, Regulation (EC) No 1782/2003 should be amended in 
such a way that, for Germany and Austria, the reference quantities and the budgetary 
ceiling,  referred  to  in  Articles  95(4)  and  96(2),  take  into  account  the  milk  reference 
quantities  of  the  producers  of  the  regions  concerned.  Consequently,  it  is  also 
appropriate  to  modify  the  Annex  I  to  Regulation  (EC)  No  1788/2003  in  order  to 
convert  the  reference  quantities  of  producers  concerned  into  Austrian  reference 
quantities as from milk quota year 2004/05. 

For  the  payments  due  in  2004,  taking  into  account  that  the  date  for  application  has 
already expired, it is however appropriate to provide for a derogation to Article 2(b) of 
Regulation  (EC)  No  1782/2003  allowing  Germany  to  pay  the  premium  to  farmers 
situated in the Austrian Kleinwalsertal (Community of Mittelberg) and the Community 
of Jungholz, 

(4) 

(5) 

(6) 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 1782/2003 is hereby amended as follows: 

(1) 

In Article 95(4), the following second subparagraph is added: 

"However,  for  Germany  and  Austria  the  ceiling  fixed  on  the  basis  of  the  reference 
quantities  for 
the  12-month  period  of  1999/2000,  shall  be,  respectively, 
27 863 827,288 and 2 750 389,712 tonnes." 

(2) 

Article 96(2) is amended as follows: 

(a) 

the row for Germany is replaced by the following: 

"Germany 

101,99 

204,52 

306,78"; 

(b) 

the row for Austria is replaced by the following: 

"Austria 

10,06 

20,19 

30,28". 

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Annex I to Regulation (EC) No 1788/2003 is amended in accordance with the Annex to this 
Regulation. 

Article 2 

Article 3 

By way of derogation from Article 2(b) of Regulation (EC) No 1782/2003, Germany shall pay 
the  dairy  premium  and  additional  payments  for  2004  to  farmers  situated  in  the  Austrian 
Kleinwalsertal (Community of Mittelberg) and the Community of Jungholz. 

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

Article 4 

It shall apply as follows: 

(a) 

(b) 

(c) 

Article 1 shall apply from 1 January 2005; 

Article 2 shall apply from 1 April 2004; 

Article 3 shall apply from 1 January 2004. 

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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ANNEX 

Annex I to Regulation (EC) No 1788/2003 is amended as follows: 

(1) 

Point (a) is amended as follows: 

(a) 

the row for Germany is replaced by the following: 

"Germany 

27 863 827,288"; 

(b) 

the row for Austria is replaced by the following: 

"Austria 

2 750 389,712". 

(2) 

Point (b) is amended as follows: 

(a) 

the row for Germany is replaced by the following: 

"Germany 

27 863 827,288"; 

(b) 

the row for Austria is replaced by the following: 

"Austria 

2 750 389,712". 

(3) 

Point (c) is amended as follows: 

(a) 

the row for Germany is replaced by the following: 

"Germany 

28 003 146,424"; 

(b) 

the row for Austria is replaced by the following: 

"Austria 

2 764 141,661". 

(4) 

Point (d) is amended as follows: 

(a) 

the row for Germany is replaced by the following: 

"Germany 

28 142 465,561"; 

(b) 

the row for Austria is replaced by the following: 

"Austria 

2 777 893,609". 

(5) 

Point (e) is amended as follows: 

(a) 

the row for Germany is replaced by the following: 

"Germany 

28 281 784,697"; 

(b) 

the row for Austria is replaced by the following: 

"Austria 

2 791 645,558". 

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FINANCIAL STATEMENT 

1. 

2. 

3. 

4. 

BUDGET HEADING: 
05 03 01 10 and  
05 03 01 11 

APPROPRIATIONS:
EUR 959 million 
EUR 431 million 

TITLE: 
Council  Regulation  amending  Regulation  (EC)  No  1782/2003  establishing  common  rules  for  direct 
support  schemes  under  the  common  agricultural  policy  and  establishing  certain  support  schemes  for 
farmers and Regulation (EC) No 1788/2003 establishing a levy in the milk and milk products sector. 

LEGAL BASIS: 
Article 37(2)(3) of the Treaty 

AIMS: 
Transfer of quota and the corresponding premium payments from Germany to Austria. 

5. 

FINANCIAL IMPLICATIONS 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
– 
(REFUNDS/INTERVENTIONS) 
– 
– 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

OWN RESOURCES OF THE EC  

– 
(LEVIES/CUSTOMS DUTIES) 
– 

NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2  METHOD OF CALCULATION: 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR  2004 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR  2005 
(EUR million) 

–  

–  

–  

–  

–  

–  

2006 

2007 

2008 

2009 

–  
– 

–  
– 

–  
– 

–  
– 

The measure has no impact on the budget for the EU, since it is a question of transfer of quota and the 
corresponding premium payments from Germany to Austria, for quota so far counted within the German 
milk quota but originating from Austrian territory. 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  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: 

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