Council Regulation (EC) No 1405/2006 of 18 September 2006 laying down specific measures for agriculture in favour of the smaller Aegean islands and amending Regulation (EC) No 1782/2003
Date: 2006-09-18
Institutions: Council of the European Union
Subjects: Aegean Sea, Greece, agricultural product, aid system, aid to agriculture, island, production aid, supply

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1405/2006

of 18 September 2006

laying down specific measures for agriculture in favour of the smaller Aegean islands and amending
Regulation (EC) No 1782/2003

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community, and in particular Articles 36 and 37 thereof,

establishing the European

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas:

for

and measures

a multitude of products
their
production, marketing or processing. Those measures
have proved effective and have ensured that agricultural
activities have been maintained and developed. The
Community should continue to support the production
lines, which are a key factor in the environmental, social
and economic equilibrium of the smaller Aegean islands.
Experience has shown that, as in the case of rural devel-
opment policy, closer partnership with the local autho-
rities can help to address the particular issues affecting
the islands concerned in a more targeted way. Support
for local production should thus continue to be granted
through a general programme at the most appropriate
should be
level, and this programme
geographical
submitted to the Commission by Greece.

(1)

(2)

(3)

essential

for processing or as agricultural

the
The particular geographical situation of some of
transport costs in
Aegean islands imposes additional
for human
supplying products which are
consumption,
inputs.
In addition, objective factors arising as a result of insu-
larity and remoteness impose further constraints on
economic operators and producers
in those Aegean
islands that severely handicap their activities. In certain
cases, operators and producers suffer from double insu-
larity. Those handicaps can be alleviated by lowering the
It is therefore appropriate to
price of those products.
introduce specific supply arrangements
to guarantee
supply to the Aegean islands and compensate for the
additional costs arising from their remoteness, insularity
and distant location.

(4)

(5)

The problems experienced by the Aegean islands are
accentuated by the small size of the islands. In order
to
the measures
effectiveness
envisaged, such measures should only apply to islands
known as the ‘smaller islands’.

guarantee

the

of

Community policy to assist
local production in the
smaller Aegean islands as established by Council Regu-
lation (EEC) No 2019/93 of 19 July 1993 introducing
specific measures
smaller Aegean islands
the
concerning certain agricultural products (1) has involved

for

(1) OJ L 184, 27.7.1993, p. 1. Regulation as last amended by Regu-

lation (EC) No 1782/2003 (OJ L 270, 21.10.2003, p. 1).

their

insularity

remoteness,

In order to achieve the goal of lowering prices in the
smaller Aegean islands and mitigating the additional
costs of
distant
and
location, while maintaining the
competitiveness of
Community products, aid should be granted for the
supply of Community products to the smaller Aegean
islands. Such aid should take account of the additional
cost of transport to the smaller Aegean islands and, in
the case of agricultural inputs and products intended for
processing, the additional costs of insularity and distant
location.

from the

those products

in the diversion of

smaller Aegean islands

Since the quantities covered by the specific supply
arrangements are limited to the supply requirements of
the smaller Aegean islands, those arrangements do not
impair the proper functioning of the internal market. Nor
should the economic advantages of the specific supply
trade in the
arrangements result
those
products concerned. The dispatch or export of
products
should
therefore be prohibited. However, dispatch or exportation
of
should be authorised where the
supply
advantage
arrangements is reimbursed or, in the case of processed
products, to permit regional trade. Account should also
be taken of exports to third countries and exports of
processed products corresponding to traditional exports
should
the
restriction should not apply to the traditional dispatching
of processed products. For the sake of clarity, this Regu-
lation should specify the reference period for defining
traditionally exported or dispatched quantities.

accordingly. Moreover,

from the

authorised

resulting

specific

be

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(6)

(7)

(8)

(9)

(10)

the

In order to achieve the objectives of the specific supply
arrangements,
the
economic
arrangements must be in terms of production costs
and must cut prices up to the end-user stage. Such
economic advantages should therefore be granted only
on condition that they are actually passed on to the
end-user and appropriate checks must be carried out.

advantages

of

To help achieve the goals of developing local agricultural
production and the supply of agricultural products, the
level of programming of
islands
concerned should be harmonised and the approach of
partnership between the Commission and Greece
should be systematic. Forecast supply balances should
therefore be established by the authorities designated by
Greece and submitted to the Commission for approval.

supplies

to the

Farmers
encouraged
marketing of such products should be assisted.

smaller Aegean islands
products
quality
supply

in the
to

should be
the

and

A derogation may be granted from the Commission's
consistent policy of not authorising State operating aid
for the production, processing and marketing of agri-
cultural products listed in Annex I
to the Treaty in
order to mitigate the specific constraints on farming in
the smaller Aegean islands as a result of their remoteness,
insularity and distant location, small area, mountainous
terrain and climate and their economic dependency on a
small number of products.

programme submitted by Greece and approved by the
Commission.

(12) Greece has decided to apply the Single Payment Scheme
to the whole country as from 1 January 2006. To ensure
coordination of the respective arrangements concerning
the
(EC) No
islands Regulation
1782/2003 should be amended accordingly.

smaller Aegean

(13)

(14)

The measures necessary for the implementation of this
Regulation should be
adopted in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing
powers conferred on the Commission (2).

The programme provided for in this Regulation should
start on 1 January 2007. However,
to enable the
programme to start on that date, Greece and the
the
Commission should be permitted to take
preparatory measures between the date of entry into
force of this Regulation and that of the application of
the programme,

all

HAS ADOPTED THIS REGULATION:

CHAPTER I

INTRODUCTORY PROVISIONS

Article 1

Scope and definition

Implementation of this Regulation should not jeopardise
the level of special support
from which the smaller
Aegean islands have benefited up to now. In order to
be able to carry out the appropriate measures Greece
should continue to have at its disposal sums equivalent
to the Community support already granted under Regu-
lation (EEC) No 2019/93. The new system of support for
agricultural production in the smaller Aegean islands
established by this Regulation should be coordinated
with the support for the same production lines applied
in the rest of the Community and Regulation (EEC) No
2019/93 should therefore be repealed.

1.
This Regulation lays down specific measures, in respect of
the agricultural products listed in Annex I to the Treaty and the
to remedy the difficulties
means of agricultural production,
caused by the remote and insular nature of
the smaller
Aegean islands.

For the purposes of this Regulation ‘smaller islands’ mean
2.
any islands in the Aegean Sea except the islands of Crete and
Evia.

(11)

In accordance with the principle of subsidiarity and in
the spirit of 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 (1) it
is appropriate to devolve the management of the specific
measures for the smaller Aegean islands to Greece. Those
measures may therefore be operated through a support

(1) OJ L 270, 21.10.2003, p. 1. Regulation as last amended by
L 208,

(EC) No 1156/2006 (OJ

Commission Regulation
29.7.2006, p. 3).

Article 2

Community support programme

A Community support programme for the smaller islands shall
be established. It shall include:

(a) specific supply arrangements as provided for in Chapter II,

and

(2) OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision

2006/512/EC (OJ L 200, 22.7.2006, p. 11).

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(b) specific measures

to assist

local

lines of

agricultural

(d) where applicable, the need not to obstruct the potential

production as provided for in Chapter III.

development of local products.

CHAPTER II

SPECIFIC SUPPLY ARRANGEMENTS

Article 3

Forecast supply balance

Specific supply arrangements are hereby introduced for
1.
the agricultural products, which are essential
in the smaller
islands for human consumption, for the manufacture of other
products or as agricultural inputs.

A forecast supply balance shall be drawn up stating the
2.
quantity of the agricultural products referred to in paragraph 1
needed to meet supply requirements each year. The forecast
supply balance shall be established by the authorities designated
by Greece and submitted to the Commission for approval.

forecast balance may be drawn up for

the
A separate
and processing
requirements of
products
traditional
consignment to the rest of the Community or for export as
part of traditional trade flows.

undertakings packaging

local market,

intended for

the

for

Article 4

Operation of the specific supply arrangements

Aid shall be granted for the supply to the smaller islands

1.
of the products referred to in Article 3(1).

The amount of aid shall be fixed taking into consideration the
additional costs of marketing products in the smaller islands,
calculated from the usual ports of shipment in mainland Greece,
and from the ports of islands of transit or of loading for the
islands of final destination.

In implementing

the
2.
account shall be taken, in particular, of the following:

specific

supply

arrangements,

3.
Entitlement under the specific supply arrangements shall
be subject to the condition that the economic advantages are
actually passed on to the end user.

Article 5

Export to third countries and dispatch to the rest of the
Community

1.
Products covered by the specific supply arrangements may
be exported to third countries or dispatched to the rest of the
Community only on conditions laid down in accordance with
the procedure referred to in Article 15(2).

Those conditions shall include in particular reimbursement of
the aid received under the specific supply arrangements.

islands

Export to third countries or dispatching to the rest of the
2.
Community shall be possible for products processed in the
smaller
from products having benefited from the
specific supply arrangements within the limits of traditional
exports and traditional dispatches. The quantities that may be
exported or dispatched shall be specified in accordance with the
procedure referred to in Article 15(2).

No export
exported.

refund shall be granted for

the products thus

Article 6

Detailed rules for the application of the arrangements

this Chapter shall be
Detailed rules for the application of
adopted in accordance with the procedure referred to in
Article 15(2). Such rules shall in particular define the conditions
under which Greece may amend the quantities and the
resources allocated each year to the various products eligible
under the specific supply arrangements and, where necessary,
establish a system of delivery certificates.

(a)

the specific needs of the smaller islands and the precise
quality requirements;

CHAPTER III

MEASURES TO ASSIST LOCAL AGRICULTURAL PRODUCTS

(b) traditional trade flows with ports in mainland Greece and

between the islands in the Aegean Sea;

Article 7

Support measures

(c)

the economic aspect of the proposed aid;

1.
The support programme shall contain the measures
needed to ensure continuity and development of local lines of
agricultural production in the smaller islands.

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The support programme shall be established at the geo-
2.
graphical level which Greece deems most appropriate. It shall be
prepared by the competent authority designated by Greece,
which shall submit it to the Commission for approval after
the competent authorities and organisations at the appropriate
level have been consulted.

Article 8

Compatibility and consistency

showing the expected economic, environmental and social
impact, including effects on employment;

(c) a schedule for the implementation of the measures and a
general indicative financing table showing the resources that
may be deployed;

1. Measures taken under the support programme shall be
compatible with Community law and be consistent with other
Community policies and with the measures taken to implement
those policies.

(d) proof of compatibility and consistency between the various
measures under the support programme and the criteria to
be used for monitoring and evaluation;

implemented under other

Support programme measures shall be consistent with
2.
measures
the
common agricultural policy, and in particular the common
organisations of markets, rural development, product quality,
animal welfare and protection of the environment.

instruments of

(e)

the steps taken to ensure the support programme is imple-
mented
the
arrangements
for publicity, monitoring and evaluation,
and the provisions for checks and administrative penalties;

appropriately,

effectively

including

and

In particular, no measure under this Chapter may be financed
as:

(f)

the designation of the competent authority responsible for
implementing the support programme and the designation
at the appropriate levels of authorities or associated bodies.

(a) additional support for premium or aid schemes under a
common organisation of the market save in exceptional
cases justified by objective criteria;

Article 10

Monitoring

(b) support for research projects, measures to support research
projects or measures eligible for Community financing
under Council Decision 90/424/EEC of 26 June 1990 on
expenditure in the veterinary field (1);

for
The procedures and physical and financial
ensuring effective monitoring of
the
support programme shall be adopted in accordance with the
procedure referred to in Article 15(2).

indicators
the implementation of

(c) support for measures within the scope of Council Regu-
lation (EC) No 1698/2005 of 20 September 2005 on
support for rural development by the European Agricultural
Fund for Rural Development (EAFRD) (2).

Article 9

Content of support programme

The support programme may include:

(a) a

quantified

description of

the

current

production situation taking into account
available
potential for development;

evaluations,

showing

disparities,

agricultural
the results of
and
gaps

(b) a description of

the strategy proposed,

selected,

the objectives quantified,

the priorities
and an appraisal

(1) OJ L 224, 18.8.1990, p. 19. Decision as last amended by Decision

2006/53/EC (OJ L 29, 2.2.2006, p. 37).

(2) OJ L 227, 21.10.2005, p. 1.

CHAPTER IV

ACCOMPANYING MEASURES

Article 11

State aid

1.
For the agricultural products to which Articles 87, 88 and
89 of the Treaty apply the Commission may authorise operating
aid in the sectors producing, processing and marketing those
products, with a view to mitigating the specific constraints on
farming in the smaller islands as a result of their remoteness,
insularity and distant location.

2.
Greece may grant additional financing for the implemen-
tation of the support programme. In such cases Greece shall
notify the Commission of the State aid and the Commission
may approve it in accordance with this Regulation as part of the
support programme. Aid thus notified shall be regarded as
being notified within the meaning of
the first sentence of
Article 88(3) of the Treaty.

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CHAPTER V

FINANCIAL PROVISIONS

Article 12

Financial resources

The measures provided for
intervention measures

in this Regulation shall
1.
constitute
agricultural
to regulate
markets within the meaning of Article 3(1)(b) of Council Regu-
lation (EC) No 1290/2005 of 21 June 2005 on the financing of
the common agricultural policy (1).

2.
The Community shall finance the measures provided for
in Chapters II and III up to a maximum annual amount of EUR
23,93 million.

3.
The amount allocated annually to the specific supply
arrangements referred to in Chapter II may not exceed EUR
5,47 million.

(a)

the conditions under which Greece may amend the quan-
tities and levels of aid for supply and the support measures
or the allocation of resources allotted to support
local
production;

(b) the provisions relating to the minimum specifications of the
checks and administrative penalties which Greece must
apply.

Article 15

Committee procedure

1.
The Commission shall be assisted by the Management
Committee for Direct Payments established by Article 144 of
Regulation (EC) No 1782/2003 (hereinafter referred to as the
Committee).

2. Where reference is made to this paragraph, Articles 4 and
7 of Decision 1999/468/EC shall apply.

CHAPTER VI

GENERAL, TRANSITIONAL AND FINAL PROVISIONS

The period laid down in Article 4(3) of Decision 1999/468/EC
shall be set at one month.

Article 13

Draft support programme

Greece shall submit a draft support programme to the
1.
Commission in the framework of
the financial allocation
referred to in Article 12(2) and (3) by 31 October 2006 at
the latest.

The draft support programme shall comprise a draft forecast
supply balance indicating the products, the quantities thereof
and the amount of aid for supply from the Community
together with a draft programme of
local
production.

support

for

The Commission shall evaluate the support programme
in accordance with the

2.
proposed and decide on its approval
procedure referred to in Article 15(2).

3.

The support programme shall start on 1 January 2007.

Article 14

Implementing rules

3.

The Committee shall adopt its Rules of Procedure.

Article 16

National measures

Greece shall take the measures necessary to ensure compliance
with this Regulation, in particular as regards checks and admin-
istrative penalties, and shall inform the Commission thereof.

Article 17

Communication and reports

1.
Greece shall communicate to the Commission no later
than 15 February each year the appropriations made available
to it and which it intends to use in the following year on
implementing the support programme.

Greece shall submit to the Commission no later than 30
2.
June each year a report on the implementation of the measures
provided for in this Regulation over the previous year.

The measures necessary for the implementation of this Regu-
lation shall be adopted in accordance with the procedure
referred to in Article 15(2). They shall include in particular:

(1) OJ L 209, 11.8.2005, p. 1. Regulation as amended by Regulation

(EC) No 320/2006 (OJ L 58, 28.2.2006, p. 42).

3.
Not later than 31 December 2011, and thereafter every
five years, the Commission shall submit a general report to the
European Parliament and the Council showing the impact of the
action taken under this Regulation, accompanied, if applicable,
by appropriate proposals.

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Article 18

Repeal

Regulation (EEC) No 2019/93 is hereby repealed with effect
from 1 January 2007.

References to the repealed Regulation shall be construed as
references to this Regulation and shall be read in accordance
with the correlation table set out in the Annex to this Regu-
lation.

Article 19

Transitional measures

In accordance with the procedure provided for in Article 15(2),
the Commission may adopt the necessary transitional measures
to ensure a smooth transition from the measures under Regu-
lation (EEC) No 2019/93 to the measures introduced by this
Regulation.

Article 20

(b) in paragraph 2, the first subparagraph shall be replaced

by the following:

‘2. Member States shall grant
the direct payments
referred to in paragraph 1 within the limit of
the
ceilings fixed in accordance with Article 64(2), under
the conditions established in Title IV, Chapters 3, 6
and 7 to 13.’;

2.

in Article 71(2), the first subparagraph shall be replaced by
the following:

referred to in Annex VI under

‘2. Without prejudice to Article 70(2), in the transitional
period the Member State concerned shall apply each of the
direct payments
the
conditions established in Title IV, Chapters 3, 6 and 7 to
13 within the limit of budgetary ceilings corresponding to
the component of these direct payments in the national
ceiling referred to in Article 41, fixed in accordance with
the procedure referred to in Article 144(2).’;

Amendment of Regulation (EC) No 1782/2003

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

3.

in Annexes I and VI the row concerning the ‘Aegean Islands’
shall be deleted.

1. Article 70 shall be amended as follows:

Article 21

Entry into force

(a)

in paragraph 1, point
following:

(b) shall be replaced by the

‘(b) all other direct payments listed in Annex VI granted
to farmers in the reference period in the French
Overseas Departments, the Azores and Madeira, the
Canary Islands and the Aegean Islands.’;

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

It shall apply from 1 January 2007. However, Articles 11, 13
and 14 shall apply from the date of its entry into force.

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

Done at Brussels, 18 September 2006.

For the Council
The President

J. KORKEAOJA

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ANNEX

Correlation table

Regulation (EEC) No 2019/93

This Regulation

Article 1

Article 2

Article 3(1)

Article 3(2)

Article 3(3)

Article 3(4)

Article 3(5)

Article 3a(1)(a)

Article 3a(1)(b)

Article 3a(1)(c)

Article 3a(1)(d)

Article 3a(2)

Article 5

Article 6

Article 8

Article 9

Article 11

Article 12

Article 13

Article 13a

Article 14

Article 14a

Article 15(1)

Article 15(2)

Article 16

Article 1

Article 3

Article 4(1)

Article 4(2)

Article 4(3)

Article 5(1)

Article 5(2)

—

Article 12(3)

Articles 4(3) and 14(b)

Article 6

Article 6

Article 7(1)

—

—

—

—

—

—

Article 15

Article 12(1)

Article 16

Article 17(2)

Article 17(3)

Article 21