Proposal for a Council Regulation amending Regulations (EEC) No 404/93, (EC) No 1782/2003 and (EC) No 247/2006 as regards the banana sector {SEC(2006) 1106} {SEC(2006) 1107}
Date: 2006-09-20
Institutions: European Commission
Subjects: EU aid, aid to agriculture, common commercial policy, common organisation of markets, regional aid, tropical fruit

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 20.9.2006 
COM(2006) 489 final 

2006/0173 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulations (EEC) No 404/93, (EC) No 1782/2003 and (EC) No 247/2006 as 
regards the banana sector 

(presented by the Commission) 

{SEC(2006) 1106} 
{SEC(2006) 1107} 

EN 

   EN 

 
 
 
  
 
 
EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION 

Community  bananas  account  for  only  16%  of  total  EU  supply.  They  are  produced  in  four 
outermost regions situated in tropical or sub-tropical areas, except for few quantities (less than 
2% of total) produced in Cyprus, Greece and continental Portugal. 

In  February  2005,  following  the  extension  of  the  Common  Market  Organisation  in  bananas 
(CMO) to ten new Member States and prior to a substantial change of the import regime to 
honour  the  agreements  concluded  in  2001  with  Ecuador  and  the  United  States,  the 
Commission published a report on the operation of the CMO1. This launched a wide-ranging 
debate on the future of the CMO, in a context shaped by the prospect of a conclusion of the 
Doha  Round  negotiations,  of  a  new  generation  of  partnership  agreements  with  the  ACP 
countries,  the  end  of  the  exemption  for  bananas  from  the  Everything  But  Arms  agreement, 
and  the  renewal  of  the  Union’s  policy  towards  its  outermost  regions  and  the  POSEI 
programmes specifically dedicated to supporting their agriculture2.  

Drawing  the  first  conclusions  from  this  debate  -  which  in  the  meantime  profited  from  an 
independent  evaluation  on  the  operation  of  the  CMO3  -  the  Commission  in  October  2005 
decided  to  propose  a  reform  of  the  internal  aspects  of  the  banana  CMO  in  2006  and,  in 
particular, of those aspects governing the granting of aid to European producers4. This reform 
proposal also answers the European Court of Auditors' recommendations in its Special report 
n° 7/2002 on the sound financial management of the Common Organisation of Markets on the 
banana  sector5.  In  its  reply,  the  Commission  had  stated  that  it  was  deeply  convinced  of  the 
need to conduct an in-depth review of the aid scheme for Community producers and that the 
Court's report together with other elements such as the change to the tariff only import regime 
provided an opportunity to evaluate or even re-examine the market organisation's objectives.  

In accordance with the commitment made to better regulation6, the preparation of the reform 
was  preceded  by  an  analysis  of  the  economic,  social  and  environmental  aspects  of  the 
problems  involved  in  its  operation,  including  a  public  consultation  on  a  set  of  options  for 
reform. 

2. 

REASONS AND OBJECTIVES OF THE REFORM 

The current aid scheme for banana producers is based on principles which for other common 
market organisations have been substantially reformed. Producers are artificially isolated from 
the market trends since the aid automatically compensates for price changes. Although the aid 
is limited to a maximum quantity of 867,500 tonnes for all the producer regions, there is no 

1 

2 
3 

4 
5 
6 

Report to the European Parliament and to the Council concerning the operation of the banana CMO - 
COM (2005) 50, 17.2.2005. 
Regulation (EC) No 247/2006 of 30 January 2006 (OJ L 42, 14.2.2006, p. 1). 
Evaluation  of  the  common  organisation  of  the  market  in  bananas,  carried  out  by  COGEA  in  2005, 
http://europa.eu.int/comm/agriculture/eval/reports/bananas/index_fr.htm  
2006 work program of the Commission - COM(2005) 531, 25.10.2005.  
OJ C 294, 28.12.2002, p. 1. 
Communication  on  impact  analysis  -  COM(2002)  276,  5.6.2002  -  and  Impact  Analysis  Guidelines  - 
SEC(2005) 791, 15.6.2005.  

EN 

2 

   EN 

 
                                                 
budget  ceiling.  The  calculation  of  the  aid,  based  on  Community  average  prices,  does  not 
adequately take into account the particularities of each of the producing regions.  

It is necessary to amend this regime on the basis of the main political priorities set up by the 
Sustainable  Development  and  the  Lisbon  Strategies,  as  transposed  in  the  objectives  of  the 
reformed Common Agricultural Policy. The reform's objectives are to:  

–  ensure a fair standard of living of the agricultural community in regions where bananas are 

produced, while stabilizing public expenditure; 

–  align  the  regime  on  the  main  principles  of  the  reformed  common  market  organisations  – 
sustainability, competitiveness, market-orientation of producers – and ensure the respect of 
the international obligations of the Community, in particular WTO rules; 

–  take adequately into account the particularities of the producing regions. Bananas are one 
of  the  main  agricultural  crops  of  certain  outermost  regions  of  the  Union,  notably  the 
French overseas departments of Guadeloupe and Martinique, the Azores, Madeira and the 
Canary Islands, where agricultural activities are handicapped by the remoteness, insularity, 
small  size,  and  difficult  topography  of  these  regions.  Local  banana  production  is  an 
important element of the environmental, social and economic balance of these regions. 

In accordance with the commitment made to better regulation, the Commission assessed the 
impact of three possible options for reform: "Decoupling", integrating the banana aid scheme 
into  the  decoupled  single  farm  payment  regime;  "Memorandum",  closely  matching  the 
proposal  presented  by  the  principal  producing  countries;  "POSEI",  incorporating  the  aid  for 
banana  producers  into  the  existing  POSEI  programmes  for  the  agricultural  sectors  of  the 
outermost  regions  and  envisaging  the  integration  of  the  aid  into  the  single  farm  payment 
regime  for  the  continental  producing  regions.  The  impact  assessment  concluded  that  the 
POSEI option appears the most suited to achieve the objectives pursued. 

In this context the Commission proposes to abolish the aid scheme in the CMO and replace it 
with 1) an increase in the budget allocation for the POSEI scheme that will become the only 
market support instrument  for  bananas in  the  outermost regions and 2) the  inclusion of non 
outermost areas under banana cultivation into the single payment scheme, along with a budget 
transfer. 

3. 

PROPOSED MEASURES FOR REFORM OF THE BANANA CMO 

3.1. 

Aid to producers in the outermost regions 

Title III of Council Regulation (EC) No 247/2006 of 30 January 2006 laying down 
specific measures for agriculture in the outermost regions of the Union7 provides for 
the  establishment  of  Community  support  programmes  for  the  outermost  regions 
containing  specific  measures  to  assist  local  lines  of  agricultural  production.  This 
instrument  seems  best  adapted  to  support  banana  production  in  each  of  the  regions 
concerned  allowing  the  respective  Member  States  to  propose  measures,  in  the 

7 

OJ L 42, 14.2.2006, p. 1. Regulation as amended by Regulation (EC) No 318/2006 (OJ L 58, 28.2.2006, 
p. 1). 

EN 

3 

   EN 

 
                                                 
framework  of  their  overall  support  programmes,  that  take  account  of  the  regional 
particularities. 

It is proposed to increase the budgetary allocation under Title III of Regulation (EC) 
No  247/2006  by  a  total  amount  of  EUR  278,8  million  in  order  to  fully  include 
Community support to banana producers in those programmes as of 1 January 2007, 
hence  reinforcing  the  coherence  of  the  strategies  for  support  of  agricultural 
production in these regions. 

3.2. 

Aid to producers in other banana regions 

As  regards  production  of  bananas  in  the  Community  other  than  in  the  outermost 
regions  (Greece,  continental  Portugal  and  Cyprus),  it  seems  no  longer  necessary  to 
provide for a specific aid scheme for bananas, given the small proportion of the total 
Community production concerned. 

It is proposed to allow for the shift from production support to producer support, by 
abolishing  the  existing  compensatory  aid  scheme  for  bananas  and  including  it  into 
the Single Payment Scheme set up by Council Regulation (EC) No 1782/2003 of 29 
September  20038.  Member  States  will  establish  the  reference  amounts  and  eligible 
hectares  under  the  Single  Payment  Scheme  on  the  basis  of  a  representative  period 
appropriate 
the  banana  market  and  of  appropriate  objective  and  non-
discriminatory criteria. It is proposed to increase the national ceilings for Greece and 
Portugal9  by  EUR  1,1  million  and  EUR  0,1  million  respectively.  An  additional 
budget of EUR 3,4 million is proposed for the implementation of the Single Payment 
Scheme  in  Cyprus  as  of  2009,  adjusted  in  accordance  with  the  schedule  of 
increments applied for the New Member States. The budgetary details are provided 
below.  

to 

3.3. 

Producers' organizations  

The existing regime had as objectives to form producers' organisations in order that 
as  many  producers  as  possible  be  members  of  such  organisations  and  limited  the 
payment  of  the  compensatory  aid  to  producers  members  of  recognized  producers' 
organizations. The regime has succeeded in its first objective since the vast majority 
of Community producers are now members of producers' organisations. The second 
objective is obsolete since the compensatory aid scheme is to be abolished.  

It  is  therefore  proposed  not  to  maintain  any  longer  rules  at  Community  level  on 
producer  organisations,  thus  leaving  Member  States  free  to  adopt  such  rules,  if 
necessary,  targeted  at  the  specific  situations  in  their  territories.  Accordingly,  it  is 
proposed  to  abolish  the  scheme  providing  for  assistance  to  encourage  the 
establishment  and  administrative  operation  of  producers'  organisations.  However  in 
the  interests  of  legal  certainty  and  the  protection  of  legitimate  expectations,  the 
continued payment of such assistance to recently recognised producers' organisations 
already benefiting from this assistance will be ensured. 

8 

9 

OJ  L  270,  21.10.2003,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  319/2006  (OJ  L  58, 
28.2.2006, p. 32). 
Annex VIII to Council Regulation (EC) No 1782/2003. 

EN 

4 

   EN 

 
                                                 
3.4. 

Obsolete provisions 

It is proposed to delete a number of spent or obsolete provisions of Regulation (EEC) 
No  404/93,  mainly  as  regards  third  country  trade  before  the  entry  into  force  of  the 
tariff-only  import  regime10,  rural  development  programmes  for  banana  producing 
regions, spent reporting provisions. 

4. 

MONITORING AND EVALUATION 

A report to the European Parliament and to the Council on the implementation of the POSEI 
programmes  is  planned  for  2009.  It  will  provide  the  opportunity  for  an  in-depth  analysis  of 
the effectiveness and the adequacy of the POSEI instrument and now, with this proposal, the 
exercise will include the banana sector in the main producing areas. The ensuing conclusions 
will address the question of the balance between the various measures against the objectives 
pursued. If there are substantial changes to  the economic conditions affecting livelihoods in 
the outermost regions, the Commission shall submit the report sooner.  

5. 

BUDGETARY IMPACT OF THE PROPOSAL 

The  financial  envelope  included  in  the  proposal  is  based  on  the  average  aid  allocated  to 
banana producers for the period 2000-2002. This period corresponds to the reference period 
used for the calculation of the financial envelopes for the 2003 and 2004 CAP reforms. The 
resulting envelope amounts to EUR 280 million for the sum of the producing Member States 
except Cyprus. It is proposed to distribute this amount amongst Member States using the same 
distribution percentages of 2000, following the request made by the producing Member States 
in their Memorandum of 20 September 2005 and in their common position of 22 May 2006: 
Spain 50.4%, France 46.1%, Portugal 3.1%, Greece 0.4%. As a result: 

a) The following amounts will be added to the financial plans of the POSEI programmes: 

million EUR

French overseas departments 

Azores and Madeira 

Canary Islands 

TOTAL increase POSEI 

Financial 
year 2008 
and further 

+ 129,1 

+ 8,6 

+141,1 

+ 278,8 

b) The national ceilings for Greece and Portugal referred to in Article 41 of Regulation (EC) 
No  1782/2003  (Annex  VIII)  will  be  increased  by  EUR  1,1  million  and  EUR  0,1  million 
respectively for 2007 and the following years. 

10 

Regulation (EC) No 1964/2005 (OJ L 316, 2.12.2005, p. 1). 

EN 

5 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
As concerns Cyprus, where banana producers are currently supported under the Single Area 
Payment Scheme (SAPS), it is proposed to add an additional budget of EUR 3,4 million to the 
national ceiling referred to in Article 71c of Regulation (EC) No 1782/2003 (Annex VIIIa), 
adjusted in accordance with the schedule of increments applied for the New Member States, 
and in particular: 

ANNEX VIIIa 
National ceilings referred to in Article 71c 

EUR '000

Calendar 
year 

Czech 
Republic 

Estonia 

Cyprus 

Latvia 

Lithua-
nia 

Hungary  Malta 

Poland 

Slovenia  Slovakia 

2005 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

Subsequent 
years 

 +1360 

 +1700 

 +2040 

 +2380 

 +2720 

 +3060 

 +3400 

The  full  aid  amount  of  EUR  3,4  million  has  been  calculated  on  the  basis  of  the  average 
banana production in Cyprus in the period 2000-2002 and on the basis of the average banana 
aid paid to EU producers for the same period. 

EN 

6 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2006/0173 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulations (EEC) No 404/93, (EC) No 1782/2003 and (EC) No 247/2006 as 
regards the banana sector 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
37 thereof, 

Having regard to the proposal from the Commission11, 

Having regard to the opinion of the European Parliament12, 

Whereas: 

(1) 

(2) 

(3) 

Currently the regime for the banana sector is set out in Council Regulation (EEC) No 
404/93 of 13 February 1993 on the common organisation of the market in bananas13. 
In  particular  the  aid  scheme  for  banana  producers  is  based  on  principles  which  for 
other  common  market  organisations  have  been  substantially  reformed.  In  order  to 
better ensure a fair standard of living of the agricultural community in regions where 
bananas  are  produced,  to  better  direct  resources  towards  market-orientation  of 
producers,  to  stabilise  expenditure,  to  ensure  the  respect  of  the  international 
obligations of the Community, to take adequately into account the particularities of the 
producing  regions,  to  simplify  the  management  of  the  regime  and  align  it  on  the 
principles of the reformed common market organisations, it is necessary to amend this 
regime.  

Changes  should  take  into  account  developments  and  potential  developments  in  the 
regime governing imports into the Community of bananas produced in third countries, 
in  particular  the  move  from  a  system  governed  by  tariff  quotas  to  one  currently 
governed  by  a  tariff-only  system,  subject  only  to  a  preferential  quota  for  bananas 
produced in ACP countries. 

Bananas  are  one  of  the  main  agricultural  crops  of  certain  outermost  regions  of  the 
Union,  notably  the  French  overseas  departments  of  Guadeloupe  and  Martinique,  the 
Azores,  Madeira  and  the  Canary  Islands.  Production  of  bananas  is  handicapped  in 
particular  by  the  remoteness,  insularity,  small  size,  and  difficult  topography  of  these 

11 
12 
13 

OJ C , , p. . 
OJ C , , p. . 
OJ L 47, 25.2.1993, p. 1. Regulation as last amended by the 2003 Act of Accession. 

EN 

7 

   EN 

 
                                                 
(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

regions. Local banana production is an essential element of the environmental, social 
and economic balance of the rural areas in those regions. 

The current Community system of compensatory aid for bananas set out in Title III of 
Regulation  (EEC)  No  404/93  does  not  adequately  respect  the  local  particularities  of 
production in each of those outermost regions. Provision should therefore be made to 
cease  paying  the  existing  compensatory  aid  for  bananas  in  respect  of  those  regions, 
which would allow banana production to be included in the support programmes. It is 
therefore appropriate to seek a better instrument to support banana production in those 
regions. 

Title  III  of  Council  Regulation  (EC)  No  247/2006  of  30  January  2006  laying  down 
specific measures for agriculture in the outermost regions of the Union14 provides for 
the  establishment  of  Community  support  programmes  for  the  outermost  regions 
containing  specific  measures  to  assist  local  lines  of  agricultural  production.  This 
Regulation  provides  for  a  review  not  later  than  31  December  2009.  If  there  are 
substantial changes to the economic conditions affecting livelihoods in the outermost 
regions,  the  Commission  shall  submit  the  report  sooner.  This  instrument  seems  best 
adapted to support banana production in each of the regions concerned by providing 
for flexibility and decentralisation of mechanisms to support banana production. The 
possibility of including banana support in those support programmes should reinforce 
the coherence of the strategies for support of agricultural production in these regions.  

The  budgetary  allocation  under  Title  III  of  Regulation  (EC)  No  247/2006  should  be 
increased accordingly. 

As  regards  production  of  bananas  in  the  Community  other  than  in  the  outermost 
regions, it seems no longer necessary to provide for a specific aid scheme for bananas, 
given the small proportion of the total Community production concerned. 

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  and  amending  certain  Regulations15 
provides for a system of decoupled income support for farms (hereinafter referred to as 
“the Single Payment Scheme”). This system was intended to allow for the shift from 
production support to producer support. 

For sake of consistency it is appropriate abolish the existing compensatory aid scheme 
for  bananas  and  to  include  it  into  the  Single  Payment  Scheme.  To  this  end  it  is 
necessary to include the compensatory aid for bananas in the list of direct payments in 
relation to the single payment scheme referred to in Article 33 of Regulation (EC) No 
1782/2003. Provision should also be made for the establishment by Member States of 
reference amounts and eligible hectares under the Single Payment Scheme on the basis 
of  a  representative  period  appropriate  to  the  banana  market  and  of  appropriate 
objective  and  non-discriminatory  criteria.  Areas  planted  with  bananas  should  not  be 
excluded  due  to  their  being  treated  as  permanent  crops.  National  ceilings  should  be 

14 

15 

OJ L 42, 14.2.2006, p. 1. Regulation as amended by Regulation (EC) No 318/2006 (OJ L 58, 28.2.2006, 
p. 1). 
OJ  L  270,  21.10.2003,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  319/2006  (OJ  L  58, 
28.2.2006, p. 32). 

EN 

8 

   EN 

 
                                                 
amended  appropriately.  Provision  should  also  be  made  for  the  Commission  to  adopt 
detailed rules and any necessary transitional measures. 

(10)  Title  II  of  Regulation  (EEC)  No  404/93  provides  for  producers'  organisations  and 
concentration  mechanisms.  As  regards  producers'  organisations,  the  existing  regime 
had  as  objectives  to  form  such  organisations  in  order  that  as  many  producers  as 
possible  be  members  of  such  organisations  and  limited  the  payment  of  the 
compensatory aid to producers members of recognized producers' organisations. 

(11)  The regime has succeeded in its first objective since the vast majority of Community 
producers  are  now  members  of  producers'  organisations.  The  second  objective  is 
obsolete  since  the  compensatory  aid  scheme  is  to  be  abolished.  It  is  therefore  no 
longer necessary to maintain rules at Community level on producer organisations, thus 
leaving Member States free to adopt such rules,  if  necessary,  targeted at the specific 
situations in their territories. 

(12)  The  scheme  providing  for  assistance 

the  establishment  and 
administrative  operation  of  producers'  organisations  should  therefore  be  abolished. 
However  in  the  interests  of  legal  certainty  and  the  protection  of  legitimate 
expectations, provision should be made for the continued payment of such assistance 
to recently recognised producers' organisations already benefiting from this assistance. 

to  encourage 

(13)  The provisions allowing for the recognition and operation of groups encompassing one 
or more of the economic activities relating to the production, marketing or processing 
of bananas have not found any practical application. They should therefore be deleted. 

(14) 

In the light of the changes made to the banana regime, it is no longer necessary to have 
a  separate  Management  Committee  for  Bananas.  The  Management  Committee  for 
Fresh Fruit and Vegetables established by Council Regulation (EC) No 2200/96 of 28 
October  1996  on  the  common  organisation  of  the  market  in  fruit  and  vegetables16 
should be appropriately used instead. 

(15)  A  number  of  provisions  contained  in  Regulation  (EEC)  No  404/93  are  obsolete  and 

should therefore be repealed for sake of clarity. 

(16)  Regulations  (EEC)  No  404/93,  (EC)  No  1782/2003  and  (EC)  No  247/2006  should 

therefore be amended accordingly. 

(17)  Provision  should  be  made  for  the  Commission  to  adopt  any  detailed  rules  necessary 
for  the  implementation  of  the  amendments  provided  for  in  this  Regulation  and 
transitional  measures  necessary  to  facilitate  the  switch-over  from  the  existing 
arrangements to those laid down by this Regulation. 

(18) 

In order to avoid prolonging unnecessarily the current aid scheme for bananas and in 
the interests of simple and effective management, the amendments provided for in this 
Regulation should apply as soon as practicable, namely from the 2007 marketing year 
for bananas, 

16 

OJ  L  297,  21.11.1996,  p.  1.  Regulation  as  last  amended  by  Commission  Regulation  (EC)  No  6/2005 
(OJ L 2, 5.1.2005, p. 3). 

EN 

9 

   EN 

 
                                                 
HAS ADOPTED THIS REGULATION: 

Article 1  
Amendments to Regulation (EEC) No 404/93 

Regulation (EEC) No 404/93 is amended as follows: 

(1) 

Titles II and III, Articles 16 to 20, paragraph 2 of Article 21, Article 25 and Articles 
30 to 32 are deleted; 

(2) 

in Article 27, paragraph 1 is replaced by the following: 

"1.  The  Commission  shall  be  assisted  by  the  Management  Committee  for  Fresh 
Fruit  and  Vegetables  referred  to  in  Article  46(1)  of  Regulation  (EEC)  No 
2200/96. 

1a.  References  to  the  Management  Committee  for  Bananas  shall  be  construed  as 

references to the Committee referred to in paragraph 1."; 

(3) 

Article 29 is replaced by the following: 

"Article 29 

Member  States  shall  provide  the  Commission  with  the  information  it  requires  to 
implement this Regulation."; 

(4) 

the following Article 29a is inserted: 

"Article 29a 

Detailed rules for the application of this Regulation shall be adopted in accordance 
with the procedure referred to in Article 27(2).". 

Article 2 
Amendments to Regulation (EC) No 1782/2003 

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

(1) 

in Article 33(1), point (a) is replaced by the following: 

"(a) 

they have been granted a payment in the reference period referred to in Article 
38 under at least one of the support schemes referred to in Annex VI or, in the 
case of olive oil, in the marketing years referred to in the second subparagraph 
of  Article  37(1),  or,  in  the  case  of  sugar  beet,  cane  and  chicory,  if  they  have 
benefited from market support in the representative period referred to in point 
K  of  Annex  VII,  or,  in  the  case  of  bananas,  if  they  have  benefited  from 
compensation  for  loss  of  income  in  the  representative  period  referred  to  in 
point L of Annex VII."; 

EN 

10 

   EN 

 
(2) 

in Article 37(1), the following subparagraph is added: 

"For  bananas  the  reference  amount  shall  be  calculated  and  adjusted  in  accordance 
with point L of Annex VII."; 

(3) 

in Article 40, paragraph 2 is replaced by the following: 

"2. 

If  the  whole  reference  period  was  affected  by  the  case  of  force  majeure  or 
exceptional  circumstances,  the  Member  State  shall  calculate  the  reference 
amount on the basis of the 1997 to 1999 period or, in case of sugar beet, cane 
and  chicory  on  the  basis  of  the  closest  marketing  year  prior  to  the 
representative period chosen in accordance with point K of Annex VII, or, in 
case  of  bananas  on  the  basis  of  the  closest  marketing  year  prior  to  the 
representative period chosen in accordance with point L of Annex VII. In this 
case, paragraph 1 shall apply mutatis mutandis."; 

(4) 

in Article 43(2), point (a) is replaced by the following: 

"(a) 

in  case  of  potato  starch,  dried  fodder,  seed,  olive  groves,  and  tobacco  aids 
listed in Annex VII, the number of hectares whose production has been granted 
the aid in the reference period, as calculated in points B, D, F, H, I of Annex 
VII,  in  case  of  sugar  beet,  cane  and  chicory,  the  number  of  hectares  as 
calculated in accordance with point 4 of point K of that Annex and in the case 
of bananas, the number of hectares as calculated in accordance with point L of 
that Annex;"; 

(5) 

in Article 44(2), the second subparagraph is replaced by the following: 

"'Eligible hectare' shall also mean areas planted with hops or bananas or being under 
a temporary resting obligation, or areas as calculated in the second subparagraph of 
point  H  of  Annex  VII  under  olive  trees  planted  before  1  May  1998,  except  for 
Cyprus and Malta, for which the date shall be 31 December 2001, or new olive trees 
replacing  existing  olive  trees  or  olive  trees  within  approved  planting  schemes  and 
registered into a geographic information system."; 

(6) 

in Article 51, point (a) is replaced by the following: 

"(a)  permanent crops, apart from olive trees planted before 1 May 1998, except for 
Cyprus and Malta, for which the date shall be 31 December 2001, or new olive 
trees  replacing  existing  olive  trees  or  olive  trees  within  approved  planting 
schemes  and  registered  into  a  geographic  information  system  or  hops  or 
bananas;"; 

(7) 

in Article 145, the following point is inserted after point (d)b): 

"(d)c) detailed  rules  relating  to  the  inclusion  of  banana  support  into  the  single 

payment scheme."; 

EN 

11 

   EN 

 
(8) 

Article 155 is replaced by the following: 

"Article 155 
Other transitional rules 

Further measures required to facilitate the transition from the arrangements provided 
for  in  the  Regulations  referred  to  in  Articles  152  and  153,  in  Regulation  (EC)  No 
1260/2001 and in Council Regulation (EEC) No 404/93* to those established by this 
Regulation, notably those related to the application of Articles 4 and 5 and the Annex 
to  Regulation  (EC)  No  1259/1999  and  Article  6  of  Regulation  (EC)  No  1251/1999 
and from the provisions related to the improvement plans provided for in Regulation 
(EEC) No 1035/72 to those referred to in Articles 83 to 87 of this Regulation, may be 
adopted  in  accordance  with  the  procedure  referred  to  in  Article  144(2)  of  this 
Regulation.  Regulations  and  Articles  referred  to  in  Articles  152  and  153  shall 
continue  to  apply  for  the  purpose  of  the  establishment  of  the  reference  amounts 
referred to in Annex VII. 

* 

OJ L 47, 25.2.1993, p. 1";  

(9) 

the Annexes are amended in accordance with the Annex to this Regulation. 

Article 3 
Amendment to Regulation (EC) No 247/2006 

Regulation (EC) No 247/2006 is amended as follows: 

(1) 

in Article 23, paragraph 2 is replaced by the following: 

"2.  The Community shall finance the measures provided for in Titles II and III of 

this Regulation up to an annual maximum as follows: 

Financial 
year 2007 

Financial 
year 2008 

Financial 
year 2009 

Financial year 
2010 and further 

million EUR

French overseas departments 

Azores and Madeira 

Canary Islands 

126.6 

77.9 

127.3 

262.6 

86.6 

268.4 

269.4 

86.7 

268.4 

273 

86.8 

268.4 

(2) 

in Article 28, paragraph 3 is replaced by the following: 

"3. Not later than 31 December 2009, 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,  including  in  the  banana  sector, 
accompanied if applicable by appropriate proposals."; 

EN 

12 

   EN 

 
 
(3) 

in Article 30, the following paragraph is added: 

"In accordance with the same procedure, the Commission may also adopt measures 
to facilitate the transition from the arrangements provided for in Council Regulation 
(EEC) No 404/93* to those established by this Regulation. 

* 

OJ L 47, 25.2.1993, p. 1". 

Article 4 
Transitional measures 

1. 

2. 

Notwithstanding Article 1, point (1) of this Regulation, Member States shall continue 
to  apply  Articles  5,  6  and  25(2)  of  Regulation  (EEC)  No  404/93  to  producers' 
organisations  which  they  have  recognised  no  later  than  31  December  2006  and  to 
whom  aid  has  already  been  paid  under  Article  6(2)  of  that  Regulation  prior  to  that 
date. 

Detailed  rules  necessary  for  the  implementation  of  paragraph  1  shall  be  adopted  in 
accordance with the procedures referred to in Article 27(2) of Regulation (EEC) No 
404/93. 

Article 5 
Entry into force and application 

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

It shall apply from 1 January 2007. 

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

Done at Brussels,  

For the Council 
The President 

EN 

13 

   EN 

 
 
 
 
 
ANNEX 

The Annexes to Regulation (EC) No 1782/2003 are amended as follows: 

(1) 

in Annex I the row concerning bananas is deleted; 

(2) 

the following row is added to Annex VI: 

"Bananas 

Article 
Regulation 
No 404/93 

12 

of 
(EEC) 

Compensation 
loss of income"; 

for 

(3) 

the following point is added to Annex VII: 

"L.  Bananas 

Member States shall determine the amount to be included in the reference amount of 
each farmer on the basis of objective and non-discriminatory criteria such as: 

– 

– 

– 

the  quantity  of  bananas  marketed  by  that  farmer  for  which  compensation  for 
loss  of  income  was  paid  under  Article  12  of  Regulation  (EEC)  No  404/93 
during a representative period between the 2000 and 2005 marketing years, 

the areas on which the bananas referred to in the first indent were grown, and 

the  amount  of  compensation  for  loss  of income paid to the  farmer during the 
period referred to in the first indent. 

Member States shall calculate the applicable hectares referred to in Article 43(2) of 
this Regulation on the basis of objective and non-discriminatory criteria such as the 
areas referred to in the second indent of the first paragraph."; 

(4) 

Annexes VIII and VIIIa are replaced by the following: 

EN 

14 

   EN 

 
"ANNEX VIII 
National ceilings referred to in Article 41 

Member State 

2005 

2006 

2007 

2008 

2009 

EUR '000

2010 and 
subsequent 

Belgium 

Denmark 

Germany 

Greece 

Spain 

France 

Ireland 

Italy 

Luxembourg 

Netherlands 

Austria 

Portugal 

Finland 

Sweden 

411053 

580376 

593395 

606935 

614179 

611805 

943369 

1015479 

1021296 

1027278 

1030478 

1030478 

5148003 

5647175 

5695607 

5744240 

5770254 

5774254 

838289 

2143603 

2171217 

 2175731 

 2178146 

 1988815 

3266092 

4635365 

4649913 

4664087 

4671669 

4673546 

7199000 

8236045 

8282938 

8330205 

8355488 

8363488 

1260142 

1335311 

1337919 

1340752 

1342268 

1340521 

2539000 

3791893 

3813520 

3835663 

3847508 

3869053 

33414 

36602 

37051 

37051 

37051 

37051 

386586 

428329 

833858 

846389 

853090 

853090 

613000 

633577 

737093 

742610 

745561 

744955 

452000 

504287 

 571377 

 572368 

 572898 

 572594 

467000 

561956 

563613 

565690 

566801 

565520 

637388 

670917 

755045 

760281 

763082 

763082 

United Kingdom 

3697528 

3944745 

3960986 

3977175 

3985834 

3975849 

ANNEX VIIIa 
National ceilings referred to in Article 71c 

EUR '000

Calendar 
year 

Czech 
Republic 

Estonia 

Cyprus 

Latvia 

Lithua-
nia 

Hungary  Malta 

Poland 

Slovenia  Slovakia 

2005 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

Subsequent 
years 

228800 

23400 

8900 

33900 

92000 

350800 

294551 

27300 

12500 

43819 

113847 

446305 

670 

830 

724600 

35800 

97700 

980835 

44184 

127213 

377919 

40400 

 17660 

60764 

154912 

540286 

1640 

1263706 

58958 

161362 

469986 

50500 

 22100 

75610 

193076 

672765 

2050 

1572577 

73533 

200912 

559145 

60500 

 26540 

90016 

230560 

802610 

2460 

1870392 

87840 

238989 

644745 

70600 

 30980 

103916 

267260 

929210 

2870 

2155492 

101840 

275489 

730445 

80700 

 35420 

117816 

303960 

1055910 

3280 

2440492 

115840 

312089 

816045 

90800 

 39860 

131716 

340660 

1182510 

3690 

2725592 

129840 

348589 

901745 

100900 

 44300 

145616 

377360 

1309210 

4100 

3010692 

143940 

385189 

EN 

15 

".

   EN 

 
 
FINANCIAL STATEMENT 

Fichefin/06/21515 
6.153.2006.1 

DATE: 29/06/2006 
APPROPRIATIONS: 
PDB 2007 
30.709 Mio€ 
 265 Mio€ 
 159 Mio€ 

1. 

BUDGET HEADING: (nomenclature 2007) 

2. 

3. 

4. 

05 03 01 
05 03 02 30 
05 03 02 50 
TITLE: 
Council Regulation amending Regulations (EEC) No 404/93, (EC) No 1782/2003 and (EC) No 247/2006 
as regards the banana sector 

LEGAL BASIS: 
Art 37 of the Treaty 
AIMS: 
Following the CAP reform of 2003, this proposal aims at: 
- ensuring a better standard of living of the agricultural community in regions where bananas are 
produced;  
- directing better direct resources towards market-orientation of producers; 
- ensuring the respect of the international obligations of the Community: 
- taking adequately into account the particularities of the producing regions; 
- stabilising the Community expenditure for the support of this sector; 
- simplifying the management of the regime and aligning it on the principles of the reformed common 
market organisations 

5. 

FINANCIAL IMPLICATIONS 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

12 MONTH 
PERIOD 

(EUR million) 
pm 

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: 

See annex 

- 

2009 
+35.5 
- 

FINANCIAL 
YEAR 
2007 
(EUR million) 

FINANCIAL 
YEAR 
2008 
(EUR million) 

- 

- 

+35.2 

- 

2010 
+35.8 
- 

2011 
+36.2 
- 

2012 
+36.5 
- 

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? 
OBSERVATIONS: 
See Annex. 

YES NO 

YES NO 
YES NO 
YES NO 

EN 

16 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annex 

Status 
quo 

Current proposal 

in Mio€ 

2008 

2009 

2010 

2011 

2012 

Compensatory 
supplementary aid) 

aid 

(incl. 

243** 

SAPS 

SPS 

POSEI 

TOTAL 

3,2  

1,4* 

1,2 

2,9* 

3,2* 

3,6* 

3,9* 

278,8 

278,8  278,8 

 278,8 

278,8 

246,2 

281,4 

281,7  282 

 282,4 

 282,7 

*full  aid  level  of  3,4  Mio€  from  2013  for  Cyprus  in  accordance  with  the  schedule  of  increments  applied  for 
NMS; 
**The  expenditure  under  the  status  quo  is  based  of:  1.  the  estimated  quantities  of  750.000  t;  2.  the  estimated 
compensatory aid (including supplementary aid) of 324€/t taking into account the introduction of the new import 
system moving from a system governed by tariff quotas to one currently governed by a tariff-only system. 

EN 

17 

   EN