Proposal for a Council Regulation adapting Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers, Regulation (EC) No 318/2006 on the common organisation of the markets in the sugar sector and Regulation (EC) No 320/2006 establishing a temporary scheme for the restructuring of the sugar industry in the Community, by reason of the accession of Bulgaria and Romania to the European Union
Date: 2006-11-08
Institutions: European Commission
Subjects: Bulgaria, Romania, accession to the European Union, aid to agriculture, common agricultural policy, common organisation of markets, farmers' income, regulation of agricultural production, sugar industry

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 8.11.2006 
COM(2006) 677 final 

2006/0226 (CNS) 

Proposal for a 

COUNCIL REGULATION 

adapting Regulation (EC) No 1782/2003 establishing common rules for direct support 
schemes under the common agricultural policy and establishing certain support schemes 
for farmers, Regulation (EC) No 318/2006 on the common organisation of the markets in 
the sugar sector and Regulation (EC) No 320/2006 establishing a temporary scheme for 
the restructuring of the sugar industry in the Community, by reason of the accession of 
Bulgaria and Romania to the European Union 

(presented by the Commission) 

EN 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT 

•  Grounds for and objectives of the proposal 

On 20 February 2006, the Council adopted new regulations on the common organisation of the 
markets  in  the  sugar  sector1.  These  regulations  do  not  take  account  of  the  results  of  the 
accession  negotiations.  There  is  therefore  a  need  to  adapt  the  texts  of  the  new  sugar 
regulations before accession to ensure that they are compatible with the Act of Accession. 

In addition, certain provisions on seeds in Council Regulation (EC) No 1782/2003 have been 
enforced  from  the  2005/06  campaign  and  should  be  adapted  in  respect  of  Bulgaria  and 
Romania  

Specifically, in the case of sugar, there is a need to: 

– 

– 

– 

insert  Bulgaria  and  Romania  in  the  list  of  countries  benefiting  from  the  production 
quota  system  for  sugar,  isoglucose  and  inulin  syrup  quotas,  as  well  as  traditional 
supply needs of sugar for refining; 

foresee provisions on direct payments for Bulgaria and Romania; 

adapt some dates in the above-mentioned regulations on sugar in order that Bulgaria 
and Romania can participate in the common market organisation . 

In  the  case  of  seeds,  it  is  necessary  to  add  Bulgaria  and  Romania  to  the  list  of  countries 
concerned  by  the  seeds  aid  and  subsequently  adapt  Annex  XIa  of  Council  Regulation  (EC) 
No 1782/2003. 

•  General context 

Bulgaria  and  Romania  are  due  to  join  the  EU  on  1  January  2007.  It  is  therefore 
necessary to foresee all legal provisions that will apply to both countries.  

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties  

In  accordance  with  the  interim  procedure  applicable  to  Bulgaria  and  Romania, 
DG AGRI organised meetings with both countries to inform them unofficially about 
DG AGRI's proposal and get their reactions.  

1 

Council Regulations (EC) No 318/2006 on the common organisation of the markets in the sugar sector, 
(EC)  No 319/2006  amending  Regulation  (EC)  No 1782/2003  establishing  common  rules  for  direct 
support  schemes  under  the  common  agricultural  policy  and  establishing  support  schemes  for  farmers, 
(EC)  No 320/2006  establishing  a  temporary  scheme  for  the  restructuring  of  the  sugar  industry  in  the 
Community and amending Regulation (EC) No 1290/2005 on the financing of the common agricultural 
policy. 

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•  Impact assessment 

Not applicable. The proposal is not subject to IA requirements as it is not included in 
the Commission Legislative and Work Programme.  

3. 

LEGAL ELEMENTS AND MAIN CHARACTERISTICS OF THE HORIZONTAL CMO  

•  Legal basis 

Article 4(3) of the Treaty of Accession of Bulgaria and Romania   
Article 20 Annex IV of the Act of accession of Bulgaria and Romania 

•  Content of the proposal 

The proposals made in the Council Regulation are described below: 

SUGAR 

Introduction of direct payments 

Sugar direct payments should be introduced in Bulgaria and Romania according to the same 
schedule of increments as for the other crops, i.e. ten years starting in 2007 at a level of 25% 
of  the  direct  payments  then  applicable  in  the  EU-15.  To  determine  the  amount  of  the  sugar 
direct payments, the same method of calculation as for the EU-25 has been used. Bulgaria and 
Romania should be also offered the possibility to apply the separate sugar payment as offered 
to the new member States applying SAPS (Single Area Payment Scheme). 

Adaptation to the market measures  

Bulgaria and Romania should be included in the list of national and regional quotas 
with the corresponding sugar and isoglucose quotas; 

Bulgaria  and  Romania  should  be  added  to  the  list  of  countries  benefiting  from  the 
system of Traditional Supply Needs for refining; 

some dates of the sugar regulations should be adapted to the specific circumstances of 
Bulgaria and Romania. 

– 

– 

– 

SEEDS 

Bulgaria and Romania should be offered the option to couple the aid for seeds when applying 
the  single  payment  scheme  and  consequently  they  should  be  added  to  the  relevant  table  on 
seeds aid. 

•  Subsidiarity principle 

Not applicable. Bulgaria and Romania are not yet Member States. 

•  Choice of instrument 

Proposed instrument: Council Regulation amending 3 Council Regulations. 

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4) 

BUDGETARY IMPLICATIONS 

These proposals have financial implications for the Community budget: 

– 

– 

on  the  expenditure  side,  the  progressive  introduction  of  directs  payments  for  sugar 
foreseen in Council Regulation (EC) No 319/2006 will entail additional expenditure 
(from  €2,014  mio  in  budget  year  2008  to  €10,543  mio  in  financial  year  2017  and 
subsequent years); 

on the revenue side, both countries will be subject to the payment of the production 
charge  in  the  sugar  sector  set  out  in  article  16  of  Council  Regulation  (EC) 
No 318/2006  as  from  the  marketing  year  2007/2008  (total  amount  foreseen: 
€1,841 mio  each  year)  as  well  as  to  the  payment  of  the  temporary  restructuring 
amount set out in Article 11 of Council Regulation (EC) No 320/2006 (total amount 
foreseen:  €16  mio  in  financial  year  2008,  €21,1  mio  in  financial  year  2009  and 
€6,9 mio in financial year 2010). 

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2006/0226 (CNS) 

Proposal for a 

COUNCIL REGULATION 

adapting Regulation (EC) No 1782/2003 establishing common rules for direct support 
schemes under the common agricultural policy and establishing certain support schemes 
for farmers, Regulation (EC) No 318/2006 on the common organisation of the markets in 
the sugar sector and Regulation (EC) No 320/2006 establishing a temporary scheme for 
the restructuring of the sugar industry in the Community, by reason of the accession of 
Bulgaria and Romania to the European Union 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having  regard  to  the  Treaty  of  Accession  of  Bulgaria  and  Romania,  and  in  particular 
Article 4(3) thereof, 

Having regard to the Act of Accession of Bulgaria and Romania, and in particular Article 41, 
second subparagraph, and Article 20 thereof in conjunction with Annex IV thereto, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

Council  Regulation  (EC)  No  1782/20033  has  been  amended  by  Regulation  (EC) 
No 583/20044, introducing inter alia provisions for seeds after the 2005/2006 marketing 
year  and  by  Regulation  (EC)  No 319/20065,  introducing  direct  support  schemes  for 
farmers in the sugar sector. Council Regulation (EC) No 318/20066 introduced general 
rules  governing  the  common  organisation  of  the  markets  in  the  sugar  sector  from  the 
marketing year 2006/2007. 

(2) 

Those general rules and measures should be adapted to allow their implementation in 
Bulgaria and Romania as from the date of accession of those countries to the European 
Union. 

(3)  With a view to allowing Bulgaria and Romania to benefit from the support measures in 
the  sugar  sector  provided  for  under  Regulation  (EC)  No 1782/2003  as  amended  by 
Regulation  (EC)  No 319/2006,  it  is  appropriate  to  amend  the  national  ceilings  of 
Bulgaria  and  Romania  taking  into  account  the  additional  amount  of  aid.  In  order  to 

2 
3 

4 
5 
6 

OJ C …, …, p. ... 
OJ  L  270, 21.10.2003,  p. 1.  Regulation  as  last  amended  by  Regulation  (EC)  No 1405/2006  (OJ L 265, 
26.9.2006, p. 1). 
OJ L 91,30.3.2004, p. 1. 
OJ L 58, 28.2.2006, p. 32. 
OJ L 58, 28.2.2006, p. 1. 

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provide Bulgaria and Romania with the possibility to grant the sugar direct payment in 
the form of a separate direct payment, it is appropriate to amend the national ceilings on 
the sugar reference amounts. 

Regulation  (EC)  No  1782/2003  as  amended  by  Regulation  (EC)  No 583/2004, 
introduced  seed  aid  ceilings  for  the  Member  States  which  acceded  to  the  European 
Union  in  2004.  Bulgaria  and  Romania  should  be  added  to  the  list  of  countries 
concerned by this measure. 

Regulation  (EC)  No  318/2006  establishes  a  production  quota  system  for  sugar, 
isoglucose and inulin syrup, as well as a traditional supply need of sugar for refining. In 
order  to  apply  these  mechanisms  in  Bulgaria  and  Romania,  both  countries  should  be 
added  to  the  list  of  countries  benefiting  from  these  measures  and  subsequent 
adaptations  should  be  made  to  take  account  of  the  specific  situation  of  Bulgaria  and 
Romania. 

In order to allow operators in Bulgaria and Romania to participate in the restructuring 
scheme, there is a need to adapt Council Regulation (EC) No 320/20067. 

Regulations  (EC)  No 1782/2003,  (EC)  No 318/2006  and  (EC)  No 320/2006  should 
therefore be amended accordingly, 

(4) 

(5) 

(6) 

(7) 

HAS ADOPTED THIS REGULATION: 

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

Article 1 

(1) 

In Article 71c, the following paragraph is inserted after the first paragraph: 

"In the case of Bulgaria and Romania, the schedule of increments provided for under 
Article 143a shall apply for sugar and chicory." 

(2) 

Article 143ba is amended as follows: 

(a)  Paragraph 1 is replaced by the following: 

"1.  By way of derogation from Article 143b the new Member States applying 
the single area payment scheme may decide by 30 April 2006, to grant in 
respect  of  the  years  2006,  2007  and  2008,  a  separate  sugar  payment  to 
farmers eligible under the single area payment scheme. It shall be granted 
in  respect  of  a  representative  period  which  could  be  different  for  each 
product of one or more of the marketing years 2004/2005, 2005/2006 and 
2006/2007 to be determined by Member States before 30 April 2006, and 
on the basis of objective and non-discriminatory criteria such as: 

– 

the  quantities  of  sugar  beet,  cane  or  chicory  covered  by  delivery 
contracts  concluded  in  accordance  with  Article 19  of  Regulation 
(EC) No 1260/2001 or Article 6 of Regulation (EC) No 318/2006 as 
appropriate 

7 

OJ L 58, 28.2.2006, p. 42. 

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– 

– 

the quantities of sugar or inulin syrup produced in accordance with 
Regulation (EC) No 1260/2001 or Regulation (EC) No 318/2006 as 
appropriate; 
the  average  number  of  hectares  under  sugar  beet,  cane  or  chicory 
used  for  the  production  of  sugar  or  inulin  syrup  and  covered  by 
delivery  contracts  concluded  in  accordance  with  Article  19  of 
Regulation  (EC)  No  1260/2001  or  Article  6  of  Regulation  (EC) 
No 318/2006 as appropriate; 

However,  where  the  representative  period  includes  the  marketing  year 
2006/2007,  this  marketing  year  shall  be  replaced  by  the  marketing  year 
2005/2006  for  farmers  affected  by  a  renunciation  of  quota  in  the 
marketing year 2006/2007 as provided for in Article 3 of Regulation (EC) 
No 320/2006. 

In the case of Bulgaria and Romania: 

(a) 

(b) 

(c) 

the date of 30 April 2006 referred to in the first subparagraph shall 
be 15 February 2007; 

the  separate  sugar  payment  may  be  granted  in  respect  of  the  years 
from 2007 until 2011; 

the representative period referred to in the first subparagraph may be 
different  for  each  product  of  one  or  more  of  the  marketing  years 
2004/2005, 2005/2006, 2006/2007 and 2007/2008; 

(d)  where  the  representative  period  includes  the  marketing  year 
2007/2008,  this  marketing  year  shall  be  replaced  by  the  marketing 
year  2006/2007  for  farmers  affected  by  a  renunciation  of  quota  in 
the  marketing  year  2007/2008  as  provided  for  in  Article 3  of 
Regulation (EC) No 320/2006." 

(b) 

In paragraph 3, the following subparagraph is added: 

"For Bulgaria and Romania, the date of 31 March 2006 referred to in the first 
subparagraph shall be 15 February 2007." 

(3) 

Annexes  VII,  VIIIa  and  XIa  are  amended  in  accordance  with  Annex  I  to  this 
Regulation. 

Article 2 

Regulation (EC) No 318/2006 is amended as follows: 

(1) 

In Article 7(2), the following subparagraph is added: 

"For  the  purposes  of  this  paragraph,  in  the  case  of  Bulgaria  and  Romania  the 
marketing year shall be that of 2006/2007." 

(2) 

In Article 9, paragraph 1 is replaced by the following: 

"1. 

In the marketing year 2006/2007 an isoglucose quota of 100 000 tonnes shall be 
added  to  the  total  of  isoglucose  quota  fixed  in  Annex  III.  In  each  of  the 
marketing  years  2007/2008  and  2008/2009  a  further  isoglucose  quota  of 

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100 000  tonnes  shall  be  added  to  the  quota  of  the  preceding  marketing  year. 
This increase shall not concern Bulgaria and Romania. 

In  each  of  the  marketing  years  2007/2008  and  2008/2009  a  further  isoglucose 
quota of 11 045 tonnes for Bulgaria and of 1 966 tonnes for Romania shall be 
added to the quota of the preceding marketing year. 

Member  States  shall  allocate 
to  undertakings, 
proportionately to the isoglucose quotas that have been allocated in accordance 
with Article 7(2)." 

the  additional  quotas 

(3) 

In Article 29, paragraph 1 is replaced by the following: 

"1.  Notwithstanding Article 19(1), a traditional supply need of sugar for refining is 
fixed for the Community at 2 324 735 tonnes per marketing year, expressed in 
white sugar. 

During  the  marketing  years  2006/2007,  2007/2008  and  2008/2009,  the 
traditional supply need shall be distributed as follows: 

– 
– 
– 
– 
– 
– 
– 

198 748 tonnes for Bulgaria, 
296 627 tonnes for France, 
291 633 tonnes for Portugal, 
329 636 tonnes for Romania, 
19 585 tonnes for Slovenia, 
59 925 tonnes for Finland, 
1 128 581 tonnes for the United Kingdom." 

(4) 

Annex III is replaced by the text in Annex II to this Regulation.  

Article 3 

In  Article  3(1)  of  Regulation  (EC)  No  320/2006,  the  introductory  words  of  the  first 
subparagraph are replaced by the following: 

"Any  undertaking  producing  sugar,  isoglucose  or  inulin  syrup  to  which  a  quota  has  been 
allocated by 1 July 2006, or by 31 January 2007 in the case of Bulgaria and Romania, shall be 
entitled  to  a  restructuring  aid  per  tonne  of  quota  renounced,  provided  that  during  one  of  the 
marketing years 2006/2007, 2007/2008, 2008/2009 and 2009/2010 it:" 

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This Regulation shall enter into force subject to and on the date of the entry into force of the 
Treaty of Accession of Bulgaria and Romania.  

Article 4 

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 I 

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

(1) 

In point K 2 of Annex VII, Table 1 is replaced by the following: 

"Table 1 

Ceilings for amounts to be included in the reference amount of farmers 

Member State 

Belgium 

Czech Republic 

Denmark 

Germany 

Greece 

Spain 

France 

Hungary 

Ireland 

Italy 

Latvia 

Lithuania 

Netherlands 

Austria 

Poland 

Portugal 

Slovakia 

Slovenia 

Finland 

Sweden 

United Kingdom 

2006 

47 429 

27 851 

19 314 

154 974 

17 941 

60 272 

152 441 

26 105 

11 259 

79 862 

4 219 

6 547 

41 743 

18 971 

99 135 

3 940 

11 813 

2 284 

8 255 

20 809 

64 340 

2007 

60 968 

34 319 

25 296 

203 607 

22 455 

74 447 

199 709 

31 986 

14 092 

102 006 

5 164 

8 012 

54 272 

24 487 

2008 

74 508 

40 786 

31 278 

252 240 

26 969 

88 621 

246 976 

37 865 

16 925 

124 149 

6 110 

9 476 

66 803 

30 004 

122 906 

146 677 

4 931 

14 762 

2 858 

10 332 

26 045 

80 528 

5 922 

17 712 

3 433 

12 409 

31 281 

96 717 

(EUR '000) 

2009 and subsequent 

81 752 

44 245 

34 478 

278 254 

29 384 

96 203 

272 259 

41 010 

18 441 

135 994 

6 616 

10 260 

73 504 

32 955 

159 392 

6 452 

19 289 

3 740 

13 520 

34 082 

105 376 

Member 
State 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

(EUR '000) 

2016 and sub-
sequent years 

Bulgaria 

84 

121 

154 

176 

220 

264 

308 

352 

396 

440 

Romania 

1 930 

2 781 

3 536 

4 041 

5 051 

6 062 

7 072 

8 082 

9 093 

10 103 

EN 

10 

" 

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(2) 

Annex VIIIa is replaced by the following: 

"ANNEX VIIIa 

National ceilings referred to in Article 71c 

Calendar 
year 

Czech 
Republic 

Estonia 

Cyprus 

Latvia 

Lithuania 

Hungary 

Malta 

Poland 

Slovenia 

Slovakia 

(EUR '000) 

Calendar 
year 

Bulgaria  Romania 

2005 

228 800 

23 400 

8 900 

33 900 

92 000 

350 800 

2006 

294 551 

27 300 

12 500 

43 819 

113 847 

446 305 

670 

830 

724 600 

35 800 

97 700 

2007 

200 384 

441 930 

980 835 

44 184 

127 213 

2008 

240 521 

530 681 

2007 

377 919 

40 400 

16 300 

60 764 

154 912 

540 286 

1 640 

1 263 706 

58 958 

161 362 

2009 

281 154 

621 636 

2008 

469 986 

50500 

20 400 

75 610 

193 076 

672 765 

2 050 

1 572 577 

73 533 

200 912 

2010 

321 376 

710 441 

2009 

559 145 

60 500 

24 500 

90 016 

230 560 

802 610 

2 460 

1 870 392 

87 840 

238 989 

2011 

401 620 

888 051 

2010 

644 745 

70 600 

28 600 

103 916 

267 260 

929 210 

2 870 

2 155 492 

101 840 

275 489 

2012 

481 964 

1 065 662 

2011 

730 445 

80 700 

32 700 

117 816 

303 960 

1 055 910 

3 280 

2 440 492 

115 840 

312 089 

2013 

562 308 

1 243 272 

2012 

816 045 

90 800 

36 800 

131 716 

340 660 

1 182 510 

3 690 

2 725 592 

129 840 

348 589 

2014 

642 652 

1 420 882 

subsequent 
years 

901 745 

100 900 

40 900 

145 616 

377 360 

1 309 210 

4 100 

3 010 692 

143 940 

385 189’ 

2015 

722 996 

1 598 493 

2016 and 
subsequent 
years 

803 340 

1 776 103 

" 

(3) 

Annex XIa is replaced by the following: 

"ANNEX XIa 

Seed aid ceilings in the new Member States referred to in Article 99(3) 

(EUR million) 

Calendar year 

Bulgaria 

Czech 
Republic 

Estonia  Cyprus  Latvia  Lithuania  Hungary  Malta 

Poland  Romania  Slovenia  Slovakia 

2005 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

– 

– 

0,11 

0,13 

0,15 

0,17 

0,22 

0,26 

0,30 

0,34 

0,39 

0,43 

subsequent years 

0,43 

0,87 

1,02 

1,17 

1,46 

1,75 

2,04 

2,33 

2,62 

2,91 

2,91 

2,91 

2,91 

2,91 

0,04 

0,04 

0,05 

0,06 

0,07 

0,08 

0,10 

0,11 

0,12 

0,12 

0,12 

0,12 

0,12 

0,03 

0,03 

0,04 

0,05 

0,06 

0,07 

0,08 

0,09 

0,10 

0,10 

0,10 

0,10 

0,10 

0,12 

0,14 

0,17 

0,21 

0,24 

0,28 

0,31 

0,35 

0,35 

0,35 

0,35 

0,10 

0,35 

0,10 

0,12 

0,14 

0,17 

0,21 

0,24 

0,28 

0,31 

0,35 

0,35 

0,35 

0,35 

0,35 

0,78 

0,90 

1,03 

1,29 

1,55 

1,81 

2,07 

2,33 

2,59 

2,59 

2,59 

2,59 

2,59 

0,03 

0,03 

0,04 

0,05 

0,06 

0,07 

0,08 

0,09 

0,10 

0,10 

0,10 

0,10 

0,56 

0,65 

0,74 

0,93 

1,11 

1,30 

1,48 

1,67 

1,85 

1,85 

1,85 

1,85 

0,10 

1,85 

– 

– 

0,19 

0,23 

0,26 

0,30 

0,38 

0,45 

0,53 

0,60 

0,68 

0,75 

0,75 

0,08 

0,10 

0,11 

0,14 

0,17 

0,19 

0,22 

0,25 

0,28 

0,28 

0,28 

0,28 

0,28 

0,04 

0,04 

0,05 

0,06 

0,07 

0,08 

0,09 

0,11 

0,12 

0,12 

0,12 

0,12 

0,12' 

" 

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ANNEX II 

"ANNEX III 

NATIONAL AND REGIONAL QUOTAS 

Member States or regions (1) 

Sugar (2) 

Isoglucose (3) 

Inulin syrup (4) 

(tonnes) 

Belgium  

Bulgaria 

Czech Republic 

Denmark 

Germany 

Greece 

Spain 

France (metropolitan) 

French overseas departments 

Ireland 

Italy 

Latvia 

Lithuania 

Hungary 

Netherlands 

Austria 

Poland 

Portugal (mainland.) 

The autonomous region of the Azores 

Romania 

Slovakia 

Slovenia 

Finland 

Sweden 

819 812  

4 752 

454862 

420 746 

3 655 456 

317 502 

903 843 

3 552 221 

480 245 

0 

778 706 

66505 

103 010 

401 684 

864 560 

387 326 

1 671 926 

34 500 

9 953 

109 164 

207 432 

52 973 

146 087 

325 700 

United Kingdom 

Total 

1 138 627 

16 907 591  

85 694 

67 108 

– 

– 

42 360 

15 433 

98 845 

23 755 

– 

– 

24 301 

– 

– 

164 736 

10 891 

– 

32 056 

11 870 

– 

11 947 

50 928 

– 

14 210 

– 

32 602 

686 736 

0 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

" 

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FINANCIAL STATEMENT 

1. 

BUDGET HEADING (nomenclature 2007): 

05 03 01 
117 
680 

APPROPRIATIONS 
PDB 2007: 
€30 709 Mio 
pm 
pm 

2. 

3. 

4. 

TITLE: 
Council Regulation adapting Regulation (EC) No 318/2006 on the common organisation of the markets 
in the sugar sector, Regulation No 320/2006 establishing a temporary scheme for the restructuring of the 
sugar  industry  in  the  Community  and  Regulation  (EC)  No  1782/2003  establishing  common  rules  for 
direct support schemes under the common agricultural policy and establishing certain support schemes 
for farmers by reason of the accession of the Republic of Bulgaria and Romania to the European Union. 

LEGAL BASIS: 
Art 4 (3) of the Treaty of Accession of Bulgaria and Romania   
Article 20 in conjunction with Annex IV of the Act of accession of Bulgaria and Romania 

AIMS: 
Following the sugar reform of 2006, this proposal aims at: 
– 

inserting Bulgaria and Romania in the list of countries benefiting from the production quota system 
for sugar, isoglucose and inulin syrup quotas, as well as traditional supply needs of sugar for refining;
foreseeing provisions on direct payments for Bulgaria and Romania; 

– 
–  adapting some dates in the above-mentioned regulations on sugar in order that Bulgaria and Romania 

can participate in the common market organisation. 

5. 

FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 
(EUR million) 

FINANCIAL 
YEAR 2007 
(EUR million) 

FINANCIAL 
YEAR 2008 
(EUR million) 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
– 
(REFUNDS/INTERVENTIONS) 
– 
– 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

OWN RESOURCES OF THE EC  

– 
(LEVIES/CUSTOMS DUTIES) 
– 
RESTRUCTURING AMOUNTS 
– 

NATIONAL 

ASSIGNED REVENUE – TEMPORARY 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2  METHOD OF CALCULATION: 

See Annex 

pm 

– 

– 

– 

2,014 

1,841 

16 

2009 

2,902 
22,941 

2010 

3,690 
8,741 

2011 

4,217 
1,841 

2012 

5,271 
1,841 

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 NO 

YES NO 

YES NO 

YES NO 

OBSERVATIONS: 
See Annex 

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13 

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Direct payments: 

Annex 

The guiding principles to calculate the level of direct payments are: 

– 

– 

applying the same method of calculation as the one used during the sugar reform; 

applying the phasing-in; the level of direct payments will continue to increase up to 
€6,326  mio  in  budget  year  2013,  €7,380  mio  in  2014,  €8,434  mio  in  2015, 
€9,489 mio in 2016 to reach €10,543 mio in 2017 and subsequent years.  

Revenue: 

1) 

2) 

Production charge set out Article 16 of Council Regulation (EC) No 318/2006 (€12/t 
of  sugar  and  inulin  syrup  quota,  6€/t  of  isoglucose  quota)  x  Quotas  allocated  to 
Romanian and Bulgarian undertakings 

(4 752 + 109 164) x 12 + (67 108 + 11 947) x 6 = €1,841 mio each year 

Temporary  restructuring  amounts  set  out  in  Article  11  of  Council  Regulation  (EC) 
No 320/2006 x Quotas allocated to Romanian and Bulgarian undertakings  

Marketing  year  2007/08:  (4752  +  109 164)  x  173,8  +  (67 108  +  11 947)  x  86,9  = 
€26 668 480. 

Payment 60% in March 2008 => €16 mio on budget 2008 

Payment 40% in November 2008 => €10,7 mio on budget 2009 

Marketing  year  2008/09:  (4752  +  109 164)  x  113,3  +  (67 108  +  11 947)  x  56,65  = 
€17 385 149. 

Payment 60% in March 2009 => €10,4 mio on budget 2009 

Payment 40% in November 2009 => €6,9 mio on budget 2010 

EN 

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