Proposal for a Council Regulation derogating from Regulation (EC) No 2597/97  as regards drinking milk produced in Estonia
Date: 2007-02-07
Institutions: European Commission
Subjects: Estonia, derogation from EU law, drinking milk, marketing standard, milk fat

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.2.2007 
COM(2007) 48 final 

2007/0021 (CNS) 

Proposal for a 

COUNCIL REGULATION 

derogating from Regulation (EC) No 2597/97  
as regards drinking milk produced in Estonia  

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

Council  Regulation  (EC)  No  2597/97  lays  down  common  rules  for  the  production  and 
marketing of drinking milk. 

Following the consumer habits and different requests of Member States, several of them have 
been granted derogations from Regulation (EC) No 2597/97, with regard to the fat content of 
the  drinking  milk.  At  present  10  Member  States  are  provided  with  derogations,  all  of  them 
valid until 2009 except for Estonia. 

Estonia  has  been  granted  a  derogation  from  Regulation  (EC)  No  2597/97  for  2.5  fat  % 
drinking  milk  until  30  April  2007.  The  provision  derogates  from  the  requirement  for  whole 
milk  (minimum  of  3.5  fat  %).  Nearly  93%  of  the  drinking  milk  produced  and  consumed  in 
Estonia has a fat content of 2.5%. The 2.5% milk can only be marketed in Estonia. 

The reason why Estonia received derogation from Regulation (EC) No 2597/97 until 30 April 
2007 only and not until 2009 like other Member States was rather political/legal. Applying for 
derogation similar to the existing derogations in Finland and Sweden was under discussion in 
Estonia during the accession negotiations but was not considered the first priority, due to the 
fact that the transition period for Finland and Sweden was supposed to end in 2004. However, 
it turned out after the end of accession negotiations that Finland and Sweden were granted a 
further  prolongation  of  the  existing  derogation  until  2009  and  that  a  number  of  acceding 
countries had applied for the same transitional period. Therefore, after the accession, Estonia 
was positioned in the middle of Member States all provided with derogations until 2009. 

On  that  background,  in  2004  Estonia  asked  the  Commission  to  consider  the  possibility  of 
applying a derogation from Regulation (EC) No 2597/97. Having regard to Article 41 of the 
Act  of  Accession,  the  Commission  subsequently  adopted  Regulation  (EC)  No  749/2004  in 
which Estonia was granted a derogation for three years which was a maximum period, in legal 
terms, for applying transitional measures under Article 41. 

Recently,  Estonia  has  again  requested  the  Commission  to  propose  a  prolongation  of  their 
derogation  at  least  until  the  end  of  a  similar  transitional  period  given  to  other  countries 
(30 April 2009). 

Taking  into  account  the  above-mentioned  facts,  it  would  be  appropriate  to  extend  the 
derogation for Estonia until 30 April 2009. 

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2007/0021 (CNS) 

Proposal for a 

COUNCIL REGULATION 

derogating from Regulation (EC) No 2597/97  
as regards drinking milk produced in Estonia  

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 Commission, 

Having regard to the opinion of the European Parliament1, 

Whereas: 

(1) 

(2) 

By way of derogation from Council Regulation (EC) No 2597/97 of 18 December 1997 
laying  down  additional  rules  on  the  common  organization  of  the  market  in  milk  and 
milk  products  for  drinking  milk2,  Commission  Regulation  (EC)  No 749/2004  of 
22 April 2004 laying down transitional measures as regards drinking milk produced in 
Estonia3  provides  for  the  possibility  for  drinking  milk  produced  in  Estonia  with  a  fat 
content  of  2.5%  to  be  delivered  and  sold  in  Estonia.  That  derogation  expires  on 
30 April 2007. 

In view of Estonian consumer habits and of the difficulties of adapting to Community 
rules and taking into account that similar derogations in several other Member States 
will  expire  on  30  April  2009,  it  is  appropriate  to  extend  the  derogation  allowing  the 
delivery and sale in Estonia of drinking milk produced in Estonia with a fat content of 
2.5%, 

HAS ADOPTED THIS REGULATION: 

Article 1 

By  way  of  derogation  from  Article 3(1)(b)  of  Regulation  (EC)  No 2597/97,  drinking  milk 
produced  in  Estonia  with  a  fat  content  of  2,5%  may  be  delivered  or  sold  in  Estonia  in 
accordance with Article 2(1) of that Regulation. 

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OJ C …, …, p. …. 
OJ  L  351,  23.12.1997,  p. 13.  Regulation  as  amended  by  Regulation  (EC)  No 1602/1999  (OJ L 189, 
22.7.1999, p. 43). 
OJ L 118, 23.4.2004, p. 5. 

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Article 2 

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 until 30 April 2009. 

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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FINANCIAL STATEMENT 

1. 

BUDGET HEADING: 

05 02 12 

APPROPRIATIONS 
(AL/PDB 2007): 
EUR 587.000.000 

2. 

3. 

4. 

TITLE: 
Council  Regulation  derogating  from  Council  Regulation  (EC)  No  2597/97  as  regards  drinking  milk 
produced in Estonia 

LEGAL BASIS: 
Art. 37 of the Treaty 

AIMS: 
Prolongation  until  30  April  2009  of  the  actual  derogation  to  produce  and  market  drinking  milk  with 
2,5% fat content instead of minimum 3,5% as whole milk. 

5. 

FINANCIAL IMPLICATIONS 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
– 
(REFUNDS / INTERVENTIONS) 
– 
– 

NATIONAL AUTHORITIES 
OTHER 

12 MONTH 
PERIOD 

(EUR million) 
p.m. 

CURRENT 
FINANCIAL 
YEAR 2007 
(EUR million) 
p.m. 

FOLLOWING 
FINANCIAL 
YEAR 2008 
(EUR million) 
p.m. 

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: 

– 

2009 
p.m. 
– 

2010 
p.m. 
– 

2011 
p.m. 
– 

2012 
p.m. 
– 

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: 
The  proposal  is  a  prolongation  of  the  existing  regulation,  and  therefore  does  not  have  budgetary  impacts 
compared to prior years. 
Nonetheless had the derogation not been extended, and the normal drinking standards had to be applied in full, 
it would have had an impact on the type of milk that would be marketed in Estonia, and thereby the quantity of 
dairy fat used in drinking milk. If this would have resulted in a decrease of the average fat content it could lead 
to a minor increase of butter production. Taking into account that the total annual drinking milk consumption in 
Estonia is in the order of 75 to 80 000 t this effect would have been very limited – max. a few hundred tonnes 
of butter. 

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