Communication from the Commission concerning proposals to amend Council Regulation (EC) No 318/2006 on the common organisation of the markets in the sugar sector and Council Regulation (EC) No 320/2006 establishing a temporary scheme for the restructuring of the sugar industry in the Community
Date: 2007-05-26
Institutions: European Commission
Subjects: EU financing arrangements, aid for restructuring, common agricultural policy, sugar industry

26.5.2007

EN

Official Journal of the European Union

C 116/5

II

(Information)

INFORMATION FROM EUROPEAN UNION INSTITUTIONS AND BODIES

COMMISSION

Communication from the Commission concerning proposals to amend Council Regulation (EC) No
318/2006 on the common organisation of the markets in the sugar sector and Council Regulation
(EC) No 320/2006 establishing a temporary scheme for the restructuring of the sugar industry in
the Community

(2007/C 116/02)

The Commission has on 7 May 2007 presented to the Council a proposal for a Regulation amending
Council Regulation (EC) No 320/2006 of 20 February 2006 establishing a temporary scheme for the
restructuring of the sugar industry in the Community (1) and a proposal for a Regulation amending Council
Regulation (EC) No 318/2006 of 20 February 2006 on the common organisation of the markets in the
sugar sector (2).

The aim of the first proposal is to make the participation in the restructuring scheme more attractive. To
that end, it is proposed to fix the percentage of the restructuring aid to be paid to growers and machinery
contractors at 10 %, thereby removing the uncertainty resulting from the current possibility that a Member
State might decide to set a higher percentage. Growers are instead to receive an additional payment.

It is further proposed to introduce for the marketing year 2008/2009 a possibility for growers to trigger the
restructuring process by making a direct application for restructuring aid, provided that they renounce their
delivery rights in relation to undertaking to which they have been bound by delivery contracts in the
previous marketing year. As a consequence, the Member State should reduce the quota of the undertaking
concerned correspondingly. The application of the proposed measure is however limited to a quota reduc-
tion of up to 10 % of the quota allocated to the undertaking concerned, and the Member State's acceptance
of growers' applications should thus be based on a first-come-first-served list.

The amendments to Regulation (EC) No 320/2006 should start to apply as from the 2008/2009 marketing
year. Considering that the deadline for applications for restructuring aid is 31 January 2008, sugar undertak-
ings and growers are advised to carefully analyze their competitive position in the medium and long term
and prepare for their eventual applications for restructuring aid in due time.

The second proposal concerns amendments to the provisions of Regulation (EC) No 318/2006 governing
the instrument of withdrawal. This includes integrating into the Council Regulation the criteria laid down in
Commission Regulation (EC) No 290/2007 (3) with regard to a possible further withdrawal
in autumn
2007. It is also proposed to abolish the provision according to which traditional supply needs for refiners
shall be reduced in case of a withdrawal. This would apply as from the marketing year 2007/2008.

(1) OJ L 58, 28.2.2006, p. 48.
(2) OJ L 58, 28.2.2006, p. 1.
(3) OJ L 78, 17.3.2007, p. 20.