Proposal for a Council Regulation amending Regulation (EC) No 1782/2003 as regards the transfer of tobacco aid to the Community Tobacco Fund for the years 2008 and 2009 and Regulation (EC) No 1234/2007 with regard to financing of the Community Tobacco Fund
Date: 2008-02-04
Institutions: European Commission
Subjects: EU aid, EU policy, agricultural policy, financing of aid, fund (EU), health policy, smoking

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 4.2.2008 
COM(2008) 51 final 

2008/0020(CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1782/2003 as regards the transfer of tobacco aid to the 
Community Tobacco Fund for the years 2008 and 2009 and Regulation (EC) 
No 1234/2007 with regard to financing of the Community Tobacco Fund 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

Article 104(2) of Council Regulation (EC) No 1234/2007 provides for the funding of 
the  Community  Tobacco  Fund  by  the  transfer  of  certain  amount  of  tobacco  aid  for 
the  calendar  years  2006  and  2007  in  accordance  with  Article 110m  of  Council 
Regulation  (EC)  No 1782/2003.  The  aim  of  the  proposal  is  to  transfer  to  the 
Community Tobacco Fund an amount equal to 5% of the tobacco aid granted for the 
calendar years 2008 and 2009 for the purpose of financing actions of information for 
improving  public  awareness  of  the  harmful  effects  of  tobacco  consumption.  These 
actions  have  proved  to  be  very  successful  as  well  as  a  positive  example  of 
cooperation  between  agriculture  and  health  policies.  Taking  into  account  that  the 
Fund has always been funded by transfer from the tobacco aid, the proposal aims to 
ensure the continuation of those actions. 

•  General context 

The Community Tobacco Fund has always been funded by the transfer of part of the 
tobacco aids. Such transfer for calendar years 2006 and 2007 was initially proposed 
when the introduction of the tobacco sector into the Single payment scheme was to 
be accompanied by a transitional tobacco aid to be paid in the same years. Council 
Regulation  (EC)  No 864/2004  finally  extended  the  tobacco  aid  to  2008  and  2009 
without  accordingly  extending  the  funding  of  the  Community  Tobacco  Fund  by  a 
reduction of the tobacco aid. 

•  Existing provisions in the area of the proposal 

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  Regulations  (EEC) 
No 2019/93,  (EC)  No 1452/2001,  (EC)  No 1453/2001,  (EC)  No 1454/2001,  (EC) 
No 1868/94,  (EC)  No 1251/1999,  (EC)  No 1254/1999,  (EC)  No 1673/2000,  (EEC) 
No 2358/71 and (EC) No 2529/2001. 
Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common 
organisation  of  agricultural  markets  and  on  specific  provisions  for  certain 
agricultural products (Single CMO Regulation). 

•  Consistency with the other policies and objectives of the Union 
This  measure  is  consistent  with  the  Community  policy  for  the  protection  of  public 
health. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 
•  Collection and use of expertise 

There was no need for consultation of interested parties nor for external expertise. 

•  Impact assessment 
Not applicable. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 
The  aim  of  this  proposal  is  to  transfer  an  amount  equal  to  5%  of  the  tobacco  aid 
granted for the calendar years 2008 and 2009 to the Community Tobacco Fund for 
the  purpose  of  financing  actions  of  information  for  improving  public  awareness  of 
the harmful effects of tobacco consumption. 

•  Legal basis 

Article 37(2) of the Treaty establishing the European Community. 

•  Subsidiarity principle 

The  proposal  falls  under  the  exclusive  competence  of  the  Community.  The 
subsidiarity principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle. 

•  Choice of instruments 

Proposed instrument: Council regulation.   
Other  means  would  not  be  adequate  for  the  following  reason:  a regulation  must  be 
amended by a regulation. 

4. 

BUDGETARY IMPLICATIONS 

This measure does not involve any additional Community expenditure. It extends the 
possibility foreseen in Article 110m of Regulation (EC) No 1782/2003 to transfer in 
2008 and 2009 (budget years 2009 and 2010) 5% of the amount of tobacco aid under 
"Direct  Aids"  to  the  "Community  Tobacco  Fund  ".  The  ceilings  on  tobacco  aid 
remain  unchanged  and  the  maximum  annual  amount  which  can  be  transferred 
amounts to €16,897 Mio (€337,937 Mio x 5% = €16,897 Mio). This amount will be 
available under budget line 17 03 02 – Community Tobacco Fund. Being a transfer 
between titles, this measure is budgetary neutral. 

5. 

ADDITIONAL INFORMATION 

•  Simplification 

Not applicable. 

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2008/0020(CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1782/2003 as regards the transfer of tobacco aid to the 
Community Tobacco Fund for the years 2008 and 2009 and Regulation (EC) 
No 1234/2007 with regard to financing of the Community Tobacco Fund 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular the third 
subparagraph of Article 37(2) thereof, 

Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament1, 

Whereas: 

(1) 

(2) 

According to Article 110j 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 and amending 
certain  Regulations2  tobacco  aid  is  granted  to  the  producers  of  raw  tobacco  for  the 
harvest years 2006 to 2009. 

Article  104(2)  of  Regulation  (EC)  No  1234/2007  of  22  October  2007  establishing  a 
common  organisation  of  agricultural  markets  and  on  specific  provisions  for  certain 
agricultural  products  ("Single  CMO  Regulation")3  provides  for  the  funding  of  the 
Community  Tobacco  Fund  by  the  transfer  of  certain  amount  of  tobacco  aid  for  the 
calendar  years  2006  and  2007  in  accordance  with  Article  110m  of  Regulation  (EC) 
No 1782/2003. The Community Tobacco Fund has always been funded by the transfer 
of  part  of  the  tobacco  aids.  Such  transfer  for  calendar  years  2006  and  2007  was 
initially proposed when the introduction of the tobacco sector into the Single payment 
scheme  was  to  be  accompanied  by  a  transitional  tobacco  aid  to  be  paid  in  the  same 
years. Council Regulation (EC) No 864/2004 finally extended the tobacco aid to 2008 
and 2009 without accordingly extending the funding of the Community Tobacco Fund 
by a reduction of the tobacco aid.  

(3) 

Actions funded by the Community Tobacco Fund have proved to be very successful as 
well as a positive example of cooperation between agriculture and health policies. In 
order to ensure the continuation of those actions, and taking into account that the Fund 
has always been funded by transfer from the tobacco aid, it is appropriate to transfer 
an  amount  equal  to  5%  of  the  tobacco  aid  granted  for  the  calendar  years  2008  and 
2009 to the Community Tobacco Fund. 

1 
2 

3 

OJ C …, …, p. …. 
OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Commission Regulation (EC) No 1276/2007 
(OJ L 284, 30.10.2007, p. 11)  
OJ L 299, 16.11.2007, p. 1 

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(4) 

Regulation (EC) No 1782/2003 and Regulation (EC) No 1234/2007should therefore be 
amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 110m of Regulation (EC) No 1782/2003 is replaced by the following: 

Article 1 

"Article 110m 
Transfer to the Community Tobacco Fund 

An amount equal to 4% for the calendar year 2006 and 5% for the calendar years 2007, 2008 
and  2009  of  the  aid  granted  in  accordance  with  this  Chapter  shall  finance  actions  of 
information  under  the  Community  Tobacco  Fund  provided  for  in  Article 13  of  Regulation 
(EEC) No 2075/92." 

Article 2 

In Article 104(2) of Regulation (EC) No 1234/2007, point (b) is replaced by the following:  

"(b) 

for the calendar years 2006 to 2009, in accordance with Article 110m of Regulation 
(EC) No 1782/2003." 

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

Article 3 

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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1. 

2. 

3. 

4. 

5. 

5.0 

FINANCIAL STATEMENT 

BUDGET HEADING: 
05 03 02 22 
17 03 02 

tobacco aid 
Community Tobacco Fund 

APPROPRIATIONS: 
€293 million (AL 2008) 
€14,25 million (PDB 2008) 

TITLE: 
Proposal for a Council Regulation modifying Regulation (EC) No 1782/2003 establishing common rules for direct 
support  schemes  under  the  common  agricultural  policy  and  establishing  certain  support  schemes  for  farmers  as 
regards transfer of tobacco aid to the Community Tobacco Fund for the years 2008 and 2009. 

LEGAL BASIS: 
Article 37(2) of the Treaty establishing the European Community 

AIMS: 
To transfer an amount equal to 5% of the tobacco aid granted for the calendar years 2008 and 
2009 to the Community Tobacco Fund for the purpose of financing actions of information for 
improving public awareness of the harmful effects of tobacco production. 
CURRENT 
FINANCIAL IMPLICATIONS 
FINANCIAL 
YEAR 
2007 
(EUR million) 
– 

FOLLOWING 
FINANCIAL 
YEAR 
2008 
(EUR million) 
– 

(EUR million) 
– 

12 MONTH 
PERIOD 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
– 
(REFUNDS/INTERVENTIONS) 
– 
– 

NATIONAL AUTHORITIES 
OTHER 

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 
– 
– 

2010 
– 
– 

2011 
– 
– 

2012 
– 
– 

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: 
This  Regulation  does  not  involve  any  additional  Community  expenditure.  It  extends  the  possibility  foreseen  in 
Article 110m of Regulation (EC) No 1782/2003 to transfer in 2008 and 2009 (budget years 2009 and 2010) 5% of the 
amount  of  tobacco  aid  under  "Direct  Aids"  to  the  "Community  Tobacco  Fund".  The  ceilings  on  tobacco  aid  remain 
unchanged and the maximum annual amount which can be transferred amounts to €16,897 Mio (€337,937 Mio x 5% = 
€16,897 Mio). This amount will be available under budget line 17 03 02 – Community Tobacco Fund. Being a transfer 
between titles, this measure is budgetary neutral. 

EN 

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   EN