Proposal for a REGULATION (EU) No OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down specific measures in favour of agriculture in the smaller Aegean islands
Date: 2010-12-17
Institutions: European Commission
Subjects: Aegean Sea, agricultural product, aid system, island, production aid, supply, support policy

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EUROPEAN COMMISSION 

Brussels, 17.12.2010 
COM(2010) 767 final 

2010/0370 (COD) 

Proposal for a 

REGULATION (EU) No OF THE EUROPEAN PARLIAMENT AND OF THE 
COUNCIL 

of … 

laying down specific measures in favour of agriculture in the smaller Aegean islands 

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EXPLANATORY MEMORANDUM 

1. 

ALIGNMENT  WITH  THE TREATY  ON  THE FUNCTIONING  OF  THE EUROPEAN UNION 
(TFEU) 

The  Treaty  on  the  Functioning  of  the  European  Union  (TFEU)  makes  a  clear  distinction 
between, on the one hand, the powers delegated to the Commission to adopt non-legislative 
acts  (delegated  acts)  of  general  application  in  order  to  supplement  or  amend  certain  non-
essential  elements  of  a  legislative  act,  as  set  out  in  Article  290,  and,  on  the  other,  those 
conferred upon the Commission to adopt implementing acts as referred to in Article 291. 

In the case of delegated acts, the Legislator delegates to the Commission the power to adopt 
quasi-legislative measures. In the case of implementing acts, the context is very different. The 
Member  States  are  the  primary  parties  responsible  for  implementing  legally  binding  acts  of 
the  European  Union.  However,  if  the  implementation  of  that  legislative  act  necessitates 
uniform conditions of implementation, the Commission is responsible for adopting these. 

The  harmonisation  of  Regulation  (EC)  No 1405/2006  with  the  new  rules  contained  in  the 
Treaty  is  based  on  classifying  into  delegated  powers  and  implementing  powers  of  the 
provisions  adopted  by  the  Commission  pursuant  to  that  Regulation  (Regulation  (EC) 
No 1914/2006  laying  down  certain  detailed  rules  for  applying  Council  Regulation  (EC) 
No 1405/2006). 

Following  this  exercise,  a  draft  proposal  recasting  Regulation  (EC)  No 1405/2006  has  been 
drafted.  Under  this  draft,  the  Legislator  reserves  the  right  to  issue  decisions  concerning  the 
essential elements of a specific scheme for certain agricultural products in the smaller Aegean 
islands,  in  order  to  remedy  the  difficulties  caused  by  their  isolation,  remoteness,  insularity, 
small  size,  mountainous  terrain  and  climate  and  their  economic  dependency  on  a  small 
number of products. 

The  general  guidelines  for  this  scheme  and  the  general  principles  which  underpin  it  are 
determined  by  the  Legislator.  As  such,  the  objectives  of  the  measures  introduced  by  this 
specific  scheme  and  the  principles  regarding  programming,  compatibility  and  consistency 
with  other  EU  policies  are  defined  by  the  Legislator.  The  Legislator  also  establishes  the 
principles  for  a  certification  scheme  and  the  application  of  penalties,  reductions  and 
exclusions. 

In accordance with Article 290 of the Treaty on the Functioning of the European Union, the 
Legislator entrusts the Commission with the task of supplementing or amending certain non-
essential  elements.  A  Commission  delegated  act  may  therefore  set  out  additional  elements 
which  are  necessary  for  the  smooth  running  of  the  scheme  defined  by  the  Legislator.  The 
Commission therefore adopts, by means of a delegated act, the conditions for operators being 
registered in the register of certificates and can, if necessary (given the economic situation), 
require the lodging of a security for the issuing of certificates (Article 11(2)). The Legislator 
can  also  delegate  to  the  Commission  the  power  to  adopt  measures  relating  to  the 
establishment  of  the  procedure  for  approving  amendments  to  the  programme  (Article  6(3)), 
conditions for processing (Article 13(3)), the conditions on establishing aid amounts (Articles 
15(4) and 18(4)), and penalties (Article 14(2)). 

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The Member States, in accordance with Article 291 of the Treaty on the Functioning of the 
European  Union,  are  responsible  for  implementing  the  scheme  defined  by  the  Legislator. 
However, it would appear that it is necessary to ensure that Greece applies the programme in 
a uniform manner to smaller Aegean islands in relation to other similar arrangements in order 
to  avoid  unfair  competition  or  discrimination  between  operators.  The  Legislator  therefore 
grants  the  Commission  the  power  to  implement,  in  accordance  with  Article  291(2)  of  the 
Treaty,  specifically  with  regard  to  the  uniform conditions  relating  to  the  introduction  of  the 
system  of  certificates  and  the  commitment  of  operators  concerning  the  specific  supply 
arrangements  (Article  11(3)),  the  uniform  conditions  for  implementing  the  programme 
(Articles  6(2),  15(3),  and  18(3)),  and  a  general  framework  of  checks  which  Greece  must 
perform (Articles 7,12(2) and 14(1)). 

2. 

SUBSTANTIVE AMENDMENTS 

In view of the fact that since it was adopted on 18 September 2006, Council Regulation (EC) 
No 1405/2006 laying down specific measures for agriculture in favour of the smaller Aegean 
islands  has  been  the  subject  of  several  amendments,  it  is  proposed  that  it  be  recast  in  the 
interests of clarity. 

Furthermore,  changes  in  Community  legislation  and  the  practical  implementation  of  this 
Regulation that have occurred since it was adopted also make it necessary to amend certain of 
its  provisions  and  to  restructure  the  legislative  text  so  that  it  reflects  more  effectively  the 
reality of this scheme. 

This  new  regulation  is  more  explicit  in  setting  out  the  scheme’s  main  objectives,  the 
implementation of which the specific measures for agriculture in the smaller Aegean islands 
should contribute to (Article 2). 

Its new structure highlights the central role played by the support programme, which has now 
been defined for the smaller Aegean islands at the most appropriate level and coordinated by 
Greece.  This  programme  relates  to  the  two  fundamental  elements  of  the  specific  supply 
arrangement and of the specific measures to assist local production (Article 3). 

Other minor amendments have been made to the wording of the Regulation, in particular: 

(1) 

(2) 

The  procedure  for  submitting  the  programme  and  amendments  for  approval  to  the 
Commission has been specified to make it more consistent with current practice and in 
view  of  the  need  for  greater  flexibility  and  efficiency  as  regards  the  process  of 
adapting  the  programme  to  meet  the  actual  needs  of  agriculture  and  the  supply  of 
products essential for the smaller Aegean islands (Article 6). 

In  Article  10,  it  has  been  specified  that  the  specific  supply  arrangements  should  be 
designed in accordance with local agricultural production, the development of which 
should not be limited by aid for supply which is too excessive for products which are 
also  produced  locally.  This  provision  is  considered  to  be  necessary  to  make  it 
compulsory for the two instruments of the scheme to be compatible with each other. 

(3) 

In  the  interests  of  sound  budgetary  management,  Greece  must  indicate  in  its 
programme the list of aid constituting direct payments (Article 15(2)(d)). 

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(4) 

(5) 

(6) 

It  is  also  helpful  to  indicate  how  the  aid  amounts  for  measures  to  assist  local 
agricultural products are defined, which was previously not indicated in the basic act 
(Article 15(2)(e)). 

The ceiling for financing for the specific supply arrangements has increased by 20% 
(Article  18(3)),  in  the  light  of  the  information  provided  by  the  Court  of  Auditors 
concerning the insufficiency of these funds. 

Finally,  the  date  for  presenting  the  annual  report  on  the  implementation  of  the 
measures under the support programme during the previous year was postponed for a 
month in order to provide the Greek authorities with the opportunity of taking account 
in  the  report  of  the  final  statement  of  expenditure  for  the  measures  to  assist  local 
agricultural production. 

The  Regulation  does  not  affect  the  sources  of  financing  or  the  intensity  of  Community 
support.

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2010/0370 (COD) 

Proposal for a 

REGULATION (EU) No OF THE EUROPEAN PARLIAMENT AND OF THE 
COUNCIL 

of … 

laying down specific measures for agriculture in favour of the smaller Aegean islands 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular the 
first subparagraph of Article 42 and Article 43(2) thereof, 

Having regard to the proposal from the European Commission1, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee2, 

Having regard to the opinion of the Committee of the Regions3, 

Acting in accordance with the ordinary legislative procedure4, 

Whereas:  

(1) 

Specific  measures  in  the  agricultural  sector  to  remedy  the  difficulties  caused  by  the 
particular geographical situation facing some of the smaller Aegean islands have been 
established by Council Regulation (EC) No 1405/2006 of 18 September 2006 adopting 
specific  measures  in  the  field  of  agriculture  for  the  smaller  Aegean  islands  and 
amending  Regulation  (EC)  No  1782/20035.  These  measures  have  been  implemented 
by  means  of  a  support  programme,  which  constitutes  an  essential  tool  for  supplying 
these  islands  with  agricultural  products  and  for  supporting  local  agricultural 
production.  In  view  of  the  new  amendments  which  have  become  necessary  and 
following the entry into force of the Lisbon Treaty, it is necessary to repeal Regulation 
(EC) No 1405/2006 and replace it with a new text. 

(2) 

The fundamental objectives which the scheme promoting the smaller Aegean islands 
will help to meet need to be specified. 

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OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ L 265, 26.9.2006, p. 1., amending Regulation (EC) No 1782/2003 (OJ L 270, 21.10.2003, p. 1). 

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

The  content  of  the  support  programme  for  the  smaller  Aegean  islands  ('support 
programme'),  which,  in  accordance  with  the  principle  of  subsidiarity,  must  be 
established  by  Greece  at  the  most  appropriate  geographical  level  and  submitted  by 
Greece to the Commission for approval, must also be specified. 

In order to achieve the objectives of the scheme promoting the smaller Aegean islands 
more  effectively,  the  support  programme  must  include  measures  which  ensure  the 
supply  of  agricultural  products  and  the  preservation  and  development  of  local 
agricultural  production.  The  level  of  programming  needs  to  be  harmonised  and  the 
policy of partnership between the Commission and the Member State needs to become 
systematic. 

In  keeping  with  the  principle  of  subsidiarity  and  in  order  to  ensure  flexibility,  two 
principles which form the basis of the programming approach adopted for the scheme 
promoting  the  smaller  Aegean  islands,  the  authorities  appointed  by  Greece  may 
propose  amendments  to  the  programme  to  bring  it  into  line  with  the  reality  of  the 
situation  on  these  islands.  Also  in  keeping  with  this  approach,  the  procedure  for 
amending the programme must be adapted to reflect the level of relevance of each type 
of amendment. 

The particular geographical situation of some of the smaller Aegean islands imposes 
additional  transport  costs  in  supplying  products  which  are  essential  for  human 
consumption,  for  processing  or  as  agricultural  inputs.  In  addition,  other  objective 
factors  arising  as  a  result  of  isolation,  insularity  and  remoteness  impose  further 
constraints on economic operators and producers in those Aegean islands that severely 
handicap their activities. In certain cases, operators and producers suffer from double 
insularity, namely the fact that supplies are brought via other islands. These handicaps 
can  be  alleviated  by  lowering  the  price  of  those  essential  products.  It  is  therefore 
appropriate  to  introduce  specific  supply  arrangements  to  guarantee  supply  to  the 
smaller  Aegean  islands  and  compensate  for  the  additional  costs  arising  from  their 
remoteness, insularity and small size. 

The problems experienced by the smaller Aegean islands are accentuated by the small 
size of the islands. In order to guarantee the effectiveness of the measures envisaged, 
such measures should only apply to small islands. 

In  order  to  achieve  the  goal  of  lowering  prices  in  the  smaller  Aegean  islands  and 
mitigating the additional costs of their remoteness and insularity while maintaining the 
competitiveness of EU products, aid should be granted for the supply of EU products 
to the smaller Aegean islands. Such aid should take account of the additional cost of 
transport  to  the  smaller  Aegean  islands  and,  in  the  case  of  agricultural  inputs  and 
products intended for processing, the additional costs of insularity and small size. 

(9) 

In  order  to  avoid  speculation  which  would  be  harmful  to  end  users  in  the  smaller 
Aegean  islands,  it  is  important  to  specify  that  the  specific  supply  arrangements  may 
only apply to products of sound, fair and marketable quality. 

(10)  Since  the  quantities  covered  by  the  specific  supply  arrangements  are  limited  to  the 
supply requirements of the smaller Aegean islands, those arrangements do not impair 
the proper functioning of the internal market. Nor should the economic advantages of 
the  specific  supply  arrangements  provoke  diversions  of  trade  in  the  products 

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concerned. The dispatch or export of those products from the smaller Aegean islands 
should  therefore  be  prohibited.  However,  dispatch  or  exportation  of  those  products 
should  be  authorised  where  the  advantage  resulting  from  the  specific  supply 
arrangements is reimbursed. 

(11)  With  regard  to  processed  products,  trade  between  the  smaller  Aegean  islands  should 
be authorised in order to allow commerce between these regions. Account should also 
be  taken  of  trade  flows  within  the  context  of  regional  commerce  and  traditional 
exports and dispatching with the rest of the EU or third countries and, consequently, 
exports  of  processed  products corresponding to traditional trade for all those regions 
should be authorised. 

(12) 

In order to achieve the objectives of the arrangements, the economic advantages of the 
specific  supply  arrangements  must  be  in  terms  of  production  costs  and  must  reduce 
prices  up  to  the  end  user  stage.  They  should  therefore  be  granted  only  on  condition 
that they are actually passed on, and appropriate checks must be carried out. 

(13)  Rules  should  be  established  concerning  the  operation  of  the  scheme,  particularly 
relating to the creation of a register of operators and a system of certificates, based on 
the certificates referred to in Articles 161 of 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)6. 

(14)  European  Union  policy  to  assist  local  production  in  the  smaller  Aegean  islands  as 
established  by  Regulation  (EC)  No  1405/2006  has  involved  a  multitude  of  products 
and  measures  for  their  production,  marketing  or  processing.  Those  measures  have 
proved  effective  and  ensured  that  agricultural  activities  have  been  maintained  and 
developed. The EU should continue to support this production, which is a key factor in 
the  environmental,  social  and  economic  equilibrium  of  the  smaller  Aegean  islands. 
Experience  has  shown  that,  as  in  the  case  of  rural  development  policy,  closer 
partnership with the local authorities can help to address the particular issues affecting 
the islands concerned in a more targeted way. Support for local production should thus 
continue to be granted through the support programme, established for the first time by 
Regulation (EC) No 1405/2006. 

(15)  The  minimum  elements  which  must  be  provided  under  the  support  programme  in 
order  to  establish  the  measures  supporting  local  agricultural  production,  specifically 
the description of location, the strategy proposed, the objectives and measures, should 
be  established.  The  principles  where  these  measures  are  consistent  with  other  EU 
policies  should  also  be  stipulated,  in  order  to  avoid  any  incompatibility  and 
overlapping of aid. 

(16) 

In order to ensure that it can be implemented, the support programme may also contain 
measures  for  financing  studies,  demonstration  projects,  training  and  technical 
assistance. 

(17)  Farmers  in  the  smaller  Aegean  islands  should  be  encouraged  to  supply  quality 

products and the marketing of such products should be assisted. 

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OJ L 299, 16.11.2007, p. 1. 

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(18)  A  derogation  may  be  granted  from  the  Commission's  consistent  policy  of  not 
authorising  State  operating  aid  for  the  production,  processing  and  marketing  of 
agricultural  products  listed  in  Annex  I  to  the  Treaty  in  order  to  mitigate  the  specific 
constraints  on  farming  in  the  smaller  Aegean  islands  as  a  result  of  their  remoteness, 
insularity  and  distant  location,  small  area,  mountainous  terrain  and  climate  and  their 
economic dependency on a small number of products. 

(19) 

Implementation  of  this  Regulation  should  not  jeopardise  the  level  of  special  support 
from which the smaller Aegean islands have benefited up to now. In order to be able 
to carry out the appropriate measures, Greece should continue to have at its disposal 
sums  equivalent  to  the  EU  support  already  granted  under  Regulation  (EC) 
No 1405/2006. 

(20)  Since  2007,  requirements in essential  products have increased in the smaller Aegean 
islands  as  a  result  of  the  increasing  livestock  population  and  demographic  pressure. 
The  proportion  of  the  budget  which  Greece  may  use  for  the  specific  supply 
arrangements for the smaller Aegean islands should therefore be increased. 

(21) 

In order to allow the evaluation of all the elements concerning the implementation of 
the  support  programme  for  the  previous  year  and  to  submit  to  the  Commission  a 
complete  annual  evaluation  report,  the  submission  date  of  the  aforementioned  report 
should be postponed from 30 June to 31 July of the year following the reference year. 

(22)  The Commission should therefore be able to adopt delegated acts in accordance with 
Article  290  of  the  Treaty,  in  order  to  supplement  or  modify  certain  non-essential 
elements of the present Regulation. The areas with regard to which this ability can be 
exercised and the conditions to which this delegation should be subject should be set 
out. 

(23) 

In order to ensure that the programme is implemented in the smaller Aegean islands in 
a uniform manner in relation to other similar schemes and to avoid unfair competition 
or  discrimination  between  operators,  the  Commission  should  be  able  to  adopt 
implementing acts in accordance with Article 291(2) of the Treaty. The Commission 
should  therefore  be  granted  implementing  powers  under  that  provision,  specifically 
vis-à-vis the uniform conditions under which products affected by the special supply 
arrangements  enter,  leave  and  move  within  the  smaller  Aegean  islands,  the  uniform 
conditions  for  implementing  the  programme  and  the  minimum  characteristics  for 
checks which Greece must apply. 

(24)  The  Commission  should  adopt  these  implementing  acts  in  accordance  with  the 
provisions  of  Regulation  (EU)  No  xxx/xxx  of  the  European  Parliament  and  of  the 
Council  laying  down  the  rules  and  general  principles  concerning  mechanisms  for 
control by Member States of the Commission’s exercise of implementing powers7, 

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OJ L [...], […], p.[…]. 

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HAVE ADOPTED THIS REGULATION:  

CHAPTER I 

SCOPE 

Article 1 

Subject 

1. 

2. 

This  Regulation  lays  down  specific  measures  for  agriculture  to  mitigate  the 
difficulties  caused  by  the  isolation,  remoteness,  insularity  and  small  size  of  the 
smaller Aegean islands, referred to as ‘smaller islands’. 

For  the  purposes  of  this  Regulation  ‘smaller  islands’  means  any  islands  in  the 
Aegean Sea except the islands of Crete and Evia. 

Article 2 

Objectives 

1. 

The  specific  measures  provided  for  in  Article  1  shall  help  to  meet  the  following 
objectives: 

a) 

b) 

guaranteed  supply  to  the  smaller  islands  of  products  essential  for  human 
consumption  or  for  processing  and  as  agricultural  inputs  by  mitigating  the 
additional costs due to remoteness, insularity and small size; 

preservation  and  development  of  agricultural  activities  in  the  smaller  islands, 
including the production, processing and marketing of local products. 

2. 

The objectives set out in paragraph 1 shall be implemented by means of the measures 
referred to in Chapters III, IV and V. 

CHAPTER II 

SUPPORT PROGRAMME 

Article 3 

Establishing the support programme 

1. 

The  measures  provided  for  in  Article  1  are  defined  for  the  smaller  islands  by  a 
support programme, which shall comprise: 

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2. 

1. 

2. 

a) 

b) 

specific supply arrangements as provided for in Chapter III, and  

specific  measures  to  assist  local  agricultural  production  as  provided  for  in 
Chapter IV. 

The support programme shall be established at the geographical level which Greece 
deems most appropriate. It shall be prepared by the competent authorities designated 
by the said Member State, which shall submit it to the Commission for approval in 
accordance  with  Article  6  after  the  competent  authorities  and  organisations  at  the 
appropriate regional level have been consulted. 

Article 4 

Compatibility and consistency 

Measures  taken  under  the  support  programme  must  comply  with  European  Union 
law and be consistent with other EU policies and with the measures taken under such 
policies. 

Consistency  of  the  measures  taken  under  the  support  programme  with  measures 
implemented  under  other  instruments  of  the  common  agricultural  policy,  and  in 
particular the common organisations of markets, rural development, product quality, 
animal welfare and protection of the environment, must be ensured. 

In particular, no measure under this Regulation may be financed as: 

a) 

b) 

c) 

additional support for premium or aid  schemes  under  a  common  organisation 
of the market save in exceptional cases justified by objective criteria; 

support  for  research  projects,  measures  to  support  research  projects  or 
measures  eligible  for  European  Union  financing  under  Council  Decision 
2009/470/EC8; 

support  for  measures  within  the  scope  of  [Council]  Regulation  (EC)  No 
1698/20059. 

Article 5 

Content of the support programme 

The support programme shall comprise: 

a) 

a  schedule  for  the  implementation  of  the  measures  and  a  general  annual  indicative 
financing table showing the resources to be deployed; 

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OJ L 155, 18.6.2009, p. 30. 
[OJ L 277, 21.10.2005, p. 1. ] 

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b) 

c) 

d) 

proof  of  the  compatibility  and  consistency  between  the  various  measures  under  the 
programme and the criteria and quantitative indicators to be used for monitoring and 
evaluation; 

the  steps  taken  to  ensure  the  programme  is  implemented  effectively  and 
appropriately,  including  the  arrangements  for  publicity,  monitoring  and  evaluation, 
and a specified set of quantified indicators for use in programme evaluation; 

the designation of the competent authorities and bodies responsible for implementing 
the  programme  and  the  designation  at  the  appropriate  levels  of  authorities  or 
associated bodies and socio-economic partners, and the results of consultations held. 

Article 6 

Approval and amendments of the programme 

1. 

Greece shall submit a draft support programme to the Commission in the light of the 
financial allocation referred to in Articles 18(2) and (3). 

The  draft  programme  shall  comprise  a  draft  forecast  supply  balance  indicating  the 
products,  the  quantities  thereof  and  the  amount  of  aid  for  supply  from  the  EU 
together with a draft programme of support for local production. 

The Commission shall evaluate the support programme proposed and decide whether 
or not to approve it by means of an implementing act. 

Depending on the annual evaluation of the implementation of measures included in 
the  support  programme,  Greece  may  submit  to  the  Commission  proposals  for 
amendments  thereto  within  the  context  of  the  financial  allocation  referred  to  in 
Article  18(2)  and  (3),  to  bring  them  more  into  line  with  the  requirements  of  the 
smaller islands and the strategy proposed. The Commission shall adopt by means of 
an  implementing  act  the  uniform  measures  for  the  submission  of  proposals  for 
amendments to the programme. 

In  order  to  take  into  account  the  different  types  of  amendments  proposed  and  the 
time frame within which they must be implemented, the Commission shall determine 
by delegated act the procedure for approving amendments. 

2. 

3. 

Article 7 

Monitoring and follow-up 

Greece  shall  conduct  verifications  by  means  of  administrative  and  on-the-spot  checks.  In 
order  to  ensure  uniform  application,  the  Commission  shall  adopt  by  implementing  act  the 
minimum characteristics of the checks to be carried out by Greece. 

By  the  same  type  of  act,  the  Commission  shall  adopt  the  procedures  and  physical  and 
financial indicators in order to ensure that the implementation of the programmes is monitored 
in an effective manner. 

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CHAPTER III 

SPECIFIC SUPPLY ARRANGEMENTS 

Article 8 

Forecast supply balance 

1. 

2. 

Specific  supply  arrangements  are  hereby  established  for  the  EU's  agricultural 
products  listed  in  Annex  I  to  the  Treaty  ('the  agricultural  products'),  which  are 
essential in the smaller islands for human consumption, for the manufacture of other 
products or as agricultural inputs. 

Greece shall establish, at the geographical level which it deems most appropriate, a 
forecast  supply  balance  so  as  to  quantify  the  annual  supply  requirements  for  the 
smaller islands with regard to agricultural products. 

A  separate  forecast  balance  may  be  drawn  up  for  the  requirements  of  undertakings 
packaging and processing products intended for the local market, for consignment to 
the  rest  of  the  EU  or  for  export  to  third  countries  as  part  of  regional  trade,  in 
accordance  with  Article  13(2)  and  (3),  or  within  the  context  of  traditional  trade 
flows. 

Article 9  

Operation of the arrangements 

1. 

Aid shall be granted to supply the smaller islands with agricultural products. 

The  amount  of  the  aid  shall  be  determined  for  each  product  concerned  taking  into 
consideration  the  additional  costs  of  marketing  products  in  the  smaller  islands, 
calculated from the usual ports of shipment in mainland Greece, and from the ports 
of islands of transit or of loading for the islands of final destination. In the case of 
agricultural  inputs  and  products  intended  for  processing,  such  aid  should  take 
account of the additional costs of insularity and small size. 

2. 

The  specific  supply  arrangements  may  only  apply  to  products  of  sound,  fair  and 
marketable quality. 

Article 10 

Implementation 

In implementing the specific supply arrangements, account shall be taken, in particular, of the 
following: 

a) 

the specific needs of the smaller islands and the precise quality requirements; 

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b) 

traditional trade flows with ports in mainland Greece and between the islands 
in the Aegean Sea; 

c) 

the economic aspect of the proposed aid; 

d)  where  applicable,  the  need  not  to  obstruct  the  potential  development  of  local 

products. 

Article 11 

Certificates 

1. 

The aid provided for in Article 9(1) shall be granted on presentation of a certificate. 

Certificates  shall  be  issued  only  to  operators  entered  in  a  register  held  by  the 
competent authorities. 

2. 

3. 

1. 

2. 

Licences and certificates shall not be transferable. 

In  order  to  ensure  that  operators  fully  exercise  their  rights  to  participate  in  the 
specific supply arrangements, the Commission shall determine, by delegated act, the 
conditions  for  recording  operators  in  the  register  and,  if  necessary,  shall  make  it 
compulsory to establish a security for the issuing of certificates. 

The  Commission  shall  adopt  by  means  of  an  implementing  act  all  measures 
necessary  to  ensure  the  uniform  application  by  Greece  of  this  Article,  specifically 
relating  to  the  introduction  of  the  system  of  certificates,  not  including  the 
establishment of the security for certificates, and the commitment of operators at the 
time of registration. 

Article 12 

Impact of advantage 

Benefiting from the specific supply arrangements resulting from the awarding of aid 
shall be subject to the condition that the impact of the economic advantage is passed 
on  up  to  the  end  user  who,  as  appropriate,  may  be  the  consumer  in  the  case  of 
products meant for direct consumption, the end processor or packager in the case of 
products meant for the processing or packaging industries, or farmers in the case of 
products used for animal feed or as agricultural inputs. 

In  order  to  ensure  that  paragraph  1  above  is  applied  in  a  uniform  manner,  the 
Commission  shall  adopt  by  means  of  an  implementing  act  detailed  rules  for  its 
application  and  more  specifically  conditions  for  governing  monitoring  by  the 
Member State that the advantage has in fact been passed on up to the end user. 

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1. 

2. 

3. 

1. 

Article 13 

Export to third countries and dispatch to the rest of the European Union 

Products  covered  by  the  specific  supply  arrangements  may  be  exported  to  third 
countries  or  dispatched  to  the  rest  of  the  EU  only  under  uniform  conditions 
established by the Commission by means of an implementing act. 

Those conditions shall include in particular reimbursement of the aid received under 
the specific supply arrangements. 

Exports  to  third  countries  of  products  covered  by  the  specific  supply  arrangements 
shall not be subject to the presentation of a certificate.  

The first subparagraph of paragraph 1 above shall not apply to products processed in 
the  smaller  islands  from  products  having  benefited  from  the  specific  supply 
arrangements which are: 

a) 

b) 

exported to third countries or dispatched to the rest of the EU within the limits 
of  traditional  exports  and  traditional  dispatches.  These  quantities  shall  be 
established by the Commission by means of an implementing act; 

exported  to  third  countries  as  part  of  regional  trade  in  accordance  with  the 
destinations and conditions to be determined by the Commission by means of 
an implementing act; 

c) 

dispatched between the smaller islands; 

Exports to third countries of products referred to in the first subparagraph, points a) 
and b) shall not be subject to the presentation of a certificate. 

No export refund shall be granted on the exports of products referred to in the first 
subparagraph, points a) and b). 

In  order  to  target  the  benefit  resulting  from  the  application  of  the  specific  supply 
arrangements  to  traditional  trade,  the  Commission  shall  establish  by  means  of  a 
delegated  act,  the  conditions  that  processing  operations  which  may  give  rise  to 
traditional dispatch or traditional exports must comply with. 

Article 14 

Controls and penalties 

The agricultural products which are the subject of the specific supply arrangements 
shall  be  subject  to  administrative  checks  at  the  time  that  they  enter  the  smaller 
islands as well as when they are exported or dispatched. 

In order to ensure uniform application of this provision, the Commission shall adopt 
by  means  of  an  implementing  act  the  minimum  characteristics  of  the  checks  to  be 
carried out by Greece. 

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2. 

Unless  in  the  event  of  force  majeure  or  exceptional  climatic  accident,  non-
compliance by the operator with the commitments made in accordance with Article 
11,  the  advantage  granted  to  the  holder  of the  certificate  shall be  recovered  and  its 
registration suspended or deleted depending on the severity of the non-compliance. 

In  order  to  ensure  that  the  operators  participating  in  the  scheme  comply  with  their 
obligations, the Commission shall establish by means of delegated act the conditions 
necessary for the implementation of the first subparagraph above and the processing 
of new applications for certificates by the operator. 

CHAPTER IV 

MEASURES TO ASSIST LOCAL AGRICULTURAL PRODUCTS 

Article 15 

Measures 

1. 

2. 

The support programme shall contain the measures needed to ensure continuity and 
development of local lines of agricultural production in the smaller islands under the 
scope of Part 3, Title III, of the Treaty. 

The  part  of  the  programme  which  includes  measures  to  assist  local  agricultural 
production shall comprise at least the following elements: 

a) 

b) 

c) 

d) 

e) 

a  quantified  description  of  the  current  agricultural  production  situation  taking 
into account the results of available evaluations, showing disparities, gaps and 
potential for development and the financial resources deployed; 

a  description  of  the  strategy  proposed,  the  priorities  selected,  its  quantified 
general  and  operational  objectives,  and  an  appraisal  showing  the  expected 
economic, environmental and social impact, including employment effects; 

a  description  of  the  measures  envisaged,  and  in  particular  aid  schemes  for 
implementing  them,  and,  where  appropriate,  information  on  the  need  for  any 
studies,  demonstration  projects,  training  or  technical  assistance  operations 
relating  to  the  preparation,  implementation  or  adaptation  of  the  measures 
concerned; 

a list of the aid constituting direct payments in accordance with Article 2(d) of 
Regulation (EC) No 73/2009; 

the aid amount established for each measure or action in order to achieve one 
or more objectives for the programme. 

3. 

The  Commission  shall  adopt  by  means  of  an  implementing  act  the  uniform 
conditions for the provision of the aid described in paragraph 2. 

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4. 

The  programme  may  include  measures  to  support  production,  processing  or 
marketing of agricultural products in the smaller islands. 

Each measure may include a variety of actions. For each action, the programme shall 
define at least the following elements: 

a) 

beneficiaries; 

b) 

eligibility conditions; 

c) 

individual aid; 

d) 

ceiling. 

In  order  to  support  the  marketing  of  products  outside  the  region  in  which  they  are 
produced, the Commission may adopt by means of a delegated act the conditions for 
establishing  the  amount  of  aid  awarded  in  respect  of  such  marketing  and,  where 
appropriate, the maximum quantities which form the subject of this aid. 

Article 16 

Controls and wrongful payments 

Verification  of  measures  provided  for  in  this  chapter  shall  be  conducted  by 
administrative and on-the-spot checks. 

In  the  event  of  wrongful  payments,  the  beneficiary  concerned  shall  be  required  to 
reimburse  the  amounts  in  question.  Article  80  of  Commission  Regulation  (EC) 
No 1122/200910 shall apply mutatis mutandis. 

CHAPTER V 

ACCOMPANYING MEASURES 

Article 17 

State aid 

For  the  agricultural  products  covered  by  Annex  I  to  the  Treaty,  to  which  Articles 
107, 108 and 109 thereof apply, the Commission may authorise, in accordance with 
Article  108  of  the  Treaty,  operating  aid  in  the  sectors  producing,  processing  and 
marketing  those  products,  with  a  view  to  mitigating  the  specific  constraints  on 
farming  in  the  smaller  islands  as  a  result  of  their  isolation,  remoteness,  insularity, 
small  size,  mountainous  terrain  and  climate  and  their  economic  dependency  on  a 
small number of products. 

1. 

2. 

1. 

10 

OJ L 316, 2.12.2009, p. 65. 

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2. 

3. 

1. 

2. 

3. 

4. 

Greece  may  grant  additional  financing  for  the  implementation  of  the  support 
programme. In such  cases Greece shall notify the Commission of the State aid and 
the  Commission  may  approve  it  in  accordance  with  this  Regulation  as  part  of  the 
support programme. Aid thus notified shall be regarded as being notified within the 
meaning of the first sentence of Article 108(3) of the Treaty. 

Without  prejudice  to  paragraphs  1  and  2  of  this  Article  and  by  way  of  derogation 
from  Article  180  of  Regulation  (EC)  No  1234/2007  and  Article  3  of  Council 
Regulation (EC) No 1184/200611, Articles 107, 108 and 109 of the Treaty shall not 
apply to payments made under Chapters III and IV of this Regulation by Greece in 
conformity with this Regulation. 

CHAPTER VI 

FINANCIAL PROVISIONS 

Article 18  

Financial resources 

The measures provided for in this Regulation shall constitute intervention intended to 
stabilise  the  agricultural  markets  within  the  meaning  of  Article 3(1)(b)  of  Council 
Regulation (EC) No 1290/200512. 

The  EU  shall  finance  the  measures  provided  for  in  Chapters III  and IV  up  to  a 
maximum annual amount of EUR 23.93 million. 

The amount allocated annually to finance the specific supply arrangements referred 
to in Chapter III may not exceed EUR 6.56 million. 

The  Commission  shall  establish  by  implementing  act  the  uniform  conditions  under 
which  Greece  may  amend  the  allocation  of  resources  allocated  each  year  to  the 
various products benefiting from the specific supply arrangements. 

In order to ensure a reasonable and proportional allocation of the finance measures 
with  regard  to  studies,  demonstration  projects,  training  and  technical  assistance 
measures,  the  Commission  shall  establish  by  delegated  act  an  annual  maximum 
amount which may be allocated to these measures. 

11 
12 

OJ L 214, 4.8.2006, p. 7. 
OJ L 209, 11.8.2005, p. 1. 

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CHAPTER VII 

GENERAL AND FINAL PROVISIONS 

Article 19 

National measures 

Greece  shall  take  the  measures  necessary  to  ensure  compliance  with  this  Regulation,  in 
particular  as  regards  checks  and  administrative  penalties,  and  shall  inform  the  Commission 
thereof. 

Article 20 

Communications and reports 

1. 

2. 

3. 

Greece shall communicate to the Commission not later than 15 February each year 
the appropriations made available to it which it intends to spend in the following year 
on  implementation  of  the  forecast  supply  balance  and  for  each  measure  promoting 
local agricultural production included in the support programme. 

Greece shall submit to the Commission no later than 31 July each year a report on 
the implementation of the measures provided for in this Regulation over the previous 
year. 

Not later than 31 December  2016, 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,  accompanied  if  applicable  by 
appropriate proposals. 

Article 21 

Commission powers 

When  powers  are  granted  to  the  Commission,  it  shall  act  in  accordance  with  the  procedure 
referred to in Article 22, in the case of delegated acts, and in accordance with the procedure 
referred to in Article 25, in the case of implementing acts. 

Article 22 

Delegated acts 

The  power  to  adopt  the  delegated  acts  referred  to  in  this  Regulation  shall  be 
conferred on the Commission for an indeterminate period of time. 

As  soon  as  it  adopts  a  delegated  act,  the  Commission  shall  provide  simultaneous 
notification thereof to the European Parliament and to the Council. 

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1. 

2. 

EN 

3. 

The power to adopt delegated acts shall be conferred on the Commission subject to 
the conditions laid down in Articles 23 and 24. 

1. 

2. 

3. 

1. 

2. 

3. 

1. 

2. 

Article 23 

Revocation of delegation 

The delegation of power referred to in Article 22, paragraph 1 may be revoked at any 
time by the European Parliament or by the Council. 

The institution which has commenced an internal procedure for deciding whether to 
revoke the delegation of power shall inform the other legislator and the Commission 
at the latest one month before the final decision is taken, stating the delegated powers 
which could be subject to revocation and the reasons for a revocation. 

The decision of revocation shall put an end to the delegation of the powers specified 
in that decision. It shall take effect immediately or at a later date specified therein. It 
shall  not  affect  the  validity  of  the  delegated  acts  already  in  force.  It  shall  be 
published in the Official Journal of the European Union. 

Article 24 

Objections to delegated acts 

The  European  Parliament  or  the  Council  may  object  to  the  delegated  act  within  a 
period of two months from the date of notification. At the initiative of the European 
Parliament or the Council this period shall be extended by one month. 

If,  on  expiry  of  that  period,  neither  the  European  Parliament  nor  the  Council  has 
objected to the delegated act, or if, before that date, the European Parliament and the 
Council  have  both  informed  the  Commission  that  they  have  decided  not  to  raise 
objections, the delegated act shall enter into force at the date stated in its provisions. 

If the European Parliament or the Council objects to a delegated act, it shall not enter 
into  force.  The  institution  which  objects  shall  state  the  reasons  for  objecting  to  the 
delegated act. 

Article 25 

Implementing acts - committee 

The  Commission  shall  be  assisted  by  the  Management  Committee  for  Direct 
Payments established under Article 141 of Regulation (EC) No 73/2009. 

When  implementing  acts  are  adopted  pursuant  to  this  Regulation,  Article  [5]  of 
Regulation  (EU)  No.  [xxxx/yyyy]  (to  be  completed  following  the  adoption  of  the 
regulation  on  control  mechanisms,  as  referred  to  in  Article  291(3)  of  the  TFEU, 
currently the subject of discussion by the European Parliament and the Council) shall 
apply (examination procedure).  

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Article 26 

Repeal 

Regulation (EC) No 1405/2006 is hereby repealed. 

References  made  to  the  repealed  Regulation  shall  be  construed  as  being  made  to  this 
Regulation and shall be read in accordance with the correlation table set out in the Annex. 

Article 27 

Entry into force 

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

[It shall apply from 1 January 2012.] 

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

Done at [ ], [date]  

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX  

CORRELATION TABLE 

Regulation (EC) No 1405/2006 

This Regulation 

Article 1 

Article 2 

Article 3 

Article 4(1)  

Article 4(2) 

Article 4(3) 

Article 5 

Article 7(1)  

Article 7(2) 

Article 8 

Article 9 (a), (b) 

Article 1 

Article 3(1) 

Article 8 

Article 9(1) 

Article 10 

Article 12(1) 

Article 13 

Article 15(1)  

Article 3(2) 

Article 4 

Article 15(2) 

Article 9(c), (d), (e) and (f) 

Article 5 

Article 10 

Article 11 

Article 12 

Article 13 

Article 14(a) 

Article 14(b) 

Article 16 

Article 17 

Article 18 

Article 21 

Article 7, second paragraph 

Article 17 

Article 18 

Article 6(1) 

Article 6(2) and (3) 

Article  7,  first  paragraph, 
and  Article  14(1),  second 
subparagraph  

Article 19 

Article 20 

Article 26 

Article 27 

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FINANCIAL STATEMENT 

BUDGET HEADING: 
05 02 11 04 & 05 03 02 51 

FicheFin/10/642710 
RVDE 
6.13.2010.1 

DATE :  

APPROPRIATIONS: 
EUR 231 million & 
EUR 18 million 

TITLE OF MEASURE: 
Proposal for a Regulation (EU) No of the European Parliament and of the Council laying down specific 
measures for agriculture in favour of the smaller Aegean islands 
LEGAL BASIS: 
Art. 42 and 43 of the Treaty  

AIMS: 
Alignment with the Treaty on the Functioning of the European Union 

1. 

2. 

3. 

4. 

5. 

FINANCIAL IMPLICATIONS 

5.0 

- 

EXPENDITURE CHARGED TO 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

THE EU BUDGET  

PERIOD OF 
12 MONTHS

(EUR million) 

[1] 

CURRENT 
FINANCIAL 
YEAR 
[2010] 
(EUR million) 
- 

FOLLOWING 
FINANCIAL  
YEAR 
[2011] 
(EUR million) 
- 

5.1  REVENUE 

- 

- 

- 

OWN RESOURCES OF THE EU 

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

2012 
(1) 
(1) 

2013 
(1) 
(1) 

2014 
(1) 
(1) 

2015 
(1) 
(1) 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 
6.0 

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN 
THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1 

6.2 

6.3 

CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS 
OF THE CURRENT BUDGET? 

WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 

WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 

OBSERVATIONS: 

YES NO 

YES NO 

YES NO 

YES NO 

These programs have a high level of execution. Although the proposed amendments to Council Regulation 
(EC) No 1405/2006 do not modify the maximum annual amount, the maximum amount of the special supply 
arrangements changes to EUR 6.56 million, which will lead to a different resource allocation. This, in turn, 
could have an impact on the rate of expenditure. However, this possible impact is not measurable at this stage. 

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