Proposal for a COUNCIL REGULATION amending Regulation (EU) No 1370/2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products
Date: 2016-10-06
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: agricultural product, agricultural production, aid to agriculture, common organisation of markets, export refund, farm price support, production refund, reform of the CAP, single market

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   EUROPEAN COMMISSION  Brussels, 6.10.2016  COM(2016) 653 final 2016/0319 (NLE)   Proposal for a COUNCIL REGULATION amending Regulation (EU) No 1370/2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

By its judgment of 7 September 2016 in Case C-113/14, the Court of Justice annulled Article 
7 of Regulation on the Common Organisation of the markets in the agricultural (Regulation 
(EU) No 1308/2013 of the European Parliament and of the Council) determining the reference 
thresholds for certain agricultural products on the grounds that these thresholds should have 
been  adopted  by  the  Council  only,  on  proposal  of  the  Commission,  on  the  basis  of  Article 
43(3) of the Treaty.  

The  Court  also  annulled  Article  2  of  Council  Regulation  (EU)  No  1370/2013  determining 
measures on fixing certain aids and refunds related to the common organisation of the markets 
in  agricultural  products  that  fixes  the  level  of  the  public  intervention  prices  on  the  grounds 
that this Article is inextricably linked to the annulled Article 7 CMO.  

As  the  Court  maintained  the  legal  effects  of  the  annulled  provisions  in  both  acts  for  a 
maximum period of five months following the date of the judgment, it is therefore necessary, 
before the end of the five month period, to amend Regulation (EU) No 1370/2013 by inserting 
into it the provisions on the reference thresholds and intervention price levels annulled by the 
Court and by making certain consequential adjustments. 

• 

Consistency with existing policy provisions in the policy area 

The  proposal  follows  the  judgment  of  the  Court  as  regards  the  legal  basis  for  the  fixing  of 
reference thresholds relating to the organisation of the markets in agricultural products. 

• 

N/A 

2. 

• 

Consistency with other Union policies 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article 43(3) of the Treaty on the Functioning of the European Union. 

• 

Subsidiarity (for non-exclusive competence)  

The  proposal  falls  under  shared  competence  between  the  EU  and  the  Member  States  and 
complies with the subsidiarity principle. 

• 

Proportionality 

The proposal complies with the proportionality principle.  

Choice of the instrument 

• 

N/A 

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RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Stakeholder consultations 

Collection and use of expertise 

Impact assessment 

Regulatory fitness and simplification 

3. 

• 

N/A 

• 

N/A 

• 

N/A 

• 

N/A 

• 

N/A 

• 

Fundamental rights 

N/A  

4. 

BUDGETARY IMPLICATIONS 

There are no budgetary implications arising from the proposal.  

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

Explanatory documents (for directives) 

5. 

• 

N/A  

• 

N/A 

• 

Detailed explanation of the specific provisions of the proposal 

N/A 

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2016/0319 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) No 1370/2013 determining measures on fixing certain aids 
and refunds related to the common organisation of the markets in agricultural products 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 43(3) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

By  judgment  of  7  September  2016  in  Case  C-113/141,  the  Court  of  Justice  annulled 
Article  7  of  Regulation  (EU)  No  1308/2013  of  the  European  Parliament  and  of  the 
Council2 determining the reference thresholds for agricultural products on the grounds 
that those thresholds should have been adopted by the Council, on a proposal from the 
Commission,  on  the  basis  of  Article  43(3)  of  the  Treaty  on  the  Functioning  of  the 
European Union ('TFUE'). 

The  Court  of  Justice  also  annulled  Article  2  of  Council  Regulation  (EU)  No 
1370/20133 determining the level of the public intervention prices on the grounds that 
that  Article  is  inextricably  linked  to  the  annulled  Article  7  of  Regulation  (EU)  No 
1308/2013. 

The Court of Justice declared that the legal effects of Article 7 of Regulation (EU) No 
1308/2013 and of Article 2 of Regulation (EU) No 1370/2013 were to be maintained 
for a maximum period of five months from the date of delivery of the judgment. 

It  is  therefore  necessary  to  amend  Regulation  (EU)  No  1370/2013  before  the  end  of 
the  five-month  period  by  inserting  the  provisions  on  the  reference  thresholds  and 
intervention  price  levels  annulled  by  the  Court  and  by  making  certain  consequential 
adjustments. 

(5) 

In view of the time-limit set by the Court in its judgment, this Regulation should enter 
into force on the date of its publication, 

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Judgment of the Court of Justice of 7 September 2016, Germany v Parliament and Council, C-113/14, 
ECLI:EU:C:2016:635. 
Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 
establishing  a  common  organisation  of  the  markets  in  agricultural  products  and  repealing  Council 
Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 
347, 20.12.2013, p. 671).  
Council Regulation (EU) No 1370/2013 of 16 December 2013 determining measures on fixing certain 
aids and refunds related to the common organisation of the markets in agricultural products (OJ L 346, 
20.12.2013, p. 12). 

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HAS ADOPTED THIS REGULATION: 

Regulation (EU) No 1370/2013 is amended as follows: 

(1) 

The following Article 1a is inserted:  

Article 1 

'Article 1a 

Reference thresholds 

1. 

(a) 

(b) 

(c) 

(d) 

The following reference thresholds shall be fixed:  

for  the  cereals  sector:  EUR  101,31/tonne,  related  to  the  wholesale  stage  for  goods 
delivered to the warehouse, before unloading;  

for  paddy  rice:  EUR  150/tonne  for  the  standard  quality  as  defined  in  point  A  of 
Annex III to Regulation (EU) No 1308/2013, related to the wholesale stage for goods 
delivered to the warehouse, before unloading;  

for sugar of standard quality as defined in point B of Annex III to Regulation (EU) 
No 1308/2013, related to unpacked sugar, ex-factory:  

(i) 

for white sugar: EUR 404,4/tonne;  

(ii) 

for raw sugar: EUR 335,2/tonne;  

for the beef and veal sector: EUR 2 224/tonne for carcasses of male bovine animals 
of  conformation/fat  cover  class  R3  as  laid  down  in  the  Union  scale  for  the 
classification of carcasses of bovine animals aged eight months or more referred to in 
point A of Annex IV to Regulation (EU) No 1308/2013;  

(e) 

for milk and milk products sector:  

(i)  EUR 246,39 per 100 kg for butter;  

(ii)  EUR 169,80 per 100 kg for skimmed milk powder;  

(f) 

for pigmeat: EUR 1 509,39/tonne for pig carcasses of a standard quality defined in 
terms  of  weight  and  lean  meat  content  as  laid  down  in  the  Union  scale  for  the 
classification of pig carcasses referred to in point B of Annex IV to Regulation (EU) 
No 1308/2013 as follows:  

(i) 

carcasses weighing from 60 to less than 120 kg: class E;  

(ii) 

carcasses weighing from 120 to 180 kg: class R;  

(g) 

for the olive oil sector:  

(i)  EUR 1 779/tonne for extra virgin olive oil;  

(ii)  EUR 1 710/tonne for virgin olive oil;  

(iii)  EUR 1 524/tonne for lampante olive oil with two degrees of free acidity; this 
amount shall be reduced by EUR 36,70/tonne for each additional degree 
of acidity.  

2. 

The reference thresholds provided for in paragraph 1 shall be kept under review by 
the  Commission,  taking  account  of  objective  criteria,  notably  developments  in 
production,  costs  of  production  (particularly  inputs)  and  market  trends.  When 

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necessary, the reference thresholds shall be updated in accordance with the procedure 
laid  down  in  Article  43(3)  TFEU  in  the  light  of  developments  in  production  and 
markets.  

3. 

References  to  reference  thresholds  in  Regulation  (EU)  No  1308/2013  shall  be 
construed as references to the thresholds fixed in paragraph 1.' 

(2) 

Article 2 is replaced by the following: 

'Article 2 

Public intervention prices 

1. 

(a) 

(b) 

(c) 

2. 

3. 

The level of the public intervention price:  

for  common  wheat,  durum  wheat,  barley,  maize,  paddy  rice  and  skimmed  milk 
powder shall be equal to the respective reference threshold set out in Article 1a in the 
case  of  buying-in  at  a  fixed  price  and  shall  not  exceed  the  respective  reference 
threshold in the case of buying-in by tendering;  

for butter shall be equal to 90 % of the reference threshold set out in Article 1a in the 
case  of  buying-in  at  a  fixed  price  and  shall  not  exceed  90  %  of  that  reference 
threshold in the case of buying-in by tendering;  

for beef and veal shall not exceed the level referred to in point (c) of Article 13(1) of 
Regulation (EU) No 1308/2013.  

The public  intervention prices for common  wheat,  durum wheat, barley,  maize  and 
paddy  rice  referred  to  in  paragraph  1  shall  be  adjusted  by  price  increases  or 
reductions to those prices based on the main quality criteria for the products.  

The  Commission  shall  adopt  implementing  acts  determining  the  increases  or 
reductions to the public intervention prices of the products referred to in paragraph 2 
of this Article under the conditions laid down therein. Those implementing acts shall 
be  adopted  in  accordance  with  the  examination  procedure  referred  to  in  Article 
15(2).' 

(3) 

Point (b) of Article 8 is replaced by the following: 

the  price  of  surplus  sugar  available  on  the  Union  market  or,  if  there  is  no 
'(b) 
surplus sugar on  that  market,  the  reference  threshold  for  sugar  fixed  in  point  (c)  of 
Article 1a.'. 

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

Article 2 

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

Done at Brussels, 

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For the Council 
The President 

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