CELEX: 51988PC0847
Language: en
Date: 1989-01-02
Title: Proposal for a COUNCIL REGULATION (EEC) extending the period of application of Regulation (EEC) No 3310/75 on agriculture in the Grand Duchy of Luxembourg (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 847
Vol. 1988/0275
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
l'ouverture au public des archives historiques de la Communauté économique européenne et de
la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
lieu par le règlement (UE) 2015/496 du Conseil du 17 mars 2015 (JO L79 du 25. 3.2015, p. 1), ce
dossier est ouvert au public. Le cas échéant, les documents classifiés présents dans ce dossier
ont été déclassifiés conformément à l'article 5 dudit règlement ou sont considérés déclassifiés
conformément aux articles 26(3) et 59(2) de la décision (UE, Euratom) 2015/444 de la
Commission du 13 mars 2015 concernant les règles de sécurité aux fins de la protection des
informations classifiées de l'Union européenne.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
the opening to the public of the historical archives of the European Economic Community and the
European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as last amended by Council
Regulation (EU) 2015/496 of 17 March 2015 (OJ L 79, 27.3.2015, p. 1), this file is open to the
public. Where necessary, classified documents in this file have been declassified in conformity
with Article 5 of the aforementioned regulation or are considered declassified in conformity with
Articles (26.3) and 59(2) of the Commission Decision (EU, Euratom) 2015/444 of 13 March 2015
on the security rules for protecting EU classified information.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in diesem Akt in
Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
sie auf Grundlage von Artikel 26(3) und 59(2) der Entscheidung der Kommission (EU, Euratom)
2015/444 vom      13.   März 2015     über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM ( 88 ) 847 final
                                                Brussels , 2 January 1989
                         Proposal for a
                   COUNCIL REGULATION ( EEC )
           extending the period of application of
      Regulation ( EEC ) No 3310 / 75 on 'agriculture5 in the
                   Grand Duchy of Luxembourg
                                                   /
                (presented by the Commission )
 ---pagebreak---                                                                       Govx <& 2
                                EXPLANATORY MEMORANDUM
Under the second subparagraph of Article 1(1 ) of the Protocol on the
Grand Duchy of Luxembourg and Council Regulation ( EEC ) No 3310 / 75^1 >,
as last amended by Regulation ( EEC ) No 3914 / 87.(2 ) § non-sperk I I ng
natural Luxembourg wines made from fresh grapes are exempt from excise
 duties within the territory of the Benelux Eonomlc Union until
 31 December 1988 by way of derogation from Article 95 of the EEC
 Treaty .
 Luxembourg has requetsed a further extension of those arrangements
 until 31 December 1989 . on account In particular of the failure to make
  progress towards the harmonization of excise duties on wine In the
  Community and of the significance which the exemption from excise has
  fro Income from wine-growing In Luxembourg .
  Nothw i thstand I ng the considerations In point 4 below . In the light of
   the criteria on which the said preference system regarding fiscal
   customs duties was based , the extension of the system is still
   Justified by the " special situation " of Luxembourg agriculture .
    In this respect , the following points should be considered :
    (a)  Vlil cu I turn I production Is still of special significance for
         t u > omuoui g .v,u I uul lure In Qenoral and for the Moselle region In
         paitlcular . the grape harvest accounts for a major proportion of
          the value of total agricultural production In Luxembourg ( FB 600
          to 700 million , or 9,5% of total final production ).       More
          particularly as regards the Luxembourg Moselle region , wine¬
          growing with related upstream and downstream sectors Is a typical
          activity providing work for 15% of the working population In the «
           region ; It is also a main factor In preserving the countryside In
           view of the importance of tourism In the region .
( 1 ) 0J No L 328 , 20.12.1975 . p. 12 .
( 2 ) OJ No L - 369 , 29.12.1987 . p.      3.
 ---pagebreak---                                      - 2-
(b)   in the period from 1967 to 1976 , the average yield from Luxembourg
      vineyards was 130.6 hl / ha ;     In the period from 1977 to 1987 , the
      trend In production and yields was as follows :
      Year           Total product Ion *(h I )   Yleld/ ha ( hi )
      1977                  155  000                  134
       1978                  72  200                    62
       1979                   62 500                    54
       1980                   50 100                    43
       1981                   96 800                    85 '
       1982                 256  400                  225
       1983                 184  500                   160
       1984                  152  200                  131
        1985                 107  000                    92
        1986                 159  600                  137
        1987                 142 643                   119
        These figures reflect significant variations In harvests from year
         to year , which are due to the weather conditions applying and the
         small overall size of the Moselle valley , which means that changes
         In weather conditions affect the whole region . Though there Is no
         specific tendency In the figures , the last decade does show an
         average yield of 112,9 hl / ha , representing a fall of approximately
         15% In yields    over the previous decade .
  (c)    There has been a deterioration In the production cost / selling
          price ratio over the last few years , in particular owing to
          increased competition from Imported wines . To Illustrate this . In
          the last fifteen years , wine Imports have been rising constantly
          on both the Luxembourg market ( Table I ) and on that of the Benelux
          countries as a whole ( Table II ).
 ---pagebreak---                                       TABLE  I
                                          Quantities of wine
                      Y F AR                   Imported Into
                                            Luxembourg ( hi )
                    . 1970                             60  947
                       1975                            90  386
                       1978                           106  475
                       1983                           142  808
                       1984                           158   545
                       1985                           138   177
                       1986                           139   639
                       1987                            155 907
                                       TABLE    I I
                                      Quantities of wine Imported
                      YEAR            Into the Benelux countries
                                               ( hi )     (*)
                       Average
                       1970 / 75                    1   912  883
                       1977 / 78                    2   315  039
                        1982 / 83                   3   014  746
                        1983 / 84                   3   154  882
                        1984 / 85                   3   311  489
                        1 ιιπι-, / ηη                g 443 DUO
                        1986 / 8 /                   3 935 63/ (**)
(*) From the Communlty ( EUR 10 )
(**) Fromthe Community ( EUR 12 )
     Source : Eurostat .
 ---pagebreak---                                        - 4 -
        Theuo flguios      I so show that th« exemption of Luxembourg wine from
        excise duties has had no effect on Imports of wine from other
        Member States into the Benelux countries .
                                          «
   (d)  The discontinuation of the exemption and an Increase In the
        consumption price by a corresponding amount would , however , have
         probably a significant adverse effect on the quantities of
         Luxembourg wine sold In the Benelux countries , as Belgium and the
         Netherlands absorb approximately 94% of Luxembourg wlr-e exports .
          if Luxembourg wine-growers are to feel the direct effects of any
         discontinuation of the exemption . It would represent a loss of
         more than 10% of their Income , as the Commission showed when
          previous proposals for the extension of the arrangements were put
          forward ; this would endanger the profitability of many small and
          medium-sized wine-growing undertakings In the Luxembourg Moselle
          region .
    (e)   The fact that Luxembourg has not been forced up until now to
           resort to el the ;- preventive or compulsory distillation Is not
           likely to off :. MI the abovemont loned difficulties . Following
           efforts by producers to Improve the quality of wine , table wine
           production has fallen steeply In Luxembourg while quality wine
           production , which Is not eligible for such measures , has risen .
     For the foregoing reasons , the Commission proposes that Luxembourg 's
     request should be granted and the exemption from excise duties applying
     to Luxembourg wines on the Benelux market should be maintained until
     31 December 1989 under the conditions provided for In Regulation ( EEC )
     No 3310 / 75 .
4.   However , it must be taken into account that the average income situation
     of the Luxembourg wine growers has been better in the past than in the
     Community ( see table III ). Given this fact and in view of the transitional
     nature of the exemption arrangements provided for in the recitals of
     Regulation ( EEC ) No 541 / 70 and in particular of the prospect of the large
     single market ( see Article 8a of the EEC Treaty ) ( Article 13 of the Single
     European Act )), with which the exemption is incompatible, it is inevitable
     to begin with their gradual dismantling from 1 January 1989 on until they are
     completely abolished by 1 January 1992, or before as a result of the
     application of the Directive on the harmonization of excise duties on wine in
     the Community . It is proposed to scale down the exemption at an annual rate
     of 25 X beginning from 1 January 1989 .
 ---pagebreak---                                                 ft
                                          TABLE III
       Productivity and Income Situation of Vine Growers In Luxembourg
                       In comparison to the Community ( Eur 10 )
               I    Yleld / ha hi **    IFarm Net Value             ( Family Farm income /|
               t                        j AIIIIHII ( IH ' • i H-II  iiwiii ' ■ l-M !          i
               i_-_J_I_L
(
i                  Lux        Eur 10    I    Lux          1 Eur 10  1   LUX       1 Eur 10    I
1                                                         1                        1          1
1                                                         1                        1          1
1                                                         1                        1          1
1                                                         1                                   a
                                                          1                        a          a
1
1  1971 / 80*      107.0       62.3                       1                        a          a
                                                          1                        a          a
1                                                         1                        1           a
                                                          1                        a           a
1
1  1980/ 81          43.7      68.1                       1                        1           a
                                                          1                         1          a
                                                          1                         a          a
                                                           1                                   a
   1981 / 82         85.2      59.2                        1                        a          a
                                                           1                        1          a
                                                           1                        a          a
   1982 / 83       216.0       73.7      !   3619          1
                                                           1  2176   1
                                                                     a  12299       !  10221   a
                                                                                               a
                                                           1         a                         a
                                                           1         a                         a
                                                                                               a
   1983 / 84       160.2       74.6      i   7028          1
                                                           1  1883   a
                                                                     a  16410       (   8415   a
                                                           1         a                          a
                                                           1         a                          a
   1984 / 85       131 .0      65.3      !    3218         1  1809   1   10326       (  7845    1
 1               I                       I                  1        1               I          1
                                                                                                a
   1985 / 86     !   92.0      64.5      !    4571          1 2308    a  14597       ¡ 10478
                                                            1         a              a          a
                 !                                                 _l_               •       –L
*     average
**    Source :     communications of the Member States , GD VI . E. 3
 *** Source :      RICA , GD VI . A. 3
                    Data refer to a representative sample of vine growers and
                    Include also Incomes coming from other farm activities than
                    viticulture
                    A special analysis of A. 3 with respect to " Farm Net Value
                    Added/ ha ( Ecu )" only In the field of viticulture shows for
                    1985/ 86 the following results :
                    Germany      3986
                    France       2792
                    Portugal     1019
                    Greece       3304
                    Luxembourg 8835
                     Italy       2346
 ---pagebreak---                                                                                  \
                                     Proposa !
                            COUNCIL REGULATION ( EF.C ) ‘
          extending the period of application of Council Regulation ( EEC )
             No 3310 / 75 on agriculture In the Grand Duchy of Luxembourg
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to the Protocol on the Grand Duchy of Luxembourg annexed
 thereto .
 Having regard to Council Regulation ( EEC ) No 3310 / 75 of 16 December 1975 on
 agriculture in the Grand Duchy of Luxembourg ^ 1 ) , as last amended by
 Regulation ( EEC ) No 3914 / 87 ^ 2 \ and In particular Article 2(2 ) thereof ,
 Having regard to the proposal from the Commission ,
  Whereas , under the second subparagraph of Article 1(1 ) of the Protocol on
  the Grand Duchy of Luxembourg , Belgium , the Grand Duchy of Luxembourg and
  the Netherlands are to apply the system provided for In the third paragraph
  of Article 6 of the Convention on the Economic Union of Belgium and
  Luxembourg of 25 July 1921 ;        whereas the period of application of that
   system was last extended by Regulation ( EEC ) No 3914 / 87 ; whereas the
   Council has to decide to what extent those provisions should be maintained ,
   amended or discontinued ;
   Whereas the application of the said system In favour of Luxembourg wines
   will continue to be of benefit to the agricultural Income of the Grand
    Duchy of Luxembourg In the sector concerned ,
    Whereas , having regard to the other reasons set out In Regulation ( EEC )
    No 3310 / 75 , the period of application of the latter Regulation should be
    ex tended .
     ( 1 ) OJ No L 328 , 20.12.1975 , p. 12 .
     ( 2 ) OJ No L 369 , 2 912.198 7, P -  3.
 ---pagebreak---                                      - 2 -
Whereas , however , the system In question was Introduced as a transitionary
arrangement and must In any case be discount Inued with the prospect of the
large single market advocated In the Single Act ; whereas the provisions
for abolishing that system gradually In any case must be adopted as of now
HAS ADOPTED THIS REGULATION :
                                   Article 1
The Regulation ( EEC ) No 3310/75 shall be supplemented by the following
provisions :
" Article 1a
The tax exemption according to Article 1 of this Regulation shall be
reduced by an amount equal to 25% with effect from 1 January 1989 and by
three further 25% Instalments on 1 January of each of the following years
so that the exemption Is completely withdrawn from 1 January 1992 ".
                                   Art Icle 2
In the first paragraph of Article 2 of Regulation ( EEC ) No 3310/75 ,
" 31 December 1988 " Is hereby replaced by " 31 December 1991 ".
                                    Artcle 3
This Regulation shall enter Into force on 1 January 1989 .
This Regulation shall be binding In Its entirety and directly applicable In
all Member States .
Done at Brussels ,                                For the Councll