CELEX: 51979PC0001
Language: en
Date: 1979-01-11
Title: PROPOSAL FOR A COUNCIL REGULATION on the management of food aid#Proposal for a COUNCIL REGULATION (EEC) amending Regulations (EEC) Nos 2052/69 and 1703/72, Decision 72/335/EEC and Regulation (EEC) No 2681/74 on Community financing of expenditures incurred in respect of the supply of agricultural products as food aid, and repealing Decision 72/335/EEC. (submitted to the Council by the Commission pursuant to the second paragraph of Article 149 of the EEC Treaty)

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 ---pagebreak---         COMMISSION OF THE EUROPEAN COMMUNITIES
                                                             COM(79 ) 1 final
                                                             Brussels , 11 January 1979
                             PROPOSAL FOR A COUNCIL
                                   REGULATION
                          on the management of food aid
                               Proposal for a
                            COUNCIL REGULATION (EEC) "
                  amending Regulations ( EEC ) Nos 2052 / 69 and
                  1703 /72 , Decision 72 / 335 / EEC and Regulation
                  < EEC ) No 2681 /74 on Community financing of
                expenditures incurred in respect of the supply
                  of agricultural products as food aid, and
                         repealing Decision 72 / 335 / EEC .
                  ( submitted to the Council by the Commission
              pursuant to the second paragraph .of Article 149 of
                                the EEC Treaty )
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COM (79 ) 1 final
                                                              4         y
 ---pagebreak---                                        EXPLANATORY MEMORANDUM
  1.               On 14 June 1978 the Commission presented to the Council a
 proposal for a regulation on the procedures for the management of food
  aid ( D.This proposal also included a " proposal for a Council regulation
  amending Regulation ( EEC ) n° 1703 / 72 as regards the Community financing of
  expenditure arising from the implementation of food aid conventions " and
  a " proposal for a Council decision amending Decision 72 / 335 / EEC on the
  Community financing a certain special expenditure arising from the imple­
  mentation of the Food Aid Convention of 1971 ".
                   The European Parliament was requested to deliver its opinion on
 these three texts , the last of which was also submitted to the Court of
 Auditors for its opinion .
  2.               In July , September , October and November 1978 , the Council
 devoted a large number of meetings to examining the Commission proposal .
 The matter was discussed initially by the Working Party on Development
  Cooperation , and subsequently by the Permanent Representatives Committee .
 Although the discussions failed to produce a final common position endorsed
  by all the delegations , a certain line of thought did emerge from them .
                   Parliament delivered its opinion on the proposal on 14 November ;
  this was based on the report prepared by Mr LEZZI and also on the opinion
  of the Committee on Budgets drawn up by Mr SCOTT-HOPKINS ( 2 ). Lastly , the
  Court of Auditors delivered its opinion on 26 October ( 3 ).
  3.               The prime objective of the Commission 's proposal was to establish
  management procedures whijti were more effective and more in keeping with the
  spirit and letter of the EEC Treaty ( Article 205 of which lays down that
  the Commission alone is responsible for implementing the Community budget ),
• without raising the substantive problems linked with the concept of food
  aid policy , for discussion of those matters would necessarily have caused
  considerable del^s in the adoption of the new procedures .
                   In order tg achieve that aim , the Commission made the following
 main proposals :
 a ) the general political decisions ( definition of basic products , decision
      on annual quantities , formulation of general aid guidelines ) should be
      assigned to the Council and adopted by a qualified majority ;
b ) the management powers at present held by the Council should be
     transferred to the Commission , in particular the annual allocation of
     quantities and decisions on emergency aid , derived products and transport
     problems ;
c ) provision should be made for close cooperation between the Member . States
     and the Commission within a Committee on food aid ;
( 1 ) COM ( 78 ) 204 final
( 2 ) 414/ 78 , 31.10.78 .
( 3 ) R / 2820 / 78 , 6.11.78 .
 ---pagebreak---    4.            The discussion held in the Council and Parliament on the
   Commission 's plan revealed that these two institutions were not content
   with improved management procedures but wanted the framework regulation to
   include substantive clauses with could make food aid one of the pillars
  of the Community 's development cooperation policy .
                The three institutions are of the opinion that in order to
  bring about this major improvement , of which the Commission approves and
  which it has , furthermore , recommended for many years , the legal basis for
  food aid should no longer be constituted only by Article 43 of the EEC
 Treaty , which     lays the foundations of the common agricultural policy , but
 should refer to Article 235 of the EEC Treaty in view of the new content it
 will give to food aid .
                The Commission , for its part , considers that since it is no
 longer intended merely to improve the manangement procedures for food aid ,
but also to formulate a real food aid policy - a composite legal basis should
be adopted made up of Articles 43 and 235 of tnc f-"EC Treaty - Article 43 to
stress that the products allocated will be procureu            *-;i v on t he
Community market and Article 235 to establish food aid Tii.ii>..         a new,
independent policy .                                                     – ...
                With this composite legal basis , it will generally be possible ,
for the goods supplied to be procured in accordance with the market organi­
zation rules in force ( reference to Article 43 ) but it will also mean                   ^
in appropriate cases , such" as non-availability of supplies on +                         ""
market or emergencies , the necessary goods can be pro curp:L_t - c i i e r* means ,
  notably purchases from other developing count---;.-     -
5.              Given this prospect of a qualitative improvement in food aid ,
 it is above all essential that the Community should be able to involve
 itself in annual and multi annual development projects and parti                       –
 directly in their implementation . The possibility of granting too ei,u            ,
 to ' . developing countries for the purpose of building up stocks of cereal-
  is another important measure to be implemented under a real foo ^ ai P                '
  and could bring about lasting improvements in the standard of nuuri o               ^
  the recipients . Both these methods of assistance have the same objective .
  food aid must , in appropriate cases , provide the means of ^ correcting t e
   deteriorating food situation in the developing countries in the medium
   term . This can only be done effectively in a multiannual framework .
   6m            With regard to the transfer of a number of management powers
    from the Council to the Commission , the Commission considers that its
    initial proposal represents the best way of meeting the basi c _ requirement s
    of increasing the effectiveness and improving the implementation of the aia .
    This approach has moreover been approved by Parliament and the Court o
     Auditors .
                  In this context , it is important that the Council should continue
     to take the major decisions which it is required to take by qualified
     majority .
 ---pagebreak---     7.            As for the method of operation , the voting system and the
 powers of th® ccmmittga en food aid , th® Cammiasiefi' • Initial proposal ti® »
 in , as indicated in 3 . above , with a number of similar proposals and
 constitutes a compromise between the position adopted by the Council ,
 which would like to establish for itself an automatic right of appeal
 Which could be invoked systematically in the event of disagreement between
 ■'the Commission and the committee , and the position adopted by Parliament ,         .
wjiich recommends that only an advisory committee be set up .
 8.                Lastly , the new content that will thus be given to Community
 food aid must also be translated into budgetary terms . ( 1 ) Expenditure on
food aid has up to now been charged against two headings : a portion of the
 expenditure considered to represent the refunds on exports of the product
delivered , was charged against the Guarantee Section of the EAGGF ( Title 6 of
 the Budget ) while the other portion , considered to represent the " world
 price" of the goods supplied to developing countries , was included in
 Title 9 of the Budget under Chapter 92 : " Food aid". This breakdown of the ,
 expenditure , which is purely artificial since the Community finances all
 Community food aid expenditure on the basis of the internal prices fixed
 by the Council for . each farm year , caused administrative complications at
 all stages of the implementation of the aid . Since food aid constitutes a
 completely separate branch of the Community 's cooperation policy , it is
    important that the corresponding expenditure should be presented coherently
  in the Budget : food aid appropriations must therefore be grouped together
    according to the nature of the operations financed , and be charged against
 Title 9 : (" Cooperation with developing countries and other non-member
  countries") of the General Budget of the European Communities . ( 2 )
 CONCLUSION
                   On the basis of the foregoing , and in the light of the discussions
  held within the Council and the opinions delivered by the . European - Par li ament
  and the Court of Auditors , the Commission is submitting to the Council the
  amended proposals for Council regulations contained in the Annex .
                   The main aim of the amendments made to the Commission    's initial
 proposal ( passages underlined in the annexed texts ) is to insert in the
 framework regulation the legal and substantive elements required to transform
 food aid into an independent policy aimed .-.at > development objectives .
                   It is therefore proposed that the Council adopt the amended acts
    annexed hereto , so that the new procedures can already be used for drawing
 up the food aid programmes for 1979 .
   ( 1 ) A proposal to this effect was submitted as early as 15 July 1977
         ( COM ( 77 ) 333 final ). This proposal , which had Parliament 's approval ,
         was not adopted by the Council .
   ( 2 ) However , as it is necessary to know the value of the food aid at the
         world price ( which represents the net flow of foreign currency to the
         recipient countries or organizations ) and to communicate this informa­
         tion to the relevant international authorities , the value will be
         indicated in the budget commentaries .
 ---pagebreak---                                                 ANNEX I.
Proposal for a Council Regulation
on the management of food aid
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic
Community , and in particular Articles 43 and 235 thereof
Having regard to the proposal from the Commission-
Having regard to the opinion of the European Parliament ,
 ---pagebreak---    Whereas food aid is provided on humanitari an pr o unds and c on s t i t ute s one
   of the essential aspects of the Community 's policy of cooperation with
   the developing countries ;
   Whereas food aid should be made into , a real instrument of the C ommuni -
   ty 's policy of cooperation with the developing countri es , thereby ena¬
   bling the Community to participate fully in multiannual development
   projects ;
   Whereas it is necessary , to that end ., that the Community should be able
  to provide steady-flows of aid and be in a position to undertake to
    s upply to the developing countries minimum quantities of products under
    a multiannual programme ;
   Whereas , in order to ensure that food aid is managed more ef f i ci ent ly and
    i n greater conformity with the interests and requi rement s of the recipien t
    count ri es , the decision-making and implementing procedures should be
    improved ;
   Whereas , in order to facilitate the application of certain of the
    measures envisaged , provision should be made for close cooperation between
   the Member States and the Commission within a committee on food aid ;
    Whereas these procedures and the subsequent decisions take account of
    the division of responsabi I it i es between the institutions as laid down
    in the Treaty , and in particular Article 205 thereof ;
    Whereas this regulation does not affect the procedures provided for in
    the context of the common market organizations or Council Regulation
    ( EEC ) N° 2681 / 74 of 21 October 1974 on Community financing of expendi­
    ture incurred in respect of the supply of agricultural products as food
    aid ( 1 ) ,
HAS ADOPTED THE REGULATION :
          TITLE I   : FOOD AID-OBJECTIVES AND GENERAL GUIDELINES
                                       Article 1
Under its cooperation policy , the Community shall carry out food aid
operat ions .
                                       Article 2
1 . These food aid operations shall have the following objectives in
      part i cular :
      - to raise the standard of nutrition of the recipients ,
      - to help in emergencies ,
      - to contribute towards the economic development of the recipient
        countries .
( 1 ) 0J N° L 288 , 25.10.1974 , p. 1 .
 ---pagebreak---                                           -3 -
2 . Food aid shall be allocated primarily on the basis of an objective
     evaluation of the real ,     needs justifying the aid .   To that end , the
     following three criteria shall in particularbe taken into account :
     " basic food needs ,
     - per capita income , ■
     - the balance- of - payment s situation .
3 - The granting of food aid shall ,, if necessary ,, be conditional on the
     implementation of annual or multiannual development projects : wher e
     appropriate , the aid may contribute directly to the implementation of
     such projects . Complementarity may be ensured through the use of
     counterpart funds where the products supplied by the Community as aid
     are intended for sale .
4 . Food aid may be granted to enable the recipients to build up stocks of
     cerea Is .
5 . The Community may finance the building up of stocks of foodstuffs in
     order to contribute towards the implementation of emergency action as '
     provided for in Article 6 .
                                        Article 3
1 . Goods supplied as food aid shall be procured on the Community market .
2 . However , i.n an emergency or if the products to be supplied as aid are
     not available on the Community market , they may be purchased on the *
     m arkets of developing countries which export them . As a last resort ,
     the products may be purchased on the markets of other exporting countries .
^ ■ The products shall be procured in accordance with the rules and procedu-'
     res laid down under the common market organizations .
4 . With the agreement of the recipients , limited quantities of derived
     products , in parti cular .. cereal-based products , may be supplied a s
     Community food aid .
            TITLE II  :  PROCEDURES   FOR IMPLEMENTING FOOD AID OPERATIONS
                                        Article 4
In the field of food aid ,, the Council , acting by a qualified majority on
a proposal from the Commission , and after obtaining the opinion of the European
Parliament , shall
- define the basic products to be supplied as aid ;
- determine by          31 October each year , within the framework l'3i'd down
    by Article 2 , the general guidelines which will govern the aid for the
    following year ;
- decide on the total quantities of each product on an annual and mu I'ti-
    annual basis and fix the percentage of the total that can be channelle d
    through international organizations ;
 ---pagebreak--- , r ap portion the cer eals aid provided for under the Food Aid Convention as between
      Community and national op erations and fix the total amou7it""of CormnuTiTt'y
      cereals aid not covered by the Convention .
                                        Article 5
  The Commission ,, following consultations with the committee provided for in
  Article       shall take decisions in accordance with the procedure laid down
  in Arti c le _8 on :
  - the annual and multi annual distribution of the quantities available among
      countries and organizations , and the volume of the reserve ;
  - the derived products to be supplied as food aid ;
  - the application of Article 2 ( 3 ) ( 4 ) and ( 5 );
  - t ransportation of the products .
                                        Article 6
  The Commi ssion , in accordance with the Counci I decisions referred to in Arti cle
  4 and of the decisions taken under Article _5 , shall decide on :
  a ) emergency action for countries facing serious difficulties
       as a result of natural disasters or comparable abnormal circumstances ;
  b ) the conditions governing the supply of aid and , in
       particular , on the general conditions applicable to recipients .
  For the purposes of a ) " emergency" shall mean an unforeseeable situation
  in which famine or a danger of famine poses a serious threat to the lives
  and health of the population . The volume of aid which it shall be decided
  t o supply in each particular case shall be limited to the quantities tha t
  the people affected require in order to cope with the situation for a
  period not exceeding three months .
                                       Article 7
   1 . There is hereby established a Committee on Food Aid , chaired by a representative
    of the Commission and composed of representatives of the Member Sta.tes .
  The secretariat of the Committee shall be provided by the Commission .
   2 . Where recourse is had to the procedure defined in Articl e 8 , the votes
  of the Member States shall be weighted as set out in Article 148 ( 2 ) of the
  Treaty .    The Chairman shall not vote .
  3 . The Committee shall draw up its rules of procedure .
 ---pagebreak---                                      Artide 8
 2 . Where recourse is had to the procedure defined in this     Article , the   ;
 Committee shall be duly informed by its Chairman , either on the latter' s
own initiative or at the request of a representative of a Member State .
2 . The Commission representat i ve shall submit drafts of decisions to be
taken . The Committee shall deliver its opinion on these drafts within
a time limit which may be fixed by the Chairman according to the urgency
of the matters under examination .     It shall act by a majority of 41 votes .
3 . The Commission shall take decisions which are immediately applicable .
If , however , such decisions are not in accordance with the opinion delivered
by the Committee , they shall be communicated to the Council by the Commission
forthwith . In that event , the Commission shall postpone , for not more than
two months following the date of said communication , the application of the
decisions taken by it .   The Council , acting by a qualified majority , may
take a different   decision within "" two months .
                                     Article 9
Following a request by the Chairman or a representative of a Mernoer State ,
the coordination of Community and national food aid schemes shall be
examined by the Committee . To this end , the Member States shall provide
the Commission with information about national schemes .
                                    Article 10
The Committee may examine any other matter concerning food aid raised by
its Chairman , either on the latter 's own initiative or at the request of
a representative of a Member State .                                         .
                                    Article 11
The European Parliament shall be informed of the management of food aid
by the communication of the decisions referred to in Arti c les     to j6
immediately upon their adoption and by the annual presentation of progress
reports on the implementation of the various operations for the relevant
financial years .
The decisions referred to in Articles _5 and _6 and the reports mentioned
above shall be communicated to the Council at the same time .
                                   Article 12
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities *
 ---pagebreak--- This Regulation shall be binding in its entirety and directly applicable
in all Member States .                           '
                                              Done at
                                              For the Counci I
                                              The President
 ---pagebreak---                                                                     ANNEX II .
                                     Proposal for a
                                  COUNCIL REGULATION ( EEC )
                        amending Regulations ( EEC ) Nos 2052 / 69 and
                         1703/ 72 , Decision 72 / 335 / EEC and Regulation
                        ( EEC ) No 2681 / 74 on Community financing of
                        expenditures incurred in respect of the supply
                        of agricultural products as food aid , and
                        repealing Decision 72 / 335 / EEC .
               THE COUNCIL OF THE EUROPEAN COMMUNITIES
                     Having regard to the Treaty establishing the European
Economic Community , and in particular Articles 43 , 209 and 235 thereof ,
                     Having regard to the proposal from the Commission ,
                     Having regard to the opinion of the European Parliament ,
                     Having regard to the opinion of the Court of Auditors ,
   Whereas food aid should be made into a real instrument of the Community 's
   policy of cooperation with the developing countries ;
   Whereas food-aid appropriations should be presented in the Budget in a way
   that is consi sten t with the nature of the operations financed andmeets the
   need for greater budgetary transparency and better mananqement of the aid ;
   Whereas the full cost of Community food-aid operations should consequently
   be charged to Title 9 (" Cooperation with developing countries and other
   non-member countries") of the General Budget of the European Communities ;
   Whereas certain financial provisions need to be adapted to the new Regu­
    lation on the management of food aid , in particular          the following :
             - Council Regulation ( EEC ) N° 2052 / 69 of 17 Ocotober 1969 on the
               Community financing of expenditure arising from the implemen ¬
               tation of the Food Aid Convention ( 1 );
( 1 ) 0J N° L 263 , 21.10.1969 , p. 6 .
 ---pagebreak---               - Council Regulation ( EEC ) N° 1703/ 72 of 3 August 1972 amending
Regulation ( EEC ) N° 2052 / 69 on the Community financing of expenditure
arising from the implementation of the Food Aid Convention of 1967 and
laying down rules for the Community financing of expenditure arising from
the implementation of the Food Aid Convention of 1967 and laying down
rules for the Community financing of expenditure arising from the imple­
mentation of the Food Aid Convention 1971 ( 2 );
             - Council Regulation ( EEC ) N° 2681 / 74 of 21 October 1974 on '
Community financing of expenditure incurred in respect of the supply of
agricultural products as food aid < 3 );
Whereas it " 1s necessary , for the sake of clarity , to incorporate in this
Regulation the provisions of Council Decision 72 / 335 / EEC of 3 August 1972 ( 4 )
and to repeal that Decision ,
HAS ADOPTED THIS REGULATION :
                                          Article 1
                  Regulation ( EEC ) N° 2052 / 69 is amended as follows :
1.                Article 1 ( 1 ) is replaced by the following :
" In respect of national transactions carried out in implementation of t he
Food Aid Convention , that part of the expenditure corresponding to the
refund on exports to third countries , less costs incurred beyond the port
of embarkation stage , shall be eligible for financing by the Guarantee
Section of the European Agricultural Guidance and Guarantee Fund " .
2.               In Article 4 ( 1 ), the first subparagraph up to the end of
point ( a ) is amended to read as follows :
" 1 . Expenditure relating to Community transactions arising from th e
 i mplementation of the Food Aid Convention shall be financed by the Commu­
nity ; the said expenditure shall be charged in its entirety to Title 9
(" Cooperation with developing countries and other non-member countries ' ' )
of the General Budget of the European Communities , and , in pursuance
of the Decisions taken by the Community institutions , shall include :
      a ) the value of the goods at the port of embarkation ."
                                            Article 2
                    Regulation ( EEC ) N° 1703/ 72 is amended as follows :
( 2 ) 0J N°L 180 , 8.8.1972 , p. 1 .
( 3 ) 0J N° L 288 , 25 . 1 0 . 1 974 , p. 1 .
( 4 ) 0J N° L 227 , 5.10.1972 , p. 11 .
 ---pagebreak---   1.                The first sentence of Article 6 ( 1 ) is replaced by the
fo L lowing :
  " For national measures taken under the Food Aid Convention of 1971 for
  which products procured in the Community were used , the Guarantee Section
  of the Fund shall finance that part of the expenditure which corresponds
  to the refund on exports to third countries , less costs incurred beyond
    the port of embarkation stage ."
  2.                Article 8 ( 1 ? up to the end of point ( b ) is amended to read
   as follows    :
  " For Community measures under the Fo ::? Aid Convention of 1971 taken ;
  pursuant to the Decisions adopted by the institutions of the Community :
      a ) The Community shall provide finance to the value , at the port o f
      embark a tion or equivalent stage , of the cer eals or the rice , whether
     in the natural state or processed , or , where the goods are procured
      on the world market , to the value obtained by adding to the purchase
      price any necessary expenditure relating thereto .
      b ) The following further expenditure may be wholly or partly financed
      by the Community :
      - forwarding costs to the frontier of the country of destination and ,
         if necessary , to the destination itself ;
      - distribution costs , 'where the goods are distributed through a
         specialized agency".
  3.                Article 10 ( 1 ) is replaced by the following :
 " 1 . The Commission shall effect the expenditure referred to in Article
8 ( 1 ) ( b ) in cases where an agreement concluded by the Community provides ,
 in respect of that expenditure , for repayment on the basis of supporting
documents or for the payment of a lump-sum contribution either to the
 intermediary agency , or , where exceptional circumstances so justify , to the
beneficiary country . The Commission may make advances for such expenditure"
                                      Article 3
      For measures under the Food Aid Convention of 1971 taken pursuant to
 the Decisions adopted by the institutions of the Community , in addition
 to the expenditure referred to in Article 6 of Council Regulation ( EEC )
 N°1703 / 72 of 3 August 1972 amending Regulation ( EEC ) N° 2052 / 69 on the
 Community financing of expenditure arising from the implementation of the
'Food Aid Convention of 1967 and laying down rules for the Community finan­
 cing of expenditure arising from the implementation of the Food Aid
 Convention of 1971 ( 1 ), provision may be made , in exceptional or urgent
 cases , for Community financing , of all or part , of the following expen­
 diture    :
 ( 1 ) OJ N° L 40 , 8.8.1977 , p.1 .
 ---pagebreak---                                         -4 -
7 the value , at the fob or equivalent stage , of cereals or rice in' the
    form of goods not included in Annex II to the Treaty ;
- forwarding costs to the frontier of the country of destination and , if
    necessary , to the destination itself ,
- distribution costs , where the goods are distributed through a specialized
•   agency .
In such cases , Article 10 C1 ) of Regulation ( EEC ) N° 1703 / 72 shall apply
mutatis mutandis and the expenditure shall be financed from the food-
aid appropriations of the budget of the European Communities .
                                       Article 4
     Council Decision 72 / 335 / EEC of i August 1972 is hereby repealed .
                                       Article 5
                  Regulation ( EEC ) N° 2681 / 74 is amended as follow s :
1.                The following paragraph is added to Article 1 :
"The expenditure referred to in the preceding paragraph shall be charged in its
entirety to TiTl~e~9 (" Cooperation with developing countries and other non^1
member countries ") of th e General Buoget of the European Communities and
shall be covered by a single chapter ( Chapter on " Food aid").
2.                Article 2 is hereby repealed .
                                       Article 6
                  This Regulation shall enter into force on the same day as
Council Regulation ( EEC ) N°              of                  on the management
of food aid ( 1 ).
                  The provisions of Articles 1(2 ) and 5(1)'shall apply with     ■
effect from the financial , year 1980 .
                  This Regulation shall be binding in its entirety and
directly applicable in all Member States .
                                                   Done at
                                                   For t he Counci I
                                                   The President
( 1 ) 0J N 0
 ---pagebreak---                                FINANCIAL ANNEX
             This propsal on management procedures for food aid does
not involve any new or additional expenditure and its implementation will
have no effect on the size of the appropriations earmarked for food aid ..
                                      !