CELEX: 51993PC0085
Language: en
Date: 1993-03-23
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1442/88 on the granting, for the 1988/89 to 1995/96 wine years, of permanent abandonment premiums in respect of wine-growing areas

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                               COM(93)85  final
                                                               Brussels, 22 March 1993
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                                                Proposal for a
                                           COUNCIL REGULATION (EEC)
                             amending Regulation (EEC) No 1442/88 on the granting,
                              for the 1988/89 to 1995/96 wine years, of permanent
                             abandonment premiums in respect of wine-growing areas
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                                         (presented by the Commission)
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                              EXPLANATORY MEMORANDUM
This proposal for a Regulation makes several changes to the current scheme for
the permanent abandonment of wine-growing areas which are necessary for its
continued application.
1. Firstly, it is necessary to continue the current method of financing by the
    EAGGF Guarantee Section, which expired on 31.12.1992.
2.  Given the persistent imbalance on the wine market, an assessment of the
    structural changes due to the grubbing-up scheme is desirable in order to be
    able to prepare for the necessary adjustments in the years ahead.
3. At present, application of the grubbing-up scheme entails difficulties for
    the remaining wine-growers, in particular as a result of fragmentation
    (breaking-up of wine-growing areas as a result of grubbing-up within those
    areas), which could jeopardize restructuring programmes and entail additional
    production costs.
    The abandonment scheme should be made compatible with land-consolidation or
    parcel-exchange operations. Such operations could also enhance the
    development of grubbed-up areas, in particular by facilitating
    reafforestation programmes or agri-environmental measures (Regulations (EEC)
    No 2080/92 and No 2078/92).
4.  Some definitions must be clarified and measures amended in order to improve
    administration and prevent fraud.
5. Given the extent of grubbing-up in Greece, provision is made for changes to
    the scheme there to avoid unbalanced application between Member states.
The technical adjustments set out above must inevitably be made at Community
level.
 ---pagebreak---                                          - 1  tt^-
                                     Proposal for
                        COUNCIL REGULATION (EEC) No
                                  of
              amending Regulation (EEC) No 1442/88 on the granting,
               for the 1988/89 to 1995/96 wine years, of permanent
              abandonment premiums in respect of wine-growing areas
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community, and in
particular Article 43 thereof,
Having regard to the proposal from the commission,
Having regard to the opinion of the European Parliament,
Whereas Article 17a of Regulation (EEC) No 1442/88( 1 ), as last amended by
Regulation (EEC) No 1869/92( 2 ), provides for the Guarantee Section of the EAGGF
to finance premiums for the permanent abandonment of wine-growing areas in
respect of any abandonment operation carried out between 1 January 1990 and
31 December 1992; whereas it is essential to retain this financing arrangement
beyond that date and up to 31 December 1996 in order to pursue the aim of
rebalancing the wine market and avoiding continued intervention on a massive
scale;
(1) OJ No L 132, 28.5.1988, p. 3.
(2) OJ No L 189, 9.7.1992, p.6
 ---pagebreak---                                       - 2 -
Whereas, furthermore, the experience of*the last three wine years indicates that
certain changes are required in the interests of effective operation of the
scheme;
Whereas the preferential distillation scheme provided for in Article 8 of
Regulation (EEC) No 1442/88 whereby producers who so request are exempted totally
or in part from compulsory distillation depending on the actual reduction in
production potential requires complicated administrative arrangements; whereas it
should be discontinued;
Whereas the increases provided for in Article 2(2) and the second subparagraph of
Article 2(5) payable if the areas concerned constitute the entire wine-growing
area cultivated by the applicant should also be discontinued since they have not
had the economic effect anticipated;
Whereas application of the scheme for the abandonment of wine-growing areas is
likely to lead to major structural change in certain Community production
regions; whereas it is important to carry out a thorough evaluation study to
measure the impact of the scheme and prepare any necessary adjustments;
Whereas provisions should be laid down to limit fragmentation (the breaking up of
wine-growing areas as a result of grubbing-up within those areas), in particular
in areas that are being restructured or which are of major wine-growing
importance, and to facilitate the introduction of the multiannual zonal
programmes provided for in Article 3 of Regulation (EEC) No 2078/92 on
agricultural production methods compatible with the requirements of the
protection of the environment and the maintenance of the countryside(^), or
programmes provided for in Article 4 of Regulation (EEC) No 2080/92( 4 ),
(3) OJ No L 215, 30.7.1992, p. 85.
(4) OJ No L 215, 30.7.1992, p. 96.
 ---pagebreak---                                         - 3 -
 instituting.a Community aid scheme for forestry measures in agriculture, and to
 ensure compatibility with the Community aid scheme for early retirement laid down
 in Regulation (EEC) No 2079/92(5); whereas, in such circumstances, granting an
additional premium to promote the exchange of parcels should help achieve these
objectives;
Whereas greater technical clarification is required of what grubbing-up must
involve and also with regard to calculation of the yields determining the premium
amount;
Whereas the high rate of abandonment of wine-growing areas given over to the
production of grapes for drying in Greece causes serious socio-economic problems
in the regions concerned and could cause a serious imbalance vis-à-vis other
regions of Greece and other regions of the Community; whereas in order to prevent
such clearly unbalanced application the scheme should be discontinued as regards
areas in Greece given over to the cultivation of grapes for drying;
Whereas the technical adjustments set out above must inevitably be made at
Community level and must comprise corresponding amendments of the regulations in
force,
HAS ADOPTED THIS REGULATION:
                                     Article 1
Regulation (EEC) No 1442/88 is hereby amended as follows
1.   The last indent of Article 1(1)(b) is deleted.
2.  Article 2(2) is deleted.
(5) OJ No L 215, 30.7.1992, p. 91.
 ---pagebreak---                                       - 4-
3. The following subparagraph is added,to Article 2(3):
   "If the area on which wine-growing is permanently abandoned constitutes the
   entire area under vines of the holding, the average yield determining the
   premium rate applicable may not be higher than the average of the yields
   notified as harvest declarations in the five wine years preceding submission
   of the premium application.  However, the harvest quantities declared from
   the highest-yielding wine year and from the lowest-yielding wine year shall
   not be taken into account in the calculation of this average."
4. The last subparagraph of Article 2(5) is deleted.
5. The following is added to Article 4(2):
   "Grubbing up shall comprise removal of the vine stocks (main root and wood)."
6. Article 8 is deleted.
7. Article 9 is replaced by the following:
   "If the holder qualifies for the aid provided for in Council Regulation (EEC)
   No 2079/92 of 30 June 1992 establishing a Community aid scheme for early
   retirement in agriculture, this aid may be granted in whole or in part in
   addition to the abandonment premium if the parcels which are to be
   permanently abandoned are covered by land consolidation or structural
   improvement programmes, in order to further the objectives of these
   programmes. Otherwise the cumulative total of amounts granted under these two
   measures shall be limited to the amounts laid down in Article 3 of Regulation
   (EEC) No 2079/92."
8. The following Article is inserted:
   "Article 9a
   1.    Where permanent abandonment of areas under vines:
         -  would fragment the vineyard in wfcieh they are located* in particular
            if restructuring is being carried «at in the zone,
 ---pagebreak---                                    - 5 -
      - . or would result in the loss of land recognized as producing grapes
         of good quality,
         or could result in environmental damage, an additional premium of
         ECU 1 500 per hectare shall be granted to the applicant where
         permanent abandonment is carried out on parcels other than his own
         as a result of an accompanying procedure of parcel exchange.
      In this case, the amount of the premium shall be calculated on the
      basis of the applicant's parcel and grubbing-up must cover at least an
      equivalent area; where the productive capacity of the parcels proposed
      for exchange is less than that of the applicant's parcel, the area to
      be grubbed up must be such that the reduction in potential is at least
      identical to that which would result from grubbing-up of the
      applicant's parcel.
2.    Land consolidation or parcel exchange operations linked to the
      permanent abandonment of wine-growing areas as referred to in
      paragraph 1 may be included in the multiannual zonal programmes
      provided for in Regulation (EEC) No 2078/92 or Regulation (EEC)
      No 2080/92. The permanent abandonment premiums shall be granted in
      addition to the aid provided for in those Regulations."
Article 11 is replaced by the following:
"Article 11
Before the end of the 1993/94 wine year the Commission shall submit to
Parliament and the Council an evaluation study on the scheme for the
permanent abandonment of wine-growing areas. The report shall deal in
particular with the impact of the scheme on viticultural production
structures and shall be accompanied by any proposals considered to be
appropriate.
 ---pagebreak---                                         -c-
    The costs involved in drawing up the report shall be considered as
    expenditure on action to stabilize the agricultural markets within the
    meaning of Article 3 of Council Regulation (EC) No 729/70 of 21 April 1970 on
    the financing of the common agricultural policy^6*."
10. In Article 17a:
          "31 December 1992" in the third paragraph is replaced by
          "31 December 1996";
          the last paragraph is deleted.
11. The following Article is inserted:
    "Art icle 22
    This Regulation shall not apply to areas in Greece used to grow grapes for
    dryi ng."
                                     Article 2
This Regulation shall enter into force on the third day following its publication
in the Official Journal of the European Communities.
Point 10, firoi indeni, of Article 1 shall, however, apply from 1 January 1993.
This Régulât ion shall be binding in its entirety and directly applicable in all
Member States.
<e) #J Wo L 94, 28.4. K)70, *>.13
 ---pagebreak---                                                         }
      FINANCIAL                      STATEMENT
                                                                       DATE:
 1. BUDGET HEADING: 1611 and 164                                       APPROPRIATIONS: ECU 474 and 366 million
 2. TITLE: Proposal for a Council Regulation amending Regulation (EEC) No 1442/88 on the granting, for the
           1988/89 to 1995/96 wine years, of permanent abandonment premiums in respect of wine-growing areas.
 3. LEGAL BASIS: Council Regulation 1696/71
 4. AIMS OF PROJECT:
    Ensure the smooth continuation of the current scheme for the permanent abandonment of wine-growing areas.
    Amendments to Regulation 1422/88 with a view to improved management and fraud prevention.
                                   Period of 12 months   Current Financial Year     Following Financial Year
5.   FINANCIAL IMPLICATIONS                                       1993                      1994
5.0 EXPENDITURE
     - CHARGED TO THE EC BUDGET
     - XXXXXXXX/INTERVENTION)             p.m.                   p.m.                       p.m.
     - xxxxxxxxxxxxxxxxxxxxxxx
                                        1955                1996                  1997                1998
5.0.1 ESTIMATED EXPENDITURE             p.m.                 p.m.                 p.m.
5.1.1 xxxxxxxxxxxxxxxxx
5.2 METHOD OF CALCULATION:
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
                                                                                                        YES
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
                                                                                                            NO
 ---pagebreak---  ---pagebreak---                                                                       ISSN 0254-1475
                                                                COM(93) 85 final
                                                       DOCUMENTS
EN                                                                               03
                                 Catalogue number : CB-CO-93-106-EN-C
                                                              ISBN 92-77-53503-2
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