CELEX: 51993PC0176
Language: en
Date: 1993-05-05
Title: Proposal for a COUNCIL REGULATION (EEC) transferring the financing of certain aids provided for in Council Regulations (EEC) Nos 1096/88 and 2328/91 from the EAGGF Guidance Section to the EAGGF Guarantee Section and amending Regulation (EEC) No 2328/91 as regards part-financing of the system to encourage the set-aside of arable land

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        COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   C0M(93) 176 final
                                                   Brussels, 5  May 1993
 mm  m
                                    Proposal for a
                               COUNCIL REGULATION rEECÏ
                    transferring the financing of certain aids provided
                 for in Council Regulations (EEC) Nos 1096/88 and 2328/91
              from the EAGGF Guidance Section to the EAGGF Guarantee Section
            and amending Regulation (EEC) No 2328/91 as regards part-financing
                 of the system to encourage the set-aside of arable land
     HH
                            (presented by the Commission)
 ---pagebreak---                                    A
                            EXPLANATORY MEMORANDUM
In its communication on the Community's finances between now and 1997
(COM(92) 2001 final of 10 March 1992), the Commission proposed transferring
certain types of expenditure currently financed under heading 2 of the
financial perspective to heading 1, the EAGGF Guarantee Section guideline.
The transfer requires an amendment to the budget nomenclature, which has
already been done in the draft budget for 1993, as well as amendments to
the legal bases concerned. This proposal concerns this second stage.
In the case of the multiannual set-aside scheme provided for in Title I of
Regulation (EEC) No 2328/9l(1), half of the expenditure is currently
charged to the aforementioned heading No 2. Under the proposed amendment,
all expenditure incurred by the Member States from 16 November 1992 on is
to be charged to the EAGGF Guarantee Section. The proposed date
corresponds to the beginning of the accounting period for expenditure
eligible under the EAGGF Guarantee Section and chargeable to the 1993
budget. It does not involve any changes in the accounting practices of the
Member States because the financial arrangements currently used are those
of the EAGGF Guarantee Section.
In the case of measures which have been replaced by measures accompanying
the reform of the CAP, the position differs in two respects:
1. The rules and regulations in question were repealed when the new
    Regulations (EEC) No 2078/92<2), No 2079/92<3) and No 2080/92<4>
    entered into force. An ad-hoc regulation on financing alone is
    accordingly proposed.
2. The current financial arrangements are those applicable to the EAGGF
    Guidance Section, which means that eligible expenditure is partially
    reimbursed in the year following that in which it was actually incurred.
    To facilitate administration by the Member States, provision should
    therefore be made to move to the EAGGF Guarantee Section at the start of
    the calendar year, i.e. 1 January 1993.
In the case of this second expenditure category, standardizing the funding
arrangements for all similar measures (early retirement, environment and
afforestation of agricultural land) should greatly simplify administration
for the Member States.
(1)  OJ No L 218, 6.8.1991, p. 1.
(2)  OJ No L 215, 30.7.1992, p. 85.
(3)  OJ No L 215, 30.7.1992, p. 91.
 (4) OJ No L 215, 30.7.1992, p. 96.
 ---pagebreak---                                          I
                         COUNCIL REGULATION (EEC) No     /93
                                   of          1993
             *   transferring the financing of certain aids provided
              for in Council Regulations (EEC) Nos 1096/88 and 2328/91
          from the EAGGF Guidance Section to the EAGGF Guarantee Section
        and amending Regulation (EEC) No 2328/91 as regards part-financing
               of the system to encourage the set-aside of arable land
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 new schemes financed by the EAGGF Guarantee Section were introduced by
Council Regulations (EEC) Nos 2078/92 of 30 June 1992 on agricultural production
methods compatible with the requirements of the protection of the environment and
the maintenance of the countryside^) and 2080/92 of 30 June 1992 instituting a
Community aid scheme for forestry measures in agriculture(2) to replace the aid
schemes provided for in Titles II, VII and VIII of council Regulation (EEC)
No 2328/91 of 15 July 1991 on improving the efficiency of agricultural
stuctures(3);
(1) OJ No L 215, 30.7.1992, p. 85.
(2) OJ No L 215, 30.7.1992, p. 91.
 (3) OJ No L 218, 6.8.1991, p. 1.
 ---pagebreak---                                         -h-
Whereas new schemes financed by the EAGGF Guarantee Section were introduced by
Council Regulation (EEC) No 2079/92 of 30 June 1992 instituting a Community aid
scheme for early retirement from farming^ 4 ) to replace the aid schemes provided
for in Council Regulation (EEC) No 1096/88 of 25 April 1988 establishing a
Community scheme to encourage the cessation of farming^ 5 ),
Whereas the 1992 harvest   is the last for which new applications may be made to
participate in the set-aside scheme referred to in Article 2 of Council
Regulation (EEC) 2328/91; whereas this scheme is financed equally by the
Guarantee and Guidance Sections of the European Agricultural Guidance and
Guarantee Fund (EAGGF);
Whereas new forms of set-aside have been introduced by Council Regulations (EEC)
No 1765/92 of 30 June 1992 establishing a support system for producers of certain
arable crops^ 6 ^, No 2078/92 and No 2080/92; whereas these new forms of set-aside
are financed by the Guarantee Section of the EAGGF;
Whereas it transpires from the transitional provisions laid down for Article 11
of Regulation (EEC) No 2078/92, Article 11 of Regulation (EEC) No 2079/92 and
Article 8(1) of Regulation (EEC) No 2080/92 that expenditure may continue to
arise under the old schemes provided for in Regulations (EEC) Nos 2328/91 and
1096/88 after 1 January 1993;
Whereas the transfer between the old and new schemes should be facilitated while
preventing the simultaneous existence of two different administrative schemes;
Whereas provision should therefore be made for financing of all expenditure on
such measures effected by the Member States from 1 January 1993 by the EAGGF
Guarantee Sect ion,
(4) OJ No L 215, 30.7.1992, p. 91.
(5) OJ No L 110, 29.4.1988, p. 1.
(6) OJ No L 181, 1.7.1992, p. 12.
 ---pagebreak---                                        -4-
Whereas all expenditure incurred by the Member States from 16 October 1992 on in
respect of the various set-aside measures should be placed under the same heading
in the financial perspective; whereas Regulation (EEC) No 2328/91 should be
amended accordingly,
HAS ADOPTED THIS REGULATION:
                                     Article 1
Expenditure incurred by the Member States from 1 January 1993 on schemes provided
for in Titles II, VII and V I M of Regulation (EEC) No 2328/91 and in Regulation
(EEC) No 1096/88 shall be eligible under the EAGGF Guarantee Section.
                                     Article 2
Council Regulation (EEC) No 2328/91 is hereby amended as follows:
1.  The following sentence is added to the last subparagraph of Article 1(2):
     "However, for expenditure incurred by Member States on this scheme from 16
    October 1992 on, the Community contribution shall be covered in its entirety
    by the EAGGF Guarantee Section on the basis of the rates fixed pursuant to
    Article 31(2)."
2.  The fol lowing sentence is added to the second subparagraph of Article 31(1):
     "However, expenditure incurred by the Member States in respect of these
    measures from 16 Octobre 1992 on shall be eligible only under the Guarantee
    Section of the EAGGF."
                                     Article 3
This Regulation shall enter into force on the third day following its publication
in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in all
Member States.
Done at Brussels,                                 For the Council
                                                  The President
 ---pagebreak---                                 FINANCIAL STATEMENT
                                        for
                             Draft Council Regulation
        transferring the financing from EAGGF Guidance to EAGGF Guarantee
                         of certain aids provided for by
                Council Regulations (EEC) Nos. 1096/88 and 2328/91
1.  Budget heading;   Bl-500 ; accompanying measures
                                (1993 nomenclature)
2.  Legal basis ; Art. 43 of Treaty.
3.  Description; Move to the Guidance Section the financing of action under
    Regulations (EEC) Nos. 1096/88 and 2328/91 (Arts. 3, 21, 25 and 26) up to now
    met from the Guidance Section by virtue of Objectives 1 and 5a.
4.  For classification of expenditure;    compulsory expenditure
                                          non-differentiated appropriations
5.  Nature of expenditure;  Co-financing of eligible national expenditure.
6. Implications for operating appropriations
6.1.   Calculation of total costs
       The above amounts are not new expenditure from the Community budget since
       the proposal is merely to move between headings of the financial
       perspectives expenditure already budgeted for under Community co-financing
       arrangements. They are new amounts for heading 1 of the financial
       perspectives following enlargement of its field of application as
       indicated in COM(92)2001. It should also be pointed out that the change
       will involve a shift in the time at which expenditure is charged to the
       Community budget. On average this will be nine and a half months earlier
       than before.
       The amounts are based on estimates of the commitments made and to be made
       by the Member states up to 31.12.1992 with financial implications at
       national level in 1993 and subsequent years. The Community contribution
       rates are unchanged.
6.2.   The indicative schedule of commitment and payment appropriations falling
       to the EAGGF Guarantee (in m of ecus)
                              R. 2328/91     R. 1096/88      Total
       1993                       29             26           55
       1994                       34             19           53
       1995                       33             15           48
       1996                       25             14           39
       1997                       _T_            12.          II
       Total '93-97'             128             84          212
 ---pagebreak---                                       é
                              FINANCIAL STATEMENT
                                   concerning
        the proposal for a Council Regulation amending Regulation (EEC)
        No 2328/91 as regards part-financing of the system to encourage
                          the set-aside of arable land
1. Budget heading involved
   Bl-400: conventional set-aside scheme
3. Legal basis
   Article 43 of the EEC Treaty
4. Description of operation
   The proposal involves charging all expenditure on the multiannual set-aside
   scheme to the Guarantee Section of the EAGGF alone from 16 October 1992 on,
   whereas before that date the scheme was funded in equal measure by the
   Guarantee and Guidance Sections.
4. Classification of expenditure or revenue
   Compulsory expenditure
5. Type of expenditure or revenue
   Part-financing of eligible national expenditure
7. Financial impact on appropriations for operations
   The proposal will not have any impact on the Community budget. In accordance
   with the new financial perspectives proposed for 1993-99, it involves
   charging to heading 1 that part of the expenditure which was up to now
   charged to heading 2 of the financial perspectives.
   In the draft budget for 1993 a total of ECU 320 million (the entire Community
   contribution) has been entered in item Bl-400 of the EAGGF Guarantee Section
   to finance the measure.
   This expenditure will tail off between now and 1997 as the contracts expire
   and as some farmers possibly withdraw with a view to joining the new scheme
   pursuant to the provisions of Article 14 of Regulation (EEC) No 1765/92.
 ---pagebreak---  ---pagebreak---                                                  ?                   ISSN 0254-1475
                                                              COM (93) 176 final
                                                      DOCUMENTS
EN                                                                              03
                                Catalogue number : CB-CO-93-203-EN-C
                                                             ISBN 92-77-55241-7
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