CELEX: 51977PC0725
Language: en
Date: 1977-12-22
Title: Proposal for COUNCIL REGULATION (EEC) amending Regulation (EEC) N° 804/68 on the common organization of the market in milk and milk products.#Proposal for COUNCIL REGULATION (EEC) laying down general rules for milk producers' organizations.#Proposal for COUNCIL REGULATION (EEC) relating to the Northern Ireland Milk Marketing Board. (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 725
Vol. 1977/0226
 ---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
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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
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak---    COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          COM(77)725 final.
                                                       Brussels , 22 deoeinber 1977
                                           Proposal for
                                COUNCIL REGULATION ( ESC )         •     ,     - .
 amending Regulation (EEC ) N° 804/68 on the common organization of the market
                                 in milk and milk products .
                                           Proposal for
                             .   COUNCIL REGULATION (EEC )
            laying down general rules for milk producers' organizations .
                                          Proposal for
                                 COUNCIL REGULATION (EEC )
              relating to the Northern Ireland Milk Marketing Board .
                  ^( submitted to the Council "by the Commission)
                      V                   ^                   --           *
                   ■ . v--/ *■;    . - >-   "   ■ .  .   ...     -   • .     ■
CQM(77 ) 725 final .
 ---pagebreak---                             EXPLANATORY NOTE
1 . At the time of the accession negotiations , the United Kingdom Delegation
     raised the question of the compatibility with the Community law of the Milk
     Marketing Boards in that new Member State *  The question was the subject of
     an exchange of official declarations between the United Kingdom and the
     Community, whioh were included in the annex to the Accession Treaty^ \
2 . An in-depth examination of the question has led to the conclusion that in
     certain respects the compatibility with Community law of the national legal
     framework and functions of the Milk Marketing Boards could be contested.
     United Kingdom legislation confers on these organizations certain rights which
    are , particularly as far as the exclusive right to purchase in a determined
     region and the equalization of prices are oonoerned , alien to the common
     organization of the market in                             ■ "        (o )
     milk and milk products as established by Regulation (EEC ) No 804/68      . The
     regularization of this situation has now become increasingly necessary
     particularly in view of the expiry of the transition period and the termination
     of the system of guaranteed producer prices whioh was olosely linked with the
     present operation of the Boards *
3 * However , the activities of the Milk Marketing Boards have up to now helped
     to channel the predominant quantity of milk produced in the United Kingdom
     for direot human consumption in the form of liquid milk.    This ooincides
     with Community policy in the milk and milk products sector , which now aims
     to reduce the high public costs arising from an unlimited application of the
     intervention system , in particular for butter and skimmed milk powder , while
     at the same time maintaining a fair standard of living for the farming; pop­
     ulation .
4* In the circumstances , a solution should be sought which will reconcile the
     following interests of Community :
     - ensuring observance of the general principles of the Treaty , in particular
         the free movement of goods and the correct functioning of the oommon organi­
         zation of the market in milk and milk produots ;
     - continuing to safeguard oertain positive results achieved by the organisations
        in question*
     Accordingly , the common organization of the market should be supplemented by
     the inclusion of provisions whioh would make it possible to confer oertain
     rights on organizations of milk produoers at Community level , so that they
     miJtV3ur8ue     desirable objective of maximization of the direot consumption of
( 1 ) OJ No L 73 , 27.3.1972 , pp 198 to 200
( 2 ) OJ No L 148 , 28.6.1967 , p. 13
 ---pagebreak---                                    - 2 -
% The Commission therefore proposes that the Council adopt the following
  three régulations ;
   (a) Re gulation amending Regulation (SSC ) No tiQ4 / 6ti on the common denization
        of the market in milk and milk products
        This instrument provides for inclusion in the basio regulation of a
        provision whereby producers' organizations could be granted :
        - the exclusive right , within certain limits , to purohase milk produoed
          in the area oonoerned ,
        - the right to equalize     the prices paid to producers .
        Conferment of these rights         is subjeot to th8 following conditions ?
        - that a predominant quantity of the milk produoed in the area concerned
          is used for direct human consumption,
        - that in number at least 80$ of the producers established in the area
           concerned are voluntary members of the organization,
  (b) Regulation relating to the Northern Ireland Milk Marketing Board
        This instrument takes account of the speoial economio and political sit-r
        uation of Northern Ireland and confers the above-mentioned rights on the
        Milk Marketing Board of that region provided that the conditions laid
        down ar® met , except for the oondition that a predominant quantity of the
        milk produoed must be used for direot human consumption.
  ( o ) Regulation laying down general rules for milk producers' organizations
        This instrument oontains :
        - details regarding the conditions laid down by the new provision in the
          basio regulation ;               ,
        - provisions on the prooedure whereby the rights            in question may be
           granted ;
        - detailed rules to guarantee that the exercise of these rights does not run
          counter to the general principles of the Treaty, does not effect the
          rules of competition mors than necessary and does not jeopardize the
                  correot functioning of the existing mechanisms of the common
          organization of the market ,,
 ---pagebreak---                                 - 3 -
6 , In proposing these instruments , the Commission wishes to stress that their
    adoption would not         automatically regularize the present situation
    in the United Kingdom or the maintenance of all the Milk Marketing Boards'
    aotivities under present national legislation. Certain rights not
    covered by the proposed instruments and hitherto enjoyed 'by these organ­
    izations must be given up , in particular where the prooessing of milk
    is concerned .
    The Commission has         given the United Kingdom authorities a detailed
    list of the conditions which they and the organizations concerned must
    satisfy if the authorisation covered "by the provisions to be included
    in the basic regulation is to be granted and maintained in the future .
 ---pagebreak---                                       Proposal for
                      COUNCIL REGULATION (EEC )
  amending Regulation (EEC ) NO 804/68 on the common organization of the market
                            in milk and milk products
  THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
  Having regard to the Treaty establishing the European Eo'onomic Community, and
  in particular Articles 42 and 43 thereof,
  Having regard to the proposal from the Commission,
  Having regard to the Opinion of the European Parliament'1'
  Having regard to the Opinion of the Eoonomio and Social Committee v ' ,
  Whereas the aim of the common agricultural policy is to attain the objectives set
  out in Article 3 ^ of the Treaty} whereas , to that end, Council Regulation (EEC )
  No 804/68 of 27 June ly68^, as last amended by Regulation (EEC) NO
  established a common organization of the market in milk and milk products } whereas
  to stabilize the markets and to ensure a fair standard of living for the agri-
  cultural community oonoerned, the common organization provides for intervention
  measure s on the market ; whereas , by reason of the high cost to the Community of
  the said intervention system, it appears advisable to turn to other meohanisms
  for attaining the same objectives and to have less recourse to intervention measures }
  Whereas in this connection the "Milk Marketing Boards " existing in the United Kingdom
  should in particular be taken into consideration ; whereas certain of their activities
  have helped to channel the predominant quantity of milk produced in this Member
  State into direct human consumption } whereas the milk marketing boards have certain
  prerogatives to ensure that they operate effectively;     whereas they have in
  principle the exolusive                            1
  right to purchase milk from producers established in their area ; whereas it appears
  appropriate to reoogni ze                such organizations under the common orgad. zat ion
I SpTojNoC
  * ' OJ No 0
                                                    OJ No L 148, 28.6.1968, p. 13
                                                    OJ No L
                                                                                  /
                                                                              • ••/ •••
 ---pagebreak---  of the market subject to ensuring that their prerogatives are compatible with
Comnrunity law, while at the same time observing the general principles of the
Treaty} whereas , to thai end, the conferment or maintenance of the said prerc~
gatives should be conditional upon aa examination of eaoh individual case at
Community level and upon authorization being granted to the Member State concerned }
HAS ADOPTED THIS REGULATIONS
                                    Article 1
Article 25 of Regulation (EEC ) NO 804/ 68 is amended as follows !
"Article 25
1 * Member States may be authorized to confer on milk producer organisations operat­
     ing in a region in which for three years preceding the date on whioh the
     application is submitted a predominant quantity, to be determined , of the milk
     produood in the region, haa been used for direct human consumption in tho form
     of whole drinking milk or other fresh produots *
     ( a) the exolusive rights , within the limits laid down pureitant to paragraph
          3 , to purchase from the producers established in the region oonoarned all
          the milk produced by them. The said right shall oarry with it the obligation
          on the part of the organizations in question to purohase the milk offered
          to them by th9 producers conoerned ;
     (b) the right to equalize      the prices paid to producers , irrespective of the
          destination of the milk supplied by each of them.
2 . The conferment of the rights provided for in paragraph 1 and the maintenance of sue
    rights is oondition&l upon the voluntary membership of the organization
    including not less than Bofo of all milk producers in the region conoerned.
3 . General rules for the application of this Article shall be adopted by the
    Council acting by a qualified majority on a proposal from the Commission.
 ---pagebreak---                                         - 3 -
    They shall inolude th® following *
    ( a) provisions guaranteeing that the exercise of the rights provided for
          by paragraph 1 ?
          – does not contravene the general principles of the Treaty and in particular
            the free movement of goods and non-disoriminaiion "between producers
            selling their milk to the organization and between purchasers of milk
            from the organization,
          – does not affect the rules governing competition in agriculture more than
            is strictly necessary and
          – does not adversely affect the working of the oommon organization of the
            market in milk and milk products , in particular as regards the price
            and intervention system ;
    (b) the procedure for obtaining the authorization referred to in paragraph 1 ,
          and the oircumstances in which such authorization oan be withdrawn;
    ( o ) as regards organizations existing when this Article enters into force ,
          provisions for their progressive adaptation to these provisions , within
          a maximum period to be determined ; suoh measures may not , however , affect
          the principles referred to in the first indent of ( a).
4 * Detailed miles for the application of this Artiole , and in particular the
    authorization referred to in paragraph 1 , shall be adopted in accordance with
    the procedure laid down in Article 30 o "
                                                                                 »
                                      Article 2
    This Regulation shall enter into force on the third day following its . .
    publioation in the Offioal Journal of the European Communities *
    Done at Brussels ,                             For the Council
 ---pagebreak---                                    Proposal for
                   COUNCIL REGULATION (EEC )
      laying down general rules for milk producers' organizations
THE3 COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economio Community,
Having regard to the proposal from the Commission,                               '
Having regard to Council Regulation (EEC ) NO 804/68 of 27 June 1^68 on the
common organization of the market in milk and milk products ^"^, as last amended
by Regulation (EEC ) No                and in particular Artiole 25(3 ) thereof,
Whereas pursuant to Article 2 5(1) of Regulation (ESC ) No 804/68 Member States
may be authorized to oonfer on producers * organizations the exclusive right to
purchase milk produced in the region concerned and the right to equalize            the
prices paid to producers } whereas it is necessary to lay down general rules
on the subject }
Whereas the conditions whioh a producers' organization must fulfil in order to obtain
this right , in particular as to the delimitation. of the area inwhich it operates, the
predominant quantity of milk produced in the area and used for direct human
consumption and the proportion of producers       it represents are referred to in
Article 25(2 ) of Regulation (EEC ) NO 804/685
Whereas with respect to the exercise of the rights granted to such an organization,
detailed rules should be adopted at a Community level in the light of the
criteria referred to in paragraph 3(a) of the abovementioned Artiole } whereas
the circumstanoes in whioh produoer members of an organization may withhold
milk from sale to the organization in question should be specified ; whereas
     OJ No L 148, 28.6.1968, p. 13
     OJ No L                                                                •••/•••
 ---pagebreak---  •quality of access and treatment cf all willing purchasers of milk from tha
organization should "be ensured } whereas specifio rules should "be laid down
for producers who sell their milk directly to the final consumer }
Whereas provision should be made for the adoption of transitional measures to
enable organizations established before this Regulation comes into effect to
adapt to the Community provisions that will henoeforth be applicable }
Whereas the provisions of this Regulation also apply to the Milk Marketing Board
of Northern Ireland to which the derogation provided for in Council Regulation
 (EEC) No         /7tf of             191^ applies;
Whereas any authorization to confer the rights in question must be granted subjeot
to the possibility of subsequent adjustment to take account in particular of changes in
Community legislation,
HAS ADOPTED THIS REGULATION :
                                  Article 1
1 * For the purpose of Article 25 of Regulation (EEC ) NO 804/68 and this Reg­
    ulation the following definitions shall apply:
    (a) areat
          part of the national territory in which a minimum quantity of milk, to
          be determined, is produoed and which, on account of its geographical
          and economic situation, can be regarded as a unit , account being taken
          of administrative boundaries and the historical structures of the milk
          industry}
    (b) producer ;
          a farmer , either a natural or legal person, engaged in this production of
          cows * milk }
    ( ° ) produoer retailer 1
          an individual producer whose herd does not exceed 150 milking cows and who
          sells the milk of his cows kept on his holding directly to the final con­
          sumer in the form of milk or other milk products } the producer retailer
          may however 8
 ---pagebreak---       » sell up to 25% of his annual production for uses oth«r than for dir«ct
          consumption dtxring periods of surplus ,
      – sell the consumers in periods of shortage a quantity of milk purchased
          from other producers not exceeding 25% of his own annual production#
 The predominant quantity referred to in Article 25(1 ) of Regulation (EEC)
 No 804/68 shall be equal to at least 55$.
 For the purposes of Article 2(5 ) of this Regulation this percentage must remain
 above ^Ofo»
 In order to establish the degree of representativity mentioned in Artiole
 25(2 ) of Regulation (EEC ) Mo 804/68 ?
  a) Producers who have not expressed an opinion after being individually
      invided to do so shall not be taken into account ,
  b) Producers retailers are to be taken into acoount at the time of the
      consultation held as a preliminary to the grant of the rights referred
      to in Artiole 25(l) of Regulation (ESC ) No ©04/68.
   o) At the time of subsequent consultations and for the application of
       Artiole 2(5) Produoer Retailers who have sent the statement referred
       to in Artiole 4(2 ) a to the organization shall not be taken into account .
                                  Article 2
. If a producers' organizat ion wishes to take advantage of the rights referred to in
   Article 25(1) of Regulation (EEC ) No 804/68, an application shall be made
   to the appropriate authority in the Member State conoerned together with
   the following supporting documents :
   (a) its statutes }
   (b) the precise delimitation of the area in which it operates ;
   (o) except in the case of the derogation provided for in Regulation (SEC ) No /78t
         the statistics required to establish that the predominant quantity of milk
        produced in the area has for the three years preceding the date of the
         application been used in aooordance with Artiole 25(l ) of Regulation (EEC )
        No 804/68;
   (d) documents showing what proportion of producers the organization represents,
         in accordance with Artiole 25(2 ) of Regulation (EEC ) No 804/6Q;
   (e) annual balance sheets for the last three years, or in the oase of more
        recently established organization, all the balanoe sheets produoed sinoe
        its creation.
 ---pagebreak---                                      ~ 4 -
2 , The appropriate authority of the Member State conoerned shall verify the data
    referred to in paragraph 1 (b) to ( e ), endorse the application with a
    reasoned recommendation and, if the recommendation is favourable , forward
    the application to the Commission with a request for the authorization
    referred to in Article 25 of Regulation (EEC ) NO &04/6ti„
3 « The authorization shall be granted        subjeot to the possibility of0^86^011
    amendment    to bring it and the conditions to which it is subject into line wi1
    any subsequent change in Community legislation.
    In its communication to the organization in question regarding the
    authorization granted , the Member State concerned shall make mention of
    the reservation referred to in the above paragraph .
4o The Commission may attach special conditions to the authorization granted in order
     a ) guarantee the respect of the principles referred to in Article 25(3 ) a of
         Regulation (EEC ) No 804/68
    b) take account of the specific situation of the organisation concerned
       . and
    c ) leave as far as possible unaffected the present rights of producers in the
         the case of an organization which is already in existence at the time of
         entry into force of this Regulation,
5 » The competent authority of the Member State concerned shall take appropriate
    measures for verifying from time to time that the conditions on which
    authorization was granted are still fulfilled .
    If the authority finds that one or more of the required conditions is no
    longer fulfilled , the Member State concerned shall immediately inform the
    Commission which will examine the reasons for this „     In such a case or if
     the Commission itself becomes aware ot such » situation th® Commission shall
     examine the reasons for this *
    The Commission, taking account of the development of trends in the milk sect
    in the    region and Member State concerned , may either , issue recommendations
    to this Member State in order to facilitate the compliance by the organizati
    with the conditions laid down, or annual , in accordance with the procedure
    referred to in Article 25(4 ) of Regulation 8Q4/68 the authorization notified
    to suoh Member State , after having, should the need arise , fixed a temporary
    extension of time .
                                                                       • • •/ o • e
 ---pagebreak---                                            - 5 -
                                        Article 3
  1 , The statutes referred -to in Article 2^l)(a) must
        (a) include provisions to ensure that at least every 5 years the produoers
             who are members of the organization, or all the produoers in the
             region concerned if the organization has "been granted the rights referred
             to in Artiole 25(1 ) of Regulation (EEC ) No 804/68, are individually con­
             sulted in order to ensure that the organization represents a due proportion
             of producers , in accordance with paragraph 2 of the said Artiole ; .
        (b) oblige the organization, if its statutes allow it to undertake processing
             of milk, to maintain separate accounts and separate management and adminis­
            tration in respeot of these activities in order that the processing undertakings
             of the organization may "be on an equal footing with other , independent processing
             undertakings ,                                                                  i>e
             particularly in respect of availability of supplies , prices paid , credit
             and loan facilities and other financial transfers to suoh undertakings .
2 . The Member State concerned shall adopt appropriate measures to ensure that the
     profit made by the organization is striotly limited to the minimum necessary
     to enable it to carry out the objects mentioned in its statutes I
                                                            j  and that the corresponding
     financial resources are used only for that purpose .
                                                                                        1
3 , The imposition of compulsory financial levies on producers selling their milk
     ■to the organization :
      a) can only take place to the extent neoessary to enable the organization to
          perform the functions mentioned in its statutes,'
      b ) shall be subject to an appropriate authorization which is to be requested
          and aocorded acoording to the same procedure as the grant of rights referred
          to in Artiole 25(l ) of Regulation (EEC ) NO 804/68.
 ---pagebreak---                                      Article 4
The following rules shall apply to the exercise of the rights referred to in
Article 25 ( l ) of Regulation (EEG ) W O 804/68 :
If The organization 's exolusive right and obligation to purchase milk produced
     in the region concerned from the producers shall not cover those quantities
     of milk which the producer withholds from sale to the organization for :
     ( a) marketing , as such or as processed products , in a non-member country or
           in another Member State , or
     (b ) processing into other products , effected outside the region covered "by
           the organization of which the producer is a member , or
     ( o ) prooanoing into butter or okimmed milk powder for sale to the intervontj
           utfonoy , whoro it in found , in aooordanoo with oritoria to bo laid down ,
           that tho prioo paid to the producer by tho organization has , for a peri<
           to be laid down , been below the level of intervention prices in force
           during the same period , taking into account the market situation#
     Producers may form groups and/or make use of intermediaries in order to can
     out the operations referred to in sub–paragraph ( a), (b ) and ( c )«
2 . The exclusive right and the obligation to purohase referred to in paragraph
     1 do not apply
     ( a) to milk produced by producer retailers , as defined in Article l(l)(o ), '
            have stated in writing to the organization that they do not wish to bei
           members ,
 (b ) to milk sold to a producer retailer by other producers , within the limits
       referred to in the second indent of Article l(l)(c )„
 (c)                         milk which the producer excludes from sale to the
       organization with the consent of the latter .
Under conditions to be laid down , the Member State ooncerned shall take the
necessary steps to ensure equal access to milk sold by the organization to al ]
willing purchasers using milk for the same purposeo
 ---pagebreak--- The measures referred to in the first subparagraph Bhall in particular provide
for a system of periodical open tendering, or a system for fixing prices
which provides equivalent guarantees , whereby the transparency and advance
publication of the sale prides in force is ensured .
                                Article 5
If transitional measures prove necessary to assist producer organizations
which already exist at the date of entry into force of this Regulation to
adapt to the system laid down in this Regulation, such measures shall be
adopted in accordance with the procedure laid down in Article 30 of Regulation
 (EEC ) No 804/6
Suoh measures shall not apply for longer than two years from the date of.
 entry into force of this Regulation.
 In the case of a producer organization which already exists at the date of
 entry into force of this Regulation, the authorization granted to the Member
 State concerned may be provisional so that the Member State and the organization
 may adapt , within a period to be laid down, to the provisions of this Regulation
 and/or to speoific conditions to be laid downa         .
                                Article 6
 This Regulation shall enter into foroe on
      This Regulation shall be binding in its entirety and directly applicable
      in all Member States .
Done at Brussels ,                        For the Commission
 ---pagebreak---                                         Proposal for
                      COUNCIL REGULATION (EEC )
              relating to the Northern Ireland Milk Marketing Board
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and
in particular Articles 42 and 43 thereof ,
Having regard to the proposal from the Commission,
Having regard to the Opinion of the European Parliament ^ 1 '
                                                                         2
Having regard to the Opinion of the Economic and Social Committee v         ,
Whereas Artiole 25 of Council Regulation (EEC ) No 804/68 of 27 June 1^68 on the
 common organization of the market in milk and milk products ^^, as last amended
by Regulation (EEC ) No                   provides that the Member States may be
 authorized to confer on produoer organizations the exclusive right to purchase
 milk produced in the region concerned and the right to equalize           the prices paid
 to producers ; whereas such authorization is conditional oh the organization in
 question exercising its activities in a region where , over the preceding three
 years , a predominant quantity of the milk produced has been used for direot human
 consumption }
 Whereas essential features of the United Kingdom milk industry are the organizations
 known as milk marketing boards which , with the exception of the Milk Marketing
 Board in Northern Ireland , would qualify for the abovementioned authorization}
 whereas the latter region is the only region in the United Kingdom where , for
 geographical and demographic reasons , a predominant quantity of the milk produced
 cannot be channelled into direot human consumption :
 ÏÏT    OJ No C
  ( 2 ) OJ No C
  (3 ) OJ No L 148 , 28.6 . 1^68, p. 13
  (4 )  OJ No L                                                                  Λ ..
 ---pagebreak---  Whereas , to prevent disturbances on the Unlued Kingdom milk market and in or&^r
  not to hamper the development of the market in the region concerned given its
  special economic and political situation ,, provision should "be made , "by way of
 derogation from the condition laid down "by Article 25(l ) of Regulation (EEC )
  No 004/6 ti, that the rights provided for therein may "be conferred on the Northern
  Ireland Milk Marketing Board provided that the other conditions laid down xn
 that Article , or adopted pursuant to that Article , are fulfilled ,
 Whereas this derogation should Toe subject to review at a later day, in the light
 of the implementation of Article 25 of Regulation (ESC ) NO W4/6& in Northern
 Ireland and the other regions of the United Kingdom,
 HAS ADOPTED THIS REGULATION ?
                                     Article 1
 By way of derogation from Article 25(1 ) of Regulation (EEC ) NO 804/68 and without
 prejudice to the other provisions of that Artiole , the rights provided for in the
 said paragraph may be conferred on the Northern Ireland Milk Marketing- Board even
 though a predominant quantity of the milk produced in its operating region has not
used for direct human consumption over the specified reference period#
                                    Article 2
 In the event of Article 1 being applied , the Commission shall present to the Counc;
 and to the European Parliament by                      * at the latest a report on thi
application of that provision and , where necessary, shall , acting in aooordanca
with the procedure provided for in Article 43(2 ) of the Treaty, propose to the
Council any necessary amendments to this Regulation,,
                                    Article 3
This Regulation shall enter into force on
        This Regulation shall be binding in its entirety and directly
        applicable in all Member States *
Bone at Brussels ,,                       For the Commission
* Date to be inserted !    five years calculated from the date on which this Regulatii
   enters into force ,,