CELEX: 51989PC0059R(01)
Language: en
Date: 1989-02-14
Title: Amended Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 805/68 on the common organization of the market in beef and veal and repealing Regulation (EEC) No 1302/73#Amended Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 468/87 laying down general rules applying to the special premium for beef producers#Amended Proposal for a COUNCIL REGULATION (EEC) amending Council Regulation (EEC) No 1357/80 introducing a system of premiums for maintaining suckler cows and repealing Regulation (EEC) No 1199/82#(presented by the Commission pursuant to Article 149(3) of the EEC Treaty)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (89) 59
Vol. 1989/0020
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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
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Verschlusssachen als herabgestuft angesehen.
 ---pagebreak---        COMMISSION OF THE EUROPEAN COMMUNITIES
                                                            COM(89)59 final /2
                                                            Brussels , 14 February 1989
           ADDEN0UM_AU_D0ÇiÇ0M_(89)_59_f inal
                               FINANCIAL   IMPLICATIONS
   OF THE PROPOSAL OF THE REFORM OF THE BEEF / VEAL MARKET ORGANIZATION
                             FROM 3 APRIL 1989 ONWARDS
                                       Amended Proposal for a
                                      COUNCIL REGULATION ( EEC )
          amending Regulation ( EEC ) No 805 / 68 on the common organization of the
             market in beef and veal and repealing Regulation ( EEC ) No 1302 / 73
                                       Amended Proposal for a
                                      COUNCIL REGULATION ( EEC )
                 amending Regulation ( EEC ) No 468 / 87 laying down . general rules
                       applying to the special premium for beef producers
                                       Amended Proposal for a
                                      COUNCIL REGULATION ( EEC )
                    amending Council Regulation ( EEC ) No 1357 / 80 introducing
                      a system of premiums for maintaining suckler cows and
        « UTé. T *^
           in
                                          Régulation ( EEC ) No 1199 /82
                               repealing Regulation
                                   -
El                      là
  \A              (^"(presented by the Commission pursuant to Article 149(3
                  (presented
                      ^                      of the
                                             of the EEC
                                                    EEC Treaty
                                                         Treaty ))
                                                                             149(3))
 ---pagebreak---                                FINANCIAL IMPLICATIONS
       OF THE PROPOSAL OF THE REFORM OF THE BEEF / VEAL MARKET ORGANIZATION
                             FROM 3 APRIL 1989 ONWARDS
INTRODUCTION
The 1989 budget for beef and veal lays down the requirements for
appropriations In this sector at 2 589 million ecu .
This budget takes account of the Introduction of the reform proposed by the
Commission on 1 January 1989 .
To reflect the real situation more accurately , the financial Impact of the
proposal on the 1989 financial year was calculated in relation to the most
recent short-term revision of appropriations in this sector (2 582 million
ecu ) .
This short-term revision takes account of the Introduction of the
Commission 's original proposals on the reform of the MO on 6 March 1989 .
The calculation for a twelve-month period gives the budget Impact of the
proposal In relation to the regulations In force before 3 April 1989 .
It is assumed that buylng-in will be reduced by 80 000 tonnes ( from 300 000
tonnes to 220 000 tonnes ).
MEASURES CONTEMPLATED
 I.      Public Interventlon
         (a)   A celling on quantities bought in set at 220 000 tonnes .
         (b)   Activation of buying-ln for a quality eligible In a Member
               State where :
                   the Community market price is below 88% of the Intervention
                   price ,
                   the market price In the Member State Is below 84% of the
                   Intervent Ion price .
         (c)   Buying- In prices to be fixed by Invitation to tender .
 ---pagebreak---                                    2
(d)    Where the maximum of 220 000 tonnes is reached . Invitations to
       tender may be re-opened If one of the following two cases
       ar ises :
       -    the conditions In ( b ) being fulfilled , exceptional
            circumstances are recorded ;
            for two consecutive weeks :
                 the average Community market price is less than 84% of
                 the Intervention price ;
                 the average market price for adult bovine animals Is
                 80% of the intervention price .
(e)    Intervention Is also to be opened If , during a period of two
       consecutive weeks , one of the two following cases arises :
            In at least three Member States or regions of a Member
            State with at least 55% of the Community production of
            steers or young bulls , the market price for adult bovine
            animals is less than 80% of the Intervention price ;
       -    the Community market price for adult bovine animals Is less
            than 78% of the Intervention price for a given category .
  For such purchases , all tenders equal to or less than 80% of the
   Intervention price will be accepted . The quantities purchased
  under these conditions will not be set against the maximum of
  220 000 tonnes .
Prem lums
(a)    The calf premium not to be renewed .
(b)    The variable slaughter premium not to be renewed .
(c)    The suckler cow premium to be Increased from 25 to 40 ecu / head .
(d)    Suckler cow premiums of all producers who rear suckler cows to
       be Included In the arrangements .
(e)    20 ecu / head of the supplementary premium In Ireland , Northern
       Ireland and Greece to be claimable .
(f)    Increase from 25 to 40 ecu/ head in the special premium for male
       animals ;
       Increase in the maximum number of animals per farm from 50 to
       90 ;
       Extension of the special premium arrangements to Italy and the
       United Kingdom .
 ---pagebreak---                                         - 3 -
FINANCIAL IMPLICATIONS
  I.   Intervention
      ( a ) Ceiling on quantities bought in set at 220 000 tonnes and
     &(b ) adjustment of the Intervention activation threshold .
      This will reduce quantities bought In by 80 000 tonnes with the
      fol lowing results :
                                                        (m ecu )
      1
      1
                                1
                                     Impact over     |    Impact in         I
      1
      1
                                1
                                      12 months      |    1989 ( 2 )        !
      1                                                                     1
      1                                                                     1
      1  Technical costs        1        -    13     ¡      p.m .           !
      !  Financial costs        1        -     1     !      p.m .           1
      i  Loss on sale           1        + 1 2Í 1 )  1      p.m .           1
                                                                            1
      1  Depreciation at        1                    J                      1
      !         purchase        1        - 162       Î      p.m .           !
      1                                                                     1
      1       -  . ..  ..                                                   1
      ! TOTAL                   1
                                         - 164       I      p.m .           !
      Buying- In prices to be fixed by Invitation to tender .
      On the assumption that the new procedure will reduce the buylng-in
      price by 10% of the present amount , the financial impact will be :
                                                        (m ecu )
                                j   Impact over      ¡    Impact In         1
                                j     12 months      ί    1989(2 )          ¡
                                                                       . .  1
      I  Technical costs        J           “        j      p.m .           !
      I  Financial costs        J          p.m .     I      p.m .           i
      I  Loss on sale           1
                                         - 22        I      p.m .           1
                                1                    1                      1
      S  Depreciation at                                                    1
      !         purchase        j        -    48     1      p.m .           Î
                                                                            1
                                                                            1
      ¡ TOTAL                   1        -    70     1      p.m .           !
( 1 ) Depreciation effected at the moment of Intervention buylng-in reduces
      the average price for the complete stock . A reduction in the
      quantities bought In entails a lower reduction in the average price of
      the stock and hence an Increase In the unit loss on disposal .
( 2 ) The reduction in expenditure over a 1989 budget with buylng-in set at
      300 000 tonnes which would be reduced to 250 000 tonnes with the
      proposed measure , would be approximately :
            101 m ecu for the celllng on buylng-ln ;
             34 m ecu for the effect of buying-in by invitation to tender .
 ---pagebreak---                                     4
 (d)     In the current market situation , the budgetary Impact of these
&(e )    exceptional conditions may be considered negligible .   It Is
         assumed that buylng-ln will not exceed 220 000 tonnes over a
         twelve-month period .
 Prem I ums
 (a)     The calf premium not to be renewed
         Implications over 12 months :
         4.67 m head x 9 ecu / head x 1.059 ( DR ) -        -  45 m ecu
         Implications for 1989 :
         Since the assumption for 1989 is that the calf premium will not
         be renewed after 6 March 1989 , the financial Implications on
         that financial year represent the extension of the premium
         until 3 April 1989                               +    4m ecu
 (b)     Variable slaughter premium not to be renewed
          Implications over 12 months :
         3,0 m head x 65 ecu / head x 40% x 1.094 -            -  85 m ecu
         Reduced revenue from clawback                    +    4m ecu
                                                 TOTAL    -   81 m ecu
          Implications for 1989 :
         Since the assumption for 1989 is that the variable premium will
         not be renewed after 6 March 1989 , the financial Implications
         for that year represent the extension of this premium to
         3 April 1989 .
                                                          +    6m ecu
 (c)      Increase In the suckler cow premium and Inclusion of all
&(d )    producers who rear suckler cows
         Implications over 12 months :
         Increase in the premium
         6.5 m head x 15 ecu / head x 1.086 ( DR ) -      + 106 m ecu
         Extension to part-time producers
         0.2 m head x 40 ecu/ head x 1.086 ( DR ) -       +    9 m ecu
                                                          + 115 m ecu
         Implications for 1989 :
         Increase In the premium :
         One month 's delay over short-term revision
         6.5 m head x 15 ecu / head x 1.086 x 1 / 12 -    -    9m ecu
         Extension to part-time producers
         0.2 m head x 40 ecu / head x 1.086 x 5 / 12 -    +    4 m ecu
                                                               5 m ecu
 ---pagebreak--- (e)   Charging to the EAGGF of 20 ecu/ head of the national
      supplementary premium for suckler cows In Ireland , Northern
      Ireland and Greece
      Impact over 12 months :                                 -   m ecu
      Implications for 1989 :
      0.68 m head x 10 ecu x 1.065 x 6 / 12 -              +    4 m ecu
(f)   Changes in the special premium scheme for male bovine animals
      Implications over 12 months :
          Increase In the premium from 25 to 40 ecu/ head
          for those countries which now operate this
          premium ^ 1 ) and from 18 to 40 ecu/ head in Ireland
          4.25 m head x 15 ecu/ head x 1,103 ( DR ) -      +  70 m ecu
          0,65 m head x 22 ecu/ head x 1,098 ( DR ) -      +  16 m ecu
                                                           +  86 m ecu
           Inclusion of farms with 50 to 90 animals
          1.45 m head x 40 ecu / head x 1.103 ( DR )       +  64 m ecu
          Extension of the scheme to Italy and
          the United Kingdom
          2.65 m head x 40 ecu/ head x 1.084 ( DR ) -      + 115 m ecu
                             Total over 12 months :        + 265 m ecu
      Implications for 1989 :
          One month 's delay In Introduction of the scheme
          4.25 m head x 15 ecu / head x 1 . 103 x 1 / 12 -      6 m ecu
          0.65 m head x 22 ecu/ head x 1 . 098 X 1 / 12 -       1m ecu
          3.60 m head x 40 ecu / head x 1.103 X 1 / 12 -   -  13 m ecu
          Extension of the scheme up to a limit of 90
          male bovine animals
          0.50 m head x 40 ecu / head x 1.103 x 4 / 12 -   +    7m ecu
                                                              13 m ecu
All the Member States except the United Kingdom , Italy and Ireland .
 ---pagebreak---                                          - 6 -
The table below summarizes the financial       implications for the measures
proposed for a twelve-month period and for 1989 .
                     Financial  Implications of the reform of the
             beef / veal market organization from 3 April 1989 onwards
                                                                        (m ecu )
I Financial    Implications of the reform of the             1 2-month   1989 ( 1 > !
i beef / veal market organization                              per iod              j
                                                                                    1
I  I.     INTERVENTION                                                              1
                                                                                    1
                                                                                    1
¡ (a)    220 000 tonnes ceiling on buylng-ln               )             )          !
                                                           ) - 164       ) p.m .    1
¡ (b)    Changed buying-ln activation threshold            )             )          !
                                                                                    1
                                                                                    I
Î (c)    Buying-In price fixed by Invitation to                                     1
!        tender                                                -   70        p.m .  !
                                                                                     1
                                                                                     1
¡ (d)    Exceptional circumstances                             p.m .         p.m .   !
                                                                                     1
! &(e )                                                                              1
                                                                                     1
                                                                                     1
!        TOTAL INTERVENTION                                    - 234         p.m .   !
                                                                                     1
¡  II .  PREMIUMS                                                                    1
                                                                                     1
¡ (a)    Calf premium not renewed                                -   45  + 4(2 )     ;
                                                                                     1
! (b)    Variable slaughter premium not renewed                  -   81  + 6(2 )     ¡
                                                                                     1
                                                                                     1
! (c)     Increase In suckler cow premium                        + 106   - 9         !
                                                                                     1
!  (d)   Part-time extension                                     +    9  + 4         1
                                                                                     1
! (e)    Charging to the EAGGF of national
!        supplementary premiums In Ireland ,
!        Northern Ireland and Greece at 20 ecu/ head               .       +   4     ¡
                                                                                     1
! (f)    Changes In the special premium scheme for
!        male bovine animals                                   + 265       - 13      !
                                                                                     1
                                                                                     1
                                                                                     1
                                                                                     1
!        TOTAL PREMIUMS                                        + 254       -   4     !
                                                                                     1
!        TOTAL IMPLICATIONS                                    +   20      -   4     !
(1 )    The 1989 short-term revision takes account of the introduction of the
        Commission proposal on 6 March 1989 .
        The Implications indicated represent the Introduction of the
        decisions on 3 April 1989 .
(2)     The short-term revision takes account of non-renewal of this premium
        from 6 March 1989 .