CELEX: 51978PC0203
Language: en
Date: 1978-05-22
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation No 136/66/EEC on the establishment of a common, organization of the market in oils and fats (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 203
Vol. 1978/0067
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 ---pagebreak---  COMMISSION OF THE EUROPE AN COMMUNITÎE
                                                    COM(78 ) 203 final
                                                    Brussels , 22 May 1978
                                                              \
                                Proposal for a
                        COUN'TC   REGULATION ^ UEO )
      amending Regulation No 136/oS/EEC on the establishment of a common,
      organization of the market in oils and fats
                  ( submitted to the Council by the Commission)
cc:;(78 ) 203 final
 ---pagebreak---                            EXPLANATORY MEMORANDUM
The Court of Justice of the^ European Communities , in its Judgement of 8 November
 1977 ( AIMA versus CRECO , 36 / 77 ), stated that the term 'producer of olive oil'
within the meaning of Article 10 of Regulation No 136 / 66 / EEC must be interpre­
ted as referring to the producers of the processed product as constituted by
olive oil , and that consequently it is these latter who must receive the subsidy .
Now since 1 November 1973 , pursuant to Council Regulation ( EEC ) No 2309 / 73 on
the subsidy for olive oil , the application for a subsidy is submitted by the
olive       proaLcers who have lodged a declaration of cultivation . Consequently , as
from the abovement ioned date , the subsidy has been granted to these producers .
Following the Court Judgement , there is a risk that the subsidy may be claimed
by oil producers who were not also the producers of the olives . Such a claim would
not be justified , since
the oil producers will already have benefitted indirectly from the subsidy since
the purchase price paid by them for the olives takes account of the subsidy
received by the olive producers .
Consequently , to prevent such a situation , Article 10 of Regulation No 136 / 66 / EEC
should be amended retroactively , while providing for transitional measures
which take account of the special situation existing in France .
 ---pagebreak---                                                ProposaL for a
                                    COUNCIL RE6ULATI0N ( EEC ) No       / 78
amending Regulation No       ! i6 / 66 / EEC on the establishment of a co m mon organization of
the market     in oils and fats
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 10 ( 1 ) of Council Regulation No 136 / 66 / EEC of 22 September 1966
                                                                                              (1)
on the establishment of a common organization of the market in oils and fats
                                                          (2)
as last amended by Regulation ( EEC ) No 2560 / 77            , provides that where the production
target price is higher than the market target price ruling at the beginning of the
 marketing year , a subsidy equal to the difference' between these two prices shall be
granted to producers of olive oil extracted within the Community from olives
harvested within the Community;'
 Whereas the Court of Justice of the European Communities , in its
 judgment       of 8 November 1977 CAIMA versus GRECO , 36 / 77 )        ,   held that t.he exoression
 'producers of olive oil' within the meaning of Article 10 of Regulation ( EEC )
No 136 / 66 / EEC is to be interpreted as referring to the producers of the processed
product constituted by the olive oil and that , consequently , it is to these latter
that the subsidy must be granted;
Whereas Council Regulation ( EEC ) No 3209 / 73 of 27 November 1973 on the subsidy for
olive oil ^, as last amended by Regulation ( EEC) No 2363/ 77 ^, provides that , with
 effect from 1 November 1973 , the application for the subsidy is to be presented by
 producers of olives who have submitted a declaration of cultivation ;
Whereas it is pursuant to this Regulation that the subsidy has been granted to olive
producers since 1 November 1973 ; whereas , however , in view of the interpretation given
by the Court in the abovementioned Judgment , it is to be expected that the
 (1)   0J No 172 , 30.9.1966 , p.      3025 / 66
 (2)   0J No L 303 , 28.11.1977 ,      p. 1
 (3)   Not yet published inthe         Court Case Book / 1977 / ECR 2059 .
 (4)   0J No L 327 , 28.11 . 1973>     D. 1
 ( 5 ) '0J No L 277 , 29.10.1977, p. 4
 ---pagebreak---                                     - 2 -
subsidy will be claimed by oil producers who were not also the producers of the
olives ; whereas such applications would not be justified   economi cal ly ,
since the oil producers have already benefited indirectly from the subsidy through
having purchased the olives at a price which takes account of the subsidy received
by the olive producer ;
Whereas it is therefore necessary to amend Article 10 of Regulation No 136 / 66 / EEC
with effect from 1 November 1973 so as to avoid a situation wher.eby oil producers ,
having enjoyed the advantage referred to above , also receive the subsidy directly in
respect of the same production ;
Whereas , however , in France , when the olive is purchased by the miller
and the olive residue by industry , it is to the oil producer that the subsidy has
been paid or promised; whereas the price provided for in contracts assumes that the
subsidy is paid to the oil producer ; whereas provision should consequently be made
for appropriate transitional measures .
HAS ADOPTED THIS REGULATION
 ---pagebreak---                                     - 3 -
                                Article 1
Article 10 C1 ) of Regulation No 136 / 66 / EEC is hereby amended to read as follows
with effect from 1 November 1973 :
' Art i c le 10
"1 . Where the production target price is higher than the market target price ruling
      at the beginning of the marketing year , a subsidy equal , to the difference
      between these two prices shall be granted to producers of olives harvested in
      the Community   in respect of the quantity of oil extracted therefrom ."
                                Article 2
By way of derogation from Article 1 , the subsidy provided for in Article 10 of
Regulation No 136 / 66 / EEC shall be granted to producers of oil in respect of oil
extracted from olives harvested before 1 November 1978 , where this is provided for
by the legislation of the Member State concerned .
This Regulation shall be binding in its entirety and directly appl i cable ' in all
Member States .
Done at                                                     For the Council