CELEX: 51993PC0079
Language: en
Date: 1993-03-09
Title: Proposal for a COUNCIL REGULATION (EEC) on measures adjusting certain sectors of the Portuguese food industry

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                               C0M(93) 79 final
   S', J int.*  |
                                                                B r u s s e l s , 9 March 1993
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                                                Proposal for a
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                    on measures adjusting certain sectors of the Portuguese food industry
                                        (presented by the Commission)
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 ---pagebreak---                                                                            £
                              EXPLANATORY MEMORANDUM
In the opinion of both the Commission and the Council, the integration of the new
Member States into the single market Is a major politicial objective.
As a result of the proposals submitted to this end by the Commission
(COM (92) 275 final), to all intents and purposes Spanish integration was
completed on 1 January 1993.
By contrast, the considerable challenge posed by the abolition of accession
mechanisms to Portuguese agriculture has meant that it has not been possible to
integrate Portugal by the same date. It has become apparent that Portuguese
integration will not be possible unless more account is taken of the interests of
certain farming sectors In that country.
This proposal takes account of the interests of the Portuguese food industry,
whose structures are In many cases weak. When the accession mechanisms are
abolished, this industry will be exposed to increased competition from the other
Member States and will therefore have to make considerable efforts to modernize.
This proposal encourages this effort by granting, over a period of three years
and up to a maximum global amount of ECU 60 million, EAGGF aid under conditions
to be laid down primarily by the Portuguese authorities.
 ---pagebreak---                                                                             3
                         COUNCIL REGULATION (EEC) No
                                        of
      on measures adjusting certain sectors of the Portuguese food industry
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 Act of Accession of Spain and Portugal,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Whereas completion of the single market presupposes the elimination of obstacles
to trade, not only between the Member States of the Community in its composition
at 31 December 1985 but also, as far as possible, between these Member States and
the new Member States;
Whereas, in this context, the majority of transitional mechanisms for Portuguese
accession have been demobilized before the time limit provided for in the Act of
Accession; whereas for certain sectors of Portuguese industry, whose structures
are still weak, this demobilization represents a considerable challenge in view
of the increased competition from the other Member States and third countries;
whereas, therefore, the adjustment of these sectors should be encouraged with a
view to making it possible to modernize them; whereas, to this end, it is
appropriate to grant businesses in these sectors an aid in terms of capacities
established on the basis of the amount produced during a historic reference
period, the amount of which is to be determined by the Portuguese authorities, to
be gradually reduced over three years,
 ---pagebreak--- HAS ADOPTED THIS REGULATION:                                                '
                                     Art icle 1
1.  Structural adjustment aid intended to accelerate its modernization is hereby
    instituted to the benefit of businesses in the Portuguese food industry
    sectors affected by the premature demobilization of transitional measures for
    accession meeting the criteria laid down by the Portuguese authorities
    pursuant to paragraph 3.
2.  The aid provided for in paragraph 1 shall be granted to businesses in the
    sectors concerned:
    -  gradually decreasing over three years; and
        in terms of capacities established on the basis of the amount produced
       during a historic reference period.
3.  The Portuguese authorities shall determine:
    -   the sectors meeting the requirements provided for in paragraph 1,
    -   the criteria to be met by the beneficiary businesses.  These shall be
       established on an objective basis.
    -   the amount of aid.  This amount shall be determined on the basis of
       objective criteria, in particular the degree of difficulty created for
       each sector by the premature abolition of transitional accession
       mechanisms;
    -   the reference period provided for in paragraph 2, which in no case may go
       beyond 31 December 1992.
 ---pagebreak--- 4.   The aid provided for in this Article shall be limited to ECU 60 million.  It
     shall constitute an intervention measure within the meaning of Article 1(2)
     of Council Regulation (EEC) No 729/70.
                                     Article 2
The Portuguese author ities shall inform the Commission of the factors determined
pursuant to Article 1(3) as soon as they are adopted and on 1 June 1993 at the
latest.
                                     Article 3
This   Regulation shall enter into force on the seventh day following its
publication of 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
 ---pagebreak---                                                                                                                             €
           FINANCIAL                      STATEMENT
  1. BUDGET HEADING: 390 Other aid                                                   AFFflÛPftlATIONS: PDS££ ECU 24 ml 11 Ion
  2. TiTLE:
Î council Regulation on measures adapting certain sectors of the Portuguese food Industry
  3. LEGAL BASIS:
  Article 43 of the Treaty and the Act of Accession of Spain and Portugal
  4. AIMS OF PROJECT:
  To grant t o certain sectors of Portugjes© indjcstry a cfegresslv® structura! adaptation aid n&iklng i t possible
  for than to faca the increased competition resulting frcm the cat^Ietîm of the singt© madsèt.
                                         Period of 12 months           Current Financial Year       Following Financial Year
  5.       FINANCIAL IMPLICATION                                                                             1994
  5.0 EXPEhDITURE
          - CHARGED TO THE EC BUDGET
          - (REFUNDS/INTERVENTION)        ECU 36 ml 11 Ion              ECU 2 4 ml 11 ion             ECU 28 ml 11 Ion
          - NATIONAL ADMINISTRATION
          -OTHER
  5.1 REVEHJE
          - OWN RESOURCES OF THE EC
          -NATIONAL
                                              1995                         1996                  1997                  199B
  5 . 0 . 1 ESTIMATED EXPENDITURE         ECU 16 mi 11 Ion           i ECU 4 mi 11 ion
                                                                   i
  5 . 1 . 1 ESTIMATED REVEMJE
  5.2 ICTHDD OF CALCULATION:
  Anrsunt granted : BU 60 mil Hon CÂ) x 1.205 (tt?) - ECU 72 mi I lien CB3
  Planned period of appl leal ion: March 1963 - February 1998
  Assunsd aid amonts per year: March 1993 - February 1994 « ECU 38 ml 11 Ion
                                     March 1994 - February 1 ^ • ECU 24 mi 11 Ion.
                                     fcferen 1S95 - February 1995 « ECU 12raîf l ion
  Conséquences per budget year: 1993: ECU 3$ mi I lion x 8 / 1 2 -                             ECU 24 mi I lion
                                    1994: ECU 36 mi 11 ion x 4/12 » ECU 12 mi 11 ion) ECU 28 mil I Ion
                                           ECU 24 ml 11 ion x 8/12 - ECU 16 mi 11 ion)
                                    1995: ECU 24 mi I lion x 4/12 «ECU 8 mi 11 Ion) ECU 16 mi I lion
                                               1 2 m i i l l c n x 8/12 -ECU 8 mi I lien)
                                    1996: ECU 12 ml 11 Ion X 4/12 «                             ECU 4 ml 11 Ion
  6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
                                                                                                                          YESXXX
 6 . 1 CAN TFE PROJECT BE FINANCED BY TRANSFER BEDffiEN CHAPTERS OF T t C CURRENT BUDGET?                                 XXXXXX
 6 . 2 IS A SUPPLEMENTARY BUDGET t€CESSARY?                                                                               XXXXXX
 6 . 3 WILL FUTURE BUDGET APPROPRIAT I ONE BE hGCESSARY?                                                                 YES
 OBSERVATIONS:
 ---pagebreak---                                                                      ISSN 0254-1475
                                                               COM(93) 79 final
                                                      DOCUMENTS
EN                                                                         15 03
                                 Catalogue number : CB-CO-93-100-EN-C
                                                             ISBN 92-77-53359-5
Office for Official Publications of the European Communities
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