CELEX: 51987PC0166(01)
Language: en
Date: 1987-06-03
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) ESTABLISHING A COMMUNITY SYSTEM OF AIDS TO AGRICULTURAL INCOME

No C 236/4                               Official Journal of the European Communities                                    2.9.87
                                                                 II
                                                        (Preparatory Acts)
                                                  COMMISSION
               Proposal for a Council Regulation establishing a Community system of aids to agricultural
                                                              income
                                                       COM(87) 166 final
                                 (submitted by the Commission to the Council on 15 april 1987)
                                                         (87/C 236/04)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                            grant them temporary, degressive income aid within a
                                                                    Community framework involving in particular a
                                                                    requirement for prior approval from the Commission of
Having regard to the Treaty establishing the European               income aid programmes drawn up by the Member States,
Economic Community, and in particular Articles 42 and               in accordance with criteria relating mainly to the
43 thereof,                                                         economic situation of the holdings concerned as
                                                                    compared with that of the holdings in the geographical
                                                                    area in question as a whole;
Having regard to the proposal from the Commission,
                                                                    Whereas account should also be taken of the uneven
Having regard to the opinion of the European Par-                   distribution in the Community of holdings of the type
liament,                                                            concerned and of their relative concentration in the
                                                                    Member States where budget funds and consequently the
                                                                    possibilities of transitional aids are much smaller than in
Having regard to the opinion of the Economic and                    other Member States; whereas the cohesion sought by
Social Committee,                                                   the Single Act therefore requires in the latter cases in
                                                                    particular a Community system of aids to agricultural
                                                                    income; whereas the level of Community assistance must
Whereas the medium and long-term prospects for both                 vary according to requirements and available funds in
Community and world agricultural markets and the                    the various regions of the Community;
accumulation of significant stocks in many sectors make
it necessary to adjust certain instruments of the common
agricultural policy in order to restore balance on the              Whereas the purpose of the Community's contribution is
markets; whereas during the period of adaptation to the             to restore balance on the market for agricultural
situation the adjustments are likely to entail income               products while enabling the objective referred to in
difficulties for a section of the farming population whose          Article 39 (1) (b) of the Treaty to be achieved; whereas
holdings are structurally weaker;                                   such Community measures may therefore be ranked as
                                                                    intervention within the meaning of Article 3 of Council
                                                                    Regulation (EEC) No 729/70 of 21 April 1970 on the
Whereas holdings which, though fundamentally sound                  financing of the common agricultural policy ('), as last
and potentially viable, are not in a position in present             amended by Regulation (EEC) No 3769/85 (2),
circumstances to undertake the adjustments needed to
enhance their efficiency, because of structural handicaps
or for lack of the necessary capital, merit special                  HAS ADOPTED THIS REGULATION:
attention at Community level; whereas, with a view to
helping them to overcome their present difficulties, a
Community system of aids to income for farmers and                                             Article 1
members of their families practising farming as their
main occupation on holdings which appear capable,                    1.   A Community system is hereby instituted whereby
despite their present weakness, of carrying on farming at           the Member States may be authorized to grant aids to
a later date under satisfactory economic conditions, after           agricultural income as provided for in this Regulation.
balance has been restored on the Community markets;
Whereas in order to facilitate the transition for the                0) OJ No L 94, 28. 4. 1970, p. 13.
holdings concerned, it appears necessary to be able to               (2) OJ No L 362, 31. 12. 1985, p. 17.
 ---pagebreak--- 2.9.87                                  Official Journal of the European Communities                                No C 236/5
2.     Within the meaning of this Regulation, 'aid to agri-        (e) elements warranting conformity with the objective
cultural income' shall be understood as meaning any                    that aids within the scope of this Regulation may not
public financial contribution to the liquidity position of             stimulate agricultural production;
an agricultural holding granted without any reciprocal
concession or any condition on its use by the recipients,          (f) detailed conditions for granting the aids to agri-
with a view to improving the economic and social                       cultural income within the framework of the PAIA in
situation of the farmer and his family.                                question, in compliance with the conditions laid
                                                                       down in Articles 4 and 5.
                           Article 2
                                                                   2.    The geographical scope of the PAIA shall be
1.     Aid to agricultural income shall fall within the
                                                                   delimited in terms of objective data so that it relates to
scope of the Community system where:
                                                                   an area in which the socio-structural characteristics of
                                                                   the agricultural holdings are broadly homogeneous.
(a) it is covered by a programme drawn up by the
     Member State concerned in accordance with Article
                                                                   To that end the Member States shall take into account
     3;
                                                                   the initial situation and the trends which may be inferred
                                                                   therefrom, and in particular:
(b) the recipients meet the conditions laid down in
     Article 4;
                                                                   (a) the economic and social situation of the area in
                                                                       general, and in particular the prospects for jobs
(c) the amount does not exceed the level determined in                 outside agriculture,
     accordance with Article 5;
                                                                   (b) the importance of farming, the typical types of
(d) the amount is not determined by reference to:
                                                                       produce, and the structures of the agricultural
     — prices,                                                         holdings,
    — quantities of agricultural products, or
     — production factors, with the exception of labour.           (c) the economic data relating to the profitability of
                                                                       agricultural holdings, their financial situation (capital
                                                                       and liabilities) and the average level and distribution
2.     Articles 92 and 94 of the Treaty shall not apply to             of family agricultural incomes.
the aids covered by this Regulation, with the exception
of those referred to in Article 92 (2).
                                                                   3.    PAIAs may limit the grant of aids to income only
                                                                   by way of an exception, in specially warranted cases, to
                           Article 3                               determined production sectors.
1.     The programme of agricultural income aids (herein-
after referred to as 'PAIA') shall include at least the            In that case, the PAIA shall indicate, in addition to the
following details:                                                 data laid down in paragraph 1, within the framework of
                                                                   the information referred to in the second subparagraph
                                                                   of paragraph 2, the specific characteristics of the
(a) the delimitation of the geographical scope of the
                                                                   production sector(s) concerned as compared to the agri-
     PAIA in accordance with paragraph 2, and the
                                                                   cultural holdings located in the PAIA area as a whole.
     reasons for such delimitation;
(b) the objectives and the period within which it is                                          Article 4
     expected to achieve them, indicating the information
     required to establish the average regional income and         1.    Farmers and members of their families working on
     the average national income within the meaning of             the holding may qualify under the Community system
     Articles 4 and 5;                                             only where the following conditions are met:
(c) the situation of the PAIA with regard to any other             (a) The farmer must possess adequate professional skill
     measures to encourage economic development, and                   and competence and must practise farming as his
     employment and incomes in general in the area                     main occupation. The latter condition shall also
     concerned, demonstrating the necessary coordination               apply to members of his family for receiving income
     between those measures and those provided for in                  aid under the system.
     the PAIA;
                                                                   (b) The overall family income from the holding per
(d) the overall annual amount of forecast expenditure                  work unit must be less than 125 °/o of the average
     resulting from the application of the PAIA, justifying            regional income or, at the option of the Member
     that amount by reference to the socio-economic                    State concerned, less than 100 % of the average
     situation of the holdings concerned;                              national income.
 ---pagebreak---    No C 236/6                             Official Journal of the European Communities                                   2.9.87
       'Overall family income' shall be understood as                                          Article 6
       meaning the income of the farmer and the members
       of his family working on the holding, including any            1.    Where a Member State contemplates introducing
       non-agricultural resources. The family agricultural            or amending a PAIA, it shall notify the Commission of
       income to be taken into account shall be established           the draft programme or the proposed amendment. The
       on the basis of objective criteria relating to the             notification must contain the information required to
       holding.                                                       enable it to be ascertained whether the conditions laid
                                                                      down in this Regulation are met.
       The average regional income shall be the average of
       the agricultural incomes from holdings per work               At the request of the Commission, the Member State
       unit, recorded in the area of application of the PAIA         concerned shall provide additional information.
       concerned on the basis, of a multiannual reference
       period to be determined in accordance with the
       procedure laid down in Article 9 for the whole
       period of application of the system.                          2.     The Member State may not implement the planned
                                                                     measures before the Commission has approved the PAIA
                                                                     concerned.
       The average national income shall be the average of
       the agricultural incomes from holdings per work
       unit, recorded within the national territory in               The Commission shall determine in particular whether
       accordance with the same procedure as the average             the planned measures:
       regional income.
                                                                     (a) comply with the provisions of this Regulation, taking
                                                                          into account the objectives thereof; and
  (c) The holding must be in a position to yield, after a
       transitional period not exceeding five years, without         (b) are consistent with the Community's objectives as
       further income aid under this system or that                       regards the readjustment of markets.
       provided for in Regulation (EEC) No . . ./87, at least
       the average regional income or, where appropriate,
       80 % of the average national income.                          3.     Within six months from the date of receipt of a
                                                                     draft PAIA or amendments thereto, the Commission
. (d) During the period referred to under (c) the aids shall         shall decide whether to approve them after consulting
       be granted on a degressive basis to the individual            the Committee provided for in Article 9, on condition
       recipients.                                                   that all the information referred to in the second sub-
                                                                     paragraph of paragraph 1 is provided.
  2.     For the purposes of paragraph 1 (a), Article 2 (5)
  and (6) of Regulation (EEC) No 797/85 shall apply.
                                                                                              Article 7
  3.     Evidence that the condition laid down in paragraph          1.     Aids to agricultural income which are part of a
  1 (c) is met must be provided by a farm readjustment               PAIA approved in accordance with Article 6 (3) and
  plan approved by the competent authorities of the                  which are granted in accordance with the conditions laid
  Member State concerned. Such a plan shall not be                   down in Articles 4 and 5 of this Reglation shall qualify
  required where an improvement plan has been approved               for Community financing, up to the limit of that part of
  under Article 2 (1) (c) of Regulation (EEC) No 797/85              the aid corresponding to a maximum of two work units
  and shows that the condition laid down in paragraph 1              per holding and 2 500 ECU per work unit per year.
  (c) above is met.
                                                                     2.     In order to determine the Community contribution
                            Article 5                                xo the financing of the eligible aids a Community list
                                                                     breaking down Community regions into various cat-
  The level of aid to income per work unit shall be
                                                                     egories shall be drawn up in accordance with the
  determined:
                                                                     procedure laid down in Article 9.
  (a) per farmer and per family member working on the
       holding; and                                                  That list shall be drawn up on the basis of a synthetic
                                                                     indicator taking into account:
  (b) in such a way as to cover at most the difference               (a) as far as three quarters are concerned, the level of
      between:                                                            economic development measured by the indicator of
      — the existing overall family income from the                       Gross Domestic Product per inhabitant; and
           holding, divided by the number of recipients on           (b) as far as one quarter is concerned, the share of agri-
           the holding, and                                               culture in total employment, measured by the
      — 125 % of the average regional income or, where                    percentage of non-agricultural working persons in
           appropriate, the average national income.                      the total employed.
 ---pagebreak--- 2.9.87                                 Official Journal of the European Communities                                No C 236/7
3.    The Community shall finance expenditure resulting           urgency of the matters submitted for examination. The
from the grant of eligible aids to agricultural income            opinion shall be delivered by a majority of 54 votes.
according to the category of the region where the
holding concerned is located, at the following rates:             5.    The Commission shall adopt measures which shall
                                                                  apply immediately. However, if they are not in
— 70 °/o where the regional synthetic indicator is less           accordance with the opinion of the Committee, the
    than 75 % of the Community indicator (category I),            measures shall be immediately notified by the
— 45 % where the regional synthetic indicator is equal            Commission to the Council. In that case the Commission
    to or greater than 75 % but less than 85 % of the             may defer application of the measures it has adopted for
    Community indicator (category II),                            not more than one month from that notification.
— 20 % where the regional synthetic indicator is equal            The Council, acting by a qualified majority on a
    to or greater than 85 % but less than 95 % of the             proposal from the Commission, may take a different
    Community indicator (category III),                           decision within one month.
— 10 % where the regional synthetic indicator is equal            6.    The Committee may examine any other matter
    to or greater than 95 % of the Community indicator            referred to it by its chairman, either on his own initiative
    (category IV).                                                or at the request of the representative of a Member
However, for the purpose of implementing this Article,            State.
Northern Ireland is classified within the same category
as the neighbouring regions of Ireland.                                                     Article 10
                                                                  The measures provided for in this Regulation shall rank
                          Article 8                               as interventions within the meaning of Article 3 of Regu-
Detailed rules for the application of Articles 3 to 7 shall       lation (EEC) No 729/70.
be adopted in accordance with the procedure laid down
in Article 9.                                                                               Article 11
                                                                  1.    By the end of a three years' period after entry into
                          Article 9
                                                                  force of this Regulation, the Commission shall submit a
1.    A Management Committee for Agricultural Income              report on the operation of this system to the Council and
Aids, hereinafter referred to as the 'Committee', shall be        the Parliament on the basis of the information provided
set up comprising representatives from the Member                 by the Member States.
States and chaired by a Commission representative.
                                                                  2.    After examining that report, the Council, acting in
2.    Within the Committee, the votes of the Member               accordance with the procedure laid down in Article 43
States shall be weighted in accordance with Article 148           (2) of the Treaty, may decide, in the light of experience
(2) of the Treaty. The chairman shall not vote.                   and changes in economic conditions, to amend this
                                                                  system where necessary.
3.    Where the procedure laid down in this Article is to
be followed, the chairman shall refer the matter to the                                     Article 12
Committee, either on his own initiative or at the request
of the representative of a Member State.                          This Regulation shall enter into force on          1987.
4.    The Commision representative shall submit a draft           It shall apply until       [5 years after entry into force].
of the measures to be adopted. The Committee shall
deliver its opinion on those measures within a time limit         This Regulation shall be binding in its entirety and
which the chairman may lay down depending on the                  directly applicable in all Member States.