CELEX: 52004PC0712
Language: en
Date: 2004-10-26
Title: Proposal for a Council Regulation amending Regulations (EEC) No 2759/75, (EEC) No 2771/75, (EEC) No 2777/75, (EC) No 1254/1999, (EC) No 1255/1999 and (EC) No 2529/2001 as regards exceptional market support measures . (presented by the Commission)

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                Brussels, 26.10.2004
                                                COM(2004) 712 final
                                                2004/0254 (CNS)
                                                .
                                   Proposal for a
                           COUNCIL REGULATION
   amending Regulations (EEC) No 2759/75, (EEC) No 2771/75, (EEC) No 2777/75,
          (EC) No 1254/1999, (EC) No 1255/1999 and (EC) No 2529/2001
                as regards exceptional market support measures
                                         .
                          (presented by the Commission)
EN                                                                            EN
 ---pagebreak---                                  EXPLANATORY MEMORANDUM
   In the case of serious market disturbances due to restrictions imposed by the veterinary
   authorities in the case of outbreaks of animal diseases like Foot and Mouth Disease (FMD) or
   Classical Swine Fever (CSF), exceptional market support measures can be introduced by the
   Commission in order to support the farmers affected by these restrictions. In each of the
   following basic regulations, the legal provisions for such measures are laid down in:
   –         Article 20 of Council Regulation (EEC) No 2759/75 on the common organisation of
             the market in pigmeat,
   –         Article 14 of Council Regulation (EEC) No 2771/75 on the common organisation of
             the market in eggs,
   –         Article 14 of Council Regulation (EEC) No 2777/75 on the common organisation of
             the market in poultrymeat,
   –         Article 39 of Council Regulation (EC) No 1254/1999 on the common organisation of
             the market in beef and veal,
   –         Article 36 of Council Regulation (EC) No 1255/1999 on the common organisation of
             the market in milk and milk products and
   –         Article 22 of Council Regulation (EC) No 2529/2001 on the common organisation of
             the market in sheepmeat and goatmeat.
   These articles provide for support measures which can be adopted; however the articles do not
   specify how they are to be financed.
   In view of the absence of precise rules concerning the financing of those measures, 100% of
   the expenditure for the measures was financed by FEOGA in the late 80’s and early 90’s,
   especially for measures applied in the pigmeat sector which was confronted from time to time
   with outbreaks of CSF.
   In 1994, provisions regarding co-financing of the expenditure for exceptional market support
   measures were introduced for the first time in a Commission regulation opening such
   measures in the pigmeat sector in Germany.
   At this time, the co-financing rate for measures in the pigmeat sector was set at 70% for the
   Community budget and at 30% for the national budget. Later, the same rate was used for
   measures in the beef sector due to BSE and FMD.
   In the Court case C-239/01, several Member States lodged a complaint against the system of
   co-financing for special market support measures in the beef sector. In its ruling in 2003, the
   European Court of Justice stated that a national co-financing of exceptional market support
   measures is not in line with the current wording of the corresponding Council regulation; only
   a 100% financing by the Community budget would be possible.
   It is obvious that this ruling applies to all market organisations for animal products, because
   the articles in the different market organisations are more or less the same.
EN                                                  2                                              EN
 ---pagebreak---    For the European Commission a co-financing system in the framework of exceptional market
   support measures is of utmost importance. Member States are responsible for the application
   of such measures but they are also responsible for measures taken to combat the disease. If
   they share the financial responsibilities for the support measures, they will do their best in the
   veterinary and sanitary field to stamp out the disease as quickly as possible and to minimise
   the costs. An additional argument is the fact that the co-financing system is already used for
   the compensation paid to farmers for veterinary slaughterings of their animals in the case of
   an outbreak of a disease. In its special report No 1/2000 on classical swine fever, the
   European Court of Auditors recommended a strict parallelism regarding the co-financing of
   veterinary measures and market support measures.
   In order to be able to continue co-financing, after the ruling of the Court, it is proposed to
   amend the corresponding articles in the different Council regulations by introducing clear
   legal provisions for such a system. This amendment should concern all market organisations
   referred to above.
EN                                                  3                                                 EN
 ---pagebreak---                                                            2004/0254 (CNS)
                                              Proposal for a
                                         COUNCIL REGULATION
        amending Regulations (EEC) No 2759/75, (EEC) No 2771/75, (EEC) No 2777/75,
                  (EC) No 1254/1999, (EC) No 1255/1999 and (EC) No 2529/2001
                            as regards exceptional market support measures
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular
   Articles 36 and 37 thereof,
   Having regard to the proposal from the Commission,
   Having regard to the opinion of the European Parliament,
   Having regard to the opinion of the European Economic and Social Committee,
   Whereas:
   (1)    Some common market organisations include exceptional market support measures to
          take account of restrictions on free circulation resulting from the application of
          measures to combat the spread of animal diseases. These measures are contained in
            –      Article 20 of Council Regulation (EEC) No 2759/75 of 29 October 1975 on the
                   common organisation of the market in pigmeat1,
            –      Article 14 of Council Regulation (EEC) No 2771/75 of 29 October 1975 on the
                   common organisation of the market in eggs2,
            –      Article 14 of Council Regulation (EEC) No 2777/75 of 29 October 1975 on the
                   common organisation of the market in poultrymeat3,
            –      Article 39 of Council Regulation (EC) No 1254/1999 of 17 May 1999 on the
                   common organisation of the market in beef and veal4,
            –      Article 36 of Council Regulation (EC) No 1255/1999 of 17 May 1999 on the
                   common organisation of the market in milk and milk products5 and
   1
           OJ L 282, 1.11.1975, p. 1. Regulation as last amended by Regulation (EC) No 1365/2000
           (OJ L 156, 29.6.2000, p. 5).
   2
           OJ L 282, 1.11.1975, p. 49. Regulation as last amended by Regulation (EC) No 806/2003
           (OJ L 122, 16.5.2003, p. 1).
   3
           OJ L 282, 1.11.1975, p. 77. Regulation as last amended by Regulation (EC) No 806/2003
           (OJ L 122, 16.5.2003, p. 1).
   4
           OJ L 160, 26.6.1999, p. 21. Regulation as last amended by Regulation (EC) No 1782/2003
           (OJ L 270, 21.10.2003, p. 1).
   5
           OJ L 160, 26.6.1999, p. 48. Regulation as last amended by Regulation (EC) No 186/2003
           (OJ L 29, 3.2.2004, p. 6).
EN                                                 4                                              EN
 ---pagebreak---              –      Article 22 of Council Regulation (EC) No 2529/2001 of 19 December 2001 on
                    the common organisation of the market in sheepmeat and goatmeat6.
   (2)     As a result of outbreaks of disease in the Community there have been some very
           serious crises on the markets in livestock products, meats in particular. In order to
           avoid serious disruption on the markets concerned, the Commission has been forced to
           adopt exceptional support measures for them in the affected Member States, resulting
           in significant expense to the Community budget.
   (3)     The Member States in this regard have prime responsibility for preventing an outbreak
           of disease and its spread. In the light of the situation, the extent of the disease, its
           duration, and accordingly the scale of the market-support efforts required, the cost of
           the aid actually paid to the producers should be shared between the Community and the
           Member State concerned.
   (4)     Adoption of the support measures should be dependent on the adoption by the Member
           States of health and veterinary measures to quickly stamp out any outbreaks of disease.
   (5)     The rules on State aid should not apply to the Member States’ financial contribution
           towards the exceptional market support measures,
   HAS ADOPTED THIS REGULATION:
                                                 Article 1
   Article 20 of Regulation (EEC) No 2759/75 is replaced by the following:
                                                "Article 20
   1.        In order to take account of the restrictions on intra-Community and third-country
             trade which may result from the application of measures for combating the spread of
             diseases in animals, exceptional measures of support for the market affected by those
             restrictions may be taken in accordance with the procedure laid down in Article 24.
             These measures may be taken only if the Member States have taken health and
             veterinary measures to quickly stamp out the disease and only to the extent and for
             the duration strictly necessary to support the market concerned.
   2.        The Community shall provide part-financing for the measures referred to in
             paragraph 1 equivalent to 50% of the expenditure borne by Member States.
   3.        Articles 87, 88 and 89 of the Treaty shall not apply to the Member States’ financial
             contribution towards the measures referred to in paragraph 1."
                                                 Article 2
   Article 14 of Regulation (EEC) No 2771/75 is replaced by the following:
   6
           OJ L 341, 22.12.2001, p. 3. Regulation as last amended by Regulation (EC) No 1782/2003
           (OJ L 270, 21.10.2003, p. 1).
EN                                                  5                                               EN
 ---pagebreak---                                               "Article 14
   1.       In order to take account of the restrictions on free circulation which may result from
            the application of measures for combating the spread of diseases in animals,
            exceptional measures of support for the market affected by those restrictions may be
            taken in accordance with the procedure referred to in Article 17. These measures may
            be taken only if the Member States have taken health and veterinary measures to
            quickly stamp out the disease and only to the extent and for the duration strictly
            necessary to support the market concerned.
   2.       The Community shall provide part-financing for the measures referred to in
            paragraph 1 equivalent to 50% of the expenditure borne by Member States.
   3.       Articles 87, 88 and 89 of the Treaty shall not apply to the Member States’ financial
            contribution towards the measures referred to in paragraph 1."
                                               Article 3
   Article 14 of Regulation (EEC) No 2777/75 is replaced by the following:
                                              "Article 14
   1.       In order to take account of the restrictions on free circulation which may result from
            the application of measures for combating the spread of diseases in animals,
            exceptional measures of support for the market affected by those restrictions may be
            taken in accordance with the procedure referred to in Article 17. These measures may
            be taken only if the Member States have taken health and veterinary measures to
            quickly stamp out the disease and only to the extent and for the duration strictly
            necessary to support the market concerned.
   2.       The Community shall provide part-financing for the measures referred to in
            paragraph 1 equivalent to 50% of the expenditure borne by Member States.
   3.       Articles 87, 88 and 89 of the Treaty shall not apply to the Member States’ financial
            contribution towards the measures referred to in paragraph 1."
                                               Article 4
   Article 39 of Regulation (EEC) No 1254/1999 is replaced by the following:
                                              "Article 39
   1.       In order to take account of the restrictions on free circulation which may result from
            the application of measures for combating the spread of diseases in animals,
            exceptional measures of support for the market affected by those restrictions may be
            taken in accordance with the procedure referred to in Article 43. These measures may
            be taken only if the Member States have taken health and veterinary measures to
            quickly stamp out the disease and only to the extent and for the duration strictly
            necessary to support the market concerned.
   2.       The Community shall provide part-financing for the measures referred to in
            paragraph 1 equivalent to 50% of the expenditure borne by Member States.
EN                                                 6                                               EN
 ---pagebreak---    3.       Articles 87, 88 and 89 of the Treaty shall not apply to the Member States’ financial
            contribution towards the measures referred to in paragraph 1."
                                               Article 5
   Article 36 of Regulation (EEC) No 1255/1999 is replaced by the following:
                                              "Article 36
   1.       In order to take account of the restrictions on free circulation which may result from
            the application of measures for combating the spread of diseases in animals,
            exceptional measures of support for the market affected by those restrictions may be
            taken in accordance with the procedure referred to in Article 42. These measures may
            be taken only if the Member States have taken health and veterinary measures to
            quickly stamp out the disease and only to the extent and for the duration strictly
            necessary to support the market concerned.
   2.       The Community shall provide part-financing for the measures referred to in
            paragraph 1 equivalent to 50% of the expenditure borne by Member States.
   3.       Articles 87, 88 and 89 of the Treaty shall not apply to the Member States’ financial
            contribution towards the measures referred to in paragraph 1."
                                               Article 6
   Article 22 of Regulation (EEC) No 2529/2001 is replaced by the following:
                                              "Article 22
   1.       In order to take account of the restrictions on free circulation which may result from
            the application of measures for combating the spread of diseases in animals,
            exceptional measures of support for the market affected by those restrictions may be
            taken in accordance with the procedure referred to in Article 25(2). These measures
            may be taken only if the Member States have taken health and veterinary measures to
            quickly stamp out the disease and only to the extent and for the duration strictly
            necessary to support the market concerned.
   2.       The Community shall provide part-financing for the measures referred to in
            paragraph 1 equivalent to 50% of the expenditure borne by Member States.
   3.       Articles 87, 88 and 89 of the Treaty shall not apply to the Member States’ financial
            contribution towards the measures referred to in paragraph 1."
EN                                                 7                                               EN
 ---pagebreak---                                                 Article 7
   This Regulation shall enter into force on the seventh day following that of its publication in
   the Official Journal of the European Union.
   This Regulation shall be binding in its entirety and directly applicable in all Member States.
   Done at Brussels, […]
                                                 For the Council
                                                 The President
EN                                                 8                                              EN
 ---pagebreak---                 FINANCIAL STATEMENT
   1.    BUDGET HEADING:                                                                 APPROPRIATIONS:
         05 03 Animal products                                                           Budget 2004:
         (in particular the lines :05030199, 05030209, 05030399, 05030403 and            €239 million
         05030408)
   2.    TITLE:
         Council Regulation amending Regulations (EEC) No 2759/75, (EEC) No 2771/75, (EEC) No 2777/75,
         (EC) No 1254/1999, (EC) No 1255/1999 and (EC) No 2529/2001 as regards exceptional market support
         measures
   3.    LEGAL BASIS:
          Articles 36 and 37 of the Treaty
   4.    AIMS:
         To ensure that the Community, by sharing with the Member States the financial responsibilities,
         reinforces the measures which the Member States take to stop epizootic outbreaks.
   5.    FINANCIAL IMPLICATIONS                            12 MONTH          CURRENT            FOLLOWING
                                                            PERIOD          FINANCIAL            FINANCIAL
                                                                           YEAR 2004            YEAR 2005
                                                          (EUR million)    (EUR million)        (EUR million)
   5.0   EXPENDITURE                                           (1)                (1)                (1)
         –       CHARGED TO THE EC BUDGET
         REFUNDS/INTERVENTIONS)
         –       NATIONAL AUTHORITIES
         –       OTHER
   5.1   REVENUE                                                –                  –                  –
         –       OWN RESOURCES OF THE EC
         (LEVIES/CUSTOMS DUTIES)
         –       NATIONAL
                                                             2006            2007          2008         2009
   5.0.1 ESTIMATED EXPENDITURE                                (1)             (1)           (1)          (1)
   5.1.1 ESTIMATED REVENUE                                     –               –             –            –
   5.2   METHOD OF CALCULATION:
         –
   6.0   CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
         RELEVANT CHAPTER OF THE CURRENT BUDGET?                                                     YES / NO
   6.1   CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF
         THE CURRENT BUDGET?                                                                         YES / NO
   6.2   WILL A SUPPLEMENTARY BUDGET BE NECESSARY?                                                   YES / NO
   6.3   WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?                                   YES / NO
   OBSERVATIONS:
   (1)   The cost of the measure cannot be estimated, since it will depend on the importance of any outbreaks
         which may occur.
EN                                                       9                                                    EN