CELEX: 51988PC0528
Language: en
Date: 1988-10-20
Title: Proposal for a COUNCIL REGULATION (EEC) on the common organization of the market in sheepmeat and goatmeat (presented by the Commission)

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COM (88) 528
Vol. 1988/0185
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 ---pagebreak---     COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM ( 88 ) 528   final
                                                    Brussels , 28 October 1988
                                        Proposal for a
                                  COUNCIL REGULATION ( EEC )
          on the common organization of the market in sheepmeat and goatmeat
  i
                            ( presented by the Commission )
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 ---pagebreak---                                 Explanatory Memorandum
This explanatory memorandum covere Ihe text of a regulation designed to
Institute reforms In the eheepmeat regime . It emanates from the report
presented to the Council In October 1987 as volume IJC of C0M(87)452 , which
dealt with agricultural stabilisers . That document not only covered proposals
for a stabiliser mechanism In the sheepme^t rAglme , which has now been put Into
legislative form and Implemented by the Council , but also detailed proposals for
the reform of the regime more generally .       The Council has set itself the
deadline of the end of 1988 to legislate upon and Implement a reform of the
sheepmeat rfffclme ( the marketing year begins on 2nd January 1989 ). These new
proposals , now In the form of a draft regulation , take account of the course of
discussion . The new proposals also take account of what It may be possible to
achieve In negotiation with third countries , whose exports to the Community can
be a source of disruption of the market and of avoidable budget expenditure ,
unless a greater measure of control of prices and maximum quantities Is gained .
Explanatory discussions have taken place with the major supplier , but
negotiations have not yet been ‘Joined .    The Commission will be reporting
separately on external aspects , and seeking a negotiating mandate at the
appropriate time .
The main change proposed by comparison with the 1987 proposals Is that three
regions at production level , rather than two , shall be retained at the end of
the transitional period ( at present there are seven ). The course of discussion ,
and study of the market since the latest enlargement , show that It Is realistic
and more acceptable to group Italy and Greece together , given the characteristic
production of light lambs ( or kids ) as 8 by-product of milk production : to
regard the north of the Community as another region , where typically a rather
heavy lamb Is produced , and where there Is tittle If any milk production : and to
make a third region of Spain and Portugal , where production patterns are In many
ways between these two extremes , with lamb production neither light nor heavy
and milk production neither Insignificant as In the North nor dominant as In the
South East .
As there has been a slippage of a year , more or less , In the legislative process
It Is proposed to extend the period of transition by one year , with the aim as •
before that a single system shall operate from the first days of 1993 , at which
time also vestiges of the former seven regions will disappear . In these three
regions , a ( ewe ) premium will be paid , based on the difference between the basic
price and the community average price . The premium will be calculated on the
basis of lamb productivity In the three regions . Thus , while maintaining the
concept of single Income loss based on a Community average market price , these
proposals will enable the different production patterns In the three regions .
 ---pagebreak--- and the different proportion of producer Income derived from meat , to be
reflected In the level of premium payment .
In the case of all three regions , the poet-1992 position will therefore be very
different from the present one . It la proposed to manage the phasing out of the
variable premium , and of Intervention , by a stepwise progression of the guide
and Intervention prices to a lower percentage of the basic price , with the atm
that In 1992 these prices will be equal tSo or below the market price , and
thereby the mechanisms to which they refer become Inoperative .    It Is aleo
proposed to lengthen progressively the Interval ( currently , one week ) between
calculation; of the variable premium payable . The proposal to Increase the
number and size of advances paid on the ewe premium remains .
It I e proposed to manage the transition to three regions In two steps , one at
the beginning and one at the end of the transitional period . Immediately , the
Northern Regions other than Region 5 ( Great Britain ) would be merged . This
would leave four regions . At the end of the transition period after the removal
of the variable premium , Great. Br Italn would be absorbed Into the new Northern
Region , Region 2 . By contrast with previous proposals , It Is now proposed that
the premium payable in Italy and Greece ( Region 1 ), would continue to be
artificially derived throughout the transitional period , although the link would
need to be with the enlarged northern region , Region 2 , rather than with the
present Region 2 , France .
Existing proposals are maintained on the size of flock on which the premium can
be paid , on the periodicity of payment of advances , and on the definition of the
eleglbie ewef^The Council and Commission have discretion to change the
stabiliser system In the light of the reforms achieved . These proposals are
designed to be complementary to the stabiliser , and It will not therefore be
necessary to propose changes to the stabiliser provided this package Is accepted
as a whole .
 ( 1 ) For information , this draft regulation is annexed .
 ---pagebreak---                                COUNCIL REGULATION ( EEC )
          on the common organization of the market in sheepmeat and goatmeat
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and
in particular Articles 42 and 43 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 Economic and Social Committee ,
Whereas the operation and development of the common market in agricultural
products must be accompanied by the establishment of a common agricultural
policy involving common organization of the agricultural markets ; whereas the
form of such organization may vary from one product to another ;
Whereas the arrangements introduced by Council Regulation ( EEC ) No 1837 / 80 on
the common organization of the market in sheepmeat and goatmeat ( 1 ), as last
amended by Regulation ( EEC ) No 1115 / 88 ( 2 ), must be reviewed with a view to
the full establishment of a single market ;
Whereas in order to attain the objectives set out in Article 39 of the Treaty ,
in particular market stability and a fair standard of living for the
agricultural community concerned , it is necessary to retain certain
arrangements facilitating adjustment of supply to market requirements ; whereas
in particular Community sheepmeat producers should continue to be granted a
premium to compensate for loss of income and intervention measures should be
continued ; whereas the latter may take the form of private storage aid , which
least affects normal marketing of products ;
( 1 ) OJ No L 183 , 16.7.1980 , p. 1 .
 ( 2 ) OJ No L 110 , 29.4.1988 , p. 36 .
                                                                                  4
 ---pagebreak---                                              2
Whereas the purpose of the abovementioned premium is to ensure a fair return
for producers ; whereas however , in view of the possibilities for disposal on
the community market and the Community 's international commitments , production
of sheepmeat and goatmeat should no longer be encouraged once the Community
flock exceeds a certain level established in the light of the market
situation ; whereas to that end provision should be made for reducing the
degree of guarantee afforded by the measures in question ; whereas the maximum
guaranteed level should be fixed at that which obtained on 31 December L 98 7 in
the regions concerned and provision should be made for its eventual revision ;
Whereas provision should be made for the fixing of a basic price at which
intervention measures will come into operation and which will protect the
Community market against price fluctuations on the world market for certain
products in the sector ;
Whereas the creation of a single Community market in sheepmeat and goatmeat
involves the introduction of a single set of arrangements applying to trade
across the Community’s external frontiers ; whereas arrangements whereby import
levies on certain products replace the customs duty should , in combination
with the intervention arrangements , serve to stabilize the Community market by
preventing fluctuations in world market prices , when these are lower than the
basic price , from disturbing prices ruling within the Community ;
Whereas , for the purposes of application of the levy arrangements ,
f ree -at -Community- f rontier offer prices should be fixed on the basis of
quotations recorded on the most representative markets of third countries and
a special levy should be fixed for the products in question if the offer
prices from one or more third countries are abnormally low ;
Whereas , for products falling under combined nomenclature heading No 0204 for
which the rate of duty is bound under GATT , the levies must be limited to the
amount so bound or to that resulting from voluntary restraint agreements ;
Whereas , so that the trend in imports and exports can be followed , provision
should be made for a system of import and export licences involving the
provision of security as a guarantee that importation or exportation will be
effected ;
 ---pagebreak---                                         - 3 -
Whereas provision should be made for granting a refund on exports to third
countries equal to the difference between prices within the Community and on
the world market ,
Whereas , in addition to the system described above , provision should be made
for prohibiting in whole or in part , when the situation on the market so
requires , the use of inward or outward processing arrangements ;
Whereas the customs duty and levy arrangments make it possible to dispense
with all other protective measures at the external frontiers of the Community ;
whereas , however , the mechanism of common prices , customs duties and levies
may , in exceptional circumstances , prove defective ; whereas in such cases , so
as not to leave the Community market without defence against disturbances that
may consequently arise , the import barriers that previously existed having
been removed , the Community should be able to take all necessary measures
without delay ;
Whereas restrictions on free movement resulting from the application of
measures intended to prevent the spread of animal diseases may cause
difficulties on the market of one or more Member States ; whereas provision
should be made for the introduction of exceptional market support measures in
order to remedy such situations ;
Whereas , in order to facilitate implementation of the proposed measures , a
procedure should be provided for establishing close cooperation between the
Member States and the Commission within a management committee ;
Whereas the common organization of the market in sheepmeat and goatmeat must
take appropriate account of the objectives set out in both Article 39 and
Article 110 of the Treaty ;
Whereas the establishment of a single market based on a common price system
would be jeopardized by the granting of certain aids ; whereas , therefore , the
procisions of the Treaty which allow the assessment of aid granted by Member
States and the prohibition of that which is incompatible with the common
market should be made to apply to sheepmeat and goatmeat ;
                                                                                  (c
 ---pagebreak---                                            - 4 -
Whereas the transition from the arrangements established by Regulation ( EEC )
No 1837 / 80 to those of this Regulation should be effected as smoothly as
possible ; whereas to that end provision should be made for transitional
measures continuing the previous arrangements , including the variable premium
and intervention buying ; whereas , should the United Kingdom decide to apply
the variable premium , the resultant difference in the extent of support should
lead to separate application of the guarantee reduction arrangements in Great
Britain and in the other regions ;
Whereas expenditure incurred by the Member States in carrying out obligations
under this Regulation falls to the Community in accordance with Council
Regulation ( EEC ) No 729 / 70 of 21 April 1970 on the financing of the common
agricultural policy ( 3 ), as last amended by Regulation ( EEC ) No 929 / 79 ( 4 );
HAS ADOPTED THIS REGULATION :
                                         Article 1
                                     ( Consolidation )
The common organization of the market in sheepmeat and goatmeat shall comprise
both price and trading arrangements and cover the following products :
     CN Code                                 Description
( a ) 0104 10 90    Live sheep other than pure-bred breeding animals
      0104 20 90    Live goats other than pure-bred breeding animals
      0204          Meat of sheep or goats , fresh , chilled or frozen
      0210 90 11    Meat of sheep and goats , with bone in , salted , in brine ,
                    dried or smoked
      0210 90 19    Meat of sheep and goats , boneless , salted , in brine , or
                    smoked
 ---pagebreak---                                           - 5 -
     CN Code                                 Description
( b ) 0104 10 10    Live sheep - pure-bred breeding animals
      0104 20 10    Live goats - pure-bred breeding animals
      0206 80 99    Edible offal of sheep and goats , fresh or chilled , other
                    than for^the manufacture of pharmaceutical products
      0210 90 60    Edible offal of sheep and goats , salted , in brine , dried or
                    smoked
      1502 00 99    Fats of sheep or goats , raw or rendered , whether or not
                    pressed or solvent-extracted
( c ) 1602 90 71    Other prepared or preserved meat or offal of sheep or goats ,
                    uncooked ; mixtures of cooked and uncooked meat or offal
( d ) 1602 90 79    Other prepared or preserved offal of sheep or goats
                                        Article 2
                                    ( Consolidation )
In order to encourage action by trade and joint trade organizations to
facilitate the adjustment of supply to market requirements , the following
Community measures may be taken in respect of the products listed in Article 1 :
( a ) measures to improve sheep and goat farming ;
( b ) measures to promote better organization of production , processing and
      marketing ;
( c ) measures to improve quality ;
( d ) measures to permit the establishment of short- and long-term forecasts on
      the basis of the means of production used ;
( e ) measures to facilitate the recording of market price trends .
General rules concerning these measures shall be adopted in accordance with
the procedure laid down in Article 4}(2 ) of the Treaty .
                                                                                   3
 ---pagebreak---                                           - 6 -
                                         TITLE 1
                       Price , premium and interim arrangements
                                        Article 3
1. In accordance with the -procedure laid down in Article 43(2 ) of the Treaty ,
   a basic price shall be . fixed annually , for the following marketing year ,
   for fresh and chilled sheep carcases .
2. When the basic price is fixed , account shall be taken in particular of :
   ( a ) the situation on the sheepmeat market during the current year ;
   ( b ) the prospects for the production and consumption of sheepmeat ;
   ( c ) sheepmeat production costs ;
   ( d ) the market situation in the other livestock product sectors ,
         particularly the beef and veal sector ;
   ( e ) past expérience .
3. Save where a decision to the contrary is taken by the Council , acting by a
   qualified majority on a proposal from the Commission , the marketing year
   shall begin on the first Monday in January and shall end on the day
   preceding that day in the following year .
4. For the purposes of this Regulation the following regions are hereby
   defined :
   -     region 1 : Italy , Greece ,
   -     region 2 : France , Belgium , Denmark , Germany , Luxembourg , Netherlands ,
                    Ireland , United Kingdom ,
         region 3 : Spain , Portugal .
 ---pagebreak---                                           - 7 -
                                        Article 4
1. A price for fresh or chilled sheep carcases on the representative
   Community markets shall be established on the basis of the prices recorded
   on the representative market or markets of each Member State for the
   various categories of fresh or chilled sheep carcases account being taken
   of both the volume of each category and of the amount of sheep production
   in each Member State .
2. Detailed rules for the application of this Article , including a definition
   of "carcase weight ", shall be adopted in accordance with the procedure
   laid down in Article 33 .
                                        Artide 5
1. To the extent necessary to offset an income loss by sheepmeat producers in
   one or more regions during a marketing year , a premium shall be granted ;
   furthermore , in order to offset an income loss by goatmeat producers , a
   premium shall be granted :
   -   in the areas indicated in Annex II , and
       in the mountain and hill areas within the meaning of Article 3(3 ) of
       Directive 75 / 268 / EEC , other than the areas indicated in Annex II to
       this Regulation , provided that it is established following the
       procedure referred to in Article 33 that the production of those areas
       meets the two following criteria :
       ( a ) goat rearing is mainly directed towards the production of goatmeat ;
       ( b ) goat and sheep rearing techniques are similar in nature .
   The amount of these premiums shall be fixed immediately after the end of
   the marketing year , and in any event not later than 31 March of each year .
                                                                                  Д0
 ---pagebreak---                                        - 8 -
2. The income loss referred to in paragraph 1 shall be deemed to be any
   difference , per 100 kilograms carcase weight , between the basic price
   referred to in Article 3(1 ) and the arithmetic mean of the market prices
   recorded in accordance with Article A.
3. The premium payable per' ewe in each region shall be obtained by
   multiplying the income loss referred to in paragraph 2 by a coefficient
   expressing for each region the normal annual production of lambmeat per
   ewe 100 kilograms carcase weight .
   Furthermore , in the areas specified in paragraph 1 , first subparagraph ,
   first and second indents , the premium payable per she-goat shall be 80% of
   the amount per ewe in those areas .
4. If the probable trend in market prices as referred to in Article 4
   indicates that an income loss is likely during the course of the marketing
   year , the Member State(s ) concerned may , by the procedure laid down in
   Article 33 , be authorized to make in the region or regions concerned an
   advance payment during the marketing year , before the end of each
   half-year , to sheepmeat producers and , in the areas specified in paragraph
   1 , first subparagraph , first and second indents , to goatmeat producers .
   The amount of the final premium shall be determined after the end of the
   marketing year , in accordance with paragraphs 1 , 2 and 3 , and any balance
   shall be paid .
5. Premiums shall be paid to recipient producers on the basis of the number
   of ewes and / or she-goats kept on their holding over a minimum period to be
   determined in accordance with the procedure laid down in Article 33 .
                                                           *
6. The Council , acting by qualified majority on a proposal from the
   Commission , shall adopt general rules for implementing this Article , and
   in particular shall define which producers may receive the premium and for
   what ewes , and in the ares specified in paragraph 1 , first subparagraph ,
   first and second indents , what goats .
                                                                                1
 ---pagebreak---                                         - 9 -
    The Council , by the same procedure :
    - may extend the premium scheme to certain mountain-breed ewes raised in
      precisely defined areas presenting particularly difficult production
      conditions that do not qualify as eligible ewes : in such cases the
      premium payable shall be 80% of that for eligible ewes ;
    - may specify that the premium is to be granted only to producers keeping
      a minimum number of ewes or , in the case of the areas specified in
      paragraph 1 , first subparagraph , first and second indents , a minimum
      number of ewes and /or she-goats ;
7.  The Commission , acting in accorcance with the procedure laid down in
    Article 33 :
    - shall fix as appropriate the premium payable per ewe in each region and
      in the areas specified in paragraph 1 , first subparagraph , first and
      second indents , that payable per ewe and she-goat ;
    - shall fix for the duration of each marketing year the coefficients
      referred to in paragraph 3 ;
    - shall adopt implementing rules for this Article covering , in particular ,
      the submission of premium applications , monitoring arrangements and
      payment of the premium .
8.  Expenditure under the arrangements provided for in this Article shall be
    deemed to form part of intervention for the purpose of stabilizing
    agricultural markets .
                                     Article 6
Intervention measures may take the form of private storage aid .
                                                                                 Al
 ---pagebreak---                                        - 10 -
                                      Artide 7
1. If the price established in accordance with Article 4 is lower than 90% of
   the basic price referred to in Article 3(1 ) and is likely to remain so , a
   decision may be taken to grant private storage aid as provided for in
   Article 6 throughout the Community .
   A decision may be taken , to grant private storage aid in one or more
   regions of the Community if the price recorded on the representative
   market or markets of one or more regions is lower than 90% of the basic
   price referred to in Article 3(1 ) and is likely to remain so in the region
   or regions concerned ; this measure may be regionally differentiated .
2. The Council , acting by a qualified majority on a proposal from the
   Commission , shall adopt general rules for the application of this Article .
3. The procedure laid down in Article 33 shall be used to determine :
   ( a ) the products and product qualities admitted for private storage ;
   ( b ) private storage aid amounts and termination of the period in respect
         of which aid may be granted ;
   ( c ) other rules for the implementation of this Article , in particular the
         circumstances in which the intervention measures will be applied .
                                    Article 7a
1. The maximum guaranteed level is hereby fixed at 63 400 000 head of ewes .
2. For each marketing year :
   - if the estimate of ewe numbers for the marketing year exceeds the
      maximum guaranteed level for that year , the premium provided for in
       Article 5 shall be reduced for both ewes and she-goats by the effect on
       the basic price of a coefficient representing a reduction of 1% for each
       1% by which the maximum guaranteed level is extended ;
                                                                                4
 ---pagebreak---                                            - 11
      - where the mechanism provided for in the first indent , applied to the
        actual ewe numbers recorded for the preceding marketing year , leads to a
        premium different from that calculated , the correction shall be made at
        the time of fixing the definitive premium for ewes for the marketing
        year in question or , failing that , shall be included in the calculation
        of the premium for the following marketing year .
3.    Detailed rules for the application of this Article , and in particular the
      coefficient and the amount referred to in paragraph 2 , shall be adopted in
      accordance with the procedure laid down in Article 33 .
4.    The Council , acting in accordance with the procedure laid down in
      Article 43 of the EEC Treaty , shall review the stabilizer mechanism
      provided for above by 31 December 1992 .
                                         TITLE II
                              Trade with third countries ( 1 )
                                         Article 8
1.    The Common Customs Tariff rates of duty shall apply to the products listed
      in Article 1(b ), ( c ) and ( d ).
2.    The Common Customs Tariff rates of duty shall not apply to the products
      listed in Article 1(a ). An import levy shall be applicable to these
      products as provided for in this Regulation .
                                         Article 9
Import levies shall be fixed each month by the Commission .
If necessary , the Commission may alter the levies in the intervening period .
( 1 ) Consolidation of Articles 8 to 19 of Regulation ( EEC ) No 1837 / 80
                                                                                  ft
 ---pagebreak---                                           12
                                      Article 12
1. The levy on fresh or chilled carcases as indicated in Annex I under
   combined nomenclature codes 0204 10 00 , 0204 21 00 and 0204      50 11 shall
   be equal to the difference between the basic price and the
   f ree -at-Community-f rontier offer price .
2. The f ree -at -Community-f rontier offer price referred to in paragraph 1
   shall be established on the basis of the purchasing possibilities most
   representative as regards quality and quantity recorded during a period to
   be determined prior to the fixing of the levy , account being taken in
   particular of :
   ( a ) the supply and demand situation for fresh or chilled sheepmeat ;
   ( b ) world market prices for frozen sheepmeat of a category competitive
         with fresh or chilled sheepmeat ; and
   ( c ) past experience .
   If necessary,' the free -at -f rontier offer price shall be established on the
   basis of the most representative purchasing possibilities recorded for
   live sheep .
3. The levy on live animals of combined nomenclature codes 0104 10 90 and
   0104 20 90 and on meat as indicated in Annex I under codes 0205 22 10 ,
   0204 22 30 , 0204 22 50 , 0204 22 90 , 0204 23 00 , 0204 50 13 , 0204 50 15 ,
   0204 50 19 , 0204 50 31 , 0204 50 39 , 0210 90 11 and 0210 90 19 shall be
   equal to the levy on the product referred to in paragraph 1 multiplied by
   a standard coefficient fixed for each of the products in question .
 ---pagebreak---                                        - 13 -
                                     Artide 11
1. The levy on frozen meat as indicated in Annex I under combined
   nomenclature codes 0204 30 00 , 0204 41 00 and 0204 50 51 shall be equal to
   the difference between
   ( a ) the basic price multiplied by a coefficient representing the
         relationship existing in the Community between the price of fresh meat
         of a category competitive with the frozen meat in question , presented
         in the same form , and the average price of fresh and chilled sheep
         carcases and
   (b ) the f ree-at-Community-f rontier offer price for the said frozen meat .
2. The f ree-at-Community-f rontier offfer price referred to in paragraph 1(b )
   shall be established on the basis of the purchasing for frozen meat most
   representative as regards quality and quantity , recorded during a period
   to be determined prior to the fixing of the levy , account being taken in
   particular of :
   ( a ) the foreseeable trend of the market in frozen meat ;
   ( b ) the most representative prices on third-country markets for fresh or
         chilled meat of a category competitive with the frozen meat ;
   ( c ) past experience .
3. For the frozen meat as indicated in Annex I under combined nomenclature
   codes 0204 42 10 , 0204 42 30 , 0204 42 50 , 0204 42 90 , 0204 43 00 ;
   0204 50 53 , 0204 50 55 , 0204 50 59 , 0204 50 71 and 0204 50 79 the levy
   shall be equal to the levy fixed for the product referred to in paragraph
   1 , multiplied by a standard coefficient fixed for each of the products in
   question .
4. The levy chargeable shall be that applicable on the day of importation .
5. Detailed rules for the application of this Article shall be adopted in
   accordance with the procedure laid down in Article 33 .
 ---pagebreak---                                             14
                                      Artide 12
1.    A special levy may be fixed for products originating in or coming from one
      or more third countries if such exports are effected at abnormally low
      prices .
2.    Detailed rules for the application of this Article shall be adopted in
      accordance with the procedure laid down in Article 33 .
                                      Article 13
By way of derogation from Articles 10 , 11 and 12
( a ) levies on products of combined nomenclature codes 0104 10 90 and
      0104 20 90 shall be limited to the amount resulting from voluntary
      restraint agreements
( b ) levies on products of heading 0204 for which the rate of duty has been
      bound under the General Agreement on Tariffs and trade ( GATT ) shall be
      limited to the amount resulting from such binding or to that resulting
      from voluntary trade agreements .
                                      Article 14
1.    The importation into the Community or exportation therefrom of any of the
      products listed in Article 1(a ), ( c ) and ( d ) shall be subject to the
      submission of an import or export licence issued by the Member States to
      any applicant who so requests , irrespective of the place of his
      establishment in the Communty .
      Such import or export licence shall be valid throughout the Community .
      The issue of such licences shall be conditional on the provision of a
      security as a guarantee that importation or exportation will be effected
      during the period of validity of the licence . The security shall be
      wholly or partially forfeit if the operation is not carried out , or is
      only partially carried out , within that period .
                                                                                 λ
 ---pagebreak---                                       - 15 -
 2. Detailed rules for the application of this Article , which may in
    particular lay down a time limit for the issue of the licences , shall be
    adopted in accordance with the procedure laid down in Article 33 .
                                    Article 15
1.  To the extent necessary to enable the products listed in Article A to be
    exported , the difference between the prices for those products on the
    world market and prices within the Community may be covered by an export
    refund .
2.  The refund shall be the same for the whole Community .  It may be varied
    according to end-use or destination .
    The refund shall be granted on application .
3.  The Council , acting by a qualified majority on a proposal from the
    Commission , shall adopt general rules for granting export refunds and for
    the advance fixing thereof .
A.  Refunds shall be fixed at regular intervals in accordance with the
    procedure laid down in Article 2A . Where necessary the Commission may , at
    the request of a Member State or on its own initiative , alter the refunds
    in the intervening period .
5.  Detailed rules for the application of this Article shall be adopted in
    accordance with the procedure laid down in Article 33 .
                                    Article 16
This Regulation shall be applied with due regard to the Community 's
obligations under international agreements .
                                                                                AS
 ---pagebreak---                                          16
                                    Artide 17
To the extent necessary for the proper working of the common organization of
the market in sheepmeat , the Council , acting by a qualified majority on a
proposal from the Commission , may prohibit , in whole or in part , the use of
inward or outward processing arrangements in respect of the products listed in
Article 1 .
                                    Artide 18
1.  The general rules for the interpretation of the Common Customs Tariff and
    the special rules for its application shall apply to the tariff
    classification of products covered by this Regulation ; the tariff
    nomenclature resulting from the application of this Regulation shall form
    part of the Common Customs Tariff .
    The Council , acting by a qualified majority on a proposal from the
    Commission , may adjust this Regulation where such adjustment is carried
    out as a result of an amendment to the nomenclature of the Common Customs
    Tariff , and may amend the nomenclature used in this Regulation .
2.  Unless otherwise provided in this Regulation or otherwise decided by the
    Council acting by a qualified majority on a proposal from the Commission ,
    the following shall be prohibited in trade with third countries :
        the levying of any charges having effect equivalent to a customs duty ,
    -   the application of any quantitative restriction or measure having
        equivalent effect .
                                                                                λ
 ---pagebreak---                                       - 17 -
                                   Artide 19
1. If , by reason of imports or exports , the Community market in one or more
   of the products listed in Article 1 experiences or is threatened with
   serious disturbance liable to imperil the objectives set out in Article 39
   of the Treaty , appropriate measures may be applied in trade with third
   countries until such disturbance or threat of disturbance has ceased .
   The Council , acting by a qualified majority on a proposal from the
   Commission , shall adopt detailed rules for the application of this
   paragraph and define the cases in which the limits within which Member
   States may take protective measures .
2. If the situation referred to in paragraph 1 arises , the Commission shall ,
   at the request of a Member State or on its own initiative , decide on the
   necessary measures , which shall be communicated to the Member States and
   shall be immdediately applicable .   If the Commission receives a request
   from a Member State , it shall take a decision thereon within 24 hours
   following receipt of the request .
3. Measures adopted by  the Commission may be referred to the Council by any
   Member State within  three working days following the day on which they
   were communicated .  The Council shall meet without delay . It may , by a
   qualified majority , amend or repeal the measures in question .
                                                                               /2o
 ---pagebreak---                                            18
                                       TITLE III
                                Transitional provisions
                                      Article 20
Until the end of the 1992 marketing year the provisions of Title I shall be
applicable subject to those of the following Articles .
                                      Article 21
The Council , acting by a qualified majority on a proposal from the Commission ,
shall set , in addition to the price referred to in Article 3(1 ), seasonally
adjusted basic prices to take account of normal seasonal variations on the
Community sheepmeat market .
                                      Article 22
The following regions are hereby defined :
    Region 1 :  Italy , Greece
    Region 2 :  France , Belgium , Denmark , Germany , Luxembourg , Netherlands ,
                Ireland , Northern Ireland
-   Region 3 :  Spain , Portugal
    Region 4 :  Great Britain .
                                      Article 23
1.  A price for fresh or chilled sheep carcases on the representative
    Community market shall be established on the basis of the prices recorded
    on the representative market or markets of each region or , as regards
    regions 1 , 2 and 3 , of each Member State for the various categories of
    fresh or chilled sheep carcasses , account being taken of both the volume
    of each category and of the amount of sheep farming in each region or , as
    regards regions 1 , 2 and 3 , in each Member State .
2.  Detailed rules for the application of this Article , including a definition
    of " carcase weight ", shall be adopted in accordance with the procedure
    laid d.v/n in ArticLe 33 .
 ---pagebreak---                                      - 19 -
                                   Artide 24
1. The income loss referred to in Article 5(1 ) shall be deemed to be any
   difference , per 100 kilograms carcase weight , between the basic price
   referred to in Article 3(1 ) and the arithmetic mean of the market prices
   recorded for each region in accordance with Article 23 .
2. If a ewe premium is granted in region 2 , at the request of interested
   parties
   - a ewe premium equal to that payable in region 2 may be granted in region
     1 , instead of the premium payable in that region , to interested parties
     who show to the satisfaction of the competent authority that the lambs
     from the ewes that they hold will not be slaughtered before the age of
     two months ,
   - a she-goat premium equal to 80% of the ewe premium payable in region 2
     may be granted , instead of the premium payable in region 1 , in the areas
     of region 1 indicated in Article 5(1 ), first subparagraph , second indent
     and in Annex II , to interested parties who show to the satisfaction of
     the competent authority that the kids from the she-goats that they hold
     will not be slaughtered before the age of two months .
   In region 4 the income loss shall , where the variable premium referred to
   in Article 28 is paid , be reduced by the weighted average of the variable
   premiums actually granted .
   This average , which shall be expressed per 100 kilograms net weight , shall
   be obtained by divinding the total amount of the premiums actually granted
   by the weight of the certified animals for which the variable premium may
   be grante on slaughter or , as appropriate , when they are first placed on
   the market .
   For the purpose of determining the arithmetic mean of market prices as
   referred to in paragraph 1 when the intervention measures referred to in
   Article 26 are applied the market price shall , for the period during which
   buying-in actually takes place , be replaced by the seasonally adjusted
   intervention price .
                                                                                Il
 ---pagebreak---                                         20 -
                                    Article 25
In addition to private storage aid intervention may be taken in the form of
purchases by intervention agencies of fresh sheepmeat in the form of carcases
or half-carcases .
                                    Artide 26
1.  If during the period 15 July to 15 December of each year the price
    recorded as provided for in Article 23 is equal to or ess than a
    seasonally adjusted intervention price corresponding to 81% of the
    seasonally adjusted basic price in the 1989 marketing year , to 77% of that
    price in the 1990 marketing year , to 73% in the 1991 marketing year and to
    69% in the 1992 marketing year and at the same time the price recorded on
    the representative markets of a given region is equal to or less than the
    seasonally adjusted intervention price , buying-in as provided for in
    Article 25 shall , at the request of one or more Member States , be
    commenced for the region in question .   However , in the case of regions 1 ,
    2 and 3 , buying-in may be carried out for the Member State or Member
    States forming those regions .
    The agencies designated by the Membe States concerned shall buy in fresh
    or chilled meat originating in the Community of qualities likely to
    provide the best market support .
2.  Buying-in may be carried out only for the qualities defined in accordance
    with paragraph 1 the price of which in the Membe State of Member States
    concerned is lower than a buying-in price calculated for each of these
    qualities on the basis of the seasonally adjusted intervention price .
3.  Buying-in shall be suspended if the price recorded in accordance with
    Article 30 is higher for a certain period than the seasonally adjusted
    intervention price .
                                                                                  I
 ---pagebreak---                                        - 21 -
4.  The Council , acting by a qualified majority on a proposal from the
    Commission , shall determine pursuant to paragraph 2 the intervention and
     the seasonally adjusted intervention price and shall adopt general rules
    for the application of this Article .
5.  The procedure laid down in Article 39 shall be used :
    ( a ) for deciding on commencement of intervention as indicated in
          paragraph 1 and on termination o such intervention ,
    ( b ) for the adoption of other rules for the application of this Article ,
          in particular rules applying to intervention purchasing .
                                     Article 27
If during the period running from 16 December of one year to 14 July of the
following year a serious situation should arise requiring market support by
means of the intervention measures referred to Article 26 a decision may be
taken , in accordance with the procedure laid down in Article 33 , to apply
these measures .
                                     Article 28
1.  The United Kingdom may grant in region 4 , if it does not apply the
    provisions laid down in Article 25 in that region , a premium for the
    slaughter of sheep provided that prices recorded on the representative
    markets of that region are below a "guide level " corresponding to the
    following percentages of the basic price referred to in Article 3(1 ):
    1989 marketing year : 81%
    1990 marketing year : 77%
    1991 marketing year : 73%
    1992 marketing year : 69% .
    The guide level referred to in the first subparagraph shall be seasonally
    adjusted in the same way as the basic price .
                                                                                24
 ---pagebreak---                                          - 22 -
2. The amount of the premium referred to in Article 1 shall be equal to the
   difference between the seasonally adjusted guide level and the market
   price recorded in the region concerned . It shall be fixed each week in
   the 1989 marketing year , each month in the 1990 marketing year and each
   quarter from the 1991 marketing year onwards .
3. Should the premium referred to in paragraph 1 be paid in region 3 the
   Commission shall adopt the necessary measures to ensure that an amount
   equivalent to the premium actually granted is charged on all products as
   indicated at ( a ) and ( c ) in Article 1 leaving that region .
4. The Commission shall , in accordance with the procedure laid down in
   Article 33 , adopt detailed rules for the application of this Article .
   These may in particular include measures to prevent any disturbance to
   trade in livestock , meat or prepared products resulting from application
   of the premium arrangement referred to in paragraph 1 .
5. Expenditure incurred under the arrangements provided for in this Article
   shall be deemed to form part of intervention for the purpose of
   stabilizing agricultural markets .
                                      Article 28a
1. The maximum guaranteed level laid down in Article 7a shall be broken down
   as follows :
   - 18 100 000 head for region 4 ;
   - 43 300 000 head for the other regions .
2. Should paragraph 2 of Article 7a be applied , the intervention price
   referred to in Article 26(2 ) and the "guide level " referred to in
   Article 28 on which the variable premium is to be calcualted shall be
   reduced by the same percentage as that by which the basic price is reduced
   pursuant to the first indent of Article 7a(2 ).
3. Should the United Kingdom apply Article 28 , Article 7a(2 ) and paragraph 2
   of this Article shall apply separately to region 4 on the one hand and to
   all the other regions on the other .
 ---pagebreak---                                          - 23 -
                                      TITLE IV ( 1 )
                                  General Provisions
                                       Artide 29
In order to take account of any. restrictions on free movement which might
result from the application of , measures to prevent the spread of animal
diseases , exceptional measures to support any market affected by such
restrictions may be taken under the procedure laid down in Article 24 , but
only to the extent that and for such period as is strictly necessary for the
support of that market .
                                       Article 30
Save as otherwise provided in this Regulation , Articles 92 , 93 and 94 of the
Treaty shall apply to the production of and trade in the products listed in
Article 1 .
                                       Article 31
Member States and the Commission shall communicate to each other the
information necessary for implementing this Regulation .
Rules for the communication and distribution of such information shall be
adopted in accordance with the procedure laid down in Article 24 .
                                       Article 32
1.    A Management Committee for Sheep and Goats ( hereinafter called 'the
      Committee' ) is hereby set up , consisting of representatives of the Member
      States with a representative of the Commission as chairman .
2.    Within the Committee the votes of Member States shall be weighted in
      accordance with Article 148(2 ) of the Treaty . The chairman shall not vote .
( 1 ) Consolidation of Articles 22 to 30 of Regulation ( EEC ) No 1837 / 80
 ---pagebreak---                                          24
                                     Artide 33
1.  Where the procedure laid down in this Article is to be followed , the
    chairman shall refer the matter to the Committee either on his own
    initiative or at the request of the representative of a Member State .
2.  The Commission representative shall submit a draft of the measures to be
    taken .  The Committee shall deliver its opinion on such measures within a
    time limt to be set by the chairman according to the urgency of the
    matter .   Opinions shall be adopted by a majority of fifty-four votes .
3.  The Commission shall adopt measures which shall apply immediately .
    However , if these measures are not in accordance with the opinion of the
    Committee , they shall forthwith be communicated by the Commission to the
    Council . In that event the Commission may , for not more than one month
    from the date of such communication , defer application of the measures
    which it has adopted .
    The Council , acting by a qualified majority , may take a different decision
    within one month .
                                     Article 34
The Committee may consider any other question referred to it by its chairman
either on his own initiative or at the request of the representative of a
Member State .
                                     Article 35
This Regultion shall be so applied that appropriate account is taken of the
objectives set out in both Article 39 and Article 110 of the Treaty .
                                     Articke 36
The Annexes may be amended by the Council , acting by a qualified majority on a
proposal from the Commission .
 ---pagebreak---                                          - 25
                                       Artide 37
1.  Regulation ( EEC ) No 1837 / 80 is hereby repealed .
2.  References to the Regulation repealed by paragraph 1 shall be construed as
    references to this Regulation .
    References to the Articles of the repealed Regulation shall be read in
    accordance with the correlation table in Annex III .
                                       Artide 38
This Regulation shall enter into force on 2 January 1989 .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at                                                  For the Council
                                                                               a
 ---pagebreak---  CN code                                                  Description
Section (a)            Meat of sheep and goats , fresh or chilled :
0204  10 00            – Carcases and half-carcases of lamb
0204  21 00            – Carcases and half-carcases of sheep other than those of lamb
0204  22 10            – Short forequarters of sheep
0204  22 30            – Chines and/or best ends of sheep
0204  22 50            – Legs of sheep
0204  22 90            – Other cuts with bone in of sheep
0204  23 00            –  Boneless cuts of sheep
0204  50 11            – Carcases and half-carcases of goats
0204  50 13            – Short forequarters of goats
0204  50 15            – Chines and/or best ends of goats
0204  50 19            – Legs of goats
0204  50 31            – Other cuts with bone in of goats
0204  50 39            – Boneless cuts of goats
Section (b)            Meat of sheep and goats salted , in brine , dried or smoked :
0210 90 11             – With bone in
0210 90 19             – Boneless
Section (c)            Meat of sheep and goats , frozen :
0204  30 00            – Carcases and half-carcases of lamb
0204  41 00            – Carcases and half-carcases of sheep, other than those of lamb
0204  42 10            –  Short forequarters of sheep
0204  42 30            –  Chines and /or best ends of sheep
0204  42 50            –  Legs of sheep
0204  42 90            –  Other cuts with bone in of sheep
0204  43 00            –  Boneless cuts of sheep
0204  50 51            – Carcases and half-carcases of goats
0204  50 53            – Short forequarters of goats
0204 50 55             –  Chines and /or best ends of goats
0204 50 59             –  Legs of goats
0204 50 71             –  Other cuts with hone in of goats
0204 50 79             –  Boneless cuts of goats'
                                                   • ANNEXE ij         ■
          1 . Fiance :      Cone.
          2. Grece :       ¿out Je urritoirr
          X Italic :        Loie, Abanto, Molise, Campania, Paglia, Baailicam, Calabria, Sicilia et Sardegna. ·
         "A. Espagne :      amirautés autonomes suivantes : Andalousie, Aragon, Etaléeres,
         ■                  Casti Ile-la finche, Cast il le-La (tanche, Casti Ile et Leon, Catalogne
         •                  Estr&adire, Galice (A l' exception des provinces de la Corogne et
         ■                  Lugo), Madrid, (Urcie, la Moja et Valenciana.
         "5 . Portugal :    tout le territoire A l'exception des Açores et de ftadère."
 ---pagebreak---                                     ANNEX III
                                CORRELATION TABLE
Régulation ( EEC ) No 1837 / 80                   This Régulation
Article 1                                         Article 1
  ”     2   -                                     Article 2
  "     3(1 )                                        tt
                                                          3(1 )
  "     3(2 )                                             3(2 )
  "     3(4 )                                        II
                                                          3(3 )
  "     3(5 )                                        II
                                                          3(4 )
  »     4                                           H
                                                          4
  "     5(1 )                                             5(1 )
  "     5(2 )                                             5(2 )
  "     5(3 )                                             5(3 )
  ”     5(4 )                                             5(4 )
  "     5(8 )                                             5(5 )
  "     5(9 )                                             5(6 )
  "     5(10 )                                            5(7 )
  "     5(11 )                                            5(8 )
                                                    II
  "     6                                                 6
  "     7(1 )                                       II
                                                          7(1 )
  "     7(6 )                                       If
                                                          7(2 )
  "     7(7 )                                             7(3 )
  ”     9(1 )                                             7(1 )
  "     9(2 )                                       II
                                                          7(2 )
  ”     9(5 )                                             7(3 )
  "     9(6 )                                             7(4 )
  "    10                                                 8
  "    11                                                 9
  "    12                                                10
  "    13                                                11
  "    14                                                12
  "    15                                                13
  "    16                                             «
                                                         14
  "    17                                                15
  "    18                                           I»
                                                         16
  "    19                                           If
                                                         17
  "    20                                           fl
                                                         18
   '   21                                           f«
                                                         19
   '    3(3 )                                            21
   '    3(5 )                                       If
                                                         22
   '    4                                           II
                                                         23
   '    5(2 )                                       fl
                                                         24(1 )
   '    5(5 )                                       II
                                                         24(2 )
   1    5(6 )                                            24(3 )
   '    5(7 )                                       II
                                                         24(4 )
   '    6(l)(b )                                    II
                                                         25
   '    7(2 )                                       II
                                                         26(1 )
   *    7(4 )                                       II
                                                         26(2 )
   '    7(5 )                                            26(3 )
   '    7(6 )                                       If
                                                         26(4 )
   '    7 (b ) and ( c )                            II
                                                         26(5 )
   '    8                                           II
                                                         27
 ---pagebreak--- CORRELATION TABLE ( cont .)
Régulation ( EEC ) No 1837 / 80 This Régulation
Article 9a(l )                  Article 28a(l )
  t 1
        9a(3 )                  Article 28a(2 )
  ft
        9a ( 4 )                  "      28a ( 3 )
  tt
        22                        "      29
  tl
        23                        "      30
  f1
        24                        "      31
  f1
        25                        "      32
  f1
        26 '                      "      33
  f 1
        27 .                      "      34
  tt
        28                        "      35
  tt
        29                        "      36
  t 1
        35                        "      38
Annex I                         Annex I
Annex III                       Annex II
 ---pagebreak--- 3 . 4. 87                                    Official Journal of the European Communities                                   No C 89 / 53
               Proposal for a Council Regulation amending Regulation ( EEC) No 872/84 laying down general
                                        rules for the granting of premiums to sheepmeat producers
                                                                ( 87 /C 89/46)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                                   Whereas the new provisions and the new Annex should
                                                                           apply in respect of premiums payable for the 1988 and
                                                                           subsequent marketing years,
Having regard to the Treaty establishing the European
Economic Community,
                                                                           HAS ADOPTED THIS REGULATION ;
Having regard to Council Regulation ( EEC) No
1837/80 of 27 June 1980 on the common organization                                                     Article I
of the market in sheepmeat and goatmeat (*)> as last
amended by Regulation ( EEC) No . . and in parti¬
cular Article 5 (9) thereof,                                               Regulation ( EEC) No 877/84 is hereby amended as
                                                                           follows :
                                                                            1.  In the title, ‘sheepmeat’ is replaced by ‘sheepmeat
Having regard to the proposal from the Commission,                              and goatmeat’.
                                                                           2.   Points 2, 3 and 4 of Article 1 are replaced by the
Whereas the practical application of the current defini ¬                       following :
tions of the terms ‘eligible ewe’ and ‘eligible female
goat’ fixed by Council Regulation ( EEC) No 872/84 (J),                         ‘2. “ Eligible ewe" shall mean :
as last amended by Regulation ( EEC ) No 3524/85 (4),                                 a female sheep kept on holding for breeding
entails difficulties of control : whereas these terms                                 purposes which has lambed at least once by a
should be redefined, taking account of experience                                     reference date to be determined for each Mem ¬
already gained ;                                                                      ber State and falling during the marketing year
                                                                                      for which the premium is payable.
 Whereas the concept of a reference date is being                               3 . “ Eligible female goat” shall mean :
 introduced in these new definitions : whereas it is there¬                           a female goat kept on holding for breeding
 fore appropriate to adapt the definition of ‘eligible                                purposes which has kidded at least once by a
 female sheep other than eligible ewe’ : whereas further                              reference date to be determined for each Mem ¬
 examination has shown that the conditions laid down                                  ber State and falling during the marketing year
 in Article 5 (9) of the basic Regulation ( EEC) No                                   for which the premium is payable.
  1837 /80 are also fulfilled in certain other precisely                        4.    “ Eligible female other than eligible ewe” shall
 defined areas in the United Kingdom in addition to                                   mean :
 those defined in the Annex to Regulation ( EEC) No
 872 / 84 ; whereas this Annex should therefore be modi ¬                             a female sheep intended for flock replacement
 fied ;                                                                               kept in the areas specified in the Annex hereto
                                                                                      belongs to the breed or breeds specified therein
                                                                                       for each area and already has two replacement
  Whereas, pursuant to Article 5 (8 ) of Regulation ( EEC)                             incisor teeth on the reference date to be deter¬
  No 1837 /80, the premium granted to sheepmeat and                                    mined for each Member State.
  goatmeat producers may be limited to a certain number                          5.    The Commission , in the framework of the
  of animals per beneficiary producer ; whereas, in the                                detailed rules for the application of the prem¬
  light of sheepmeat and goatmeat production trends and                                ium    shall   determine    the  reference dates
  in order to curb the growth of budget costs for that                                 referred to in points 2, 3 and 4 above.’
  group of products, the premium should be limited to
  500 animals per beneficiary producer ; whereas, how¬
  ever, in the case of the Community’s less-favoured                        3.   The following Article la is added :
  areas within the meaning of Article 3 (3 ), (4) and (5) of                      ‘Article la
  Council Directive 75 / 268 / EEC (4), the 'limit should , in
  the light of the particularly difficult conditions of prod¬                    The premium payable to sheepmeat and goatmeat
  uction obtaining there, be 1 000 animals, and Regula¬
  tion ( EEC) No 872/ 84 should be amended in consequ¬
                                                                                 producers in accordance with Article 5 of Regula¬
  ence ;
                                                                                 tion ( EEC) No 1837 /80 shall be subject to a limit
                                                                                 of I 000 animals per producer in less-favoured
                                                                                 areas within the meaning of Article 3 (3), (4) and
                                                                                 (5 ) of Directive 75/268/ EEC and 500 animals per
                                                                                 producer in other areas.’
  V/   OJ  No L 183 , 16. 7 . 1980, p. I.
  f )  OJ  No L 90. 1.4. 1984, p. 40.
  (J)  OJ  No L 336, 14. 12 . 1985 , p. 5 .                                 4. The Annex is replaced by the Annex to this Regu¬
  O    OJ  No L 128, 19. 5 . 1975 , p. I                                         lation .
 ---pagebreak---  No C 89/ 54                          Official Journal of the European Communities                                   3 . 4 . 87
                        Article 2
                                                                  It shall apply for the first time to premiums gi anted in
                                                                  respect of the 1988 marketing year.
This Regulation shall enter into force on the third day
following its publication in the Official Journal of the         This Regulation shall be binding in its entirety and
European Communities.                                            directly applicable in all Member States.
                                                            ANNEX
                                                     UNITED KINGDOM
             A.  Lake District : Herdwick
              B. –   Shetland Islands :                                                Shetland
                 –    Western Isles of Lewis and Harris :                               Blackface
                 –    Sutherland :                                                     Cheviot
                 – Caithness : parishes of Reay, Halkirls, Latheron :                  Cheviot
                 –    Ross and Cromarty : parishes of Gairloch,                         Cheviot'
                      Lochbroom , Applccross. Lochcarron, Contin,
                      Fodderty :
 ---pagebreak---                 FINANCIAL IMPLICATIONS OF THE PROPOSAL FOR THE REFORM
               OF THE SHEEPMEAT MARKET ORGANIZATION FROM 1989 ONWARDS
Introduction
The financial implications set out below have been established on      the revised
assumptions for 1989 . The revision involves mainly higher market      prices for
all the regions except Region 5 ( Great Britain ) for 1988 and 1989    and a
considerable increase in the number of eligible ewes in Regions 1      ( Italy and
Greece ), 4 ( Ireland ) and 7 ( Spain and Portugal ).
The increase in the number of eligible ewes is a necessary assumption because
certain Member States are claiming heavy amounts from the EAGGF for payment of
the ewe and goat premium in respect of 1987 .
For 1990 to 1993 , the same assumptions as regards market prices and numbers of
eligible ewes , with appliation of the stabilizers , have been made as for 1989 .
Action proposed
1.  Definition of new regions
    The first change consists in the definition of new regions .
    For 1989 , 1990 , 1991 , and 1992 , the regions are to be as follows :
    -   Region 1 : Italy and Greece ,
    - Region 2 : France , Belgium , Denmark , Germany , Luxembourg , Netherlands ,
                   Ireland , Northern Ireland ,
    -   Region 3 : Spain , Portugal ,
    -   Region 4 : Great Britain .
    From 1993 onwards , Great Britain will become part of Region 2 .
 ---pagebreak---                                         - 2 -
It is also proposed that a single figure for income loss be established for
     three regions from 1993 onwards . The Community market price is obtained
on the basis of the prices in the various Member States , weighted according to
meat production .
Financial implications
                                                        m ECU
                            1989     1990     1991     1992     1993     1994
   Ewe premium               –      - 86      - 86     - 86     - 86   - 173
   Net variable premium      –         -        -        -    -   73     - 90
                             -
                                    - 86      - 86     - 86   - 159    - 263
II . Dismantling of the variable slaughter premium for sheep in Great Britain
     It is also proposed that the guide level for the calculation of the
     variable slaughter premium hould be wound down .
     The guide level will be set at the following percentages of the basic
     price :
     -  1989 : 81%
     -  1990 : 77%
     -  1991 : 73%
     -  1992 : 69%
     The variable premium will be discontinued altogether from 1993 .
     Financial implications
                                                                m ECU
                            1989    1990      1991     1992     1993     1994
   Ewe premium                      + 42      + 82    + 120   + 155    + 126
  Net variable premium      - 30    - 64      - 96    - 127   - 102    - 100
                            - 30    - 22      - 14      - 7     + 53     + 26
 ---pagebreak---                                           3
III . Less frequent payment of the slaughter premium
      The variable premium , which is now paid weekly , will be paid monthly in
      1990 and quarterly from 1991 onwards .
      For the calculation of the financial implications , the assumption is made
      that the variable premium is paid at the beginning of the month following
      the relevant quarter .
      Financial implications
                                                              m ECU
                             1989    1990     1991      1992     1993     1994
  Ewe premium                 -       –        -         -        -        -
  Net variable premium        -
                                     + 13      - 2       - 3      - 8      –
                              -
                                     + 13      - 2       - 3      - 8      -
IV . Payment of advances on the ewe premium
     The proposal also includes payment of two advances to sheep and goat
     farmers . To quantify the financial implications , the assumption is made
     that the payment of an advance of 30% will be chargeable to the current
     year and that the second advance and the balance will be paid in the
     following year .
     Financial implications
                                                                 m ECU
                             1989    1990     1991      1992     1993     1994
  Ewe premium             + 271      + 12     + 11      + 11     - 35      -
  Net variable premium
                          + 271      + 12     + 11      + 11     - 35      -
 ---pagebreak---                                         - 4 -
V.     Summary
      The following table summarizes the financial implications of the measures
      proposed for 1989 to 1993 .
                                                                m ECU
                            1989     1990     1991     1992     1993     1994
     I. Definition of new
        regions                -
                                     - 86     - 86     - 86    - 159    - 263
   II . Dismantling of
        variable premium    - 30     - 22     - 14      - 7     + 53     + 26
 I I I. Less frequent
        payment of
        variable premium     .       + 13      - 2      - 3      - 8
   IV . Payment of
        advances on the
        ewe premium        + 271     + 12     + 11     + 11     - 35      _
   Total implications      + 241     - 83     - 91     - 85    - 149    - 237