CELEX: 52006PC0677
Language: en
Date: 2006-11-08
Title: Proposal for a Council Regulation adapting Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers, Regulation (EC) No 318/2006 on the common organisation of the markets in the sugar sector and Regulation (EC) No 320/2006 establishing a temporary scheme for the restructuring of the sugar industry in the Community, by reason of the accession of Bulgaria and Romania to the European Union

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       Brussels, 8.11.2006
                                                       COM(2006) 677 final
                                                       2006/0226 (CNS)
                                          Proposal for a
                                  COUNCIL REGULATION
     adapting Regulation (EC) No 1782/2003 establishing common rules for direct support
   schemes under the common agricultural policy and establishing certain support schemes
   for farmers, Regulation (EC) No 318/2006 on the common organisation of the markets in
    the sugar sector and Regulation (EC) No 320/2006 establishing a temporary scheme for
    the restructuring of the sugar industry in the Community, by reason of the accession of
                         Bulgaria and Romania to the European Union
                                 (presented by the Commission)
EN                                                                                          EN
 ---pagebreak---                                  EXPLANATORY MEMORANDUM
   1.        CONTEXT
             • Grounds for and objectives of the proposal
   On 20 February 2006, the Council adopted new regulations on the common organisation of the
   markets in the sugar sector1. These regulations do not take account of the results of the
   accession negotiations. There is therefore a need to adapt the texts of the new sugar
   regulations before accession to ensure that they are compatible with the Act of Accession.
   In addition, certain provisions on seeds in Council Regulation (EC) No 1782/2003 have been
   enforced from the 2005/06 campaign and should be adapted in respect of Bulgaria and
   Romania
   Specifically, in the case of sugar, there is a need to:
   –         insert Bulgaria and Romania in the list of countries benefiting from the production
             quota system for sugar, isoglucose and inulin syrup quotas, as well as traditional
             supply needs of sugar for refining;
   –         foresee provisions on direct payments for Bulgaria and Romania;
   –         adapt some dates in the above-mentioned regulations on sugar in order that Bulgaria
             and Romania can participate in the common market organisation .
   In the case of seeds, it is necessary to add Bulgaria and Romania to the list of countries
   concerned by the seeds aid and subsequently adapt Annex XIa of Council Regulation (EC)
   No 1782/2003.
             • General context
             Bulgaria and Romania are due to join the EU on 1 January 2007. It is therefore
             necessary to foresee all legal provisions that will apply to both countries.
             • Consistency with other policies and objectives of the Union
             Not applicable.
   2.        CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT
             • Consultation of interested parties
             In accordance with the interim procedure applicable to Bulgaria and Romania,
             DG AGRI organised meetings with both countries to inform them unofficially about
             DG AGRI's proposal and get their reactions.
   1
           Council Regulations (EC) No 318/2006 on the common organisation of the markets in the sugar sector,
           (EC) No 319/2006 amending Regulation (EC) No 1782/2003 establishing common rules for direct
           support schemes under the common agricultural policy and establishing support schemes for farmers,
           (EC) No 320/2006 establishing a temporary scheme for the restructuring of the sugar industry in the
           Community and amending Regulation (EC) No 1290/2005 on the financing of the common agricultural
           policy.
EN                                                    2                                                        EN
 ---pagebreak---             • Impact assessment
            Not applicable. The proposal is not subject to IA requirements as it is not included in
            the Commission Legislative and Work Programme.
   3.       LEGAL ELEMENTS AND MAIN CHARACTERISTICS OF THE HORIZONTAL CMO
            • Legal basis
            Article 4(3) of the Treaty of Accession of Bulgaria and Romania
            Article 20 Annex IV of the Act of accession of Bulgaria and Romania
            • Content of the proposal
            The proposals made in the Council Regulation are described below:
   SUGAR
   Introduction of direct payments
   Sugar direct payments should be introduced in Bulgaria and Romania according to the same
   schedule of increments as for the other crops, i.e. ten years starting in 2007 at a level of 25%
   of the direct payments then applicable in the EU-15. To determine the amount of the sugar
   direct payments, the same method of calculation as for the EU-25 has been used. Bulgaria and
   Romania should be also offered the possibility to apply the separate sugar payment as offered
   to the new member States applying SAPS (Single Area Payment Scheme).
   Adaptation to the market measures
   –        Bulgaria and Romania should be included in the list of national and regional quotas
            with the corresponding sugar and isoglucose quotas;
   –        Bulgaria and Romania should be added to the list of countries benefiting from the
            system of Traditional Supply Needs for refining;
   –        some dates of the sugar regulations should be adapted to the specific circumstances of
            Bulgaria and Romania.
   SEEDS
   Bulgaria and Romania should be offered the option to couple the aid for seeds when applying
   the single payment scheme and consequently they should be added to the relevant table on
   seeds aid.
            • Subsidiarity principle
            Not applicable. Bulgaria and Romania are not yet Member States.
            • Choice of instrument
            Proposed instrument: Council Regulation amending 3 Council Regulations.
EN                                                3                                                 EN
 ---pagebreak---    4)      BUDGETARY IMPLICATIONS
   These proposals have financial implications for the Community budget:
   –       on the expenditure side, the progressive introduction of directs payments for sugar
           foreseen in Council Regulation (EC) No 319/2006 will entail additional expenditure
           (from €2,014 mio in budget year 2008 to €10,543 mio in financial year 2017 and
           subsequent years);
   –       on the revenue side, both countries will be subject to the payment of the production
           charge in the sugar sector set out in article 16 of Council Regulation (EC)
           No 318/2006 as from the marketing year 2007/2008 (total amount foreseen:
           €1,841 mio each year) as well as to the payment of the temporary restructuring
           amount set out in Article 11 of Council Regulation (EC) No 320/2006 (total amount
           foreseen: €16 mio in financial year 2008, €21,1 mio in financial year 2009 and
           €6,9 mio in financial year 2010).
EN                                               4                                              EN
 ---pagebreak---                                                                2006/0226 (CNS)
                                                 Proposal for a
                                        COUNCIL REGULATION
      adapting Regulation (EC) No 1782/2003 establishing common rules for direct support
    schemes under the common agricultural policy and establishing certain support schemes
    for farmers, Regulation (EC) No 318/2006 on the common organisation of the markets in
     the sugar sector and Regulation (EC) No 320/2006 establishing a temporary scheme for
     the restructuring of the sugar industry in the Community, by reason of the accession of
                             Bulgaria and Romania to the European Union
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community,
   Having regard to the Treaty of Accession of Bulgaria and Romania, and in particular
   Article 4(3) thereof,
   Having regard to the Act of Accession of Bulgaria and Romania, and in particular Article 41,
   second subparagraph, and Article 20 thereof in conjunction with Annex IV thereto,
   Having regard to the proposal from the Commission,
   Having regard to the opinion of the European Parliament2,
   Whereas:
   (1)     Council Regulation (EC) No 1782/20033 has been amended by Regulation (EC)
           No 583/20044, introducing inter alia provisions for seeds after the 2005/2006 marketing
           year and by Regulation (EC) No 319/20065, introducing direct support schemes for
           farmers in the sugar sector. Council Regulation (EC) No 318/20066 introduced general
           rules governing the common organisation of the markets in the sugar sector from the
           marketing year 2006/2007.
   (2)     Those general rules and measures should be adapted to allow their implementation in
           Bulgaria and Romania as from the date of accession of those countries to the European
           Union.
   (3)     With a view to allowing Bulgaria and Romania to benefit from the support measures in
           the sugar sector provided for under Regulation (EC) No 1782/2003 as amended by
           Regulation (EC) No 319/2006, it is appropriate to amend the national ceilings of
           Bulgaria and Romania taking into account the additional amount of aid. In order to
   2
           OJ C …, …, p. ...
   3
           OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Regulation (EC) No 1405/2006 (OJ L 265,
           26.9.2006, p. 1).
   4
           OJ L 91,30.3.2004, p. 1.
   5
           OJ L 58, 28.2.2006, p. 32.
   6
           OJ L 58, 28.2.2006, p. 1.
EN                                                      5                                                    EN
 ---pagebreak---          provide Bulgaria and Romania with the possibility to grant the sugar direct payment in
         the form of a separate direct payment, it is appropriate to amend the national ceilings on
         the sugar reference amounts.
   (4)   Regulation (EC) No 1782/2003 as amended by Regulation (EC) No 583/2004,
         introduced seed aid ceilings for the Member States which acceded to the European
         Union in 2004. Bulgaria and Romania should be added to the list of countries
         concerned by this measure.
   (5)   Regulation (EC) No 318/2006 establishes a production quota system for sugar,
         isoglucose and inulin syrup, as well as a traditional supply need of sugar for refining. In
         order to apply these mechanisms in Bulgaria and Romania, both countries should be
         added to the list of countries benefiting from these measures and subsequent
         adaptations should be made to take account of the specific situation of Bulgaria and
         Romania.
   (6)   In order to allow operators in Bulgaria and Romania to participate in the restructuring
         scheme, there is a need to adapt Council Regulation (EC) No 320/20067.
   (7)   Regulations (EC) No 1782/2003, (EC) No 318/2006 and (EC) No 320/2006 should
         therefore be amended accordingly,
   HAS ADOPTED THIS REGULATION:
                                                  Article 1
   Regulation (EC) No 1782/2003 is amended as follows:
   (1)     In Article 71c, the following paragraph is inserted after the first paragraph:
           "In the case of Bulgaria and Romania, the schedule of increments provided for under
           Article 143a shall apply for sugar and chicory."
   (2)     Article 143ba is amended as follows:
           (a)    Paragraph 1 is replaced by the following:
                  "1.    By way of derogation from Article 143b the new Member States applying
                         the single area payment scheme may decide by 30 April 2006, to grant in
                         respect of the years 2006, 2007 and 2008, a separate sugar payment to
                         farmers eligible under the single area payment scheme. It shall be granted
                         in respect of a representative period which could be different for each
                         product of one or more of the marketing years 2004/2005, 2005/2006 and
                         2006/2007 to be determined by Member States before 30 April 2006, and
                         on the basis of objective and non-discriminatory criteria such as:
                         –       the quantities of sugar beet, cane or chicory covered by delivery
                                 contracts concluded in accordance with Article 19 of Regulation
                                 (EC) No 1260/2001 or Article 6 of Regulation (EC) No 318/2006 as
                                 appropriate
   7
          OJ L 58, 28.2.2006, p. 42.
EN                                                   6                                               EN
 ---pagebreak---                        –      the quantities of sugar or inulin syrup produced in accordance with
                              Regulation (EC) No 1260/2001 or Regulation (EC) No 318/2006 as
                              appropriate;
                       –      the average number of hectares under sugar beet, cane or chicory
                              used for the production of sugar or inulin syrup and covered by
                              delivery contracts concluded in accordance with Article 19 of
                              Regulation (EC) No 1260/2001 or Article 6 of Regulation (EC)
                              No 318/2006 as appropriate;
                       However, where the representative period includes the marketing year
                       2006/2007, this marketing year shall be replaced by the marketing year
                       2005/2006 for farmers affected by a renunciation of quota in the
                       marketing year 2006/2007 as provided for in Article 3 of Regulation (EC)
                       No 320/2006.
                       In the case of Bulgaria and Romania:
                       (a)    the date of 30 April 2006 referred to in the first subparagraph shall
                              be 15 February 2007;
                       (b)    the separate sugar payment may be granted in respect of the years
                              from 2007 until 2011;
                       (c)    the representative period referred to in the first subparagraph may be
                              different for each product of one or more of the marketing years
                              2004/2005, 2005/2006, 2006/2007 and 2007/2008;
                       (d)    where the representative period includes the marketing year
                              2007/2008, this marketing year shall be replaced by the marketing
                              year 2006/2007 for farmers affected by a renunciation of quota in
                              the marketing year 2007/2008 as provided for in Article 3 of
                              Regulation (EC) No 320/2006."
           (b)   In paragraph 3, the following subparagraph is added:
                 "For Bulgaria and Romania, the date of 31 March 2006 referred to in the first
                 subparagraph shall be 15 February 2007."
   (3)     Annexes VII, VIIIa and XIa are amended in accordance with Annex I to this
           Regulation.
                                               Article 2
   Regulation (EC) No 318/2006 is amended as follows:
   (1)     In Article 7(2), the following subparagraph is added:
           "For the purposes of this paragraph, in the case of Bulgaria and Romania the
           marketing year shall be that of 2006/2007."
   (2)     In Article 9, paragraph 1 is replaced by the following:
           "1.   In the marketing year 2006/2007 an isoglucose quota of 100 000 tonnes shall be
                 added to the total of isoglucose quota fixed in Annex III. In each of the
                 marketing years 2007/2008 and 2008/2009 a further isoglucose quota of
EN                                                7                                                  EN
 ---pagebreak---                    100 000 tonnes shall be added to the quota of the preceding marketing year.
                   This increase shall not concern Bulgaria and Romania.
                   In each of the marketing years 2007/2008 and 2008/2009 a further isoglucose
                   quota of 11 045 tonnes for Bulgaria and of 1 966 tonnes for Romania shall be
                   added to the quota of the preceding marketing year.
                   Member States shall allocate the additional quotas to undertakings,
                   proportionately to the isoglucose quotas that have been allocated in accordance
                   with Article 7(2)."
   (3)       In Article 29, paragraph 1 is replaced by the following:
             "1.   Notwithstanding Article 19(1), a traditional supply need of sugar for refining is
                   fixed for the Community at 2 324 735 tonnes per marketing year, expressed in
                   white sugar.
                   During the marketing years 2006/2007, 2007/2008 and 2008/2009, the
                   traditional supply need shall be distributed as follows:
                   –      198 748 tonnes for Bulgaria,
                   –      296 627 tonnes for France,
                   –      291 633 tonnes for Portugal,
                   –      329 636 tonnes for Romania,
                   –      19 585 tonnes for Slovenia,
                   –      59 925 tonnes for Finland,
                   –      1 128 581 tonnes for the United Kingdom."
   (4)       Annex III is replaced by the text in Annex II to this Regulation.
                                                 Article 3
   In Article 3(1) of Regulation (EC) No 320/2006, the introductory words of the first
   subparagraph are replaced by the following:
   "Any undertaking producing sugar, isoglucose or inulin syrup to which a quota has been
   allocated by 1 July 2006, or by 31 January 2007 in the case of Bulgaria and Romania, shall be
   entitled to a restructuring aid per tonne of quota renounced, provided that during one of the
   marketing years 2006/2007, 2007/2008, 2008/2009 and 2009/2010 it:"
EN                                                  8                                                EN
 ---pagebreak---                                                 Article 4
   This Regulation shall enter into force subject to and on the date of the entry into force of the
   Treaty of Accession of Bulgaria and Romania.
   This Regulation shall be binding in its entirety and directly applicable in all Member States.
   Done at Brussels,
                                                 For the Council
                                                 The President
EN                                                 9                                                EN
 ---pagebreak---                                               ANNEX I
   Annexes to Regulation (EC) No 1782/2003 are amended as follows:
   (1)        In point K 2 of Annex VII, Table 1 is replaced by the following:
                                               "Table 1
               Ceilings for amounts to be included in the reference amount of farmers
                                                                                            (EUR '000)
       Member State             2006             2007                2008         2009 and subsequent
   Belgium                    47 429            60 968              74 508               81 752
   Czech Republic             27 851            34 319              40 786               44 245
   Denmark                     19 314           25 296              31 278               34 478
   Germany                    154 974          203 607              252 240             278 254
   Greece                     17 941            22 455              26 969               29 384
   Spain                      60 272            74 447              88 621               96 203
   France                     152 441          199 709              246 976             272 259
   Hungary                     26 105           31 986              37 865               41 010
   Ireland                    11 259            14 092              16 925               18 441
   Italy                       79 862          102 006              124 149             135 994
   Latvia                       4 219            5 164               6 110                6 616
   Lithuania                   6 547             8 012               9 476               10 260
   Netherlands                41 743            54 272              66 803               73 504
   Austria                    18 971            24 487              30 004               32 955
   Poland                     99 135           122 906              146 677             159 392
   Portugal                     3 940            4 931               5 922                6 452
   Slovakia                   11 813            14 762              17 712               19 289
   Slovenia                    2 284             2 858               3 433                3 740
   Finland                      8 255           10 332              12 409               13 520
   Sweden                      20 809           26 045              31 281               34 082
   United Kingdom             64 340            80 528              96 717              105 376
                                                                                            (EUR '000)
    Member                                                                                 2016 and sub-
                 2007    2008      2009  2010   2011      2012    2013       2014  2015
      State                                                                                sequent years
   Bulgaria        84     121       154   176     220      264     308        352   396          440
   Romania      1 930   2 781     3 536 4 041  5 051     6 062   7 072      8 082 9 093       10 103
                                                                                                       "
EN                                                  10                                                   EN
 ---pagebreak---               (2)          Annex VIIIa is replaced by the following:
                                                                          "ANNEX VIIIa
                                                    National ceilings referred to in Article 71c
                                                                                                                                    (EUR '000)
 Calendar     Czech                                                                                                              Calendar
                        Estonia    Cyprus       Latvia    Lithuania     Hungary     Malta      Poland    Slovenia Slovakia                   Bulgaria    Romania
   year     Republic                                                                                                               year
   2005      228 800    23 400      8 900       33 900      92 000       350 800     670       724 600    35 800   97 700          2007       200 384      441 930
   2006      294 551    27 300     12 500       43 819     113 847       446 305     830       980 835    44 184   127 213         2008       240 521      530 681
   2007      377 919    40 400     16 300       60 764     154 912       540 286    1 640     1 263 706   58 958   161 362         2009       281 154      621 636
   2008      469 986     50500     20 400       75 610     193 076       672 765    2 050     1 572 577   73 533   200 912         2010       321 376      710 441
   2009      559 145    60 500     24 500       90 016     230 560       802 610    2 460     1 870 392   87 840   238 989         2011       401 620      888 051
   2010      644 745    70 600     28 600      103 916     267 260       929 210    2 870     2 155 492  101 840   275 489         2012       481 964    1 065 662
   2011      730 445    80 700     32 700      117 816     303 960      1 055 910   3 280     2 440 492  115 840   312 089         2013       562 308    1 243 272
   2012      816 045    90 800     36 800      131 716     340 660      1 182 510   3 690     2 725 592  129 840   348 589         2014       642 652    1 420 882
subsequent
             901 745    100 900    40 900      145 616     377 360      1 309 210   4 100     3 010 692  143 940  385 189’         2015       722 996    1 598 493
  years
                                                                                                                                 2016 and
                                                                                                                                subsequent    803 340    1 776 103
                                                                                                                                   years
                                                                                                                                                  "
              (3)          Annex XIa is replaced by the following:
                                                                           "ANNEX XIa
                             Seed aid ceilings in the new Member States referred to in Article 99(3)
                                                                                                                              (EUR million)
                                          Czech
        Calendar year      Bulgaria                   Estonia    Cyprus     Latvia  Lithuania    Hungary   Malta  Poland   Romania     Slovenia    Slovakia
                                        Republic
            2005               –           0,87        0,04        0,03      0,10      0,10        0,78     0,03   0,56       –          0,08        0,04
            2006               –           1,02        0,04        0,03      0,12      0,12        0,90     0,03   0,65       –          0,10        0,04
            2007             0,11          1,17        0,05        0,04      0,14      0,14        1,03     0,04   0,74      0,19        0,11        0,05
            2008             0,13          1,46        0,06        0,05      0,17      0,17        1,29     0,05   0,93      0,23        0,14        0,06
            2009             0,15          1,75        0,07        0,06      0,21      0,21        1,55     0,06   1,11      0,26        0,17        0,07
            2010             0,17          2,04        0,08        0,07      0,24      0,24        1,81     0,07   1,30      0,30        0,19        0,08
            2011             0,22          2,33        0,10        0,08      0,28      0,28        2,07     0,08   1,48      0,38        0,22        0,09
            2012             0,26          2,62        0,11        0,09      0,31      0,31        2,33     0,09   1,67      0,45        0,25        0,11
            2013             0,30          2,91        0,12        0,10      0,35      0,35        2,59     0,10   1,85      0,53        0,28        0,12
            2014             0,34          2,91        0,12        0,10      0,35      0,35        2,59     0,10   1,85      0,60        0,28        0,12
            2015             0,39          2,91        0,12        0,10      0,35      0,35        2,59     0,10   1,85      0,68        0,28        0,12
            2016             0,43          2,91        0,12        0,10      0,35      0,35        2,59     0,10   1,85      0,75        0,28        0,12
       subsequent years      0,43          2,91        0,12        0,10      0,35      0,35        2,59     0,10   1,85      0,75        0,28        0,12'
                                                                                                                                                  "
 EN                                                                                11                                                                 EN
 ---pagebreak---                                            ANNEX II
                                          "ANNEX III
                                NATIONAL AND REGIONAL QUOTAS
                                                                                 (tonnes)
           Member States or regions (1)       Sugar (2) Isoglucose (3) Inulin syrup (4)
   Belgium                                     819 812     85 694              0
   Bulgaria                                     4 752       67 108             –
   Czech Republic                              454862          –               –
   Denmark                                     420 746         –               –
   Germany                                   3 655 456      42 360             –
   Greece                                      317 502      15 433             –
   Spain                                       903 843     98 845              –
   France (metropolitan)                     3 552 221     23 755              0
   French overseas departments                 480 245         –               –
   Ireland                                         0          –                –
   Italy                                       778 706     24 301              –
   Latvia                                       66505          –               –
   Lithuania                                   103 010        –                –
   Hungary                                     401 684     164 736             –
   Netherlands                                 864 560      10 891             0
   Austria                                     387 326        –                –
   Poland                                    1 671 926     32 056              –
   Portugal (mainland.)                         34 500      11 870             –
   The autonomous region of the Azores           9 953         –               –
   Romania                                     109 164     11 947              –
   Slovakia                                    207 432     50 928              –
   Slovenia                                     52 973        –                –
   Finland                                     146 087     14 210              –
   Sweden                                      325 700         –               –
   United Kingdom                            1 138 627      32 602             –
                       Total                 16 907 591    686 736             0
                                                                                        "
EN                                             12                                         EN
 ---pagebreak---                 FINANCIAL STATEMENT
   1.    BUDGET HEADING (nomenclature 2007):                                                 APPROPRIATIONS
                                                                                             PDB 2007:
         05 03 01                                                                            €30 709 Mio
         117                                                                                 pm
         680                                                                                 pm
   2.    TITLE:
         Council Regulation adapting Regulation (EC) No 318/2006 on the common organisation of the markets
         in the sugar sector, Regulation No 320/2006 establishing a temporary scheme for the restructuring of the
         sugar industry in the Community and Regulation (EC) No 1782/2003 establishing common rules for
         direct support schemes under the common agricultural policy and establishing certain support schemes
         for farmers by reason of the accession of the Republic of Bulgaria and Romania to the European Union.
   3.    LEGAL BASIS:
         Art 4 (3) of the Treaty of Accession of Bulgaria and Romania
         Article 20 in conjunction with Annex IV of the Act of accession of Bulgaria and Romania
   4.    AIMS:
         Following the sugar reform of 2006, this proposal aims at:
         – inserting Bulgaria and Romania in the list of countries benefiting from the production quota system
             for sugar, isoglucose and inulin syrup quotas, as well as traditional supply needs of sugar for refining;
         – foreseeing provisions on direct payments for Bulgaria and Romania;
         – adapting some dates in the above-mentioned regulations on sugar in order that Bulgaria and Romania
             can participate in the common market organisation.
   5.    FINANCIAL IMPLICATIONS                                 12 MONTH            FINANCIAL         FINANCIAL
                                                                 PERIOD             YEAR 2007         YEAR 2008
                                                               (EUR million)       (EUR million)     (EUR million)
   5.0   EXPENDITURE                                                pm                   –                2,014
         –      CHARGED TO THE EC BUDGET
         (REFUNDS/INTERVENTIONS)
         –      NATIONAL AUTHORITIES
         –      OTHER
   5.1   REVENUE                                                     –                   –                1,841
         –      OWN RESOURCES OF THE EC
         (LEVIES/CUSTOMS DUTIES)
         –      ASSIGNED REVENUE – TEMPORARY                                                               16
         RESTRUCTURING AMOUNTS
         –      NATIONAL
                                                                 2009           2010          2011           2012
   5.0.1 ESTIMATED EXPENDITURE                                   2,902          3,690         4,217          5,271
   5.1.1 ESTIMATED REVENUE                                      22,941          8,741         1,841          1,841
   5.2   METHOD OF CALCULATION:
         See Annex
   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:
   See Annex
EN                                                        13                                                           EN
 ---pagebreak---                                                 Annex
   Direct payments:
   The guiding principles to calculate the level of direct payments are:
   –        applying the same method of calculation as the one used during the sugar reform;
   –        applying the phasing-in; the level of direct payments will continue to increase up to
            €6,326 mio in budget year 2013, €7,380 mio in 2014, €8,434 mio in 2015,
            €9,489 mio in 2016 to reach €10,543 mio in 2017 and subsequent years.
   Revenue:
   1)       Production charge set out Article 16 of Council Regulation (EC) No 318/2006 (€12/t
            of sugar and inulin syrup quota, 6€/t of isoglucose quota) x Quotas allocated to
            Romanian and Bulgarian undertakings
            (4 752 + 109 164) x 12 + (67 108 + 11 947) x 6 = €1,841 mio each year
   2)       Temporary restructuring amounts set out in Article 11 of Council Regulation (EC)
            No 320/2006 x Quotas allocated to Romanian and Bulgarian undertakings
            Marketing year 2007/08: (4752 + 109 164) x 173,8 + (67 108 + 11 947) x 86,9 =
            €26 668 480.
            Payment 60% in March 2008 => €16 mio on budget 2008
            Payment 40% in November 2008 => €10,7 mio on budget 2009
            Marketing year 2008/09: (4752 + 109 164) x 113,3 + (67 108 + 11 947) x 56,65 =
            €17 385 149.
            Payment 60% in March 2009 => €10,4 mio on budget 2009
            Payment 40% in November 2009 => €6,9 mio on budget 2010
EN                                                14                                              EN