CELEX: 51994PC0441
Language: en
Date: 1994-10-21
Title: Proposal for a COUNCIL REGULATION (EC) on aid which Norway, Austria and Finland may grant on stocks held by private operators on 1 January 1995

COMMISSION OF THE EUROPEAN COMMUNITIES
                                         C0M(94) 441 final
                                         Brussels, 21.10.1994
                          Proposal for a
                     CQUNCIL REGULATION (EC)
        on aid which Norway, Austria and Finland may grant on
          stocks held by private operators on 1 January 1995
                  (presented by the Commission)
 ---pagebreak---                              EXPLANATORY MEMORANDUM
I. Introduction
The transitional arrangements provided for in the Act of Accession of
Norway, Austria, Finland and Sweden are based on the application of the CAP
to the new Member States in the same way as to the present Member States
from the first day of accession.
Contrary to the arrangements in all previous Acts of Accession, this Act
involves neither the progressive alignment of the agricultural prices in the
new Member States on the common prices nor the abolition in stages of
customs duties, other import charges, quantitative restrictions and measures
having equivalent effect in trade between the present and the new Member
States. The alignment will take place at one sweep on 1 January 1995.
Similarly, in trade with third countries, the new Member States will apply
as from that date the import charges applied by the other Member States.
As a result of the arrangements thus introduced in Norway, Austria and
Finland, the prices of most agricultural products, which were higher than
those applying in the Community in 1994, should fall to the level of the
latter in 1995.
As a result, operators holding stocks in the three countries will suffer '
prejudice, which Article 150 of Act of Accession seeks to make good by
providing that the Council, acting by a qualified majority on a proposal
from the Commission, may permit the new Member States to grant aid equal at
most to the difference in the abovementioned prices to persons holding
stocks.
 II.    Main points in the proposal
 In the appended proposal drawn up in accordance with the abovementioned
provisions, the Commission follows the following guidelines:
 1. The authorization to grant aid must be restricted to those new Members
     where prices prior to accession were higher than the common prices (as
     explained in I), namely Norway, Austria and Finland, Sweden, where prices
     for agricultural products do not differ from the common prices, should
     accordingly be excluded;
 2. This authorization should apply to live animals and products which may be
     in storage in the new Member States on 1 January 1995. In accordance with
     normal CAP practice, compensation for products derived from such products
     should, where possible, be calculated by reference to the difference in
     prices of the basic agricultural products from which they are derived.
                                       A-
 ---pagebreak---    The Commission recognizes, however, that the latter approach cannot
   reasonably be applied to all processed products and that in certain cases
   (e.g. sugar) it is more reasonable to calculate the aid on the basis of
   the difference in the prices for the processed product itself.
   In the case  of the most important agricultural products, it proposes to
   solve these  problems by reference to a list of products showing the
   products on  which the maximum aid for products derived therefrom is to be
   calculated.  However, aid may also be granted on other product groups.
3. The maximum aid is to be fixed in terms of the reduction in the wholesale
   prices or the prices at any other stage constituting the first stage of
   marketing in the three new Member States in question for a period which
   those Member States consider representative of the effects of the
   application of the Treaty of Accession on prices.
   Nevertheless, the Commission considers that, with a view to
   simplification, a calculation based on the prices as subsidized in the
   new Member States prior to accession and/or the prices as subsidized in
   the Community could be used where such subsidies exist.
4. The maximum aid thus defined may bear interest which cannot exceed the
   normal market rate for the country in question for the period between
   1 January and the date of payment of the aid. The Commission considers
   that payment of interest is implicit in the idea of compensation for the
   prejudice suffered at a particular time.
III.   Other points in the proposal
The other points in the proposal call for less comment. They may be
summarized as follows :
    overcompensation and receipt in combination with aid provided for in
    Article 138 of Act of Accession are explicitly ruled out;
    aid is ruled out in the case of speculative stocks;
    aid may also be granted on products covered by the Regulation where they
    come from non-member countries or other Member States and are in free
    circulation on 1 January 1995 in Norway, Austria or Finland, but
    excluding products on which the applicable impprt charges have not been
    paid;
 ---pagebreak---    the arrangements are to be implemented and the detailed rules for their
   application drafted by the new Member States themselves subject, however,
   to a procedure for notifying the Commission and for the latter to be able
   to make observations.
Lastly, the Commission stresses that as the aid is financed solely from
national funds, this proposal has no financial impact on the budget of the
European Union.
Mindful of the importance and urgency of the appended proposal for Norway,
Austria and Finland and of the need to send a signal quickly to operators in
those countries on the subject, the Commission calls on the Council to act
on this proposal in the very near future.
                                      3
 ---pagebreak---                                    Proposal
                                     for a
                              COUNCIL REGULATION
        on aid which Norway, Austria and Finland may grant on stocks
                 held by private operators on 1 January 1995
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to Treaty establishing the European Community,
Having regard to the Act of Accession of Norway, Austria, Finland and
Sweden, and in particular Article 150(3) thereof,
Having regard to the proposal from the Commission,
 ---pagebreak--- Whereas, in accordance with Article 150 of the Act of Accession, the
Council, acting by a qualified majority on a proposal from the Commission,
may make provision, under certain conditions, for national aid,
corresponding at most to the difference between the price recorded in a new
Member State prior to accession and that resulting from the application of
the Treaty of Accession, to be granted to private operators holding, on
1 January 1995, stocks of basic agricultural products or products processed
therefrom;
Whereas the abovementioned difference in prices may be observed in Norway,
Austria and Finland only, prices in Sweden showing no difference with the
common prices;
Whereas it emerges from the abovementioned provision of the Act of Accession
that, apart from specifying the maximum aid which may be granted and certain
conditions covering the granting thereof, the Community measures
contemplated should simply lay down a general framework within which the
 three new Member States in question, which are to bear the financial
 liability therefor, will have full latitude to make their decisions;
Whereas, in accordance with that provision, the product groups concerned
 cover basic products and products processed therefrom; whereas, while live
 animals should be included, this Regulation should permit aid to be granted
 on any product which may be in storage in the three new Member States
 referred to above on 1 January 1995;
 Whereas the maximum aid on live animals and basic products must be equal to
 the fall in prices recorded in the new Member States as a result of the
 application of the Treaty of Accession; whereas, however, those Member
 States should be permitted to determine the period during which that fall
 has occurred and to make provision, with a view to simplification, for the
 maximum aid to be calculated on the basis of the institutional prices where
 such prices exist or have existed;
                                      tf
 ---pagebreak--- Whereas, in accordance with the general practice of the CAP, the maximum aid
on processed products must be based as far as possible on the level laid
down for the basic products; whereas, however, the difficulty in applying
this method in certain cases (and in particular where the basic product
cannot be stocked or has no substantial impact on the prices of the
processed products) means that the aid is to be calculated in those cases on
the basis of the fall in prices for the processed products themselves and
therefore makes it appropriate to drawn up a list specifying,for the most
important agreicultural sectors, the products on which the maximum aid is to
be   calculated for products derived therefrom; whereas, however, provision
should be made for the aid to be granted on other products too;
Whereas the new Member States should be free to consider as part of the
compensation provided for herein payment of interest at a rate equal at most
to the normal rate on the market in the new Member States in question for
the period between 1 January 1995 and the date of payment of the aid;
Whereas the other conditions to be laid down must prevent any risk of
overcompensation and of receipt in combination with other aid provided for
 in the Act of Accession and should rule out the granting of the aid on
 speculative stocks and products imported into the new Member States prior to
 1 January 1995 where the applicable import charges have not been paid;
 Whereas, subject to the abovementioned limits and conditions, the new Member
 States should be allowed to lay down the detailed rules for the application
 of the arrangements, providing that the latter are submitted to the
 Commission under a procedure reconciling the interests of suitable
 monitoring at Community level with the need for swift action in this area by
 the new Member States,
                                       6
 ---pagebreak--- HAé ADOPTED THIS REGULATION:
                                   Article 1
In order to offset, in full or in part, any fall in prices recorded as a
result of the application of the Treaty of Accession, Norway, Austria and
Finland may grant aid to private operators (producers, processors and
traders) who, at 00.00 hours on 1 January 1995, own:
    (a)  live animals covered by Chapter I of the CCT;
    (b)  stocks of agricultural products listed in Annex I;
    (c)  stocks of products derived from the products referred to in (b);
    (d)  stocks of products listed in Annex II to the EC Treaty other than
         those referred to in (a) , (b) or (c) and products processed
         therefrom.
                                   Article 2
 1. The aid provided for in Article 1 may not exceed:
    (a)  in the case of the products referred to in Article 1 ( a ) , (b) and
          (di, the fall in prices recorded in Norway, Austria or Finland,
         at the wholesale stage or any other stage constituting the first
         stage of marketing of the product in question, and
          for a period:
               considered by those States as representative of the effects of
               the application of the Treaty of Accession on prices, and
               not extending beyond the storage life of the product after the
               date of accession;
                                       *
 ---pagebreak---    (b>  in the case of products referred to in Article 1(c) and those
        processed from the products listed in Annex II to the EC Treaty as
        referred to in Article ltd), the maximum laid down in (a) tor t hi-
        products from which they are derived, multiplied by:
     -  a coefficient reflecting value in the case of meat;
        a processing coefficient reflecting the impact of the products from
        which they are derived in the case of other product groups.
The coefficients provided for in (b) shall be determined by the Member State
in question.                                                            •
                                                                             it
                                                                             t i:
                                                                              » j:
                                      S
 ---pagebreak--- 2. The maximum provided for in paragraph 1(a) may be replaced:
   in the case of products subject, prior to accession, in the Community and
   in Norway, Austria or Finland, to a price support system, by the
   difference between the prices as subsidized in December 1994 in the
   abovementioned Member States and the prices as subsidized by the
   Community in January 1995;
   in the case of products subject, prior to accession, to a price support
   system in Norway, Austria or Finland only, by the difference between the
   prices as subsidized in those Member States in December 1994 and the
   prices applying in those Member States at the marketing stage referred to
   in the first indent of paragraph 1(a) at a time in 1995 which they
   consider representative for the purposes of calculating the fall in
   prices as a result of the application of the Treaty of Accession;
   in the case of products which, prior to accession, were subject to a
   price support system in the Community but not in Norway, Austria or
   Finland, by the difference between the prices recorded in new Member
   States at the marketing stage referred to in the first indent of
   paragraph 1 (a) at a time in 1994 which they consider representative for
   the purposes of calculating the fall in prices as a result of the
   application of the Treaty of Accession and the prices as subsidized in
   the Community in January 1995.
3. The maximums provided for in paragraphs 1 and 2 shall not preclude the
    right of the Member State in question to increase the aid by interest at
   a rate equal at most to the normal rate on the market in that Member
   State for the period between 1 January 1995 and the date of payment.
                                      3
 ---pagebreak---                                  Article 3
1. Products as referred to in Article 9(2) of the EC Treaty which are  on
   the territory of Norway, Austria or Finland on 1 January 1995 shall be
   deemed to be  stocks for the purposes of this Regulation.
   However, products in free circulation on the territory of those Member
   States shall qualify for the aid provided for herein only where import
   thereof took place after the applicable customs duties and charges having
   an equivalent effect were collected.
2. Norway, Austria and Finland shall ensure that the aid provided for in
   Article li
   does not exceed the amount necessary to offset the fall in prices
   recorded as a result of the application of Treaty of Accession;
   is deducted from the aid provided for in Article 138 of the Act of
   Accession where the latter is granted on the same products, as such or
   after processing;
   is not granted on speculative stocks.
                                 .Article 4
1. With a view to the application of this Regulation, Norway, Austria and
   Finland:
    (a) may undertake an inventory of stocks;;
                                      I#-
 ---pagebreak---     (b)  shall record prices as provided for in Article 2(1) (a) on the basis,
         where possible, of quality standards comparable with those provided
         for in Community regulations;
    (c)  shall adopt detailed rules on the granting of the aid provided for
         herein and on verification thereof. Such detailed rules shall
         include in particular suitable measures to prevent the aid being
         granted on speculative stocks.
2. Before 31 March 1995, Norway, Austria and Finland shall notify the
    Commission of the quantities which are likely to qualify for the aid
    provided for herein.
                                   Article 5
1. Norway, Austria and Finland shall forward to the Commission the draft
    measures to introduce the aids provided for herein. At the same time they
    shall specify:
    - the rate of aid contemplated;
    - the factors serving to determine it.
2. The measures provided for in paragraph 1 may not enter into force before
    they are approved by the Commission. The Commission may make such
    approval subject to any condition it considers appropriate with a view to
    achieving the objectives and observing the provisions of this Regulation.
 3. Where, within one month of receipt of the draft measure referred to in
    paragraph 1, the Commission has not expressed any observations with
    regard thereto, those measures may be implemented.
                                       *
 ---pagebreak---                                  Article €
This Regulation snail enter into force on 1 January 1995.
                                                                            i
Tnis Regulation shall be binding in its entirety and directly applicable in
all Ifenber States.
     at Brussels,
                                       For tfee Council
 ---pagebreak---                                ANNEX
   CN code Description
           I. MEAT:
           A. Meat of bovine animals
02011000   Carcases and half-carcases of bovine animals, fresh,
  and      chilled or frozen
02021000
           B. Meat of swine
02031110   Carcases and half-carcases of domestic swine, fresh,
 and       chilled or frozen
02031124
           C. Meat of sheep or goats
02041000   Carcases and half-carcases of lamb, fresh, chilled or
  and      frozen
02043000
02042100   Carcases or half-carcases of sheep, fresh, chilled or
  or       frozen
02044100
02045011   Carcases and half-carcases of goats, fresh, chilled or
  and      frozen
02045051
           D. Poultrymeat
02071015    "70% chickens", fresh, chilled or frozen
  and
02072210
02071031    "80% turkeys", fresh, chilled or frozen
  and
02072210
                                - i\
 ---pagebreak---     CN code            Description
02071055                "70% ducks", fresh, chilled or frozen
   and
02072311
©2 ©71 ©73              **75% geese% fresh* chilled or frozen
   and
                        E~ Reindeer
02081090               Meat of reindeer
                        II. EGGS
04Q7Q<J3Q               Birdsr eggs in shell
                        III- BEEUE Mm MILK PRODUCTS
e x G4Û1                Long-life «ilk and créa»
04021099                Milk in powder
G405QO                  Butter
                        IV. EDIBLE VEGETABLES AND CERTAIN ROOTS AND TUBERS
©7ffl                   Potatoes, fresh or chilled
Q713                    Dried leguminous vegetables, in particular peas and field
                        beans
                        V. EDIBLE FRESH AND PROCESSED FRUIT AND VEGETABLES
 Products listed in Article 1 of Council Regulation (EECÏ n* 1&35/72 of
 18.5.1972 on the common organisation of the markets of fruit and
vegetables^* as last amended by Regulation CECI n* 3669/SK3 ^2*
 Ut ©ffcJ. B o U f t o f 20f.5.ÏS?*2 J » p . 1
  I2Ï O r . ^ n o 3 3 8 o f 3 I . I 2 . 1 S » 3 „ pv 36
                                                      - 1«-
 ---pagebreak--- Products listed in Article 1 of Council Regulation (EEC) No 426/86 of 24
February 1986 on the common organization of the market in products processed
from fruit and vegetables^', as last amended by Commission Regulation (EC)
No 1490/94 ( 4 ) .
                   VI. CEREALS
100110             Durum wheat
100190             Wheat and meslin other than durum wheat
10020000           Rye
100300             Barley
100400             Oats
1005               Maize (corn)
                   VII. OILSEEDS AND OTHER PRODUCTS FALLING WITHIN CHAPTER 12
                   OF THE CCT
120100             Soya beans
120500             Rape or colza seeds
120600             Sunflower seeds
1209               Seeds, fruit and spores, of a kind used for sowing
1210               Hop cones, fresh or dried, whether or not ground, powdered
                   or in the form of pellets; lupulin
12092950           Lupine seed
1213               Cereal straw and husks, unprepared
ex 1214            Swedes, mangolds, fodder roots, hay, clover, sainfoin,
                   forage kale, lupines, vetches and similar forage products
                   VIII.SUGAR
17011110           Raw cane sugar for refining
17011210           Raw beet sugar for refining
17019910           White sugar
                    IX.- WINE
2204^21 ç          Wine of fresh grapes
   and
;2204£&-
 (3)   OJ No L 49, 27.2.1986, p. 1.
 (4)   OJ No L 161, 26.6.1994, p. 13
                                         * •
 ---pagebreak---                                                                       ISSN 0254-1475
                                                               COM(94) 441 final
                                                       DOCUMENTS
EN                                                                          11 «3
                                Catalogue number : CB-CO-94-464-EN-C
                                                              ISBN 92-77-81174-9
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