CELEX: 51988PC0155
Language: en
Date: 1988-03-18
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1336/86 fixing compensation for the definitive discontinuation of milk production (presented by the Commission)

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COM (88) 155
Vol. 1988/0046
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(88 ) 155 final
                                                Brussels , 18 March 1988
                               Proposal for a
                          COUNCIL REGULATION ( EEC )
      amending Regulation ( EEC ) No 1336 / 86 fixing compensation for
            the definitive discontinuation of milk production
                      ( presented by the Commission )
                           .
                                      •** l : J
C0M(88 ) 155 final
 ---pagebreak---                               EXPLANATORY MEMORANDUM
Council Regulation ( EEC ) No 1336/86 has provided for the payment over seven
years of an EAGGF-f Inanced annual compensation of up to 6 ECU/ 100 kg for
producers who voluntarily undertake to discontinue milk production
definitively . Annexes I and II to the Regulation specify , respectively , the
quantitative objectives of this measure and the EAGGF funds available for
the payment of the compensation within each Member State .
Article 2(5 ) of the Regulation provides for certain situations where the
amounts set out In Annex II may not be fully utilised for the payment of
the compensation to the producers who discontinue milk production and
specifies the conditions under which the remaining funds may be utilised by
the Member State concerned :
-   where  the    amounts are   not  fully utilised  because  the quantitative
    objectives set out In Annex I are achieved with the payment of
    compensation of less than 6 ECU / 100 kg , the remaining amounts are to be
    utilised in connection with the measures for the restructuring of milk
    production referred to In Article 3(2 ) and Article 4(1 ) of Council
    Régulation ( EEC ) No 857/84 ;
-   where the amounts are not fully utilised because the payment of a
    compensation of at least 6 ECU/ 100 kg does not permit the quantitative
    objectives to be achieved , the remaining funds are to be utilised to pay
    compensation to producers whose reference quantities are reduced as a
    consequence of the reduction In the level of the guaranteed quantity .
Nevertheless , in a Member State where the payment of at least 6 ECU does
not enable the quantitative objectives to be achieved it may appear
necessary , taking account of the economic and structural situation of milk
production In the Member State concerned , to continue measures for the
restructuring of milk production .
 In order to provide for this situation , Article 2(5 ) of Regulation ( EEC )
No 1336/86 should therefore be amended to permit the Member State concerned
to also use the remaining amounts for the financing of the measures
referred to In Article 3(2 ) and Article 4(1 ) of Regulation ( EEC ) No 857/84
even if the quantitative objectives set out In Annex I to Regulation ( EEC )
No 1336/ 86 have not been achieved despite the payment of a compensation of
at  least 6 ECU .
 ---pagebreak---                                               3
                                     Proposal for a
                           COUNCIL REGULATION ( EEC )
          amending Regulation ( EEC ) No 1336 / 86 fixing compensation for the
                     definitive discontinuation of milk production
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No 804 / 68 of 27 June 1968 on the
common organization of the market in milk and milk products ( 1 ), as last
amended by Regulation ( EEC ) No 3904 / 87 ( 2 ), and in particular Article 5c(6 )
thereof ,
Having regard to the proposal from the Commission ,
Whereas Article 2(5 ) of Council Regulation ( EEC ) No 1336 / 86 ( 3 ), as
amended by Regulation ( EEC ) No 776 / 87 ( 4 ), specifies that where compensation
of at least 6 ECU paid to all those eligible for discontinuing milk production
does not enable the required reductions to be achieved , unutilized Community
funds are to be paid to producers whose reference quantities are reduced ;
whereas account should be taken of cases where ,
having regard to the economic and structural situation of milk production in a
Member State , it may also be necessary to allocate funds to financing
the restructuring measures provided for in the first indent of the second
subparagraph of Article 2(5 ) of the said Regulation ,
HAS ADOPTED THIS REGULATION :
( 1 ) OJ NO L 148 , 28 . 6.1968 ,   P·  13 .
( 2 ) OJ NO L 370 , 30.12.1987 ,    P·   1 .
( 3 ) OJ NO L 119 , 8 . 5.1986 ,    P-  21 .
( 4 ) OJ NO L 78 , 20 . 3.1987 ,    P·   8.
 ---pagebreak---                                             ч
                                       Article 1
The following subparagraph is hereby added to
Article 2(5 ) of Regulation ( EEC ) No 1336 / 86 :
    "However , in the case referred to in the second indent of the first
    subparagraph , the portion of the amounts available may also be utilized
    under the conditions laid down in the first indent of the second
    subparagraph , if it proves necessary in view of the economic and
    structural situation of milk production in a Member State.”
                                       Article 2
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,                                 For the Council
 ---pagebreak---                   FINANCIAL             STATEMENT
                                                                            L__:_i
                                                                              D.t . : 26.2.1988
1 . BUDGET HEADING : 2066                                                     APPROBATIONS i ( Rectifying letter
                                                                         no 2 / 88 to 1988 APB ) 259 Mio ECU
2. TITLE S        Proposal for a Council Regulation amending Regulation ( EEC ) No 1336 / 86
                  fixing compensation for the definitive discontinuation of milk production .
j . LEGAL BASIS ;         Article 5c(6 ) of Regulation ( EEC ) No 804 / 68
A. AIMS OF PROJECT i To permit Member States , even where the quanti tative objectives for
 discontinuation laid down in Annex I of Regulation ( EEC ) No ‘ 336 / 86 have not been
 achieved , to use , subject to certain conditions , the funds re‘maining in Annex II
 of the aforesaid Regulation for national restructuring measur• es .
 5 . FINANCIAL IMPLICATIONS                 PERIOD OF 12 MONTHS CURRENT FINANCIAL TEAR
                                                                       i  88      i      FOLLOWING ^ AANCAL TEAR
 5.0 EXPENDITURE
       - CHARGED TO THE EC BUDGET
         ( RE FUNDS / INTERVENT IONS )              p.m .                p.m .                     p · ?n ·
       - NATIONAL ADMINISTRATION
       - OTHER
 5.1 RECEIPTS
       - OWN RESOURCES OF THE EC
         ( LEVIES / CUSTOMS DUTIES )
       - NATIONAL
 5.0.1 ESTIMATED EXPENDITURE
 5.1.1 ESTIMATED RECEIPTS
                                                                               •               '                    1
  5.2 METHOD OF CALCULATION
                                                                               -!
                                                                                                                    »
                                                                                                                    i
  6.0 CAN THE PROJECT BE FINANCED FROM   APPROBATIONS ENTERED IN THE RELEVANT CHAPTER Of THE CURRENT BUDGET ?       j
                                                                                                              TES/0 j
   6 ?
   6.3 WILL FUTURE BUDGET APPROBATIONS BE NECESSARY ?
                                                                                                              Øt'NO
   OBSERVATIONS :
       It is already envisaged that the maximum amounts specified for the definitive
       discontinuation of milk production will be wholly utilised . The arrangement
       introduced by this Regulation will not change this forecast .