CELEX: 51988PC0730(01)
Language: en
Date: 1988-11-30
Title: DRAFT JOINT DECISION OF THE COUNCIL AND THE COMMISSION ESTABLISHING A PROGRAMME OF OPTIONS SPECIFIC TO THE REMOTE AND INSULAR NATURE OF THE FRENCH OVERSEAS DEPARTMENTS ( POSEIDOM )

No C 53/12                               Official Journal of the European Communities                                   2. 3. 89
              Draft Joint Decision of the Council and the Commission of the European Communities setting
              up a programme of options specific to the remote and insular nature of the overseas
                                                     departments (Poseidom)
                                                       COM(88)    730 final
                                       (Submitted by the Commission on 1 December 1989)
                                                          (89/C 53/10)
THE COUNCIL AND THE COMMISSION                                      whereas     such    support    should    be    forthcoming
OF THE EUROPEAN COMMUNITIES,                                        immediately in order to facilitate the integration of their
                                                                    economies in the 1993 internal market;
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 227 (2)               Whereas the O D form an integral part of the
thereof,                                                            Community pursuant to Article 227 (2) of the Treaty, as
                                                                    interpreted by decisions of the Court of Justice, which
                                                                    has ruled that the provisions of the Treaty and secondary
Having regard       to   the    opinion    of  the   European       legislation apply automatically to the O D , it being
Parliament,                                                         understood that it is always possible to adopt specific
                                                                    measures to assist them to the extent that, and for as
                                                                    long as, there remains an objective need for such
Having regard to the opinion of the Economic and
                                                                    measures with a view to the 'economic and social devel-
Social Committee,
                                                                    opment of these areas';
Whereas the French overseas departments, hereinafter
referred to as the ' O D ' , suffer from a serious structural       Whereas, however, while forming an integral part of the
lack of development aggravated by a number of                       Community, the O D are located in developing regions
constraints (remoteness, isolation, small size, difficult           which lie in tropical latitudes; whereas any operation
terrain and climate, and economic dependence on a                   concerning the O D must therefore be based on a clear
small number of products) whose unchanging nature and               understanding of this twofold dimension and be aimed
combined impact have serious adverse effects on their               both at the objective of completing the internal market
economic and social development; whereas these                      and at that of recognizing the regional reality; whereas
constraints differentiate sharply the social and economic           the objective of completing the internal market should be
context of the O D from that of the other Community                 reflected in the maintenance, modification or abolition of
regions;                                                            rules in force in the O D in line with those which will
                                                                    become the norm in the Community as a whole, with a
                                                                    view to enabling the departments to catch up with the
Whereas Article 227 (2) of the Treaty stipulates that the           average Community level;
institutions of the Community will, within the framework
of the procedures provided for in this Treaty, take care
that the economic and social development of these areas             Whereas attainment of these objectives will require the
is made possible;                                                   adjustment of general Community rules in so far as they
                                                                    do not take sufficiently into account the specific realities
                                                                    of the O D ; whereas a coordinated approach should
Whereas the Community authorities have repeatedly                   therefore be adopted in the framework of a compre-
shown their solidarity with the O D , whether through               hensive programme of operations;
assistance from Community funds or by taking their
specific nature into account in applying Community
rules; whereas Parliament stated in its resolution of 11            Whereas the Council and the Commission must act
May 1987 on the regional problems of the O D (') that it            together in adopting such a programme by virtue of their
was convinced 'that the serious situation which exists in           respective fields of competence; whereas implementation
the French overseas departments justifies and makes it              of the programme would require the adoption of legal
imperative to pursue economic and social development in             acts, either by the Council or by the Commission as the
various sectors' and called on the Community authorities            case may be, some of which could apply solely to the
to implement a broad range of highly diverse operations;            O D while others would be of only incidental concern to
                                                                    them in texts of general scope;
Whereas the special constraints on the O D make it
necessary to step up Community support in order to                  Whereas in order to be effective such a programme must
promote their economic and social development;                      be carried out over a period of years, which could
                                                                    extend in the case of certain components beyond 31
                                                                    December 1992, given the permanent constraints which
(') EP 14201, doc. A2-250/86.                                       are a particular feature of the O D ;
 ---pagebreak---  2. 3. 89                              Official Journal of the European Communities                             No C 53/13
Whereas the economic effects              of any special          market until 31 December 1992; whereas between now
 arrangements must remain strictly limited to the territory       and then it will be necessary to study the implications of
 of the O D without affecting directly the functioning of         the new Community definition, the abandonment of the
the common market;                                                allocation among Member States of the quota granted to
                                                                 the ACP States, and the abolition of the special tax
Whereas some of the tropical products originating in the          arrangements after 1 January 1993, and to draw the
O D are not yet covered by common measures, which                 appropriate conclusions;
 means that the aims set out in Article 39 of the Treaty
cannot be attained in respect of the producers
concerned; whereas it will therefore be necessary to             Whereas in this context also the O D have their own tax
introduce 'adjustments' under certain common organ-               arrangements, particularly in the form of dock dues,
ization arrangements or to make provision for ad hoc             which encourage self-reliant management by local auth-
solutions; whereas it will be necessary in particular to         orities in their own development by providing them with
adopt common measures for the banana market that take            own resources and help support local production ac-
account of the economic and social importance of this            tivities; whereas completion of the internal market will
product in certain of the O D ;                                  require that this system be adapted in order to make it
                                                                 compatible with Community law while fostering its
                                                                 function as an effective instrument for development in
Whereas the exceptional geographical situation of the            the regions concerned;
O D in relation to sources of supply for products used as
inputs in certain food sectors, which are essential for
current consumption, entail costs that are a severe
handicap for those sectors; whereas more of their                Whereas in the context of rationalizing the aims of the
requirements in agricultural and food products should be         Structural Funds, the Brussels European Council of 12
met from local production, particularly in the case of           and 13 February 1988 laid down five priority objectives,
livestock farming, where inputs account for a substantial        including promotion of the development and structural
proportion of the cost of the end product; whereas this          adjustment of the less-developed regions; whereas it
handicap should accordingly be mitigated by appropriate          explicitly and definitively included the O D in the list of
measures;                                                        regions covered by this objective and stated that contri-
                                                                 butions to all the less-developed regions from the
                                                                 Structural Funds would be doubled in real terms between
Whereas the O D are suppliers on the Community                    1987 and 1992; whereas in consequence assistance for
market in Europe of tropical products that are similar to        the O D will be provided from the Structural Funds, the
and in competition with those produced in part at lower          European Investment Bank and the other financial
cost in neighbouring developing countries which enjoy            instruments on the basis of the corresponding
preferential terms of access to the Community market, so         Community support framework, in a coordinated and
that the principle of Community preference is difficult to       concentrated manner that will be complementary to
apply in practice to products obtained from the O D ;            national and local initiatives, pursuant to Council Regu-
whereas for the O D the neighbouring countries also              lation (EEC) No 2052/88 ( 2 );
represent a potential outlet for their tropical products, as
the important tourist industry in the region is generally
supplied with products from other sources at lower cost
                                                                 Whereas the O D are surrounded by States and territories
and greater regional cooperation could provide the O D
                                                                 with which the Community maintains relations of a
with a means of making better use of this outlet; whereas
                                                                 varied nature, which take the form of cooperation
this handicap too should be mitigated by means of
                                                                 policies that are relatively uncoordinated and are
appropriate measures;
                                                                 conducted alongside each other; whereas, however, the
                                                                 development of the different constituents of a given
Whereas numerous national rules specific to the O D              geographical area, each of which has similar constraints
have been adopted, many of them being of long                    and characteristics, requires the implementation of
standing, in order to promote their economic and social          regional projects common to the various constituents,
development; whereas the drive to complete the internal          irrespective of their status in relation to Community law,
market requires that a decision be taken before 31               as this makes it possible to achieve economies of scale
December 1992 on maintaining, modifying or abolishing            and strengthens regional cooperation among the partners
these rules in accordance with the general principles of         concerned;
the Treaty, while taking into account the special
constraints affecting the regions concerned;
                                                                 Whereas, furthermore, these neighbouring entities are
Whereas in this context traditional rum is a product of          traditionally faced with similar problems despite their
prime economic and social importance in the O D ;                differing legal status; whereas regional cooperation that
whereas Council Decision 88/245/EEC (') authorized               is geared to local realities involves more direct dialogue
France, notwithstanding Article 95 of the Treaty, to             between the parties concerned; whereas it is therefore
maintain special tax arrangements on the French internal         appropriate to foster regional consultation procedures, in
(') OJ No L 106, 27. 4. 1988, p. 33.                             (') OJ No L 185, 15. 7. 1988, p. 9.
 ---pagebreak--- No C 53/14                             Official Journal of the European Communities                                 2. 3. 89
close cooperation with the Member States concerned in                                       TITLE I
the case of regions or territories that are the responsi-
bility of Member States,                                                 Application of common policies in the O D
HAVE DECIDED AS FOLLOWS:                                                                    Article 4
                                                                 Community measures already adopted for the O D will
                           Article 1                             be maintained, extended or adapted in accordance with
                                                                 this Decision in order to provide a better response to the
1.     A multiannual action programme for the French             specific characteristics of the O D .
overseas departments, known as 'Poseidom' (programme
of options specific to the remote and insular nature of
the overseas departments) is hereby established. It will
deal     with    legislative    measures    and     financial                               Article 5
commitments.
                                                                 Directives or other measures to be adopted in connection
                                                                 with the internal market, social matters, technological
2.     Poseidom shall be based on the twofold principle          research and development and environmental protection
that the O D form an integral part of the Community              will have to take into account the special character of the
and that the regional reality, characterized by the special      OD.
features and constraints specific to the regions concerned
as distinct from the Community as a whole, must be
recognized.
                                                                                            Article 6
                                                                  1.   Agricultural products not covered by common
                           Article 2                             measures will qualify for specific measures which may
                                                                 take the form of assistance for production, processing or
1.     Implementation of Poseidom shall in principle be
                                                                 marketing.
carried out from 1 July 1989 to 31 December 1992,
through the adoption either by the Council or by the
Commission, as appropriate, of the necessary legal acts.
                                                                 The Council or the Commission, as appropriate, will
                                                                 adopt the first measures necessary to this end within one
2.     Given the permanent and specific constraints on the       year of the date this Decision takes effect.
O D , certain measures under the programme may
continue to apply after 31 December 1992 so as to make
possible the economic and social development of these            2.    The Council, acting on a proposal from the
areas.                                                           Commission,       will    adopt      Community    measures
                                                                 concerning the banana market which take account of
                                                                 recent production trends in the Member States and of
                           Article 3                             the interests of the productive areas of the Community,
                                                                 and also of the interests of countries in respect of which
Poseidom shall help attain the general aims of the Treaty
                                                                  the Community has given specific undertakings.
and Annex VII to the third Lome Convention by contri-
buting to the achievement of three specific objectives:
                                                                  3.   In the case of rum, the Commission will examine
(a) making possible the realistic integration of the O D
                                                                  the economic and social implications of the new
     into the Community by establishing an appropriate
                                                                  Community definition, the abandonment of the allo-
     framework for the application of common policies in
                                                                 cation among Member States of the quota granted to the
     those departments;
                                                                 ACP States, and also the abolition of the special tax
                                                                 arrangements, taking into account the interests of
(b) helping the O D catch up economically, with a view            Community producers and producers in third countries
     to the completion of the internal market by 31              in respect of which the Community has given specific
     December 1992, through coordinated and concen-              undertakings.
     trated action involving the Structural Funds, the
     European Investment Bank and other Community
     instruments; measures adopted by national or
     regional authorities must be integrated with such                                      Article 7
     actions;                                                     1.   Within six months from the date this Decision takes
                                                                 effect the Council or the Commission, as appropriate,
(c) promoting regional cooperation in the developing             will adopt measures intended to compensate for the
     areas where the O D are situated, notably through           exceptional geographical situation of the O D in relation
     the provision of appropriate instruments for partici-       to the continental territory of the Community, taking
     pation in joint regional projects or programmes.             into account the aims of regional cooperation.
 ---pagebreak--- 2. 3. 89                               Official Journal of the European Communities                                No C 53/15
2.     These measures will be aimed, first of all, at facili-     (a) after compiling the list of measures referred to in
tating the supply to the O D of inputs for local livestock            paragraph 1, shall examine them in the light of that
farming, To that end, grain intended for livestock                    provision and shall adopt measures within the scope
production will be exempt from the levy applicable to                 of its powers or, where appropriate, shall propose to
products originating in developing countries with the                 the Council any measures that prove necessary,
possibility of extending this provision to include other              pursuant to Articles 92 to 94 of the EEC Treaty,
third countries in cases of supply difficulties duly                  taking into account the specific position of the O D
recognized by the Commission, when imported direct                    and the impact of the Community measures provided
into the O D , within the limits of local market                      for in the programme or adopted in implementation
requirements and for the purposes of those requirements,              of it;
and on condition that the products concerned do not
give rise to re-exports.
                                                                  (b) shall continue, even after 31 December 1992, to
                                                                      examine at regular intervals the aid given with a view
An arrangement of this kind could also be applied on                  to making any changes required by developments in
identical terms in respect of products imported direct for            the situation.
human comsumption, originating in the ACP States; it
could be extended to cover other non-ACP developing
country sources should the products concerned not be                                        Article 9
available in neighbouring ACP States.
                                                                 The system of charges applied in the O D under the
                                                                  heading of dock dues will be converted in accordance
3.     In addition, there will be measures to assist the         with Council Decision . . . / . . ./EEC (').
production of certain agricultural products in the O D
(fruit, vegetables and flowers), which will be adopted on
the basis of objective criteria to be established in the
context of a product-by-product analysis to be carried                                      TITLE II
out by the Commission. These measures may take the
form of:                                                         Action involving the Structural Funds, the European
                                                                      Investment Bank and other financial instruments
(a) a Community contribution to the development of
     tropical products for which there are outlets on local                                 Article 10
     markets, in neighbouring tourist areas, and also in
     the rest of the Community;                                   1.    The aims and procedures set out in Regulation
                                                                  (EEC) No 2052/88 will apply, as from the entry into
(b) assistance for other lines of production, taking into         force of the Regulation and on the terms laid down
     account the concept of an effective economic contri-         therein, to assistance to the O D from the structural
     bution to the development of the O D and also the            Funds, the European Investment Bank and other existing
     danger of potential injury to production elsewhere in        financial instruments with a view to promoting the devel-
     the Community;                                               opment and structural adjustment of the O D .
(c) trade promotion campaigns between O D , overseas              2.    Structural aid shall take account of the additional
     countries and territories and nearby ACP States, in          handicaps of remoteness and insularity borne by the O D .
     particular by participation by the Structural Funds.
                                                                  3.    Pursuant to Article 8 of Regulation (EEC) No
                           Article 8                              2052/88, the French authorites and the Commission shall
                                                                  ensure that measures to assist the O D that are covered
 1.    National measures which have specific effects              by Community support frameworks are carried out
favouring the O D will be listed systematically in order          primarily through the implementation of operational
that a decision may be taken before 31 December 1992              programmes.
on whether to maintain, modify or abolish them in line
with the general principles of the Treaty, while taking
into account the special constraints on the O D .                 4.    Within the scope of its powers and in accordance
                                                                  with the eligibility rules of the Structural Funds, the
                                                                  Commission shall endeavour to speed up the grant of
2.     The Council shall authorize France to grant, under
                                                                  assistance in cases where aid from the Funds is needed to
the production arrangements, national aid for sugar cane
                                                                  repair demage caused by natural disasters endemic to the
 and cane sugar, as has been the practice since the entry
                                                                  tropical regions concerned, notably hurricanes, where
 into force of the common organization of the sugar               such repair is not covered by emergency aid.
 market.
 3.    "With regard to aid within the meaning of Article 92
 of the EEC Treaty, the Commission:                               (') Draft Council Decision published in C 39, 16. 2. 1989, p. 6.
 ---pagebreak--- No C 53/16                           Official Journal of the European Communities                                 2. 3. 89
                         TITLE III                                 Lome Convention and in Articles 54 to 66 of Council
                                                                   Decision 86/283/EEC ('),
                   Regional cooperation
                                                               — the procedural rules for financing these projects or
                         Article 11                                programmes shall be those specific to each of the
                                                                   Community Funds concerned.
 1.    Regional consultations between the different States,
territories and departments in the two geographical areas      The Commission will ensure coordination of the
where the O D are situated shall be encouraged, in             financing timetable and also of the subsequent
conjunction with the authorities of the relevant Member        implementation of the projects or programmes.
States in the case of O D and territories, in the interests
of better regional cooperation. Regional             trade
cooperation could take the form, in due course, of                                     TITLE IV
regional trade agreements.
                                                                                    Final provisions
2.    Within the framework of its management powers
with regard to the Structural Funds, and in accordance                                 Article 12
with the eligibility rules of the said Funds, the
Commission will ensure that the O D receive assistance         This Decision shall take effect on 1 July 1989.
from the Structural Funds in the context of regional
projects or programmes common to O D , O C T and ACP                                   Article 13
States in the same geographical region, provided and to        This Decision shall be published in the Official Journal of
the extent that:                                               the European Communities.
—- these joint regional projects or programmes shall be
    those defined, as regards their aims, scope and
    procedural rules, in Articles 101 to 113 of the third      O OJ No L 175, 1. 7. 1986, p. 1.