CELEX: 51988PC0529
Language: en
Date: 1988-10-17
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 805/68 on the common organization of the market in beef and veal and repealing Regulation (EEC) No 1302/73#Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1357/80 introducing a system of premiums for maintaining suckler cows and repealing Regulation (EEC) No 1199/82#Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 468/87 laying down general rules applying to the special premium for beef producers#(presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 529
Vol. 1988/0185
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la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in diesem Akt in
Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
sie auf Grundlage von Artikel 26(3) und 59(2) der Entscheidung der Kommission (EU, Euratom)
2015/444 vom      13.   März 2015     über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(88 ) 529 final
                                                  Brussels , 4 November 1988
                                 Proposal for a
                          COUNCIL REGULATION ( EEC )
 amending Regulation ( EEC ) No 805 /68 on the common organization of the
    market in beef and veal and repealing Regulation ( EEC ) No 1302 / 73
                                 Proposal for a
                          COUNCIL REGULATION ( EEC )
  amending Regulation ( EEC ) No 1357 / 80 introducing a system of premiums
 for maintaining suckler cows and repealing Regulation ( EEC ) No 1199 /82
                                 Proposal for a
                          COUNCIL REGULATION ( EEC )
 amending Regulation ( EEC ) No 468 /87 laying down general rules applying
                 to the special premium for beef producers
                              A
                              causai
                      (presented
                       c(presented ,,by
                                     by \the
                                         thé Commission)
                                             Commission )
 ---pagebreak---                                                                         < V]
                 REFORM OF THE BEEF / VEAL MARKET ORGANIZATION
                              FROM 1 JANUARY 1989
                            EXPLANATORY MEMORANDUM
For the last ten years , production of beef / veal has shown a surplus over
consumption which Is of a structural character . There a-re also " production
cycles ", the last of these having " peaked " in 1984 . This cyclical effect
has since been distorted by the large number of cows slaughtered following
the introduction of the milk quotas , Involving a quantity of meat of some
150 to 300 000 tonnes per year . Despite very heavy exports exceeding one
million tonnes in 1986 , the result has been massive sales to the agencies ,
of about 500 000 tonnes per year , but buying-ln , even on this formidable
scale , has failed to hold market prices at the right level .
Consequently , the Commission laid before the Council at the end of 1985 a
memorandum on the subject , as a result of which , at the end of 1986 , the
Council agreed to implement a major reform of the market organization for a
tldeover period running out on 31 December 1988 . This review :
    made sales to the agencies less attractive , notably through a reduction
     in the buying-in price below the intervention price ,
     introduced a new premium directly paid to producers of young male
    bovine animais .
Experience during this period has shown that intervention , even at lower
prices , is still a costly and inefficient instrument lacking the power to
affect prices to any substantial extent .
By the end of 1988 into early 1989 , the additional slaughtering of cows
will be phasing down and better equilibrium between production and
consumption Is foreseeable In the short term . However , substitute
production Is now building up ( heifers , suckler cows ). Also , the production
of bull calves is still Increasing In some Community regions . As a result ,
In the medium term , production could once again reach levels well beyond
consumpt Ion .
 ---pagebreak---                                        2
 In the circumstances , the approach adopted In the Council 's decision of
December 1986 must be maintained beyond the end of the transitional period ;
the Commlslson Is therefore proposing , as arrangements to be Implemented
from 31 December 1988 onwards :
-   measures to cut back sales to the agencies and make buylng-ln more
    effect l ve ,
    improvements in current Community aids paid directly to farmers .
i .     Buy Ina - l.Q
(a)      Introduct Ion
In recent years , mainly because of declining market prices contrasting with
high buying-ln prices , public Intervention has gradually lost Its original
function as a safety net and has become a popular outlet In Its own right .
Production has thus been organized less and less in terms of the laws of
the market , notably with an Increase In stock-breeding ( some of It " off -
land "), and large and mounting quantities of beef have been sent to the
agencies . The underlying trend has been strengthened in recent years by the
very heavy slaughterings forced upon the farmers by the Introduction of the
milk quotas . Declining feed prices have also facilitated increased
product ion .
As a result , quantities bought In , well short of 300 000 tonnes per year
until 1982 , have since mounted steadily , running , between 1983 and 1985 , at
about 450 000 tonnes per year , and breaking through the 500 000 tonnes
threshold In 1986 ( 578 000 tonnes ) and In 1987 ( 537 000 tonnes ), l.e . more
than 10 000 tonnes per week .
Despite record buying in , market prices are still flagging , even for the
classes of product bought In ; heavy expenditure on buying In at high
intervention prices and disposals from stocks at rock-bottom prices have
thus entirely failed to support producers' Incomes , while over three years
- 1983 to 1986 - the budget appropriation for this market organization has
had to be doubled .
                                                                                3
 ---pagebreak---                                         3
(b)      The tideover arrangements
 In December 1986 , this situation prompted the Council to approve a wp.lver
to the provisions of the basic regulation ( Regulation ( EEC ) No 805 / 68 ) for
the period running from 6 April 1987 to 31 December 1988 , decreasing
appreciably the guaranteed prices with a view to cutting back on buying-ln :
 It had been felt that , in view of the Impact on the beef / veal market of the
new arrangements for milk , a temporary scheme offered a better approach
than a permanent alteration In the beef / veal market organization , though
the Commission made It clear that it had not altered Its views as regards
the long-term reform of the organization .
Despite lower buying-in prices , cut by about 15% , the temporary scheme has
failed to curb sales to the agencies , witness the figures for 1987 - close
to the 1986 record . The exceptional opportunities for disposal at the time
were not again available last year , and the large quantities bought In ,
running well ahead of sales , meant a disturbing further build-up In stocks ,
which rose by a third In 1987 ( 776 000 tonnes as at 31 December 1987 ,
compared with 570 000 tonnes as at 1 January 1987 ).
More recently , despite the earlier switch - at the end of December 1987 -
from buying In of hindquarters to buying In of forequarters , In order to
curtail offers to agencies , buylng-ln was once again running at about
10 000 tonnes per week from the second quarter of 1988 , while the
quotations entailed by the high prices for female animals moved steadily
upwards from early In that year and the market is no longer at any great
distance from restored equilibrium . The minor changes made since then In
procedures for calculating the buying prices from 1988 / 89 onwards , namely
the suspension , in certain market price conditions , of the two clauses
designed to Increase the buying-in prices , have had very little actual
impact on quantities bought in . As a result , beef bought In In 1988 was , by
the end of August , close to 300 000 tonnes ( 1 ), and it must be expected
that sales to the agencies will total a figure very close to 500 000 tonnes
for the full year .
( 1 ) At that date , unsold stocks were estimated at 700 000 tonnes .
                                                                                 4
 ---pagebreak---                                             4
(c)      The reform proposed
Given the exorbitant cost of this scheme , Its doubtful effectiveness , and
the need to comply with budgetary discipline , the open-ended arrangements
for buying In beef cannot now be continued , at a time when expenditure has
been brought under control through stabilizing mechanisms for all other
product groups . Also , the reform must eliminate the two-tiered market , I .e
a situation In which Intervention is an outlet In Its own right , operating
outside the laws of the market , and ensure that Intervention Is once again
only a safety net ; the agencies should buy In only what Is needed to
support a depressed quality or depressed qualities , when and where needed .
Policy on prices must therefore go hand in hand with an arrangement setting
a ceiling on quantities bought in . This objective could be achieved by the
introduction of quotas by Member States ; this would lead to a
redistribution of the quantities bought in , to be negotiated politically on
the basis of quantities bought in during previous years and Irrespective of
any market management considerations properly so-called . The Commission
must oppose any such approach , which would be tantamount to a
" renat Iona I I zat Ion " of policy on beef / veal , but it does feel that there Is
a case for the introduction of buylng-ln arrangements which would not be
permanent and which , within overall quantities , would enable the agencies
to proceed from time to time - perhaps on the basis of a seasonal I zed
frequency - to buying-in In one or more Member States selected on the basis
of the market situations in those States , at prices determined by tender
arrangements , Just as butter is now bought In .
Under the present arrangements :
    buylng-ln is open whenever the Community market price falls short of 91%
    of the Intervention price for any of the eligible qualities ; buylng-ln
    is authorized only In the Member States , and in respect of qualities ,
    for which the market price falls short of 87% of the Intervention price ;
 ---pagebreak---                                        6
-  the buylng-ln price by quality matches average market prices In the
   Member States In which buylng-ln Is authorized ; this price may be
    Increased by 2.5% of the Intervention price If It Is between 82 and 78%
   of the Intervention price ; below 78% , the buylng-ln price may be
    increased by a margin up to 4% of the Intervention price .
As regards activation of buylng-ln by tender , it Is proposed - In view of
experience gained and price levels In the last two years - that the
activation thresholds be reduced respectively to 88 and 84% . The goal of
reducing quantities bought In entails , clearly , a reduction In present
thresholds . Also , the rules applicable as regards suspension and resumption
of buying-in must include the right to suspend tender procedures where such
buying-in Is not appropriate .
In order to ensure balanced operation of these arrangements In the
Community , It should be possible to differentiate , by Member State , the
buying-in prices and the qualities accepted by the agencies , on the basis
of market prices recorded . Also , the specifications to be determined must
allow equal access to tender procedures for all those Interested . A further
point Is that the implementing procedures must Include clauses designed to
prevent market prices spiralling down , as they might If unduly low tenders
were accepted .
In quantitative terms , beef bought In must not exceed 200 000 tonnes per
year ; buying-in may fluctuate during the year , given the special
requirements during the autumn months usually requiring fuller support for
prices . For this purpose , the private storage facility will always be
available , as well as public buying in , for market support purposes . Also ,
where an abnormal situation develops on the market , ths Commission should
have freedom to buy In extra quantities .
At the present time , as Intervention Is permanent , In order to endeavour to
control quantities offered to the agencies , the choice of products bought
In is very limited , being confined to fore - or hindquarters , and this
raises problems in respect of the marketing of that quarter not bought in .
One of the advantages of the reform will be that control of the quantity at
200 000 tonnes as a maximum will allow of buylng-ln of half-carcases .
 ---pagebreak---          The various premium schemes
At the present time , there are four different premium schemes for
beef / vea I :
(a)      the calf premium , paid only In Italy , Ireland and Northern Ireland ;
(b)      the slaughter premium for certain adult beef cattle , often called
         the " variable " premium , paid only In the United Kingdom ;
(c)      the suckler cow premium , paid for the maintenance of suckler cow
         herds , operated in all the Member States ;
(d)      the special premium for beef / veal producers , paid only In respect of
         adult male cattle In all the Member States except the United Kingdom
         and Italy .
The premium schemes at ( a ), ( b ) and ( d ) run out on 31 December 1988 .
ad . a   The calf premium was first     Introduced   In 1973 to curb the decline   In
         cattle numbers In Italy . It was then     renewed annually and made
         available In Greece as well ( until 5     April 1987 ), Ireland and
         Northern Ireland . The premium Is now     9 ECU per calf , In addition , a
         supplementary national premium up to      23 ECU per calf Is allowed in
          Italy . Since Its Introduction , the market situation has changed
         significantly ; also , this premium applies as well to the calves of
         dairy herds , constituting an incentive which Is incompatible with
         the policy underlying the milk quotas . In view of the changes which
         the Commission Is proposing for the special premium and for the
         suckler cow premium ,   It is proposed that the calf premium should be
         d I scont I nued ;
ad . b   the variable premium has been operated in the United Kingdom since
         1974 . The amount is a maximum of 65 ECU per adult animal , but only
         40% of the amount paid can be claimed back from the EAGGF . The
         premium , paid on marketing , must be recovered     ( clawback ) on exports
         to non-member countries or when animals , meat      or preparations
         thereof are consigned to other Member States .      In its report on the
         operation of the premium ( C0M(85 ) 127 final ),    the Commission drew
 ---pagebreak---         attention to the problems generated by the co-existence of two
        different schemes In the Community , the resulting complications , and
        the differing support granted farmers In one Member State In
        comparison with those In other Member States . Another point Is that
        once the single market Is completed , clawback will be Impossible .
        For these reasons , and In view also of the changes and improvements
        proposed for the other premium schemes , the Commission is proposing
        that the variable slaughter premium should not be renewed ;
ad . c  the sackler cow premium was introduced in 1980 ( Council Regulation
        ( EEC ) No . 1357 / 80 ). The premium , often combined with other Community
        aids with a view to Improving structures , makes a significant
        contribution to the incomes of the farmers concerned ;       it supports
        production of high quality beef / veal , often In the mountain and hill
        and / or less-favoured areas of the Community , through the relatively
        extensive use of permanent grazing land .
The premium has the following features :
-   the producer must keep the eligible animals for at least six months on
    his farm ,
               the cows must belong to a " beef " breed or derive from crossing
               with such a breed ,
               the beneficiary may not deliver milk or milk products ,
               the beneficiary must be a " main occupation " farmer ,
               from 6 April 1987 to 31 December 1988 , the premium was
                Increased from 15 to 25 ECU per cow ,
                In 1937 / B8 , the premium was granted In respect of more than six
               million cows ; expenditure will come to about 175 million ECU
               for 1988 ;
    The Commission takes the view that the suckler cow premium
 ---pagebreak---         in 1 1 o present form is an effective Instrument for the support of
       farmers specializing In quality beef and that the premium scheme
       should be retained In future years . For the period beginning on
       1 January 1989 , It proposes a stronger Incentive to retention of
       suckler cow herds by an increase In the premium to 40 ECU per cow
The current rules ( Article 3(2 ) of Regulation ( EEC ) No 1357 / 80 ) authorize
the Member States to pay an additional premium of 25 ECU per cow . The
Commission has no plans for a change to this rule . As regards Greece ,
Ireland and Northern Ireland , 20 ECU of this additional premium have been
financed for several years by the EAGGF ( this rule Is due to end on
31 December 1988 ); in view of the special circumstances prevailing in the
countries concerned , the Commission is proposing that this specific
financing should continue but be restricted to 10 ECU to avoid excessive
differences    in the amounts as between the various Member States .
ad . d The special premium for male bovine animals was Introduced on
       6 April 1987 as an additional means of direct support to farmers
       raising young male cattle , in particular to help offset the Impact
       of the adaptation of the public buying-ln arrangements ( Article 4a
       of Regulation ( EEC ) No . 805 / 68 , Regulation ( EEC ) No . 468 / 87 ).
       The main features of this scheme are as follows :
               the premium is payable In respect only of the first 50 male
               bovine animals on the farm ; eligible animals must be at least
               nine months old and the premium can be paid only once ever for
               any g i ven animal ,
               the premium is paid directly to the farmer for animals fattened
               on his farm ; however , payment of the premium on slaughter of
               the animals Is no longer allowed ;
               the premium is paid In all the Member States except the United
               Kingdom ( variable premium ) and Italy ( calf premium ),
               the premium is 25 ECU / head ; however , In Ireland , the amount is
              only 18 ECU , as In this country farmers also qualify for the
               calf premium ,
 ---pagebreak---                               - 9 -
      In 1987 , the premium was paid In respect of about 5 million
     animals (x 25 ECU - 125 million ECU ).
The Introduction and operation of this new premium scheme have
raised no major problems In the relevant Member States . The
Regulation on Implementing procedures Is fairly flexible and leaves
the national authorities wide discretion as regards practical
application . As the premium can be paid only once ever for any given
animal , the Identification of the eligible animals is a crucial
aspect of the management of the scheme .
Eight of the Member States operating this special premium pay It In
respect of live animals on the farm . Only one country , the
Netherlands , uses Article 4 of Regulation ( EEC ) No . 468 / 87 , l.e .
payment on slaughter .
As the Commission is proposing other adjustments to the buying-in
arrangements , it is proposing not only renewal of the special
premium but also an increase in the amount from 25 to 40 ECU per
animal ; also , with a view to general application of this premium
scheme In all the Member States , entailing an increase In the
average size of the relevant farms , It is proposing at the same time
that the maximum number of animals per farm qualifying for the aid
should be   increased from 50 to 75 .
                                                                         A0
 ---pagebreak---                                    PROPOSAL
                      FOR COUNCIL REGULATION ( EEC )
amending Regulation ( EEC ) No . 805 / 68 on the common organization of the
market in beef and veal and repealing Regulation ( EEC ) No . 1302 / 73 ,
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and In particular Article 43 thereof ;
Having regard to the proposal from the Commission ;
Having regard to the Opinion of the European Parliament ;
Whereas Article 6 of Council Regulation ( EEC ) No . 805 / 68 of 27 June 1968 on
the common organization of the market in beef and veal ( 1 ), as last amended
by Regulation ( EEC ) No . 2248/ 88 ( 2 ), provided for public buying in as the
main instrument for support of the market in beef and veal ; whereas
Article 6a of this Regulation provided for a temporary scheme for a period
from 6 April 1987 to 31 December 1988 the aim of which was to reduce
recourse to intervention and to restore to that facility its original
function as a safety net ; whereas , however , these temporary arrangements
have failed to curb the quantities sent to intervention , mainly because
buying-in is an automatic facility and because the buying-in price
calculation procedures have entailed heavy sales to the agencies at prices
exceeding the market price ; whereas the outlook for production is such that
these sales are unlikely to decline ; whereas the efforts already made to
restore order on this market by further restricting sales to intervention
must therefore be pursued ;
( 1 ) OJ No . L 148 , 28.6.1968 , p. 24 .
( 2 ) OJ No . L 198 , 26.7.1988 , p. 24 .
                                                                                 Λλ
 ---pagebreak---                                           2
Whereas , accordingly , while the conditions governing activation of
 Intervention related to market price levels In the Community and In the
Member States should be retained , with adaptation of the thresholds , this
scheme should now also allow of control of the quantities bought in on the
basis of an annual overall quantity not to be exceeded except in cases of
abnormal market situations , and its operation should be subject to an
assessment of the need to ensure reasonable support of the market on the
basis , in particular , of seasonal changes in production ; whereas , for this
purpose , a system of buying-in by tendering procedures under which prices
and quantities would be determined on the basis of the tenders received is
appropriate to requirements ;
Whereas , for beef and veal , prices and production conditions vary very
widely from one Member State to another ; whereas , as a result , a facility
may be needed whereby these quantities and prices can be fixed by Member
States or region of a Member State ;
Whereas alteration of the intervention arrangements will necessitate
maintenance beyond 31 December 1988 of the special premium scheme provided
for in Article 4a of Regulation ( EEC ) No . 805 / 68 , which has proved an
effective method of support for farmers' incomes , and its extension to the
Member States operating until that date the calf premium and the variable
slaughter premium ;
Whereas alteration of the intervention arrangements will also necessitate
the repeal of Council Regulation ( EEC ) No . 1302 / 73 of 15 May 1973 laying
down general rules for intervention on the market in beef and veal ( 3 ), as
last amended by Regulation ( EEC ) No . 427 / 77 ( 4 );
( 3 ) OJ No . L 132 , 19.5.1973 , p . 3 .
( 2 ) OJ No . L 61 , 5.3.1977 , p . 16 .
                                                                               И2
 ---pagebreak--- HAS ADOPTED THIS REGULATION :
                                      Art ic leJ
Regulation ( EEC ) No . 805/ 68 is hereby amended as follows :
1 . In Art icle 4a :
-   the first subparagraph of paragraph 1 Is replaced by the following :
    " 1 . Beef and veal producers shall qualify , in respect of a given number
    and certain categories of animals held on their farms , for a special
    premium .",
-   paragraph 2 Is deleted ;
-   paragraph 3 becomes paragraph 2 and paragraph 4 becomes paragraph 3 .
2 . Article 6 is replaced by the following :
                                                               *
                                     " Article 6
1 . Where the conditions laid down In paragraph 2 are met , buylng-in by
    intervention agencies in one or more Member States or In a region of a
    Member State of one or more categories , qualities or quality groups , to
    be determined , of fresh or chilled meat coming under subheadings 0201 10
    and 0201 20 11 to 0201 20 59 of the Combined Nomenclature may be
    organized under tender procedures arranged with a view to ensuring
    reasonable support of the market , having regard to seasonal developments
    as regards slaughterings . The total quantity bought in under such
    arrangements shall not exceed 200 000 tonnes per year for the entire
    Commun I ty .
2 . For each quality or quality group that may be bought in , the tender
    procedures may be opened as provided in paragraph 5 whenever , In a
    Member State or in a region of a Member State the following two
    conditions are both met for a period of two consecutive weeks :
 ---pagebreak---                                          4
      the average Community market price ascertained on the basis of the
     Community classification scale for the carcases of adult bovine animals
      Is less than 00% of the Intervention price ,
-     the average market price ascertained on the basis of the said scale in
      the Member State or States or region of a Member State Is less than 84%
     of the Intervention price .
 3 . Tender arrangements for one or more qualities or quality groups shall be
     suspended in any one of the following three situations :
-    where the maximum quantity referred to in paragraph 1 has been reached ,
-    where , for two consecutive weeks , the two conditions referred to in
      paragraph 2 are no longer both met ,
 -   where buying-in is no longer appropriate in view of the criteria set out
      i n paragraph 1 .
 4 . Where the maximum quantity referred to in paragraph 1 is reached , tender
      procedures can be reopened according to the procedure laid down in
      paragraph 6 in the Member State or Member States or region of a Member
      State if one of the following two situations arises :
      the conditions set out in paragraph 2 being met , exceptional
      circumstances are ascertained ;
-    for two consecutive weeks , the average Community market price and the average
     market price recorded on the basis of the Community classification scale for
     adult bovine carcases fall short of 84% and 80% of the intervention price ,
     respectively .
                                                                                    Ak
 ---pagebreak---                                            5
5 . For each quality or quality group eligible for buying In , the buying In
     prices and the quantities accepted by the agencies shall be determined
     under tendering procedures and may be fixed by Member State or region of
     a Member State on the basis of recroded average market prices .
     The tender procedures must ensure equality of access for all persons
      interested . They shall be opened on the basis of specifications to be
     determ i ned .
6 . Under the procedure provided for in Article 27 :
-    the categories , qualities or quality groups of products eligible for
      intervention shall be determined ,
     the opening or reopening of tender procedures and their suspension in
     the case referred to in the last indent of paragraph 3 shall be decided ,
     the buying-in prices and the quantities accepted for intervention shall
     be fixed ,
-    the procedures implementing this Article and In particular those
     designed to prevent market prices spiralling down shall be adopted .
In the cases referred to in the first and second Indents of paragraph 3 ,
suspension of tendering procedures shall be the responsibility of the
Comm I ss ion . "
                                      Art icle 2
Regulation ( EEC ) No . 1302 / 73 is hereby repealed .
                                      Art le le 3
This Regulation shall enter into force on the day following its publication
in the Official Journal of the European Communities . It shall apply from
1 January onwards .
This Regulation shall be binding in its entirety and directly applicable in
a I I Member States .
Done at Brussels ,                            For the Counc I I ,
 ---pagebreak---                                     PROPOSAL FOR
                       Council Regulation (EEC)
         amending Regulation (EEC) No 1357/60 introducing a system
            o£ premiums for maintaining suokler cows and repealing
                           Regulation (EEC ) No 11913/82
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Camraunity ,
and in particular Article 43 thereof ,
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Parliament ,
Having regard to the opinion of the Economic and Social Committee ,
Whereas the premium amounts specified In Council Regulation (EEC) No
1357/80 Of B June 1980 , 1 as last amended by Regulation (EEC) No 467/87 , 2
and in Ccaincil Regulation (EEC) No 1189/82 of 18 May 1982 on the granting
of an additional premium for maintaining euckler cows in Greece , Ireland
and Northern Ireland , 3 as last amended by Regulation (ESC) No 467/67 , are
applicable up to 31 Deoember 1988 ; whereas in order to treat in the same
way all applications lodged in respeot of the b383/ 89 marketing year these
amounts should be granted in the oase of premium applications lodged in the
month of January 1989 ;
Whereas the premium amount granted under Regulation (EEC) No 1357/60 must
be specified for the period beginning 1 February 1989 ;
Whereas the eoonomio oirourostanoes that led to the introduction of the
additional premium in Greece , Ireland and Northern Ireland persist ; whereas
an additional premium should therefore continue to be granted ; whereas the
amount of the Community 's financial contribution from 1 February 1989
Should be set ; whereas for the sake of simplioitv the provisions on this
matter should, be incorporated in Regulation (ESI) No 1357/ 80 and Regulation
(EEC) No 1199/63 repealed ,
HAS ADOPTED THIS REGULATION :
1 0JNOL 140 , 28.6.1980 , p. 1 .
2 OJ L 48 , 17.2.1987 , p. 1 .
3 QJNo L 140 , 20 . B. 1082 , p. 30 .
 ---pagebreak---                                      - 2 -
                                   Artiole . 1
The amounts applicable un to 31 Deoember 1966 under Article 3(1 ) of
Regulation G..iC) No 1357/ 80 and Artiole 1 of Regulation (SBC) No 1199/ 82
Shall be granted in respect of premium applications lodged in the month of
January 1969 .
                                   Artiole 2
The first subparagraph of Article 3(1 ) of Regulation (ESC) No 1357/80 is
amended to read :
"The amount of the premium shall be 40 ECU per sudkler oow held by the
preduoer on the day on which the application was lodged . "
                                   Artiole 3
The following subparagraph is added to Artiole 3(2) of Regulation
( ESC ) 1357/80 .
" Should Greeoe , Ireland and the united Kingdom In respeot of Northern
Ireland make use of this option the first 10 ECU per cow shall be finanoed
by the EA3GF Guarantee Seotion . "
                                   Artiole 4
Regulation (EEC ) No 1199/ 82 is hereby repealed .
                                   Artiole B
This Regulation shall enter into foroe on the day of its publioation in the
Offloial Journal of the European Communities .
Article 2 , 3 and 4 shall be applicable from 1 February 1969 .
This Regulation shall be binding in its entirety and direotly applicable in
all Member States .
Done at
                                                   For the Counoü
                                                                            A
 ---pagebreak---                                     PROPOSAL FOR
                       Council Regulation (.ESC)
   amending Regulation (EEC) No 468/87 laying down general rules applying
                   to the special premium for beef producers
THE COTCIL OF THE EUROPEAN OCWJNITIES ,
Having regard to the Treaty establishing the European Econamio Community ,
Having regard to Counoil Regulation (EEC) No 806/68 of 27 June 1858
on 'the common organization of the market in beef and veal , 1 as last
amende! by Régulation (ESC) . /88 , 2 an! in p&rticular Article 4a
thereof ,
Having regard to the proposal from the Commission ,
Whereas in compensation for the changes in the intervention arrangements
specified in Artiole 8 of Regulation (EEC ) No 80S/68 the amount of the
special premium for beef produoers specified In Artiole 4a of that
Regulation and the number of qualifying animals per holding should be
increased ;
Whereas from 1 January 1989 the speoial premium for beef produoers
introduced by Artiole 4a of Regulation (EEC) No 805/68 will be applicable
throughout the Community ;
Whereas Council Regulation (EEC) No 1346/86 of 6 May 1986 on the granting
of a oalf birth premium In Greece , Ireland , Italy and Northern Ireland and
on the granting of an additional national premium in Italy , 3 as last
amended by Regulation (EEC) No 467/87 , 4 expires cn 31 December 1988 ;
whereas there is in oonsequenoe no longer any Justification for the
reduction in the premium amount in Ireland speoified In Artiole 2(2) of
          Regulation (EEC) No 468/87 of 10 February 1987® or for the
derogation speoified in Artiole 2(3) of that Regulation ,
1 OJ No L 148 , 28.6.1968 , p. 24 .
2 OJ No L
3 OJ No L 119 , 8.5.1986 , p. 39 .
4 OJ No L 48 , 17.2.1987 , p. 1 .
5 OJ NO L 48 , 17.2.1987 , p. 4 .
 ---pagebreak--- HAS ADOPTED THIS REGULATION :
Artiole 2 of Regulation (EEC) No 463/87 is amended as follows .
(a) In the first paragraph the figure 50 is re]plaoed by 75 .
(b) The first subparagraph of paragraph 2 shall read :
" 2 . The premium amount shall be 40 ECU per male animal . "
(o) Paragraph 3 is deleted .
                                 Article 2
This Regulation shall enter into foroe on the city of its publication in the
Offioial Journal of the European Communities .
It shall be applicable from 1 January 1989 .
This Regulation Shall be binding in its entirety and direotly applioable in
all Member States .
Done at
                                        For the Counoil
 ---pagebreak---                                   F ! NANC I AL I MPLI CATIONS
      C - THE £BÛP
                               FROM . 1 JANUARY 1 989. (AWARDS
 INTRODUCTION
The following financial implications have been established in relation with
the revised hypotheses for 1989 . The revision concerns mainly the
quantities bought In , which will be 300 000 tonnes Instead of the 200 000
tonnes in the draft budget .
More beef will have to be bought in because buylng-in in 1988 has been very
heavy , despite the Council 's decision rendering Intervention less
attractive . The draft 1989 budget , which was established on the assumption
of less buying-in following this decision , will therefore have to be
revised In line with actual circumstances .
MEASURES CONSIDERED
 I .   Publ ic   Intervent ion
( a ) A celling on quantities bought In set at 200 000 t ,
( b ) activation of buying-in for a quality eligible In a Member State where :
       - the Community market price is below 88% of the intervention price ,
       - the market price in the Member State is below 84% of the intervention
           price ,
( c ) buying-in prices to be fixed by tendering procedure ,
( d ) possibility of buylng-in half carcases instead of fore - and
       h i ndquar ters .
 II . Prem i ums
( a ) The calf premium not to be renewed ,
( b ) the variable slaughter premium not to be renewed ,
( c ) the suckler cow premium to be Increased from 25 to 40 ECU / head ,
( d ) 10 ECU / head , and not 20 ECU / head , of the supplementary premium in
        Ireland , Northern Ireland and Greece to be claimable ,
( e ) increase from 25 to 40 ECU / head in the special premium for male
       animals ; increase in the maximum number of animals per farm from 50 to
       75 ; extension of the special premium arrangement to Italy and the
       Uni ted Kingdom .
 ---pagebreak---                                               2
F ! NANO i AL IMPLICA TIQNS
1 .   I n t ervent ion
fa )         Ceiling on quantities bought In set at 200 000 t and adjustment
&(b )        of the Intervention activation thresholds .
     This will reduce quantities bought in by 100 000 t with the following
     resu Its :
                                                         m ECU
                                                Impact over    Impact
                                                12 months      In 1989
     Technical costs                             -  16         - 10
     Financial costs                                  2        -   1
     Loss on sale                                +  13 ( 1 )   +   2(1 )
     Depreciation at purchase                    - 202         - 152
     TOTAL                                       - 207         - 161   (2)
(c)          Buying-in prices to be fixed by tendering procedure .
     On the assumption that the new procedure will reduce the buying-ln prlc <
     by 10% of the present amount the financial Impact will be :
                                                         m ECU
                                                Impact over     Impact
                                                12 months       In 1989
     Technical costs
     Financial costs                             -  1            -   1
     Loss on sale                                - 17            - 11
     Depreciation at purchase                    - 46            - 32
     TOTAL                                       - 64            - 44
(d)          Possibility of buying In half-carcases .
     The assumption Is a 12-month period when 50% of Intervention purchasing
     will be of forequarters and 50% of hindquarters . This Is equivalent to
     buying in half-carcases . The measure can therefore be considered
     budgetar i I y neutra I .
(1)          Depreciation effected at the moment of intervention buying-in
             reduces the average price for the complete stock . A reduction in the
             quantities bought in entails a lower reduction in the average price
             of the stock and hence an increase in the unit loss on disposal .
(2)          Reduced expenditure in relation with a 1989 budget corrected as
             regards buying-in ( 300 000 t ).
                                                                                   24
 ---pagebreak--- For 1983 , on the other hand , it is mainly buying-in of hindquarters that
wi I i be cut back , assuming that forequarters are bought in until 1 January
1989 and half-carcases thereafter .
                                               m ECU
                                       Impact for       Imp I icat ions
                                      12 months         for    1989
      Buying-in half carcases             -
                                                              - 54
I i .       Premiums
(a)         The calf premium not to be renewed
             implications for 12 months :
            4.7 m head x 9 ECU / head x 1.064 ( DR ) =                  - 45 m ECU
       Implications for 1989 :
      Since the hypothesis taken for 1989 is that the
      calf premium will not be renewed , the financial
       implications for that year are nil ,
(b)         Variable slaughter premium not to be renewed
            incidence over 12 months :
            3.0 m head x 65 ECU / head x 40% x 1.081 =                  - 84 m ECU
      Reduced revenue from clawback =                                   +   4m ECU
                                               TOTAL                    - 80 m ECU
       Implications for 1989 :
      Since the hypothesis taken for 1989 is that the
      variable premium will not be renewed , the
      financial implications for that year are nil ,
(c)         increase in the suckler cow premium
            Implications over 12 months :
            6.5 m head x 15 ECU / head x 1.077 ( DR ) =                 + 105 m ECU
       Impi icat ions for 1989 :
      For 1989 , it is estimated that the implications
      will be about 2 / 3 of the 12-month amount because
      of delayed payments ,                                             + 71 m ECU
(d)         Reduction in reimbursement by the EAGGF of the
            supplementary national premium for suckler cows in
            Ireland , Northern Ireland and Greece
            implications over 12 months :
           0.7 m head x 10 ECU x 1.056 ( DR ) -                         -  7m ECU
      Implications for 1989 :
      For 1989 , It is estimated that the implications will
      be about 2 / 3 of the 12-month amount , because of
      delayed payments ,                                                   5 m ECU
 ---pagebreak---                                            4
(e)          Changes In the special premium scheme for male bovine animals
      Implications over 12 months :
      Increase in the premium from 25 to 40 ECU / head
     for those countries which now operate this
     premium ( 1 ) and from 18 to 40 ECU / head in
      I re I and
     4.2 m head x 15 ECU / head x 1.077 ( DR ) =              + 68 m ECU
     0.7 m head x 22 ECU / head x 1.089 ( DR ) =              + 17 m ECU
                                                              + 85 m ECU
      Inclusion of farms of 50 to 75 animals
     0.6 m head x 40 ECU / head x 1.079 ( dr ) =              + 26 m ECU
-    Extension of the scheme to Italy and the
     United Kingdom
     3.0 m head x 40 ECU / head x 1.070 ( DR ) =              + 128 m ECU
                  Total over 12 months :                      + 239 m ECU
      Implications for 1989 :
     For 1989 , it is estimated that the implications will be about 50% of the
     12-month amount because of delayed payments and time needed to implement
     the scheme in Italy and the United Kingdom .
( 1 ) Al      the Member States except the United Kingdom , Italy and Ireland .
 ---pagebreak---                                                                                               5
The table below summarizes the financial                                                                 implications of the measures
proposed for a 12-month period and for 1989 .
    Financial                implications of the re fo rm of the beef / veal market_Qj^.anl2Lat_ian
                                                               from 1 January 1989 onwards
                                                                                                                     m ECU
βΒΒΒΒΒΒΒβΒΒ3ΒΒΒ5ΒΒΒ8βΒΒΒΒΒ3ΗΒΒΒΒΒ3ΒΒ3*ΒΒ»ΒββΒΒΒΒΒΒβΒΒΒ
      Financial Implications of the reform of the                                                                          1 2-month     1989
      beef / veal market organization                                                                                        period
       l .    INTERVENTION
       ( a ) 200 000 t ceiling on buying-in                                                                              )             )
                                                                                                                         ) - 207       ) - 161
       ( b ) Changed buying-in activation threshold                                                                      )             )
       ( c ) Buylng-ln price fixed by tendering                                                                              -     64      - 44
       ( d ) Possibility of buying in half-carcases                                                                            D . m .     - 54
       TOTAL         INTERVENTION                                                                                            - 271         - 259
        I I .   PREMIUMS
       ( a ) Calf premium not renewed                                                                                        -     45  p . m . (1 )
       ( b ) Variable slaughter premium not renewed                                                                          -     80  p.m . (1 )
       (c)      Increase in suckler cow premium                                                                              + 105         + 71
       ( d ) Reduction in claim to EAGGF for national
                supplementary premiums in Ireland ,
                Northern               Ireland and Greece                                                                           7      -    5
       ( e ) Changes in special premium scheme for
                male bovine animals                                                                                          + 239       + 117
       TOTAL PREMIUMS                                                                                                        + 212       + 183
       TOTAL         IMPLICATIONS                                                                                            -     59    -     76
S : SX S SB K S S B CS 2S Sí S SU S 2 SC B S3 SS 28 B HP TX S3 B 9S 31 S SC 2 SS Ä S 3S B S B Si SB B 3£ ~ S3 B – B 3 1
 ( 1 ) The draft budget allows for non-renewal of this premium .