CELEX: 51988PC0325
Language: en
Date: 1988-06-10
Title: Proposal for a COUNCIL DECISION on an aid granted to farmers in the Federal Republic of Germany (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 325
Vol. 1988/0121
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(88 ) 325 final
                                                Brussels , 10 June 1988
                            Proposai for a
                           COUNCIL DECISION
  on an aid granted to farmers in the Federal Republic of Germany
                    (presented by the Commission )
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                                EXPLANATORY MEMORANDUM
 I. To offset reductions in prices expressed in national currency and
     resulting farm income losses entailed in Germany by the adaptation of the
     agricultural conversion rates from campaign 1988 / 89 onwards in accordance
     with Annex IVa of Regulation ( EEC ) No 1678 / 85 , Article 2a of this
     Regulation stipulates that a special national aid may be paid to German
     farmers from 1 January 1988 onwards . The aggregate of this aid may not
     exceed that of the additional aid expiring on 31 December 1988 ,
     authorized by Council Decision No 84 / 361 / EEC of 30 June 1984 . The aid may
     not be linked to production . Remainder implementing details are still to
     be adopted .
II . The German authorities have notified an outline of the aid scheme they
     plan to implement under these Community arrangements . Accordingly , the
     implementing details for granting the aid under Article 2a(3 ) of
     Regulation ( EEC ) No 1980 / 87 may be confined to ascertainment that the
     fixed requirements are complied with , in principle , and , where
     appropriate , to additional conditions which must be met if the scheme is
     to be deemed compatible with the objectives of the Community provisions
     and with the common agricultural policy in general .
                                                                                    г
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III . The new scheme will be operated only from 1 January 1989 to the end of
       31 December 1992 . It will be ensured that the aggregate of the new aid ,
       in accordance with Article 2a(2 ) of Regulation ( EEC ) No 1678 / 85 , does not
       exceed 40% of the aid which Germany has been granting since 1 July 1984
       until 31 December 1988 , on average per year , to its famers in the form of
       a 5 percentage point VAT reduction .
 IV . The following implementing rules are designed to allow for the fact that
       the aid has a compensatory character and at the same time for the
       stipulation that the aid may not be linked to production :
     ( a ) irrespective of size , each holding will receive at least DM 1 000 per
           year ;
     ( b ) the aid will not be determined on the basis of the holdings output
           quantities or turnover , but on that of utilised agricultural areas ;
     ( c ) the attached proposed Decision also stipulates that no holding may
           receive an aid exceeding DM 8 000 per year , the purpose of this being
           to prevent larger holdings using the aid to increase production .
  V. The German scheme restricts the aid to famers who are members of the
       German retirement pension scheme ( Gesefcz iiber die Altershilfa fur
       Landwirte GAL ) ; farmers with outside work remunerated beyond certain
       limits , and thus exempted from compulsory membership of the GAL , are not
       eligible .
       This clause is deemed to prevent to some extent the aid from benefiting
       part-time farmers already enjoying satisfactory total incomes ; the aid
       could otherwise provide an incentive to increase production .
 VI . Thus in principle , the German approach outlined above can he accepted .
       However , permanent monitoring powers should be conferred upon the
       Commission ensuring practical application in line with the proposed
       Decision attached .
                                                                                       3
 ---pagebreak---                                           PROPOSAL FOR A
                                      Council Decision
           on an aid granted to farmers in the Federal Republic of Germany
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No 1678 / 85 of 11 June 1985 fixing
the conversion rates to be applied in agriculture ( 1 ), as last amended by
Regulation ( EEC ) No 1890 / 87 ( 2 ), and in particular Article 2a(3 ) thereof ,
Having regard to the proposal from the Commission ,
Whereas , to offset reductions in prices expressed in national currency and
resulting farm income losses entailed in Germany by the adaptation of
agricultural conversion rates from campaign 1988 / 89 onwards in accordance with
Annex IVa to Regulation ( EEC ) No 1678 / 85 , Article 2a of this Regulation
stipulates that a special national aid may be paid to the German farmers from
1 January 1989 onwards ; whereas the overall volume of this aid may not exceed
that of the additional aid expiring on 31 December 1988 authorized by Council
Decision No 84 / 361 / EEC of 30 June 1984 ( 3 ); whereas it has also been provided
for that the new aid may not be linked to production ;
( 1 ) OJ No L 164 , 24.6.1985 ,    P-   11 .
( 2 ) OJ No L 182 , 3.7.1987 ,     P-    4.
( 3 ) OJ No L 185 , 12.7.1984 ,    P­   41 .
 ---pagebreak---                                          - 2 -
Whereas the German authorities are planning to implement an aid scheme
corresponding broadly to the arrangements established in the Article 1 of this
Decision ; whereas , where such arrangements are complied with , the aid scheme
planned by Germany may be deemed compatible with the terms and objectives of
Article 2a(3 ) of Regulation ( EEC ) No 1678 / 85 and whereas it should therefore
be endorsed ,
HAS ADOPTED THIS DECISION :
                                       Article 1
The Federal Republic of Germany is hereby authorized to grant , from
1 January 1989 onwards until 31 December 1992 , a special national aid to
farmers , under the following conditions :
    1 . Individual farmers shall qualify annually for a unit amount of aid per
        hectare of utilized agricultural area of their holdings ; however , the
        aid per holding shall not be less than DH 1 000 and shall not exceed
        DM 8 000 per year .
    2 . Only farmers who are members of the German farm retirement pension
        scheme ( GAL ) may qualify for this scheme .
    3 . The Federal Republic of Germany shall determine the unit amount
        referred to at point 1 . and all other implementing details in such a
        way as to ensure that the overall volume of the special aid does not
        exceed , per year , that of the aid granted under Decision No 84 / 361 / EEC
        until 31 December 1988 in the form of a 2 percentage point reduction in
        VAT .
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                                     Article 2
1.  The Federal Republic of Germany shall notify to the Commission drafts of
    detailed provisions and of any further amendments relating to the
    implementation of the aid scheme referred to in Article 1 . At the request
    of the Commission , Germany shall provide further guidance information .
2.  The Federal Republic of Germany may not implement the revelvant provisions
    before such time as the Commission has ascertained their compatibility
    with the stipulations set out in Article 1 . The Commission shall adopt a
    decision approving or withholding approval within two months from the date
    of receipt of relevant draft provisions .
                                     Article 3
This Decision is addressed to the Federal Republic of Germany .
Done at Brussels ,                                For the Council
                                                  The President
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