CELEX: 51994PC0339
Language: en
Date: 1994-07-26
Title: Proposal for a COUNCIL REGULATION (EC) an actions for a free supply of agricultural products destined to the population of certain countries in the Caucasus and in Central Asia

I : till
COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(94) 339 final
                                                     Brussels, 26.07.1994
                                     Proposal for a
                              COUNCIL REGULATION (EC)
             an actions for a free supply of agricultural products destined to the
             population of certain countries in the Caucasus and in Central Asia
                          (presented by the Commission)
 ---pagebreak---                                          EXPLANATORY MEMORANDUM
Subject:        Action for a free supply of agricultural products destined to the populations
                of certain countries in the Caucasus and in Central Asia
1. Numerous appeals have been addressed to the EU by Heads of States or Governments of
   Georgia, Armenia, Azerbaijan, Kyrgyzstan and Tajikistan addressing the dramatic situation as
   regards food supplies in these countries and requesting the EU for urgent assistance.
   Member States have requested the Commission to come up with a factual analysis of the
   situation, quantifying the needs and indicating possible financial resources. This document is
   annexed to the present communication.
3. The Commission has preceded with an analysis of the question and has arrived to the following
   conclusions:
    a) the food supply situation in all countries concerned is dramatic. The uncovered balance of
    the most imminent needs amounts to some 414 MECU for the coming six months winter
    period (mid-November to mid-May). This figure takes into account contributions by other
    donors and in particular the US.
    b) in view of the massive engagement of the US in the region concerned, the EU could be
    expected to assume some 50% of the remaining gap of 414 MECU, while the remainder
    should be covered by other donors.
    c) the Commission has engaged in a detailed scrutiny of all available budgetary resources
    and came with the conclusion that the following amounts could be mobilised from existing
    budgetary lines of rubric 4 and other resources:
    - 20 MECU out of the budget line B7/511 (humanitarian food aid) can be mobilised right
    away for food aid to the countries in question. In anticipation of the substantial efforts that
    the Union would be obliged to undertake the Commission decided on 11th July to mobilise the
    amounts which have been earmarked for the region (13 MECU for Caucasus and 7 MECU
    for Tajikistan and Kyrgyzstan). This decision allows the immediate implementation of the
    operation.
    - 5 MECU will be mobilised from budget line B7/515 (humanitarian aid in the FSU). This
    amount shall be taken out of a package of 16 MECU foreseen for the Caucasus in the form of
    energy, shelters and medicines and shall be devoted to food aid only.
    - 10 MECU could be mobilised out of budget line B7/91 (emergency reserve) of 212
    MECU.
    - 4 MECU could be mobilised from the 1994 Tacis budget in order to assure the proper
    implementation of the operation (monitoring, distribution, supervision of counterpart funds
    etc.).
    - In order to meet the objective to provide some 50% of the needs, it is unavoidable to resort
    to FEOGA funds for an amount of 165 MECU.
    Thus the total package for the action would amount to 204 MECU.
 ---pagebreak--- 4. There is scope for immediate action given that:
    o supplies would have to be distributed already in October due to the severe fuel and
    transport problems resulting from the harsh climatic conditions prevailing in winter in the
    area.
    • for the use of savings in the 1994 FEOGA budget it would be essential that a decision is
    taken by the Council already in July, as the 1994 FEOGA budget expires on the 15th October
    and there is absolutely no scope in the 1995 FEOGA budget for an action of this type. Carry
    overs need to be considered for credits which will not be engaged.
    • an operation of this kind would necessitate the adoption of regulations of applications
    along with the set up of a sophisticated organisational infrastructure.
   In view of the urgency and taking into account that 39 MECU have been or may be mobilised
   from existing budgetary lines of rubric 4 (20 MECUfromB7/511, 5 MECUfromB7/515, 10
   MECUfromB7/91 and 4 MECU from 1994 Tacis), the Commission proposes to the Council
   to authorise the supply of food productsfromintervention stocks for an amount of 165 MECU
   by approving the annexed draft regulation during its session on Monday 18th July.
   This regulation follows the lines of similar actions offreesupplies of agriculture products.
   In conformity with the joint declaration of the three institutions of 20/02/1992, the
   Commission has invited the two branches of the Budgetary Authorities to hold a trilateral
   meeting.
   As regards implementation, the products will be sold on the local markets for a price which
   will take into account local conditions. The proceeds will be put into a counterpart fund which
   will be used for social purposes.
 ---pagebreak---                                      COUNCIL REGULATION (EEC) N° ....
                        an actions for a free supply of agricultural products destined to the
                       population of certain countries in the Caucasus and in Central Asia
      THE COUNCIL OF THE EUROPEAN COMMUNITY,
      having regard to the treaty establishing the European Economic Community,
      having regard to Council Regulation (EEC) no. 1766/92 of 30 June 1992 on the common
      organisation of the market in cereals *) and in particular Articles 5 and 6 thereof,
      having regard to Council regulation (EEC) No. 136/66 of 22 September 1966 on the
      establishment of an organisation of the markets in the sector of fats and oils 2> and in particular
      Article 12 thereof,
       having regard to Council Regulation (EEC) no. 804/68 of 27 June 1968 on the common
       organisation of the markets in milk and milk products 3> and in particular Articles 6 (6) and 7 (4)
       thereof,
       having regard to Council Regulation (EEC) no. 805/68 of 27 June 1968 on the common
       organisation of the market in beef and veal 4>, and in particular Articles 6(5) and 7 (2) thereof,
       having regard to the Drooosal from the Commission,
 Whereas, the Community has agricultural products in stock following intervention measures and
 that, in view of the situation on the markets, these products should be sold;
 Whereas conditions for supplying agricultural products to certain countries in the Caucasus and
 Central Asia should be improved;
 Whereas, in supplying the population concerned with products from stocks, account should be taken j
 of the diversity of local situations; whereas the move towards supplies according to market rules           i
 should not be compromised;
 Whereas it is important to ensure that the agricultural products supplied as part of these actions
 reach their proper destination;
Whereas it is for the Commission to lay down the arrangements for application of these actions;
        ') JO no L 181 du 1.07.1992, p. 21. Regulation as last amended by Regulation (CEE) 2193/1993 (JO
       no. L196 of 5/08/1993, p. 22).
       2
         > JO no 172 of 30/9/1966, page 3025. Regulation as last amended by Regulation (CEE) 3179/1993 (JO
       no. L285 of 10/11/1993 p. 9).
       3
         > JO no L 148 du 28.6.1968, p. 13. Regulation as last amended by Regulation (CE) no 230/1994 (JO no
       L30of3/2//1994,p. 1)
       4
        > JO no L148 du 28/06/1968, p. 24. Regulation as last amended by Regulation (CE) no 1096/94 (JO
       no L121 of 12/05/1994, p. 9).
 ---pagebreak--- :,.j'.^«J he • ; ^ „ by d*c EâGGF G i x ^ â ^ ,
    HAS ADOPTED THIS REGULATION:
    Article 1
    It is proceeded, under the conditions laid down by this regulation, to actions of free supply of
    agricultural products destined to the populations of certain countries in the Caucasus and in
    Central Asia to be determined, available as a result of intervention measures.
                                                     Article 2
    1.     The products may be supplied unprocessed or in processed form.
   2.      The actions may also relate to food stuffs available or which may be obtained on the market
           by payment with products coming from intervention stocks and belonging to the same
           group of products.
    3.     The supply costs, including transport and, where applicable, of processing shall be
           determined by invitation to tender or, for reasons connected with urgency or with
           difficulties of transportation, by direct agreement procedure.
   4.      If the supply comprises targeted distribution to the beneficiaries, corresponding expenses
           shall be borne according to the usual procedures of emergency aid.
   5.      Products consigned pursuant to this Regulation shall not qualify for export refunds
           applicable for the agricultural products.
   6.      The transport costs shall be borne by the Community, in as far as the recipients do not take
           over themselves the products in the Community.
   7.      The products could be sold, by agreement between the local Commission and the local
           authorities at a price not allowing to disturb the market and a counterpart funds in order to
           help the neediest ones will be constituted.
   Article 3
   The expense of these actions shall be limited to ECU 165 million entered in the general budget of
   the European Community.
                                                     Article 4
   1. The Commission shall be responsible for the execution of these actions as well as for
         controlling the delivery operations.
   2. The detailed rules for the application of this Regulation shall be adopted in accordance with
         the procedure laid down in Article 23 of Regulation (EEC) no. 1766/92 or, as in case may be,
         in the corresponding Articles in the other Regulation on the common organisation of the
         markets.
 ---pagebreak---                                                Article 5
The accounting value of the given agricultural products originating from intervention stocks shall
be fixed according to the procedures laid down in Article 13 of Regulation (EEC) no. 729/70.
                                               Article 6
This regulation shall enter into force on the day following that of its publication in the Official
Journal of the European Communities.
This regulation shall be binding in its entirety and directly applicable in any Member States.
Done in Brussels
                                                                              For the Council,
                                                                              The president
                                                      r
 ---pagebreak---                  FICHE FINANCIERE
                                                                                                 J
                                                                           DATE 2
      L I Q Œ BUDGETAIRE : Bl-189                                       CREDITS : 165 Mio ECU
  2.  INTITULE DE LA MESURE :
      Projet de règlement (CE) du Conseil relatif à des actions de fourniture gratuite
      de produits agricoles destinés aux populations du Caucasse et d'Asie Centrale
  3.  BASE JURIDIQUE : Règlements (CEE) du Conseil 1766/92, 136/66, 804/68 et 805/68
  4.  OBJECTIFS DE LA MESURE :
      Apporter une fourniture gratuite de produits agricoles composée de céréales, d'huile
      d'olive, de produits laitiers et de viande bovine à des populations ciblées menacées
      de famine-
                                                 PERIODE DE      EXERCICE EN        EXERCICE
      INCIDENCES FINANCIERES                      L2 MOIS        COURS (94)       SUIVANT (95)
                                                 (Mio ECU)       (MÎO ECU)        (MÎO ECU)
  5.0  DEPENSES A LA CHARGE
        - DU BUDGET DES CE                                          165             néant
           (RESÏITUTlOKy/JLNTKRVKNTIONS )
        - DES BUDGETS NATIONAUX
        - D'AUTRES SECTEURS
  5-1   RECETTES
        - RESSOURCES PROPRES DES CE                néant           néant            néant
           (PRELEVEMENTS/DROITS DE DOUANE)
        - SUR LE PIAN NATIONAT.
                                            1996           1997          1998           1999
  5.0.1 PREVISIONS DES DEPENSES           néant            néant         néant          néant
  5.1.1 PREVISIONS DES RECETTES
  5.2   BODE DE CALCUL :
        Les produits désignés (cf. point 4) seront fournis en l'état ou après transformation :
        à concurrence du montant fixé par le conseil dans le cadre du présent règlement à
        t partir des stocks d'intervention FEOGA. Ils seront, lors de leur sortie de stocks,
        valorisés conformément à la procédure prévue à l'article 13 du règlement (CEE) n°
        729/70. Les frais de fourniture , y compris de transport , seront également pris en
        charge.
I 6.0 FINANCEMENT POSSIBLE PAR CREDITS INSCRITS AU CHAPITRE CONCERNE DU BUDGET
'       EN COURS D'EXECUTION                                                            OUT /NON
i
  6,1 FINANCEMENT POSSIBLE PAR VIREMENT ENTRE CHAPITRES DU BUDGET EN COURS
        D'EXECUTION                                                                    foUI/NOH
  6.2 NECESSITE D'UN BUDGET SUPPLEMENTAIRS                                              OUI/NON1
  6.3   CREDITS A INSCRIRE DANS LES BUDGETS FUTURS                                      OUI/NC
  OBSERVATIONS
                                                é
 ---pagebreak---                                                                     ISSN 0254-1475
                                                             COM (94) 339 final
                                                     DOCUMENTS
EN                                                                             11
                                Catalogue number : CB-CO-94-350-EN-C
                                                            ISBN 92-77-71913-3
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