CELEX: 51989PC0091(01)
Language: en
Date: 1989-07-03
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATIONS ( EEC ) NO 797/85, NO 1096/88, NO 1360/78, NO 389/82 AND NO 1696/71 WITH A VIEW TO SPEEDING UP THE ADJUSTMENT OF AGRICULTURAL PRODUCTION STRUCTURES

No C 240/6                              Official Journal of the European Communities                               20. 9. 89
                                                               II
                                                       (Preparatory Acts)
                                                  COMMISSION
              Proposal for a Council Regulation (EEC) amending Regulations (EEC) No 797/85, (EEC)
              No 1096/88, (EEC) No 1360/78, (EEC) No 389/82 and (EEC) No 1696/71 with a view to
                               speeding up the adjustment of agricultural production structures
                                                      (COM(89) 91 final)
                                        (Submitted by the Commission on 19 May 1989)
                                                         (89/C 240/05)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                           laid down by Council Regulation (EEC) No 4253/88 of
                                                                   19 December 1988 laying down provisions for
                                                                   implementing Regulation (EEC) No 2052/88 as regards
                                                                   coordination of the activities of the different Structural
Having regard to the Treaty establishing the European              Funds between themselves and with the operations of the
Economic Community, and in particular Articles 42 and              European Investment Bank and the other existing
43 thereof,                                                        financial instruments (5), and in conformity with Regu-
                                                                   lation (EEC) No 4256/88 itself;
Having regard to the proposal from the Commission,
                                                                   Whereas, following the Council decisions on the reform
                                                                   of the Structural Funds, the measures financed by the
Having regard       to    the  opinion    of  the   European       EAGGF Guidance Section should be adapted so that
Parliament,                                                        they can fully perform their role of speeding up the
                                                                   adjustment of agricultural structures with a view to the
                                                                   reform of the common agricultural policy within the
                                                                   meaning of Objective 5 (a) of Article 1 of Regulation
Having regard to the opinion of the Economic and                   (EEC) No 2052/88; whereas the necessary amendments
Social Committee,                                                  should therefore be made to the measures to be taken in
                                                                   line with that Objective, namely the common measures
                                                                   of horizontal application;
Whereas Article 1 (3) of Council Regulation (EEC) No
4256/88 of 19 December 1988 laying down provisions
for implementing Regulation (EEC) No 2052/88 as
regards the EAGGF Guidance Section (*) provides that               Whereas, if European agriculture is to maintain a
the Council is to decide before 31 December 1989 on                presence on world markets, the common agricultural
any alterations to the common measures introduced                  policy must continue to aim at increasing the efficiency
under Article 6 of Council Regulation (EEC) No 729/70              and competitiveness of agricultural holdings; whereas
of 21 April 1970 on the financing of the common agri-              while the majority of the adjustments necessary to ensure
cultural policy O , as last amended by Regulation (EEC)            the long-term competitiveness of Community agriculture
N o 2048/88 (3), in order to achieve the objectives                must be made through the markets policy, the structural
referred to in Council Regulation (EEC) No 2052/88 of              policy, too, must make its contribution by strengthening
24 June 1988 on the tasks of the Structural Funds and              production and marketing structures as far as possible
their effectiveness and on coordination of their activities        but without in any way worsening the imbalance
between themselves and with the operations of the                  between the productive resources allocated to agriculture
European Investment Bank and the other existing                    and the foreseeable outlets; whereas emphasis must be
financial Instruments (4), in conformity with the rules            placed on the structural improvement of holdings which
                                                                   at present are weak and on the setting-up of young
                                                                   farmers under viable conditions;
(') OJ No   L 374, 31. 12. 1988, p. 25.
O   OJ No   L 94, 28. 4. 1970, p. 13.
O   OJ No   L 185, 15. 7. 1988, p. 1.
(4) OJ No   L 185, 15. 7. 1988, p. 9.                              (s) OJ No L 374, 31. 12. 1988, p. 1.
 ---pagebreak--- 20. 9. 89                                Official Journal of  European Communities                              No C 240/7
Whereas, on the basis, of these principles, amendments          Whereas the maximum authorized levels for aid granted
should be made to Council Regulation (EEC) No                   by the Member States should be adjusted;
797/85 of 12 March 1985 on improving the efficiency of
agricultural structures ( J ), as last amended by Regulation
(EEC) N o 1609/89 ( 2 );
                                                                Whereas, in view of the ever-increasing cost of
Whereas the aim of Community investment aid is to               setting-up on an agricultural holding, the maximum
modernize agricultural holdings and thus improve their          amount eligible for a Community contribution towards
competitiveness in the context of the rational devel-           the aid for the setting-up of young farmers should be
opment of agricultural production; whereas this aspect of       increased from ECU 7 500 to ECU 10 000 in the case of
the structural policy must be adjusted so as to permit the      both the installation premium and the capitalized value
modernization and diversification of agriculture while          of the interest subsidy; whereas the detailed rules for the
remaining consistent with the measures taken to limit           application of this measure should also be amended so
surplus production; whereas, at present, in order to            that wider and more effective use can be made thereof;
qualify for Community investment aid, a farmer must
practise farming as his main occupation, that is, he must
devote at least half of his working time to his holding
and derive at least half of his income therefrom; whereas
investment aid should also be granted to persons who do         Whereas, in the interests of rational production, encour-
not practise farming as their main occupation provided           agement should be given to the formation of mutual
that on their holding they engage on a substantial scale         assistance groups which would use practices aimed at
in forestry, tourism or craft activities or activities          safeguarding and improving the environment and pres-
designed to safeguard the environment and maintain the          erving the countryside and to the formation of groups
countryside and provided that the income from their             which would introduce alternative cultivation methods
off-farm activities does not exceed 50 % of the reference       such as biological techniques, integrated crop protection
income;                                                         techniques and extensive farming techniques;
Whereas, with regard to the objective of investment
plans for agricultural holdings, a distinction should no
                                                                Whereas the effectiveness of the current scheme to assist
longer be made, so far as Community aid is concerned,
                                                                hill-farming and farming in certain less-favoured areas
between plans aimed at maintaining the level of income
                                                                could be improved by increasing the Community
and those aimed at improving it substantially;
                                                                 assistance for the less prosperous regions and by making
                                                                certain technical adjustments; whereas, in order to
                                                                reduce the drawbacks both in terms of markets and the
Whereas under the existing provisions aid may be                environment, the allowance should be granted for only
granted for investments which are not aimed at                  one livestock unit (LU) per hectare of the total forage
increasing production capacity but rather at improving           area of the holding; whereas, in addition, as regards the
the quality of production facilities; whereas this aid          maximum amount of Community aid per holding, the
could be extended to investments aimed at finding new           administrative difficulties should be overcome by
sources of income, such as tourism or craft activities or       replacing the existing scheme by a simpler one designed
the farm-based manufacture and sale of farm products,           to concentrate the Community's efforts on those
and to investments aimed at improving health and                holdings which are in greatest need, that is, the
hygiene on stock farms;                                          Community contribution would be restricted to 90 units,
                                                                be they livestock units or area units;
Whereas, as regards the limits placed on investment aids
in certain agricultural sectors, the present restrictions (on
the production of milk, pigs, eggs and poultry) must be
supplemented by restrictions in the beef and veal sector,       Whereas the amounts currently eligible for aid in areas
bearing in mind the situation on the market for the             which are sensitive in terms of the environment, natural
products concerned and the need to provide no incentive         resources and the preservation of the countryside are
to intensive production; whereas, however, such                 significantly lower than the loss of income resulting from
restrictions would not apply to aid for the protection of       the use of ecological methods and therefore provide too
the environment;                                                little incentive, especially in less-favoured areas; whereas,
                                                                in order to ensure that this measure is more widely
                                                                applied not only in rural areas which are experiencing
                                                                the pressures of a changing world close to large popu-
                                                                lation centres but also in less-favoured areas, it is
O OJ No L 93, 30. 3. 1985, p. 1.                                necessary to increase the maximum amount eligible to
O OJ No L 165, 15. 6. 1989, p. 1.                               ECU 150/hectare;
 ---pagebreak---   No C 240/8                              Official Journal of the European Communities                                   20. 9. 89
 Whereas Council Regulation (EEC) No 1096/88 of 25                        (ii) to help improve the efficiency of farms by
 April 1988 establishing a Community scheme to                                 developing and reorganizing their structures
 encourage the cessation of farming ( l ) should be                            and by promoting supplementary activities;
 amended, in particular to take account of the fact that in
 the context of the reform of the Structural Funds the
 option of early retirement with restructuring is no longer              (iii) to maintain a viable agricultural community and
 a horizontal measure under Objective 5 (a) but a region-                      thus help develop the social fabric of rural areas
 alized measure to be included in regional/rural devel-                        by ensuring a fair standard of living for farmers
 opment plans under Objectives 1 and 5 (b);                                    and by offsetting the effects of natural
                                                                               handicaps in mountain areas and less-favoured
                                                                               areas;
 Whereas it is also necessary to amend Council Regu-
 lation (EEC) No 1360/78 (2), as last amended by Regu-
 lation (EEC) No 3875/88 ( J ), Council Regulation (EEC)                 (iv) to contribute to the safeguarding of the envi-
 N o 389/81 (4), as amended by Regulation (EEC) No                             ronment     and     the     preservation  of    the
 3465/87 O , and Council Regulation (EEC) No                                   countryside, including the long-term conser-
 1696/71 ('), as last amended by Regulation (EEC) No                           vation of natural farming resources.
 3998/87 ( 7 );
Whereas, in accordance with the principles of the reform                2.      In accordance with Articles 5 (2) (b) and 11 (4)
 of the Structural Funds, and in particular with Articles 5             of Regulation (EEC) No 2052/88, the EAGGF
 and 11 of Regulation (EEC) No 2052/88, the EAGGF                       Guidance Section, hereinafter calied "the Fund",
 may help to finance national aid schemes by reimbursing                shall, acting under the common measure referred to
 expenditure incurred by Member States; whereas the rate                in paragraph 1, provide part-financing for national
 of Community part-financing may be differentiated on                   aid schemes by reimbursing, on the terms laid down
 the basis of the criteria and within the limits laid down in           in Title VIII, expenditure incurred by the Member
Article 13 of the said Regulation,                                      States on:
 HAS ADOPTED THIS REGULATION:                                           (a) schemes designed to encourage the conversion
                                                                              and extensification of production;
                              Article 1
                                                                        (b) measures relating to investments in agricultural
 Regulation (EEC) No 797/85 is hereby amended as                              holdings, in particular to reduce production
follows:                                                                      costs, to improve the living and working
                                                                              conditions of farmers, to promote the diversifi-
                                                                              cation of their activities, including the marketing
   1. Article 1 is replaced by the following:                                 of products on the farm, and to preserve and
                                                                              improve the natural environment;
       'Article 1
                                                                        (c) measures to encourage the setting-up of young
       1.    With a view to speeding up the adjustment of                     farmers;
      agricultural stuctures in the Community pursuant to
      Objective 5 (a) as set out in Article 1 of Council
      Regulation (EEC) No 2052/88 ('), a common                         (d) back-up measures to assist agricultural holdings,
      measure within the meaning of Article 2 (1) of                          involving the introduction of accounts and the
      Council Regulation (EEC) No 4256/88 (2), to be                          launching of groups, services and facilities for
      implemented by the Member States, is hereby                             the benefit of several holdings;
      introduced with the following objectives:
        (i) to help restore equilibrium between production              (e) measures to support farm incomes and to
            and market capacity:                                              maintain viable agricultural communities in
                                                                              mountain or less-favoured areas by means of
                                                                              agricultural aid for offsetting natural handicaps;
(')  OJ   No  L  110, 29. 4. 1988, p. 1.
O    OJ   No  L  166, 23. 6. 1978, p. 1.                                (f) measures to protect the environment and
(3)  OJ   No  L  346, 15. 12. 1988, p. 3.                                     safeguard the countryside by encouraging appro-
(4)  OJ   No  L  51, 23. 2. 1982, p. 1.                                       priate farming methods;
(s)  OJ   No  L  329, 20. 11. 1987, p. 6.
(•)  OJ   No  L  175, 4. 8. 1971, p. 1.
O    OJ   No  L 377, 31. 12. 1987, p. 40.                               (g) forestry measures to assist agricultural holdings.
 ---pagebreak--- 20. 9. 89                             Official Journal of the European Communities                              No C 240/9
    In accordance with Title VIII, the Guarantee and                           and craft activities or the manufacture and
    Guidance Sections of the Fund shall contribute                             sale of farm produce on the farm,
    equally, under the common measure referred to in
    paragraph 1, towards measures linked with the                         — the adaptation of the holding for the
    scheme to encourage the set-aside of arable land. In                       purposes of reducing production costs,
    the case of the share of expenditure financed by the                       improving living and working conditions and
    Guidance Section of the Fund, the financial rules for                      the hygiene of livestock enterprises or saving
    the application of the common measure shall, by way                        energy,
    of exception, be those which apply to the Guarantee
    Section.
                                                                          — the protection and improvement of the envi-
                                                                               ronment.';
    O OJNoL185, 15.7. 1988, p. 9.
    O OJ No L 374, 31. 12. 1988, p. 25.';                            (b) the following paragraph is inserted:
 2. in Article 2 (1):                                                     '4a.     Save where decisions subsequently taken
                                                                          pursuant to paragraph 2 provide otherwise, aid
    (a) point (a) is replaced by the following:                           as provided for in paragraph 1 and granted for
                                                                          investments relating to the beef sector, other
        '(a) practises farming as his main occupation.                    than aid for safeguarding the environment, shall
                                                                          be restricted to holdings where the beef-cattle
              Member States may, however, apply the aid
                                                                          stocking rate does not exceed two livestock units
              scheme referred to in this Title to farmers
                                                                           (LU) per hectare of forage areas used for
             who do not practise farming as their main
                                                                          feeding the cattle. The LU conversion table is
              occupation provided that on their holding
                                                                          given in the Annex';
              they engage on a substantial scale in
              forestry, tourism or craft activities or acti-
             vities for safeguarding the environment and
                                                                  4. the second subparagraph of Article 4 (2) is replaced
              maintaining the countryside which qualify
                                                                     by the following: 'The value of the aid provided for
              for public aid, and provided that the income
                                                                     in paragraph 1, expressed as a percentage of the
              from their off-farm activities does not                amount of the investment, shall not exceed:
              exceed 50 % of the reference income
              referred to in paragraph 2;'
                                                                     (a) in the case of the areas referred to in Articles 2
    (b) point (c) is replaced by the following:                           and 3 of Directive 75/268/EEC:
                                                                          — 50 % for fixed assets,
        '(c) submits a plan for materially improving his
              holding.                                                    — 30 % for other types of investment;
             This plan must show by means of specific                (b) In the case of other areas:
              calculations that the investments are
                                                                          — 30 % for fixed assets,
             justified from the point of view of the
              situation of the holding and its economy                    — 15 % for other types of investment.
              and that implementation of the plan will
              bring about a lasting improvement of that
                                                                     Where the aid is not granted in the form of a capital
              situation, and in particular of the labour
                                                                     grant, Member States shall draw up each year a table
              income per man-work unit              (MWU)
                                                                     showing the value of the aid, expressed as a
              employed on the holding, or is necessary for
                                                                     percentage of the amount of the investment, taking
              maintaining the present level of labour
                                                                     into consideration the average annual rate of interest
              income per MWU;'
                                                                     on non-subsidized loans, the value of the interest
                                                                     subsidy, the term of the loans, deferred interest
 3. in Article 3:                                                    subsidies and repayments and any other factor used
                                                                     for expressing the aid in grant equivalent terms.'
    (a) paragraph 1 is replaced by the following:
        '1.     The aid scheme referred to in Article 2           5. Article 7 is replaced by the following and an Article
        may be applicable to investments relating to:                7a is inserted:
        — the qualitative improvement and conversion
            of     production    in line with        market           'Article 7
            requirements,
                                                                     1.     Member States may grant setting-up aid to
        — the diversification of activities on the holding           young farmers under 40 years of age on condition
            in particular by the introduction of tourism             that:
 ---pagebreak--- No C 240/10                            Official Journal of the European Communities                                 20. 9. 89
   — the young farmer sets up as head of the holding,                 Article 7a
       which means that he assumes civil and tax
       liability or joint liability for the management of
                                                                      Member States may grant young farmers under 40
       the holding and the social status accorded in the
                                                                      years of age additional aid for investments to be
       Member State concerned to self-employed heads
                                                                      made under a material improvement plan within the
       of holding.
                                                                      meaning of Article 2 (1) (c), amounting to a
                                                                      maximum of 25 °/o of the aid granted pursuant to
   — the young farmer sets up as a farmer practising                  Article 4 (2), provided that the young farmer submits
       farming as his main occupation or begins, after                the improvement plan within five years of setting-up,
       having set up as a part-time farmer, to practise               and satisfies the conditions laid down in Article 7
       farming as his main occupation.                                (i)';
   — the occupational qualifications of the young
       farmer are to a satisfactory level at the time of           6. in Article 8, paragraphs 1 to 4 are replaced by the
       his setting-up or at the latest two years                      following:
       thereafter, and
                                                                      '1.      National aid for investments in agricultural
   — the holding requires a volume of work equivalent                 holdings which do not satisfy the conditions laid
       to at least one MWU.                                           down in this Article is hereby prohibited.
   2.     The setting-up aid may comprise:                            2.     Investments to be made under a material
                                                                      improvement plan within the meaning of Article 2
   (a) a single premium of a maximum eligible amount                  (1) (c) may qualify for national aid exceeding the
        of ECU 10 000. The premium may be paid over                   amounts granted pursuant to Articles 4 (2) and 7a
        a period not exceeding five years. Member States              provided that they are for:
        may replaced the premium by an equivalent
        interest subsidy;                                             — the construction of farm buildings,
   (b) an interest subsidy on loans taken out with a
                                                                      — the relocation of farm buildings, where this is
        view to covering the costs arising from
                                                                          done in the public interest,
        setting-up.
        The rate of interest subsidy shall be not more
        than 5 % for a period of 15 years; the capi-                  — land improvement operations, on condition that
        talized value of the interest subsidy may not                      account is taken of the effects on the envi-
        exceed ECU 10 000.                                                ronment,
        Member States may pay, in the form of a grant,
        the equivalent of the interest subsidy resulting              — the protection and improvement of the envi-
        from the volume and duration of the loans taken                   ronment,
        out.
                                                                      provided that these higher amounts are granted in
   3.     Member States shall define:                                 accordance with Articles 92 to 94 of the Treaty.
   — the conditions governing setting-up,                             3.      Investments which are not to be made under a
                                                                      material improvement plan may qualify for national
   — specific conditions in a situation where a young                 aid:
       farmer, does not set up as sole head of the
       holding, in particular where he sets up as a                   (a) of an amount equal to that granted pursuant to
       member of an association or cooperative whose                        Articles 4 (2) and 7a, where the labour income
       principal object is the management of an agri-                       per MWU is lower that the reference income;
       cultural holding.
                                                                      (b) of an amount equal at most to three-quarters of
   — the agricultural occupational training which a
                                                                            that granted pursuant to Articles 4 (2) and 7a,
       young farmer must possess at the time of his
                                                                            where the labour income is not less than the
       setting-up, or must achieve within two years
                                                                            reference income; however, national aid for
       thereafter, in order for the premium to be eligible
                                                                            energy saving and land improvement, on
       under the Fund.
                                                                            condition that account is taken of the effects on
                                                                            the environment, may be equal to the amounts
   — the amount of the setting-up aid.                                      granted pursuant to Article 4 (2).
 ---pagebreak--- 20. 9. 89                                Official Journal of the European Communities                            No C 240/11
    The aid shall be subject:                                                     per LU. A conversion table for expressing
                                                                                  cattle, Equidae, sheep and goats as LUs is
    — to the conditions laid down in Article 3; the                               given in the Annex.
         number of dairy cows referred to in Article 3 (3)
         shall be fixed, however, at 40 per MWU per                               However, in less-favoured agricultural areas
         holding,                                                                 where the permanent natural handicaps are
                                                                                  serious enough to justify it, the total
    — to the conditions laid down in Article 4 (1). Aid                           allowance granted may be increased to ECU
         may also be granted, however, for investments in                          120 per LU.
         the geese and ducks sector for the production of
        foie gras and for the purchase of livestock which                         The allowance shall be granted in respect of
         may be encouraged under Article 4 ( 1 ) , provided                       not more than 1 LU per hectare of the total
        that it is not the first purchase.                                        forage area of the holding.';
    4.     With the exception of the cases provided for in               (b) paragraph 3 is replaced by the following:
    paragraph 2, the sum of the aid granted pursuant to
    Article 4 and this Article may not exceed a total                        '3.    the maximum amount eligible under the
    investment of ECU 60 000 per MWU and ECU                                 Fund shall be limited to 90 units per holding, be
     120 000 per holding for a period of six years.'                         they livestock units (LU) or area units (ha). In
                                                                             addition, after the first 45 units, the maximum
                                                                             amount eligible per LU or per hectare shall be
 7. In Article 10, the first paragraph is replaced by the                    reduced to half the maximum amount of the
    following:                                                               allowance referred to in paragraph 1.';
    'Member States may, on request, grant                     to        (c) paragraph 4 is deleted;
    recognized groups which have as their object
    — mutual aid between holdings, including the use                10. Article 16 is deleted;
        of practices for safeguarding and improving the
        environment and preserving the countryside,                11. Article 17 (1) is replaced by the following:
    — the introduction           of  alternative    cultivation
        practices,                                                      '1.     In the areas referred to in Article 13 (1)
                                                                        Member States may grant aid to joint investment
                                                                        schemes for fodder production, including the storage
    — the more rational joint           use   of   agricultural
                                                                        and distribution of fodder, and for the improvement
        equipment,
                                                                        and equipping of pastures which are farmed jointly
                                                                        and, in mountain areas, to joint or individual
    — the operation of a group holding.
                                                                        investment in water points, in minor roads for
                                                                        immediate access to pastures, including mountain
    and which are formed after the entry into force of                  pastures, and in shelters for herds.';
    this Regulation, launch aid as a contribution to their
    operating costs during not more than the first five
    years after their formation.';                                 12. Article 18 is deleted;
 8. Article 14 (3) is replaced by the following:                   13. in Article 19c, '100' is replaced by '150' and the
                                                                        second sentence is deleted;
    '3.     Member States may lay down additional or
    limiting conditions for the grant of the compensatory          14. Article 21 is deleted;
    allowance. Including the use of practices compatible
    with the need to safeguard the environment and
    preserve the countryside.';                                    15. Article 22 is deleted;
 9. in Article 15:                                                 16. Article 23 is deleted;
    (a) the first subparagraph of paragraph 1 (a) is               17. in Article 24 (3) the second sentence is replaced by
         replaced by the following:                                     the following:
         '(a) in the case of farms keeping cattle, sheep,               'Within two months of the receipt of any draft, the
              goats or Equidae, the allowance shall be                  Commission shall, after consulting the Committee on
              calculated in relation to livestock numbers.              Agricultural Structures and Rural Development,
              The allowance may not exceed ECU 101                      issue an opinion thereon.';
 ---pagebreak--- No C 240/12                            Official Journal of the European Communities                                 20. 9. 89
18. Article 25 is replaced by the following:                     22. in Article 31 (1) and (2), 'Article 7, second
                                                                      paragraph point 2, Article 8 (2), (3) and (4)' is
     'Article 25                                                      replaced by 'Article 7a, Article 8 (3) and (4)';
    With regard to provisions forwarded pursuant to the
    second indent of Article 24 (1) or to Article 24 (4),        23. The following Article is inserted:
    the Commission shall decide within two months of
    their being forwarded, in accordance with the                      'Article 31a
    procedure laid down in Article 29 of Council Regu-
    lation (EEC) No 4253/88 (')» whether, in the light
    of their compliance with this Regulation and having               Member States shall make provision for effective
    regard to the objectives of this Regulation and to the            monitoring which shall include at least verification
    need to ensure that the various measures are                      of all aspects of the beneficiary's undertaking and of
    properly related, such provisions satisfy the                     the supporting documents, and on-the-spot checks to
    conditions for a financial contribution by the                    verify that the information contained in the
    Community to the common measure referred to in                    application corresponds to the true situation.
    Article 1.
                                                                      Detailed rules for the application of this Article shall
                                                                      be laid down, where appropriate, in accordance with
    C) OJ No L 374, 31. 12. 1988, p. 1.';                             the procedure provided for in Article 29 of Regu-
                                                                      lation (EEC) No 4253/88.';
19. Article 26 is replaced by the following:
                                                                 24. in Article 32 (1) the last subparagraph is replaced by
     'Article 26                                                      the following:
    1.     Expenditure incurred by Member States in
                                                                      'As regards the amendments made to this Regulation
    connection with the measures provided for in
                                                                      by Regulation (EEC) No . . . /89, Member States
    Articles lb, lc, 3 to 7a, 9 to 17 and 19 to 20 shall be
                                                                      shall bring into force the measures necessary to
    eligible for aid from the Guidance Section of the
                                                                      comply with those amendments within six months of
    Fund. Expenditure incurred by the Member States in
                                                                      the date of entry into force of that Regulation.'
    connection with the measures provided for in Article
    la shall be eligible for aid from the Guarantee and
    Guidance Sections of the Fund.
                                                                                            Article 2
    2.     The Commission shall determine the rates of           Regulation (EEC) No 1096/88 is hereby amended as
    Community part-financing for the different measures          follows:
    in accordance with the criteria and within the limits
    laid down in Article 13 of Regulation (EEC) No
    2052/88 under the procedure provided for in Article            1. In Article 1, 'within the meaning of Article 6 (1) of
    29 of Regulation (EEC) No 4253/88. It shall take its              Regulation (EEC) No 729/70' is replaced by 'within
    first decisions within one month of the entry into                the meaning of Article 2 (1) of Council Regulation
    force of Council Regulation (EEC) No . . 789 ('), if              (EEC) No 4256/88 (').
    a Member State so requests, these rates are applied
    to expenditure incurred with effect from 1 January
    1989.                                                             (») OJ No 374, 31. 12. 1988, p. 25.';
    O OJ No L . . . . ' ;                                          2. Article 4 (1) is replaced by the following:
20. in Article 28:                                                    '1.     The annual allowance referred to in the first
                                                                      indent of Article 3 (1) may be granted to farmers
                                                                      who practise farming as their main occupation
    (a) in paragraph 1, '1 July' is replaced by '1 May';
                                                                      within the meaning of Article 2 (5) of Council Regu-
                                                                      lation (EEC) No 797/85 of 12 March 1985 on
    (b) paragraph 2 is deleted;
                                                                      improving the efficiency of agricultural structures ('),
                                                                      who are over 55 years of age and who permanently
    (c) paragraph 4 is replaced by the following:
                                                                      cease all farming activities, provided that agricultural
                                                                      production on the agricultural area of the holding is
         '4.    The Commission shall adopt detailed rules
                                                                      halted throughout the whole period from the time of
         for the application of this Article.';
                                                                      cessation of farming to the time when the farmer
                                                                      reaches the normal retirement age as fixed by the
21. Article 29 is deleted;                                            social security arrangements currently applicable to
 ---pagebreak--- 20. 9. 89                                 Official Journal of the European Communities                               N o C 240/13
     farming in the Member State concerned. This period                   (b) paragraph 2 is replaced by the following:
     must be not less than five years but for this purpose
     it may be extended, where appropriate, beyond the                         '2.    The Commission shall determine the rates
     normal retirement age.                                                    of Community part-financing for the different
                                                                               measures in accordance with the criteria and
     In the case of leased holdings, Member States may                         within the limits laid down in Article 13 of
     permit up to one-third of the area to be taken over                       Council Regulation (EEC) No 2052/88 (') under
     by the owner without the cessation of production on                       the procedure provided for in Article 29 of
     that fraction of the area.                                                Council Regulation (EEC) No 4253/88 (*)• It
                                                                               shall take its first decisions within one month of
                                                                               the entry into force of Council Regulation
                                                                               (EEC) No . . . / 8 9 ( 3 ) . If a Member State so
     (») OJ No L 93, 30. 3. 1985, p. 1.';                                      requests, these rates are applied to expenditure
                                                                               incurred with effect from 1 January 1989.
 3. Article 6 (1) is replaced by the following:
                                                                               O O J N o L 185, 15.7. 1988, p. 9.
     '1.    The supplementary annual premium per
    hectare referred to in the second indent of Article 3                      (2) OJ No L 374, 31. 12. 1988, p. 1.
     (1) shall be granted per hectare of agricultural area                     O OJ No L . . . .';
     actually withdrawn from agricultural production.';
                                                                      7. Article 10 is deleted;
 4. in Article 7:
                                                                      8. in Article 11,
     (a) paragraphe 1 is amended as follows:
                                                                         (a) the first indent of paragraph 3 is replaced by the
         'the first indent of preceding 'Article 4 (1)' is                     following:
         deleted;
                                                                               '— where the scheme applied to the abandoned
                                                                                    farm is eligible under Article 9';
    (b) paragraph 2 is replaced by the following:
                                                                         (b) paragraph 4 is replaced by the following:
         '2.    The supplementary annual premium per
         hectare referred to in the second indent of
                                                                               '4.    The Commission shall determine the rates
         Article 3 (1) shall not be eligible for a financial
                                                                               of Community part-financing for the different
         contribution from the European Agricultural
                                                                               measures in accordance with the criteria and
         Guidance and Guarantee Fund (hereinafter
                                                                              within the limits laid down in Article 13 of
         called 'the Fund') if it is paid in respect of areas
         for which a premium for the permanent aban-                           Regulation (EEC) No 2052/88 under the
         donment of areas under vines is paid in                              procedure provided for in Article 29 of Regu-
         accordance with the rules laid down in Article 2                     lation (EEC) N o 4253/88. It shall take its first
         of Council Regulation (EEC) No 1442/88 of 24                         decisions within one month of the entry into
         May 1988 on the granting, for the 1988/89 to                         force of Regulation (EEC) N o . . ./89. If a
          1995/96 wine years, of permanent abandonment                         Member State so requests, the rates are applied
         premiums in respect of wine-growing areas ('); it                    to expenditure incurred with effect from 1
         shall not be paid in respect of areas for which a                    January 1989.';
         premium for the permanent abandonment of
         areas under vines is granted in the form of an              9. Article 12 is replaced by the following:
         annual premium in accordance with the rules
         laid down in Article 9 of Regulation (EEC) No
          1442/88.                                                        'Article 12
                                                                    Five years after the entry into force of this Regulation,
                                                                    the detailed rules for its application shall be reviewed by
         (') OJ No L 132, 28. 5. 1988, p. 3.';                      the Council, on a proposal from the Commission.';
 5. the last indent of Article 8 is deleted;                        10. The second sentence of Article 13 (3) is replaced by
                                                                         the following:
 6. in Article 9:
                                                                         'Within two months of the receipt of any draft, the
                                                                         Commission shall, after consulting the Committee on
    (a) 'the first indent of preceding 'Article 4 (1)' in                Agricultural Structures and Rural Development,
         the first sentence of paragraph 1 is deleted;                   issue an opinion thereon.';
 ---pagebreak--- N o C 240/14                               Official Journal of the European Communities                                 20. 9. 89
11. Article 14 is replaced by the following:                         3. Article 12 is replaced by the following:
                                                                          Article 12
       'Article 14
                                                                         All the measures laid down in this Regulation shall
With regard to provisions forwarded pursuant to the                      constitute a common measure within the meaning of
second indent of Article 13 (1) or to Article 13 (4), the                Article 2 (1) of Council Regulation (EEC) No
Commission shall decide within two months of their                       4256/88 (').
being forwarded, in accordance with the procedure laid
down in Article 29 of Regulation (EEC) No 4253/88,
whether, in the light of their compliance with this Regu-                O OJ No L 374, 31. 12. 1988, p. 25.';
lation and having regard to the objectives of this Regu-
lation and to the need to ensure that the various                    4. in Article 13, paragraphs 3 and 4 are deleted;
measures are properly related, such provisions satisfy the
conditions for a financial contribution by the
Community to the common measures referred to in                       5. Article 14 (2) is replaced by the following:
Article 1.';
                                                                         '2.    The Commission shall determine the rates of
                                                                         Community part-financing for the different measures
12. Article 16 is deleted;                                               in accordance with the criteria and within the limits
                                                                         laid down in Article 13 of Council Regulation (EEC)
                                                                         N o 2052/88 (') under the procedure provided for in
13. in Article 17:                                                       Article 29 of Regulation (EEC) No 4253/88. It shall
                                                                         take its first decisions within one month of the entry
                                                                         into force of Regulation (EEC) N o . . ./89. If a
      (a) in paragraph 1, '1 July' is replaced by '1 May';               Member States so requests, these rates are applied to
                                                                         expenditure incurred with effect from 1 January 1989.
      (b) paragraph 2 is deleted;
                                                                         (') OJ No L 185, 15. 7. 1988, p. 9.';
      (c) paragraph 4 is replaced by the following:
                                                                     6. in Article 15,
           '4.    The Commission shall adopt detailed rules
                                                                         (a) in paragraph 1, '1 July' is replaced by '1 M a / ;
           for the application of this Article.'
                                                                         (b) paragraph 2 is deleted;
                            Article 3                                    (c) paragraph 4 is replaced by the following:
Regulation (EEC) N o 1360/78 is hereby amended as                             '4.   The Commission shall adopt detailed rules
follows:                                                                      for the application of this Article.';
1. The first sentence of Article 6 (3) is replaced by the            7. Article 16 is deleted.
    following:
                                                                                                 Article 4
    '3.     Within six months of the entry into force of
                                                                     Regulation (EEC) No 389/82 is hereby amended as
    Council Regulation (EEC) No . . ./89 (!) and in
                                                                     follows:
    accordance with the procedure laid down in Article
    29 of Council Regulation (EEC) No 4253/88 (2),
    detailed rules of application shall be adopted                    1. Article 8 (1) is replaced by the following:
    concerning:
                                                                         ' 1.    Within six months of the date of receipt of each
                                                                         programme or of modifications thereto and on
                                                                         condition that all the details specified in Article 6 of
    C) OJ No L . . .                                                     this Regulation have been provided, the Commission
    (*) OJ No L 374, 31. 12. 1988, p. 1.*;                               shall take a decision as to their approval in
                                                                         accordance with the procedure laid down in Article
                                                                         29 of Council Regulation (EEC) No 4253/88 (').
2. in Article 11 (3), 'laid down in Article 16' is replaced
   by: 'laid down in Article 29 of Regulation (EEC) No
    4253/88.';                                                           (') OJ No L 374, 31. 12. 1988, p. 1.';
 ---pagebreak--- 20. 9. 89                                  Official Journal of the European Communities                              No C 240/15
2. Article 9 is replaced by the following:                            1. paragraph 2 is replaced by the following:
    'Article 9                                                                  ^,  measures proviaea•, , tor
                                                                                                           r in • /vnicles
                                                                                                                   . .     8 and 9
   All the measures provided for in this Regulation shall                shall constitute a common measure within the
   constitute a common measure within the meaning of                     meaning of Article 2 (1) of Council Regulation (EEC)
   Article 2 (1) of Council Regulation (EEC) No                          No 4256/88 (').
   4256/88 C).
                                                                         (') OJ No L 374, 31. 12. 1988, p. 25.';
   0) OJ No L 374, 31. 12. 1988, p. 25.';
3. in Article 10, paragraphs 3 and 4 are deleted;                     2. paragraph 3 is replaced by the following:
4. in Article 11                                                         '3.    The Commission shall determine the rates of
                                                                         Community part-financing for the different measures
   (a) paragraph 2 is replaced by the following:                         in accordance with the criteria and within the limits
        '2.     The Commission shall determine the rates                 laid down in Article 13 of Council Regulation (EEC)
        of Community part-financing for the different                    No 2052/88 (') under the procedure provided for in
        measures in accordance with the criteria and                     Article 29 of Council Regulation (EEC) No
        within the limits laid down in Article 13 of                     4253/88 (2). It shall take its first decisions within one
        Council Regulation (EEC) No 2052/88 (') under                    month of the entry into force of Council Regulation
        the procedure provided for in Article 29 of                      (EEC) No . . ./89 (3). If a Member State so requests,
        Council Regulation (EEC) No 4253/88. It shall                    these rates are applied to expenditure incurred with
        take its first decisions within one month of the                 effect from 1 January 1989.
        entry into force of Council Regulation (EEC) No
        . . ./89 (2) if a Member State so requests, these
        rates are applied to expenditure incurred with                   O O J N o L 185, 15.7. 1988, p. 9.
        effect from 1 January 1989.                                      O OJ No L 374, 31. 12. 1988, p. 1.
                                                                         (>) OJ No L . ..';
        O O J N o L l 8 5 , 15.7. 1988, p. 9.
        O OJ No L ...';                                               3. in paragraph 4, '30 June' is replaced by '1 May';
   (b) paragraph 3 is deleted;
                                                                      4. paragraph 7 is replaced by the following:
5. in Article 12,
                                                                         '7.    The Commission shall adopt detailed rules for
   (a) paragraph 2 is deleted;                                           the application of this Article.'
   (b) paragraph 4 is replaced by the following:
                                                                                                Article 6
        '4.     The Commission shall adopt detailed rules
        for the application of this Article.'                        This Regulation shall enter into force on the third day
                                                                     following its publication in the Official Journal of the
                             Article 5                                European Communities.
Article 17 of Regulation (EEC) No 1696/71 is hereby                  This Regulation shall be binding in its entirety and
amended as follows:                                                  directly applicable in all Member States.