CELEX: 51975PC0530
Language: en
Date: 1975-10-28
Title: Proposal for a Regulation (EEC) of the Council concerning the application of Article 40(4) of the EEC Treaty to the French overseas departments (submitted to the Council by the Commission)

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COM (75) 530
Vol. 1975/0200
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       COM(75)530 final
                                                      Brussels , 28 October 1975
                                       Proposal
                         for a Regulation (EEC ) of the Council
                              concerning the application of
                         Article 40(4 ) of "the EEC Treaty to the
                              French overseas departments
                    ( submitted to the Council by the Commission)
   C0II(7S ) 530 final .
 ---pagebreak---                           Explanatory memorandum
1. In so far as itvis laid down in the Treaty of Rome , the French
    overseas departments are subject to its provisions .
    In accordance with the first subparagraph of Article 227 ( 2 ) of the
    Treaty , the provisions concerning the European Agricultural Guidance
    and Guarantee Fund do not apply to the French overseas departments .
    Hoxjever , the second subparagraph of this Article states that the
    conditions under which provisions of the Treaty not already covered
    by the first subparagraph are to apply shall be determined by decisions
    of the Council , acting unanimously on a proposal from the Commission,
    This is therefore also true of Ihb . provisions relating to the EAGGF.
2 . The economic structure of the French overseas departments is essen­
    tially agricultural . Moreover , agriculture in these departments
    suffers from certain natural disadvantages , in particular the climatic
    conditions and the distance from Community markets .
    It therefore appears desirable to extend the field of application of
    the Guidance Section of the EAGGF to these departments in order to
    allow them to improve their agricultural structure with the aid of the
    Community , in particular with regard to the principle laid down in the
    third subparagraph of Article 227 ( 2 ) of the Treaty which lays down
    that "the economic and social development of these areas ( should be )
    made possible 11 *
3 . Since the agricultural structure of the French overseas departments
    needs to be improved , it appears desirable to allow them to receive
    Community aid as soon as possible and to make provisionifrom 1975
    onward^- for applications for aid for projects designed to improve
    agricultural structures, within the meaning of Regulation Ho I7/64/EEC .
    Regulation ( EEC ) No 1215/75 fixed 1 iJum 1975 as the final date for
    the submission of applications for aid for 1975 * It is therefore neces­
    sary to make provision for a derogation ii respect of projects in the
    Frenoh overseas departments .
 ---pagebreak---                                              2
                                             proposal
                    for Regulation No          /75 of the Council
                 , of        '    concerning the application , of
                   Article 40 (4) of the E3C Trcrvfcy to th©
                         Frencli overseas' £®r<rvrtaents
THE COUNCIL 05" THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 43 and '227 'thereof ;
Having regard to the proposal from the Commission j
Having regard to the Opinion of the European Parliament ;
WhoroeJ3 the fiolcl of " application of "the Guidance Section of the
airoj-onn Agricultural Gfui'lmoe and . C&nr&fttce 5\uiA " should be e2cton<io<3, to
include the French overeoao departnanto BO that -they zioy rocoivo t.io
Community aid for the improvement of agricultural structures provided
for in Article 6 of Council Regulation (EEC ) NO 729/70^ of 21 April 1970
on the financing of the coirjnon agricultural policy , as last amended by
Regulation (EEC ) No 2783/73$ and thus promote the economic and social
development of these aro^s which. care 'basically fiericultural ?
Whereas the activities of the Guidance Section should be extended as
to tha Prehon overseas cle^p-rtivsents as soon SB possible j whei^aa ' pi^vision
should be made for applications for aid under Council Regulation
No 17/64/EECp) of 5 February 1964 on the conditions for granting aid from
the European Agricultural Guidance and Guarantee Fund , as last amended
                                       /.fil
by Regulation (EEC ) No 2684/741 to be submitted in 1975 5 whereas a
clero .'T.tion        therefore tie . marie frbn -the filial date for -the su'nission.
1
   OJ No L     94 » 28 April 1970 , p. 13
2
   OJ No L 295 1 30 December 1972 , p. 1
   OJ No L 34 » 27 February 1964 , p« 586/64
4 OJ No L 288 , 25 October 1974, p. 5
 ---pagebreak--- of enoh appHcctioï^lâid^down t>3r-Co\iaoil Régulation (SBO) 236 \2\$hy^' ot
5 May 1975 on the allocation for I974 of appropriations from the
Guidance Section of the European Agricultural Guidance and Guarantee
Fund and deferring certain final dates, for the years 1974 and 1975 ,
HAS ADOPTED THIS REGULATION :
           - <       :                Article 1             •
                               •*    ..   » s * ' ,  * *               • •-   , st
Article 40 (4) of the SEC treaty dhnll 1 Apply to the Frondh ov&ite&afi . •
de^artiMnts-a^ : r<3carfls - th« Guidance Section of the European -A^lfcultural
Guidance and Guarantee" Fund is concerned.
   •'            " =. \            : Article 2
The final deto' for the submission of applications for aid under Regu­
lation No 17/64/EEC ,Vlaid down for 1575' la Article 3 of Reflation (SESC)
No; 1215/75 » is hereby deferred until 31 December 1975' i*1 respect of
projects to       carried out in the French overseas departments . ■ -
                                  ■ Article 3                        . .              r. .
               -                             ••     .    '■      •"  vy *          •    i
This Regulation shall enter into force on the third day following its,
publication in the Official Journal of the; European Communities.
This Regulation shall be binding in its entirety and directly applicable
in all Member .States ..
Done at Brussels                                              ••*-For >-the Counoil ;   -
                                                                  The President
1 OJ No L 121 . 14 May 1975r p. 1
 ---pagebreak---                                                                                            Annex to Doe.
                     FINANCIAL                STATEMENT
                                                                                           Data
      1.   Line of the ftidget concerned :        Title 8
                                     Proposed Council Regulation relating to the conditions of
      Z, Title of the action :       application of Article 40 » paragraph 4 of the Treaty to the
                                     French Overseas Department                            '
     3. Legal basts : ■ Arfcicle 6 of the Council Regulation No . 729/70/EEC of 21 April 1970 ,
                            relating to the financing of the common agricultural policy
                                         To extend the field of application of the Guidance Section of
     4.    Objectives of the action : the European Agricultural Guidance and Guarantee Fund to the
                                         French Overseas Departments so that they can "benefit fron
                                         Community aid towards the improving of Agricultural Structure .
 I 5.0 Cost of the action                               I  during the caapaton     carrent exercise ( 75 ) following exercise^)
 I ; . , charge to the EC Budget                                                                                 0.5 m.u.a .
 I .          charge to the national a&lnlstrations
              charge to other national sectors
     5.1 • fctiiated costs       Year          '      Year J/.LI .        Year
                                       O.5 mua              1 mua              1.3 mua
     5.2 B^thod of calculation
   . •' The method and hypotheses used in calculating the financial consequences , are
         detailed under t)oint "Comments" "belovr
     6.1 > Possible financing by credits arltten Into the relative chapter of the current Budget
f    6.2 Possible financing by transfers between chapters of the current Budget
                               MX                IfcX
     6.3 ' Necessity for a supplementary Budget .                               No
     6.V Credits to be written into future budgets
     Cements :
 ---pagebreak--- OBSERVATIONS
a) To determine the finanoial effeot of extending the field of action of the E.A.G.G.y,
     Guidance Section to the D.O.M. 's it is useful to compare both the Utilised
     Agricultural area and also the Total Active Agricultural population of the
     D.O.M. * s with that of the Nine .
                                             ESC of            D.O.M.
                                               i'Ime                            /  '
      utilised agricultural area            93,4^7,000         I4C , 051        0.1'
      active agricultural population         9,655,000          G6.104          0.C9
     For txie sake of this calculation the increase incurred "by the addition of
     the D.O.M. 's to the Community of Nine, is taken as 0*5/' *      ■
"b ) Budgetary effects of the inclusion of the D.O.I-I. 's
     1 . Chapter 00 , Regulation No . 17/64/SEC : projects financed in the D.O.M. *s
         shall "be treated as applications from France and shall be subject to
         the constraints of the limited finance for this regulation .
     2 . Chapter 81 – Common actions in the field of the reform of agricultural
         structures .
         The effect of the inclusion of the D.O.lI. 's will be to increase by a -g-l
         the provisions i
                                          Budget         Budget          Budget
                                           1976           1977            197Ô-
                                           mua             mua             mua
          Provisions for the ITine          91            194             261.9
          Provisions for the D.O.II.'s     0.5              1               1.3
          Total                            91.5           195             263.2
 c ) Considering the level of imprecision in estimating the expenditure on Common
     Actions , it is not necessary to modify the proposed Budget for 1976 to take
     into account this additional expense .      In future years , the inclusion of the
     D.O.M. 1 s within the field of application of E.A.G.G.F. Guidance Section will
     be taken into consideration when establishing future budgets .
 d) The estimated cost of this action over the next four years is 2.8 mua.