CELEX: 51987PC0398
Language: en
Date: 1987-09-11
Title: Proposal for a COUNCIL REGULATION (EEC) modifying Regulation (EEC) No 2262/84 laying down special measures in respect of olive oil (presented by the Commission)

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COM (87) 398
Vol. 1987/0215
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               /
                                            COM(87) 398 final
                                            Brussels , 11 September 1987
                                Proposal for a
                           COUNCIL REGULATION ( EEC )
            modifying Regulation ( EEC ) No 2262 / 84 laying down
                 special measures in respect of olive oil
                       ( presented by the Commission )
   C0M(87 ) 398 final
 ---pagebreak---                                                                    &r>7 m
                                    г
                             EXPLANATORY MEMORANDUM
Council Regulation ( EEC ) No 2262 / 84 , laying down special treasures in
respect of olive oil , provides in Article 1(1 ) that each Mombor State
( Italy , Greece , Spain and Portugal ) producing more than 3,000 tonnes of
olive oil , over a reference period , is to set up an agency for the
purpose of carrying out certain inspection work and duties in connection
with the olive oil production aid scheme . Article 1(5 ) of the same
Regulation , as last amended by Regulation ( EEC ) No 3386 / 86 , provides that
over a period up to 31 October 1988 , certain amounts of the agency 's
expenditure are to be chargeable to the General Budget of the European
Communities in order to offset the costs of the agency , both in respect
of its setting up and its functioning .
Experience already    gained' would indicate that the creation and effective
operation of such      control bodies within producer Member States
necessitate a long    procedure , the results of which are not foreseeable at
the outset .     Thus the administrative and legal structures prevailing in
the Member States concerned are the key factors which determine the time
required for the setting up and effective operation of these bodies .        It
is evident , therefore , that without a realistic assessment of a
reasonable period , which, would permit the setting up and functioning of
the agencies , the Whole concept could be put in jeopardy .       This would be
regrettable not only for the consequent loss of Community funds already
invested , but just as importantly , on account of encouraging results in
the detection of irregularities and frauds in the olive oil sector
already noted , especially in relation to the operation of the control
agency in Italy .      In this sense it is believed that the Community 's
participation in the expenditure of the agencies would give , in the
future , a favourable balance from the viewpoint of Community expenditure
in the sector .
The application of this measure has indicated that, mainly due to
administrative and / or legal problems , experienced in Greece , Spain and
Portugal , it has not been possible for these Member States to set up and
operate their agencies within the time limits prescribed .        Consequently ,
these agencies are not in a position to use effectively the maximum
amounts , which had been set aside for them during the initial period of
100% Community financing . It is therefore proposed that this initial
period be extended by one year , without increasing the maximum amounts
already allocated for these agencies under the existing legislation .
Furthermore , in order to bring all Member States concerned under the same
time span for the Community 's financial participation , it is considered
necessary to extend , by one year , the 50% Community participation for the
agencies set up in Italy and Greece .
 ---pagebreak---                                   3
                             Proposai for a
                    COUNCIL REGULATION ( EEC )
            amending Régulation ( EEC ) No 2262 / 84
            laying down special measures in respect of olive oil
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the! Treaty        establishing the European Economic
Community , and in particular Article 43 thereof ,
Having regard to the proposal from the Commission , (D
Having regard to the opinion of the European Parliament ,
whereas , under Article 1(1) of Council Regulation (EEC) No Z^/84(3), as last
amended by Regulation ( EEC ) No 3386 / 86 ^^, producer Member States are
to set up agencies for the purpose of carrying out certain checks and
duties in connection with the olive oil production aid scheme ; whereas ,
under Article 1(5 ) of the same Regulation , certain percentages of the
agencies' actual expenditure are to be chargeable to the general budget
of the European Communities up to certain maximum amounts and until the
expiry of a certain period ;
Whereas , due to administrative and legal problems experienced in certain
Member States , it has not been possible for the’ latter to set up and operate
the agencies within the time limits prescribed ; whereas , accordingly ,
those Member States are not in a position to use effectively the maximum
amount which had been set aside for them during the initial period of
100% Community financing ; whereas , therefore , that initial period must be
extended by one year without increasing the maximum amounts already
allocated for those agencies under the existing legislation ;
Whereas , taking account of the important role that these bodies can play
to ensure timely and effective control of the production aid
arrangements ,   it is necessary that 50% of the agencies' actual
expenditure in certain producer Member States should continue to be
chargeable to the general budget of the European Communities ,
TTT   OJ No C
(2)   OJ No C
(3)   OJ No L 208 ,   3.8.1984 , p.ll .
(4)   OJ No L 310 ,   5.11.1986 , p.17 .
 ---pagebreak--- HAS ADOPTED THZS REGULATION :
                                    Article 1     '
Article 1(5 ) of Regulation ( EEC ) No . 2262 / 84 is hereby amended as follows :
1 . The first subparagraph is replaced by the following
    "Over a period of five years from 1 November 1984 , the following
    percentages of the agency 's actual expenditure shall be chargeable to
    the general budget of the European Communities :
        in the case of Italy , 100% for the first three years up to a
        maximum of 14 million ECU , and 50% for the fourth and fifth year
    -   in the case of Greece , 100% for the first four years up to a
        maximum of 7 million ECU , and 50% for the fifth year.”
2 . The second subparagraph is replaced by the following
    “ In the case of Spain • and Portugal , 100% of the agency 's actual
    expenditure during the period from 1 March 1986 to 31 October 1989
    shall be covered , up to a maximum of 9.3 million ECU for Spain and
    4.7 million ECU for Portugal.”
3 . The fourth subparagraph is replaced by the following
    "The Council , acting by qualified majority on a proposal from the
    Commission , shall adopt by 1 January 1989 the method for financing the
    expenditure in question as from the 1989 / 90 marketing year.”
                                    Article 2
This Regulation shall enter into force on the day of 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 Council
                                                      The President
 ---pagebreak---      FINANCIAL              STATEMENT                concerning : a proposal for a Council Regulation
     modifying Regulation ( EEC ) No 2262 / 84 laying down special measures in respect of
     olive oil .
 1 . Budget heading :   B       Item : 382      Title : Inspection in agriculture .
 2 . Legal basis : Art . 43 of the Treaty .
 3 . Classification :          0HfU iffRBfIBIUI/Non-c omp ul sory expendi ture
 4. Purpose/description of the measure : to extend the period of 100% Community financing of
    the olive oil agencies in Greece , Spain and Portugal in order to take account
    of the slow start-up . 50% financing for Italy and Greece                     is also to be extended
    upto the end of 1988/ 89 .
5.     Haihod of calculation
5.1 Fora of expenditure : Community contribution based on real costs .
5.2 Community contribution : 100% initially, thereafter 50% upto 31.10.1989 .
5.3    Calculation :   ( see annex )
6.     Financial laplication as regards operating appropriations
6.1 Schedule of Hflfllflll appropriations JJ|A|HIIP£AP9|IIAI (m ECU)
                   Year                  Total cost           of which additional
                   19 87                   10.2                     p ■ ΓΠ ·
                   19 88                   10                       p. m .
                   19 89                   10.65                    3.5
                   Total                   30 T 85                  3.5
6.2 Financing during current year : provided for in the budget .             No extra cost resulting
      from the proposal .
7 . Observations : The total allowable cost at 100% financing is not altered . Expenditure
    is simply redistributed in time .
    The only extra costs result from the extension, to 31.10.89, of 50% financing in
    Italy whose agency is fully operational .
 ---pagebreak---                                               '                     CONTROL AGENCIES FOR- OLIVE CIL                     Brussels , June         1987
                                                                                                                        TM/ ces
                                                           FINANCIAL CONTRIBUTION FROM COMMUNITY BUDGE I
   As- E-Xl-ST ING LEGISLATION ( Counc il Régulation ( EEC ) No 2262 / 84 ,- as amended by. Régulation Nos 3788/ 85 and             3386 / 86 )
                                                                                                            Million ECU
                     ,   <c- 100% ->!<– 5Œ -?
 (a )  ITALY                   Italy maxinun 14 million ECU              j                            Italy       14.0
                                                                                                     Greece        7.0
       GREECE                 Greece maxinun 7 million ECU               j
                           m/1985          1985/1986        1986/1987   ! 1987/1988
                        _I_I_!_                                                                      ■axiaux      21.0
                 1.11.84                                            31.10.87       31.10.88
                                                  Spain máximum 9.Tmi Ilion ECU
(b) SPAIN                                                                                          - Spain         9.3
                                                  Portugal maxinun 4.7 mi Ilion ECU
      PORTUGAL                                                                                       Portugal      4.7
                                                         , 1966/1967       1987/1988
                                                   - I                  I_
                                                                                                     maximum     14.0
                                            1.3.86    1.11.86                      31.10.88
    B. PROPOSEO MODIFICATION ^
( a.i )    ITALY           -100%     jnaxinun 14 million ECU -
                                                                               .50%_>U–50% –>
                                                                                                                          Prolongation by one year of 100%
( a.ii ) GREECE                    103% - maxinun 7 millier ECU -    –«->*               E – 50? – »                      COnranity financing for Greece, Spain and
                                                                        .               I 1958/89                         Portugal without increasing the maxinun
                                  _I_                  I             _I-I               *- _ _ _ _ J
                                                                                                                          arrrxnts already allocated for these
                  1.11.84                                            31.10.87       31.10.88      31.10.1                 Member States inder existing legislation.
                                                                                                                          50% CofTimnity financing for the agencies
 ( b ) SPAIN                                    <-10GK-1--»                                                               in Italy and Greece during the 1988/89
       PORTUGAL                                                                                                           marketing year.
                                                           Spain maxinun 9.3 mi Ilion ECU
                                                           Portugal maxinun 4.7 mi Ilion ECU
 ---pagebreak---                                             t-
f
                   COMPETITIVENESS ANO EMPLOYMENT IMPACT STATEMENT
                                          .                            Prolongation
    I.  What is the main reason Tor introducing the measure ? ...       . nrnr( iirer
        of Community financing for control agencies for olive ot l -n Producer
        Member States .
   II . features of the businesses in question .        In particular :
        ( a ) Are there many SMEs ?
        ( b ) Have any mergers been noted in any regions which are :
                ( i ) eligible for regional aid in the Member States ?
              ( ii ) eligible under the ERDF ?
φ III . What direct obligations does this measure impose on businesses ?
   IV . What indirect obligations are local authorities likely to impose
        on businesses ?
    V.  Are there any special measures in respect of SMEs ?
        Please specify . ,
   VI . What is the likely effect on :
        ( a ) the competitiveness of businesses ?
         ( b ) employment ?
                                                  ~)
J VII . Have both sides of industry been consulted ?
        Please indicate their opinions .