COUNCIL REGULATION (EEC) N째  3773/85
of 20 December 1985
concerning certain national aids in the agricultural sector which are  incompatible with the common market but which the Kingdom of Spain is authorized to maintain on a  traditional basis
THE COUNCIL OF THE EUROPEAN COMMUNITIES
,
Having regard to the Act of Accession of Spain and Portugal, and in particular Articles 80 and 91  thereof,
Having regard to the proposal from the Commission,
Whereas, pursuant to Article 80 of the Act of Accession, the Kingdom of Spain is authorized to  maintain, on a transitional and, in principle, degressive basis, national aids the abolition of  which would not fail to have serious consequences both for producer and consumer prices; whereas a  list and the exact wording of the national aids which fulfil these conditions appear in the Annex,  together with their initial amounts, or, as the case may be, the criteria by which the initial  amount may be determined;
Whereas, with respect to the rate of abolition and any scale of degressivity which should be fixed,  it appears appropriate that, for the majority of the aids in question, the initial amounts should  be considered as maximum rates for the first period and that, over the second period, these amounts  shall be reduced in equal annual instalments, to be phased out completely at the end of the  transitional period;
Whereas, until 31 December 1989, national aids granted by the Kingdom of Spain in the fruit and  vegetables sector are subject to the special arrangements laid down in Article 135 (2) of the Act  of Accession; whereas, pursuant to the first paragraph of Article 150, Article 80 applies to fruit  and vegetables ony as from 1 January 1990;
Whereas the Kingdom of Spain may abolish the aids which are the subject of these transitional  measures at a more rapid rate than that set out in the Annex; whereas it is essential that, in this  event, Spain should inform the Commission of action taken; whereas a procedure should be specified  whereby other derogations may be made, should the need arise, from the degressivity scale, pursuant  to Article 80 (3) of the Act of Accession;
Whereas, under Protocol N째 2 annexed to the Treaty of Accession, the customs territory of the  Community does not include, inter alia, the Canary Islands and whereas, therefore, Community  refunds will apply to exports of agricultural products from the customs territory of the Community  to the Canary Islands; whereas, accordingly, national aid for transporting wheat and wheat meal  from the Spanish peninsular territory and the Balearic Islands to theCanary Islands may be granted  only if the refund is fixed at a level lower than the amount of aid;
Whereas, pursuant to Article 80 (2) of the Act of Accession, equal access to the Spanish market  must be ensured, whereas, in view of the joint declaration annexed to the Treaty of Accession of  Spain and Portugal, this Regulation should be without prejudice to the adoption at a later date,  should be need arise, of specific procedures designed to ensure equality of access on the Spanish  market for products imported from other Member States if the grant of one or more of the aids  referred to in this Regulation entails an actual modification on the Spanish market of the  conditions of competition between imported and domestic products;
Whereas, pursuant to Article 2 (3) of the Treaty of Accession, the Community institutions may  adopt, before accession, the measures referred to in Article 91 of the Act of Accession these  measures entering into force only subject to, and on the date of the entry into force of that  Treaty,
The national aids which are incompatible with the common market and  which the Kingdom of Spain is authorized to maintain on a transitional basis are listed in the  Annex, with an indication of their rate of abolition.
The Kingdom of Spain may abolish the aids referred to in Article 1 at a more rapid rate  than that set out in the Annex. It shall inform the Commission without delay of any action it has  taken.
Aid for transporting wheat and wheat meal from mainland Spain and the Balearic Islands  to the Canary Islands may be granted only:
(a) where the amount of the refund applicable to the export in question is less than the maximum  amount of transport aid given under heading 1.1. of the Annex;
(b) if the aid is limited to the difference between the two amounts referred to in (a);
(c) if the exporter provides proof that the products in question have been released for consumption  in the Canary Islands.
Where the grant of one or more of the aids listed in the Annex entails an actual  modification on the Spanish market of the conditions of competition between domestic products and  products imported from the other Member States, the Council shall, in accordance with the procedure  laid down in Article 89 (1) of the Act of Accession, adopt the specific procedures required to  ensure equality of access on the Spanish market.
Detailed rules for the application of this Regulation together with the possible  derogations referred to in Article 80 (3) of the Act of Accession shall be drawn up in accordance  with the procedure laid down in Article 38 of Regulation (EEC) N째 136/66/EEC of the Council of 22  September 1966 on the establishment of a common organization of the market in oils and fats (1) or,  as the case may be, in the corresponding Articles of the other Regulations on the common  organization of agricultural markets.
This Regulation shall enter into force on 1 January 1986, subject to the entry into  force of the Treaty of Accession of Spain and Portugal.
This Regulation shall be binding in its entirety and directly applicable in all  Member States.