PURPOSE : to reform the sugar CMO on the basis of the experience gained, by taking account o the financial framework decided on in Berlin, the new negotiations within the WTO on agriculture and the future enlargement of the Union.
COMMUNITY MEASURE : Council Regulation 1260/2001/EC on the common organisation of the markets in the sugar sector.
CONTENT : the sugar regime will apply as from 1 July 2001 and will have a duration of 5 years;
- on the basis of Commission studies on the market situation, all aspects of the quota system, prices, interprofessional relations and an analysis of the increased competition resulting from the EU's international commitments, the Commission will present a report at the start of 2003;
- for Southern Italy, for Spain with regard to sugar cane production and for the mainland territory of Portugal, national aids shall be maintained at the same level and under the same conditions reached for the 2000/01 marketing year;
- because of its specific climactic conditions, Finland is authorised to introduce a nationally funded storage equalisation scheme restricted to the carry-over of its C-sugar;
- the Commission states its intention to take the necessary provisions to ensure a smooth transition to the new sugar regime under which the storage equalisation scheme is abolished. It will ensure that the sugar that has paid the storage levy up to 30 June 2001, and been marketed after that date, is not penalised as a result of the removal of all storage cost-based elements taken into account at present in the market management instruments;
- for the carried over C-sugar, from the marketing year 2000/01 the storage equalisation scheme shall be maintained only until the end of the corresponding compulsory storage period, as a transitional measure and in principle on a degressive basis. The cost of this measure will be covered by the levies paid by the sector under the self-financing mechanism.
ENTRY INTO FORCE : 01/07/01. The Regulation shall apply from the 2001/2002 marketing year.�