Outlying and remote regions: specific measures for agriculture in favour of the smaller Aegean islands

2006/0093(CNS)

PURPOSE: to offer special agricultural support measures to the Aegean islands.

LEGISLATIVE ACT: Council Regulation 1405/2006/EC laying down specific measures for agriculture in favour of the smaller Aegean islands and amending Regulation 1782/2003/EC.

CONTENT:  this Regulation lays down specific measures needed to help remedy the difficulties faced by the Aegean islands due to their remote geographical location. The term “smaller island”, in this instance, refers to any island in the Aegean sea other than Crete and Evia. The Community support programme includes specific supply arrangements and specific measures to assist local lines of agricultural production. An annex to the Regulation lists all the agricultural products applying to the application of the provisions laid out in this Regulation.

Specific supply measures:

The Greek authorities are to draw up, annually, a “supply balance” report in which the quantity of the agricultural products needed to meet the supply requirements are stated. The supply balance report will require Commission approval before it is implemented. A separate balance may be drawn up to help meet the needs of undertakings, packaging and processing products and for traditional consignments to the rest of the Community or for export. The amount of aid is fixed and takes account of additional costs associated with marketing, specific needs, traditional trade flows and the economic aspect of the proposed aid. Products may be exported to third countries or to the Community under certain conditions, including reimbursement of aid received under the specific supply arrangements. Further, it will be possible for the smaller Aegean islands to export those products which have  benefited from the specific supply arrangements to third countries or to the rest of the Community. No export refund shall be granted for the products thus exported.

Measures to assist local agricultural products:

The support programme contains measures to ensure the continuity of local lines of agricultural production. The programme will be established at the geographical level deemed most appropriate by the Greek authorities. The programme, which has to be compatible with Community law and the Common Agricultural Policy, will list:

-          a quantified description of the current agricultural production situation;

-          a description of the strategy proposed – including the priorities selected, the objectives quantified and an appraisal showing the expected economic, environmental and social impact;

-          a schedule for the implementation of the measures and a general indicative financing table showing the resources that may be adopted;

-          proof of compatibility and consistency;

-          steps taken to ensure an efficient and effective implementation of the programme;

-          a designated authority responsible for implementing the programme.

Accompanying measures:

For agricultural products to which Articles 87, 88 and 89 of the Treaty apply, the Commission may authorise operating aid. In addition, Greece may grant additional financing for the implementation of the support programme.

Financial provisions:

For the “Community support programme” as well as the “specific supply arrangements” the Community will finance the measures up to a maximum annual amount of EUR 23.93 million. For the annual specific supply arrangements, the amount may not exceed EUR 5.47 million.

Lastly, no later than the 15 February each year, Greece must communicate the appropriations it intends to use in the following year. No later than 30 June each year it must also report on the implementation of the measures to the Commission. No later than 31 December 2011, the Commission will submit a general report on the impact of action taken under this Regulation.

ENTRY INTO FORCE: 3 October 2006.

APPLICATION: 1 January 2007.  Provisions on state aid, additional Greek funding, the draft support programme and implementing rules will apply as from 1 January 2007.