Common organisation of the markets (CMO) in sugar sector: adapting Regulations by reason of the accession of Bulgaria and Romania to the EU

2006/0226(CNS)

PURPOSE: to establish a temporary scheme for the restructuring of the sugar industry in the Community, by reason of the accession of Bulgaria and Romania to the European Union.

PROPOSED ACT: Council Regulation.

CONTENT: in February 2006, new Regulations on the common organisation of the sugar sector market were approved. (See CNS/2005/0118). The new Regulations, however, to not take account of Romania and Bulgaria’s accession to the EU in January 2007. The purpose of this proposal, therefore, is to adopt the texts of the new sugar regulations before accession. In addition, the proposal intends to introduce certain provisions on “seeds”.

In more specific terms, this proposal seeks:

-          To insert Bulgaria and Romania in the list of countries benefiting from the production quota system for sugar, isoglucose and inulin syrup quotas, as well as traditional supply needs of sugar for refining.

-          To introduce provisions on direct payments for Bulgaria and Romania. Direct payments should be introduced according to the same schedule of increments as for other crops – i.e. ten years starting in 2007 at a level of 25% of the direct payments then applicable in the EU-15. To determine the amount of the sugar direct payments, the same method of calculation as adopted for the EU-25 has been used. Bulgaria and Romania will be offered the option of applying separate sugar payments through SAPS.

-          To adapt some dates on sugar to allow Bulgarian and Romanian participation in the common market. Both countries should be included in the list of national and regional quotas with the corresponding sugar and isoglucose quotas and both should be added to the list of countries benefiting from the system of Traditional Supply Needs for refining. In addition certain other dates of the sugar Regulations have been adapted to meet the specific circumstances associated with Bulgarian and Romanian accession.

-          To add Bulgaria and Romania to the list of countries concerned by the seeds aid, by adapting Annex XIa of Regulation 1782/2003/EC. (See CNS/2003/0006). Bulgaria and Romania should be offered the option of coupling the aid for seeds when applying the single payment scheme and consequently they should be added to the relevant table on seeds aid.

For further information concerning the financial implications of this measure, please refer to the financial statement.