Explanatory Memorandum to COM(2004)687 - Specific measures for agriculture in the outermost regions of the Union

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dossier COM(2004)687 - Specific measures for agriculture in the outermost regions of the Union.
source COM(2004)687 EN
date 28-10-2004
On 28 June 2001, the Council, adopted a reform of the support schemes for agriculture in the EU's outermost regions as referred to in Article 299 i of the EC Treaty. These measures, first introduced in 1991 and 1992, have proved effective in promoting agriculture in and securing supplies to these regions i.

On the other hand, the administration of these arrangements leaves something to be desired: the management of the two strands of the Posei schemes, i.e. the specific supply arrangements and support for local lines of production in the outermost regions, has proved somewhat inflexible. Adapting the supply balances to take account of even small fluctuations in demand requires the Commission to adopt legislation.

The arrangements for supporting local lines of production are, moreover, fragmented into 56 (micro-)measures established by Council regulations. It is not possible to adjust these measures without an interinstitutional legislative procedure, which slows down Community action and hampers attempts to react as quickly as possible to specific situations in the outermost regions, even though often only modest sums are involved.

That is why it is proposed to change the philosophy behind the way assistance is provided for these regions: by encouraging participation in decision-making and speeding up the response to their specific needs.

This draft Regulation provides for the submission by the Member States of one programme per outermost region. These programmes will include a section on the specific supply arrangements for those agricultural products which are essential in the outermost regions for human consumption, as agricultural inputs or for processing, and another section on support for local production.

The Regulation does not affect the sources of financing or the intensity of Community support.

The Community will finance the programme under the EAGGF Guarantee Section at 100% up to an annual ceiling established in the Council Regulation. Part of this aid will have to be reserved for local agricultural production. The amounts have been calculated on the basis of the average expenditure on financing the specific supply arrangements during the reference period 2001–2003 and on the basis of expenditure ceilings applicable to support for local production.

Part of the aforementioned amounts fall within the scope of Regulation (EC) No 1782/2003 and are encompassed by the ceilings provided for in Annex VIII to said Regulation. In order to comply with the obligation set forth in Article 70, paragraph 2, second subparagraph of the aforementioned Regulation, the Commission will adapt accordingly the ceilings set in said Annex VIII.

The exemptions from the general ("horizontal") agricultural provisions contained in the 2001 regulations have been incorporated into this Regulation.