Explanatory Memorandum to COM(2008)489 - Amendment of Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products ("single CMO Regulation") - Main contents
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| dossier | COM(2008)489 - Amendment of Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific ... |
|---|---|
| source | COM(2008)489  |
| date | 29-07-2008 |
- Grounds for and objectives of the proposal: completion of the new legal framework for the CAP, the single common market organisation Regulation (EC) No 1234/2007
Council Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products ("single CMO Regulation") revised the existing 21 regulations on sector-specific common market organisations (CMOs) and combined them into a comprehensive single regulation, with a view to streamlining and simplifying the legal framework without changing the underlying policies thus providing a single set of harmonised rules in the classic areas of market policy such as intervention, private storage, import tariff quotas, export refunds, safeguard measures, state aid and competition rules, and the communication and reporting of data.
The proposal for the single CMO Regulation was submitted by the Commission in December 2006 and was drafted in a way that policy decisions that had been taken over the years in the CAP were not called into question. The proposal as well as the Regulation as subsequently adopted by the Council, therefore, constituted an act of technical simplification based on the legal situation as it was in December 2006. Substantive amendments in certain sectors (notably the fruit and vegetables, processed fruit and vegetables, and wine sectors) could not yet be taken into account at the moment of the adoption of the single CMO Regulation. Whilst amendments in the fruit and vegetables and processed fruit and vegetables sectors have, meanwhile, been incorporated into the single CMO Regulation by Regulation (EC) No 361/2008 of 14 April 2008 i, the wine reform has only just been finalised by the publication of Council Regulation (EC) No 479/2008) on the common organisation of the market in wine, amending Regulations (EC) No 1493/1999, (EC) No 1782/2003, (EC) No 1290/2005, (EC) No 3/2008 and repealing Regulations (EEC) No 2392/86 and (EC) No 1493/1999 i.
- General context
This proposal is an essential component in the Commission’s plans to streamline and simplify the common agricultural policy (CAP). The key issues of the Commission’s approach have been set out in its 2005 Communication on 'Simplification and Better Regulation for the Common Agricultural Policy' (referred to hereinafter as “the Communication”) i. In this document the Commission underlined that “Reducing red tape in the farm sector by making rules more transparent, easier to understand and less burdensome will reduce costs for businesses and ensure that European citizens receive value for money".
- Existing provisions in the area of the proposal
The wine CMO, Regulation (EC) No 479/2008 will be repealed by the present proposal and its substance be fully incorporated into the single CMO Regulation.
- Consistency with other policies and objectives of the Union
This proposal, in the area of agriculture forms an integral part of the overall Commission approach to Better Regulation and simplification, as it is expressed in its Communication of 25 October 2005 on “ Implementing the Community Lisbon programme – A strategy for the simplification of the regulatory environment” i and endorsed in the Interinstitutional Agreement on better law-making of 16 December 2003 i.
2. Consultation of interested parties and impact assessment
- Consultation of interested parties
Interested parties were consulted as part of the preparations for the single CMO Regulation which has, eventually, in general been seen as a positive step, making the law applicable in the area of CAP-market policy more transparent and easier accessible. A further consultation is not needed given that this proposal will merely complete the single CMO Regulation without introducing any substantive amendments.
- Collection and use of expertise
There was no need for external expertise.
- Impact assessment
Not applicable. The proposal is not subject to impact assessment requirements as it is not included in the Commission Legislative and Work Programme.
3. Legal elements and main charac TERISTICS OF THE HORIZONTAL CMO
- Legal basis
Articles 36 and 37 of the Treaty
- Content of the proposal
The single CMO Regulation did not yet incorporate the main aspects of the wine CMO given that that CMO was pending for a policy reform at the time when the single CMO Regulation was proposed. With regard to the wine sector, the single CMO Regulation as published in November 2007 therefore only foresees the applicability of the Management Committee procedure. In recital 8 of the single CMO Regulation it is spelled out that the wine sector will have to be incorporated to its full extent once the policy reform has been enacted which has happened by way of the publication of Regulation (EC) No 479/2008.
- Subsidiarity principle
The proposal pursues the same objective as the single CMO Regulation itself, namely to simplify the legislative framework of the CMOs without changing their underlying political orientations.
- Choice of instrument
Proposed instruments: regulation.
Other means would not be adequate as the proposal is aimed at establishing a horizontal CMO which is directly applicable in all Member States.
Given that the proposal does not bring about changes to the existing CAP measures it has no budgetary implications.
5. Simplification
The proposal further completes an act which, itself, was adopted for reasons of technical simplification. This proposal will further simplify the legislative environment of the CAP by adding certain rules to the single CMO Regulation which were still missing. It is expected to lead to significant simplification of existing legislation.
Repeal of existing legislation
The adoption of the proposal will lead to a further repeal of one Council Regulation.