Explanatory Memorandum to COM(2010)498 - Specific measures for agriculture in the outermost regions of the Union

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ALIGNMENT WITH THE TREATY ON THE FUNCTIONING OF THE EUROPEAN UNION (TFEU).

The Treaty on the Functioning of the European Union (TFEU) makes a clear distinction between, on the one hand, the powers delegated to the Commission to adopt non-legislative acts (delegated acts) of general application in order to supplement or amend certain non-essential elements of a legislative act, as set out in Article 290, and, on the other, those conferred upon the Commission to adopt implementing acts as referred to in Article 219.

In the case of delegated acts, the Legislator delegates to the Commission the power to adopt quasi-legislative measures. In the case of implementing acts, the context is very different. The Member States are the primary parties responsible for implementing legally binding acts of the European Union. However, if the implementation of that legislative act necessitates uniform conditions of implementation, the Commission is responsible for adopting these.

The harmonisation of Regulation (EC) No 247/2006 with the new rules contained in the Treaty is based on classifying into delegated powers and implementing powers of the provisions adopted by the Commission pursuant to that Regulation (Regulation (EC) No 793/2006 laying down certain detailed rules for applying Council Regulation (EC) No 247/2006).

Following this exercise, a draft proposal recasting Regulation (EC) No 247/2006 has been drafted. Under this draft, the Legislator reserves the right to issue decisions concerning the essential elements of a specific scheme for certain agricultural products in the outermost regions, in order to remedy the difficulties caused by their extreme remoteness (the ‘POSEI programme’). The general guidelines for this scheme and the general principles which underpin them are determined by the Legislator. As such, the objectives of the measures introduced by this specific scheme and the principles regarding programming, compatibility and consistency with other EU policies are defined by the Legislator. The Legislator also establishes the principles for a certification scheme and the application of penalties, reductions and exclusions. The Legislator also makes provision for the existence of a POSEI logo.

In accordance with Article 290 of the Treaty on the functioning of the European Union, the Legislator entrusts the Commission with the task of supplementing or amending certain non-essential elements. A Commission delegated act may therefore set out additional elements which are necessary for the smooth running of the scheme defined by the Legislator. The Commission therefore adopts, by means of a delegated act, the conditions for operators being registered in the register of certificates and can, if necessary (given the economic situation) require the lodging of a security for the issuing of certificates (Article 11(2)). The Legislator can also delegate to the Commission the power to adopt measures relating to the establishment of the procedure for approving amendments to programmes (Article 6(3)), conditions for processing (Article 13(6)), the conditions on establishing aid amounts (Articles 18 i, 23 i and 29(4)), the conditions for the exemption from importing rights (Article 26(2)), the conditions on the right to use the logo (Article 20(3)) and penalties (Article 17(2)).

The Member States, in accordance with Article 291 of the Treaty on the Functioning of the European Union, are responsible for implementing the scheme defined by the Legislator. However, it would appear that it is necessary to ensure that the POSEI programme is applied in a uniform manner across all Member States in order to avoid unfair competition or discrimination between operators. The Legislator therefore grants the Commission the power to implement, in accordance with Article 291 i of the Treaty, specifically with regard to the uniform conditions under which products which are the subject of specific supply arrangements enter, leave and move within the outermost regions (Articles 11 i, 13(2)(a), 13(2)(b), 13 i, 26 i and 28 i, the uniform conditions for implementing the programmes, (Articles 6 i, 18 i, 20 i and 29(3)), and a general framework of checks which the Member States must perform (Articles 7, 12 i and 17(1)).

SUBSTANTIVE AMENDMENTS

In view of the fact that since it was adopted on 30 January 2006, Council Regulation (EC) No 247/2006 laying down specific measures for agriculture in the outermost regions of the Union has been the subject of several amendments, it is proposed that it be recast in the interests of clarity.

Furthermore, changes in Community legislation and the practical implementation of this Regulation that have occurred since it was adopted, make it necessary to also modify certain provisions thereof and to restructure the legislative text so that it reflects more effectively the reality of the POSEI agricultural scheme.

This new regulation is more explicit in setting out the scheme’s main objectives, the implementation of which the specific measures for agriculture in the outermost regions should contribute to (Article 2).

Its new structure highlights the central role played by the Programmes of Options Specifically Relating to the Remoteness and Insularity (POSEI programmes) which have now been defined for each outermost region at the most appropriate level and coordinated by the relevant Member States. These programmes relate to the two fundamental POSEI elements, namely the specific supply arrangements and the specific measures in favour of local production (Article 3).

Other minor amendments have been made to the wording of the Regulation, in particular:

1. The procedure for submitting programmes and amendments for approval to the Commission has been specified to make it more consistent with current practice and in view of the need for greater flexibility and efficiency as regards the process of adapting programmes to meet the actual needs of agriculture and the supply of products essential for the outermost regions (Article 6).

2. In Article 10, it has been specified that the specific supply arrangements should be designed for each region in accordance with local agricultural production, the development of which should not be limited by aid for supply which is too excessive for products which are also produced locally. This provision is considered to be necessary to make it compulsory for the two POSEI instruments to be compatible with each other.

3. The possibility of re-dispatching products which have been processed locally using basic products which have benefited from the specific supply arrangements, without the benefit being reimbursed, which was restricted to products dispatched from the Azores to Madeira or vice versa, or from Madeira to the Canary Islands or vice versa, will also now apply to the French overseas departments (Article 13(2)(e)).

4. In the interests of sound budgetary management, the Member States must indicate in their programmes the list of aid constituting direct payments (Article 18(2)(d)).

5. It is also helpful to indicate how the aid amounts for measures to assist local agricultural products are defined, which was previously not indicated in the basic act (Article 18(2)(e) and (f)).

6. Finally the financial allocation for each national programme selected is that which corresponds to the 2011 financial year and subsequent years. However, the ceiling for financing for the specific supply arrangements for France and Portugal has increased by 20% (Article 29(3)), in the light of the conclusions of the first report on the impact of the 2006 POSEI reform, submitted to the European Parliament and the Council in 2010.

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