Explanatory Memorandum to COM(2016)653 - Amendment of Regulation (EU) No 1370/2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products

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dossier COM(2016)653 - Amendment of Regulation (EU) No 1370/2013 determining measures on fixing certain aids and refunds related to the common ...
source COM(2016)653 EN
date 06-10-2016


1. CONTEXT OF THE PROPOSAL

• Reasons for and objectives of the proposal

By its judgment of 7 September 2016 in Case C-113/14, the Court of Justice annulled Article 7 of Regulation on the Common Organisation of the markets in the agricultural (Regulation (EU) No 1308/2013 of the European Parliament and of the Council) determining the reference thresholds for certain agricultural products on the grounds that these thresholds should have been adopted by the Council only, on proposal of the Commission, on the basis of Article 43(3) of the Treaty.

The Court also annulled Article 2 of Council Regulation (EU) No 1370/2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products that fixes the level of the public intervention prices on the grounds that this Article is inextricably linked to the annulled Article 7 CMO.

As the Court maintained the legal effects of the annulled provisions in both acts for a maximum period of five months following the date of the judgment, it is therefore necessary, before the end of the five month period, to amend Regulation (EU) No 1370/2013 by inserting into it the provisions on the reference thresholds and intervention price levels annulled by the Court and by making certain consequential adjustments.

• Consistency with existing policy provisions in the policy area

The proposal follows the judgment of the Court as regards the legal basis for the fixing of reference thresholds relating to the organisation of the markets in agricultural products.

• Consistency with other Union policies

N/A

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

• Legal basis

Article 43(3) of the Treaty on the Functioning of the European Union.

• Subsidiarity (for non-exclusive competence)

The proposal falls under shared competence between the EU and the Member States and complies with the subsidiarity principle.

• Proportionality

The proposal complies with the proportionality principle.

• Choice of the instrument

N/A

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

• Ex-post evaluations/fitness checks of existing legislation

N/A

• Stakeholder consultations

N/A

• Collection and use of expertise

N/A

• Impact assessment

N/A

• Regulatory fitness and simplification

N/A

• Fundamental rights

N/A

4. BUDGETARY IMPLICATIONS

There are no budgetary implications arising from the proposal.

5. OTHER ELEMENTS

• Implementation plans and monitoring, evaluation and reporting arrangements

N/A

• Explanatory documents (for directives)

N/A

• Detailed explanation of the specific provisions of the proposal

N/A