51996PC0285

Proposal for a Council Regulation (EC) derogating from Regulation (EEC) No 1765/92 establishing a support system for producers of certain arable crops as regards the set-aside requirement for the 1997/98 marketing year

(96/C 216/10)

COM(96) 285 final - 96/0162(CNS)

(Submitted by the Commission on 20 June 1996)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles 42 and 43 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas the support system for producers of certain arable crops introduced by Regulation (EEC) No 1765/92 (1) provides that, in order to qualify for compensatory payments under the general scheme, producers must set aside a predetermined percentage of their arable land; whereas this percentage is to be reviewed to take account of production and market developments;

Whereas, since the introduction of this system, the cereals market has achieved a better balance as a result of a reduction in production and an increase in Community consumption; whereas this situation, together with the very low level of stocks and very firm prices on the world market, has resulted in a significant reduction in stocks and a sharp rise in the prices for cereals on the Community market;

Whereas the present market situation for cereals is threatening to undermine, in the short term, the Community's presence on the world market and to jeopardize some of the results achieved since the reform of the arable sector, in particular the continuing rise in the consumption of cereals in animal feed; whereas the rate for set-aside beginning not later than 15 January 1997 should therefore be set for the 1997/98 marketing year at a level lower than that resulting from the provisions in force;

Whereas, in the event of a transfer of the set-aside requirement, the basic 18 % set-aside rate is increased by 3 %; whereas this increase should be ajusted in order to maintain the same ratio between the basic rate and the percentage increase due on transfer, as a result of the drop in the basic rate,

HAS ADOPTED THIS REGULATION:

Article 1

For the 1997/98 marketing year, notwithstanding Article 7 of Regulation (EEC) No 1765/92:

- the set-aside requirement referred to in paragraph 1 is set at 5 %,

- the increase referred to in the second indent of paragraph 7 is set at one percentage point.

Article 2

This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Communities.

It shall apply to set-aside for the 1997/98 marketing year only.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

(1) OJ No L 181, 1. 7. 1992, p. 12.