Explanatory Memorandum to COM(2007)854 - 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
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2007)854 - Amendment of Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific ... |
|---|---|
| source | COM(2007)854  |
| date | 20-12-2007 |
- 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 the sugar, fruit and vegetables, processed fruit and vegetables, seeds, beef and milk and milk products sectors, which have since been adopted by the Council, could not yet be taken into account at the moment of the adoption of the Single CMO Regulation and should now be incorporated.
- 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
As regards the CMOs for sugar, seeds and milk and milk products, the Single CMO Regulation has already created the new legal framework and will repeal the existing sector specific CMO-Regulations as of the moment when the Single CMO Regulation starts to apply in each of these sectors, that is 1 July 2008 in respect of seeds and milk and milk products and 1 October 2008 in respect of sugar.
As regards the fruit and vegetables and processed fruit and vegetables, the respective CMOs continue to exist alongside the Single CMO Regulation and will be repealed by the present proposal and their substance be fully incorporated into the Single CMO Regulation.
Finally, as concerns the CMO for beef and veal, the respective CMO has already fully been incorporated into the Single CMO Regulation and the new rules on the marketing contained in Regulation (EC) No 700/2007 now constitute the only rules that have not yet been submitted to the new horizontal legal framework.
- 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 characteristics of the horizontal CMO
- Legal basis
Articles 36 and 37 of the Treaty
- Content of the proposal
Since submission of the proposal for the Single CMO Regulation, the previous CMOs in the sugar, seeds and milk and milk products sectors have been subject to substantive amendments. Those amendments have not yet been taken on board in the Single CMO Regulation. They have to be incorporated now to avoid that with the start of the application of the Single CMO Regulation the old legislation would be re-introduced.
Moreover, the Single CMO Regulation did not yet take on board the fruit and vegetables, processed fruit and vegetables and wine sectors (with regard to these sectors, the Single CMO Regulation only foresees the applicability of the Management Committee procedure) because those sectors are or have been subject to a general policy reform. In recital 8 of the Single CMO Regulation it is spelled out that those sectors will have to be incorporated to their full extent once the policy reforms have been enacted. This is the case in respect of the fruit and vegetables and processed fruit and vegetables sectors which have been amended substantially by Council Regulation (EC) No 1182/2007 of 26 September 2007 laying down specific rules as regards the fruit and vegetable sector, amending Directives 2001/112/EC and 2001/113/EC and Regulations (EEC) No 827/68, (EC) No 2200/96, (EC) No 2201/96, (EC) No 2826/2000, (EC) No 1782/2003 and (EC) No 318/2006 and repealing Regulation (EC) No 2202/96 i.
Finally, by adoption of Regulation (EC) No 700/2007 of 11 June 2007, the Council adopted rules concerning the marketing of the meat of bovine animals aged 12 months or less i. Given the general aim of the Single CMO Regulation to create one single horizontal legal framework for all market related rules of the CAP, these provisions should now also be taken on board.
- 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 four Council Regulations.