Explanatory Memorandum to COM(2008)51 - Amendment of Regulation (EC) No 1782/2003 as regards the transfer of tobacco aid to the EC Tobacco Fund for the years 2008 and 2009 and Regulation (EC) No 1234/2007 with regard to financing of the EC Tobacco Fund

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1. CONTEXT OF THE PROPOSAL

- Grounds for and objectives of the proposal

Article 104 i of Council Regulation (EC) No 1234/2007 provides for the funding of the Community Tobacco Fund by the transfer of certain amount of tobacco aid for the calendar years 2006 and 2007 in accordance with Article 110m of Council Regulation (EC) No 1782/2003. The aim of the proposal is to transfer to the Community Tobacco Fund an amount equal to 5% of the tobacco aid granted for the calendar years 2008 and 2009 for the purpose of financing actions of information for improving public awareness of the harmful effects of tobacco consumption. These actions have proved to be very successful as well as a positive example of cooperation between agriculture and health policies. Taking into account that the Fund has always been funded by transfer from the tobacco aid, the proposal aims to ensure the continuation of those actions.

- General context

The Community Tobacco Fund has always been funded by the transfer of part of the tobacco aids. Such transfer for calendar years 2006 and 2007 was initially proposed when the introduction of the tobacco sector into the Single payment scheme was to be accompanied by a transitional tobacco aid to be paid in the same years. Council Regulation (EC) No 864/2004 finally extended the tobacco aid to 2008 and 2009 without accordingly extending the funding of the Community Tobacco Fund by a reduction of the tobacco aid.

- Existing provisions in the area of the proposal

Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) No 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/2001.Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation).

- Consistency with the other policies and objectives of the Union

This measure is consistent with the Community policy for the protection of public health.

2. CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT

- Consultation of interested parties

- Collection and use of expertise

There was no need for consultation of interested parties nor for external expertise.

- Impact assessment

Not applicable.

1.

LEGAL ELEMENTS OF THE PROPOSAL



- Summary of the proposed action

The aim of this proposal is to transfer an amount equal to 5% of the tobacco aid granted for the calendar years 2008 and 2009 to the Community Tobacco Fund for the purpose of financing actions of information for improving public awareness of the harmful effects of tobacco consumption.

- Legal basis

Article 37 i of the Treaty establishing the European Community.

- Subsidiarity principle

The proposal falls under the exclusive competence of the Community. The subsidiarity principle therefore does not apply.

- Proportionality principle

The proposal complies with the proportionality principle.

- Choice of instruments

Proposed instrument: Council regulation.Other means would not be adequate for the following reason: a regulation must be amended by a regulation.

2.

BUDGETARY IMPLICATIONS



This measure does not involve any additional Community expenditure. It extends the possibility foreseen in Article 110m of Regulation (EC) No 1782/2003 to transfer in 2008 and 2009 (budget years 2009 and 2010) 5% of the amount of tobacco aid under 'Direct Aids' to the 'Community Tobacco Fund '. The ceilings on tobacco aid remain unchanged and the maximum annual amount which can be transferred amounts to €16,897 Mio (€337,937 Mio x 5% = €16,897 Mio). This amount will be available under budget line 17 03 02 – Community Tobacco Fund. Being a transfer between titles, this measure is budgetary neutral.

5. ADDITIONAL INFORMATION

- Simplification

Not applicable.