Single Common Market Organisation: 21 market organisations under one legislative roof
European Commission - MEMO/06/497 18/12/2006
Other available languages: none
Brussels, 18 December 2006
The European Commission today has proposed to the Council and the European Parliament to adopt one single Common Market Organisation for all agricultural products. This project, "the Single CMO" is another important step in the process of simplification, which is priority of the Commission.
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" (COM(2005) 509 final). The main objective of the proposal is to revise the existing 21 basic regulations on sector-specific common market organisations (CMOs) and combine them into a comprehensive single regulation without changing the underlying policies. Having a single CMO will increase transparency of our legislative instruments and improve the quality of the legal texts. Furthermore, having a clear and transparent legal framework for the markets will allow the identification of further specific simplification possibilities.
The 2003 reform simplified the CAP's legislative environment by establishing a horizontal legal framework for all direct payments and amalgamating an array of support systems into a single payment scheme. It is envisaged to extend the horizontal approach to the 21 CMOs each of which is governed by a separate Council basic regulation, often accompanied by a set of further Council rules. Most basic regulations follow the same structure and have numerous provisions in common. However, due to their importance it seems appropriate to foresee a specific part for competition rules. Often they contain different solutions to identical or similar problems. In many cases it is possible to harmonise different approaches or to replace sectoral approaches by horizontal ones.
Accordingly the body of the proposed Regulation is subdivided as follows:
Ultimately the vast majority of the CAP will be governed by only four Council regulations:
Simplification but no change of the policy
The proposal is an important contribution to the process of legislative simplification. However, its contribution to simplifying the CAP should not be judged in an isolated manner but within the global context of the Commission’s efforts in this area. It clearly follows from the Communication that the Commission’s activities with regard to Better Regulation and simplification in the CAP comprise a whole variety of technical and policy related measures and initiatives of which the proposal is only one important component.
The single CMO will not put into question any policy decisions. Therefore, those provisions of the fruit & vegetables and the wine sectors which are currently being submitted to a policy review will not be included in the single CMO at this stage but will be incorporated once the policy decisions in these sectors have been taken. All horizontal issues (Committee procedure, communications, competition and state aid rules) of the single CMO already apply, however, to these "reform markets" from the beginning.
Furthermore, the project includes market measures for agricultural products which are currently not subject to a fully-fledged CMO, namely silk worms, ethyl alcohol and apiculture products without making these products subject to a fully fledged CMO.
A legislative project of this order of magnitude which consists of combining a significant number of separate legal acts into one comprehensive Regulation goes clearly beyond the level of a mere consolidation of existing legal texts. It inevitably requires re-arranging and re-wording many of the provisions concerned. This should not be seen, however, as an attempt to change the political decisions the Council has taken over the years in CAP matters and which are reflected in the current CMOs.
Simplification Conference, Action Plan, Expert Group, Study
On 3 and 4 October 2006 a Simplification Conference was held to discuss the simplification with the stakeholders and other European Institutions. The conference focussed on the relation between political decision making processes and simplification, on the measurement of the administrative burden and on the expectations on the different stakeholders concerning simplification.
Results of the conference:
In the context of this CAP simplification conference the DG AGRI Action plan was presented which currently contains 20 proposals for legislative change that will have an immediate impact for farmers, traders and national administrations. The proposals are based on suggestions from Member States experts the general public and from DG AGRI services.
The proposals by definition concern technical changes that may seem trivial but that have substantial effects for the persons concerned such as:
The current proposals are planned to be implemented before the end of 2007. The Action Plan is set up as a rolling Action Plan. Other proposals are being examined. A reinstalled Simplification Expert Group (4 meetings in 2006) discusses all suggestions. This approach has created a process that will continue to generate new simplification proposals.
Study to access the administrative burden on farms arising from the 2003 CAP reform.
In June DG AGRI has launched a call for tenders for a study to measure the administrative burdens for farmers resulting from the single payment scheme which was introduced by the 2003 reform. This should allow awarding the tender around the end of December. The results of the study should be available in mid 2007.
The study will cover France, Italy, Ireland, Denmark and Germany. This selection aims at covering the diversity of implementation of the single payment scheme.
The contractor will follow the EU methodology for assessing administrative costs as set out in COM (2005) 518 final.