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LIST OF PARTICIPANTS  . . . . . . . . . . . . . . . . . . . . . . . . .  3


PRICES AND RELATED MEASURES FOR 1996/1997 . . . . . . . . . . . . . . .  5

SET-ASIDE FOR THE 1997/1998 MARKETING YEAR  . . . . . . . . . . . . . . 13

AMENDMENT OF THE COMMON ORGANIZATION OF THE MARKETS IN THE SUGAR SECTOR                                                                           14

FRUIT AND VEGETABLES - AMENDMENT OF THE CMOs  . . . . . . . . . . . . . 14


HOPS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22



PLANT PROTECTION PRODUCTS . . . . . . . . . . . . . . . . . . . . . . . 25

VETERINARY SECTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . 26


Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . .  I    

Fisheries . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  III  

Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . .  III  

Internal Market . . . . . . . . . . . . . . . . . . . . . . . . . .  III  

Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV  

External Relations  . . . . . . . . . . . . . . . . . . . . . . . . . VI  

Justice and Home Affairs  . . . . . . . . . . . . . . . . . . . . . . VIII

The  Governments of  the Member  States and  the European  Commission were
represented as follows:

Mr Karel PINXTEN            Minister   for   Agriculture  and   Small   and
                            Medium-sized Businesses
Mr Henrik DAM KRISTENSEN    Minister for Agriculture and Fisheries

Mr Jochen BORCHERT          Minister for Food, Agriculture and Forestry
Mr Franz-Josef FEITER       State Secretary,Food, Agriculture and Forestry

Mr Stephanos TZOUMAKAS      Minister for Agriculture

Ms Loyola DE PALACIO        Minister for Agriculture, Fisheries and Food

Mr Philippe VASSEUR         Minister for Agriculture, Fisheries and Food

Mr Ivan YATES               Minister for Agriculture, Food and Forestry

Mr Michele PINTO            Minister for Agriculture

Mr Fernand BODEN            Minister  for   Agriculture,  Viticulture   and
                            Rural Development

Mr Jozias VAN AARTSEN       Minister  for  Agriculture,  Nature  Management
                            and Fisheries

Mr Wilhelm MOLTERER         Minister for Agriculture and Forestry

Mr Fernando GOMES da SILVA  Minister for Agriculture

Mr Kalevi HEMILÄ            Minister for Agriculture and Forestry

Mr Curt MALMBORG            State Secretary for Agriculture

United Kingdom:
Mr Douglas HOGG             Minister for Agriculture, Fisheries and Food

Mr Franz FISCHLER           Member

After  lengthy and  difficult negotiations  the Council  reached unanimous
political  agreement based  on  the  Commission proposals  and  an overall
Presidency  compromise which the Commission was able  to endorse and which
included the following aspects:

(a)   1996/1997 prices package and related measures
(b)   1997/1998 set-aside rate
(c)   sugar
(d)   fruit and vegetables
(e)   special  measures for  the  transport  of  certain  fresh  fruit  and
      vegetables originating in Greece
(f)   hops


Arable crops

As regards the long term:

-   A single basic set-aside rate of 17,5% was set.

-   The  additional rate  for transfers of  set-aside between  farmers was
    standardized at 3%.

The Council noted the Commission's intention of submitting a report on the
results of voluntary set-aside  on the basis  of the experience gained  in
the first three years of its application.

The  Council  asked  the Commission  to  look  into the  possibilities  of
allowing  a  little  more   flexibility  in   relation  to  Article 9   of
Regulation No 1765/92 for Member States or regions where the base area was
permanently under-used because of their specific structural situation.

As regards the next marketing year, see p. 13.


-   prices and compensatory payments

  The  intervention price  and compensatory  payments decided  on in  1992
  continue  to apply.  For the  record, the single  intervention price for
  all cereals amounts to ECU 119,19 per tonne and the compensatory payment
  to  ECU 54,34 per  tonne per  hectare of  historic yield for  cereals as
  established in the regionalization plan.

  The  derogation granted  to Finland  and Sweden  in accordance  with the
  Treaty  of  Accession  as  regards  the  minimum  size   of  barley  for
  intervention is continued for the 1996/1997 marketing year.

  The Commission  is prepared to apply  in 1996/1997 the  same derogations
  with  regard to moisture content and other  intervention standards as in

  The Commission  undertook to submit the proposal  on future arrangements
  for durum wheat before the Council meeting in September 1996.

-   monthly increases

  Reduction in the  level of monthly increases from ECU 1,30 per  tonne to
  ECU 1,10 per tonne, as proposed by the Commission.

Protein crops and linseed

There are no plans to change these arrangements.

Grain legumes

-   The maximum guaranteed area (MGA) is set at 400 000 ha.

-   Aid is continued at its present level of ECU 181 per ha.

-   In any marketing year aid will be reduced in proportion to any overrun
    in the MGA during that year.

After the new  arrangements have been in  force for three marketing years,
the  Commission  will report  on  their  application  and  will  also,  if
necessary, submit appropriate proposals.


-   Prices

  The intervention  prices for paddy rice  for the 1996/1997  to 1999/2000
  marketing years were set in the Council Regulation on reform of the CMO.
  For  1996/1997 the price was set at ECU 351 per  tonne.  A 15% reduction
  spread over three years will reduce the price in 1999/2000 to ECU 298,35
  per tonne.

-   Monthly increases

  In view of the  fact that  the Council  recently decided  to reduce  the
  number of  monthly increases  and the  period in  the year during  which
  intervention  applies, the level  of monthly increases for  1996/1997 is
  maintained at the same level as in 1995/1996.


There  is no change  in the basic price  for sugar beet,  the intervention
price for white sugar or the producer's margin.

As regards the repayment of  storage costs, to take account of the drop in
Community interest rates the calculation will be based on an interest rate
of  6,10% instead  of 6%  resulting in  a rate  of ECU 0,42 per  100kg per

The Commission is authorized in the case of supply difficulties  caused by
climatic disasters,  which cannot be resolved  by the  release of  minimum
stocks, to  allow the  early release of  C sugar carried  over pursuant to
Article 27(2) of Regulation (EEC) No 1785/81.

The  deadline for  the carryover  of  C  sugar in  the  United Kingdom  is
extended from 1 to 15 February.

Olive oil

-   The status  quo is maintained as  regards prices,  aid and  deductions
    with a view to the forthcoming reform of the oils and fats CMO.

-   A legal basis is introduced into Regulation No 136/66/EEC enabling the
    Commission to suspend  application of the Common  Customs Tariff where
    the  market  price  for olive  oil is  significantly  higher  than the
    intervention price.

-   Adjustments have  been made  to the consumption  aid system consequent
    upon  the  Uruguay   Round  Agreements,  special  arrangements   being
    maintained for  olive  oil imported  from Tunisia  under  the  special
    arrangements quota.

  The  Commission stated  that  its proposals  logically implied  that the
  level of consumption  aid should be  considered as the minimum level  of
  the tariff.  It  will review the level of aid  for olive oil used in the
  production of canned fish in the light of Community and world prices.

  Textile fibres

  (a)   Cotton

      -   The possibility of prior fixing of aid was abolished.

      -   There will be advance payment of a  variable amount of aid  based
          on  the guide  price  fixed  at ECU 106,30  per 100 kg  of ginned
          cotton and  the abatement  based on  the  difference between  the
          estimated production of each Member State, increased by  15%, and
          its  threshold level,  and  also  on the  world market  price for
          ginned cotton.  The result, in contrast to the current situation,
          will be  a fixed  aid balance  for all  producers  in the  Member
          State concerned.

      The Council  took note  of the Commission's statement  indicating its
      intention to maintain a system of ex-post fixing of aid.

  (b)   Flax

      The Council  considers that  more detailed  examination is  necessary
      before  it can decide  on the  Commission proposal.   It undertook to
      conduct  such  an  examination  and  will  take   a  decision  before
      31 December 1996.   Pending  modification  of the  arrangements,  the
      existing aid for 1996/1997 is reduced by 7,5%.

  (c)   Hemp

      Aid is maintained at ECU 774,74 per ha.

      Bearing in mind the  current and foreseeable situation with regard to
      hemp and  the level of aid for fibre flax, the  result of maintaining
      aid at the present level will be that the area  given over to growing
      hemp remains the same during the 1996-1997 marketing year.

  (d)   Silkworms

      The  amount  of  aid  set  for  the  preceding marketing  year,  i.e.
      ECU 133,26, is maintained.

Milk and milk products

The date  of the beginning  of the milk  marketing year was  put back from
1 April to 1 July and a  legal basis created for the administration by the
Commission of tariff quotas introduced following bilateral agreements with
third countries.

The guide price for milk and the intervention price for butter and skimmed
milk  were   set  at  the  June   meeting  (period  from   1 July 1996  to
30 June 1997).

The Council asked  the Commission to submit  proposals with regard  to the
traditional designation of drinking milk in Finland and Sweden.

Since the quota arrangements expire in the year 2000, the Council welcomed
the  Commission's intention  of submitting  proposals  during 1997  on the
future of the  arrangements for milk and felt that the implications of the
whole range of possible options should be set out.

Beef and veal

The intervention price for large bovine animals was set during the meeting
from  24-27 June 1996 and is maintained at its  current level of ECU 347,5
per 100 kg of carcase weight for male animals of R3 quality.

At the  last Council  meeting,  it was  decided to  set the  date for  the
beginning of the marketing year at 1 July of each year as of 1 July 1996.

The  Council recognizes that the crisis  in the beef market will require a
combination of immediate and longer-term measures.

In the very short term, action  is needed to continue support for the beef
market through  intervention and to support  the market for  light animals
for  further fattening  ("broutards").   In  this connection,  the Council
noted the  intention  of the  Commission  to introduce,  on the  basis  of
Article 22a of Regulation No 805/68, as an emergency measure, intervention
for  meat from  "broutards" from  31 August 1996, if  market circumstances
make  it  necessary,  and  to  propose  an  increase  in  the  ceiling  on
intervention buying.

The Commission undertook to examine the possibility of allowing categories
"S" and "E" to be bought into intervention.

Action  is also  needed to  reduce  production  in the  medium  term.   In
addition, in order to restore consumer confidence, the  beef regime should
be  adapted  so as  to  encourage high  quality  beef based  on production
techniques which  correspond to  the legitimate expectations of  consumers
and meet environmental considerations.  Such action should  be underpinned
by  improved   labelling  information   to   consumers,  consistent   with
safeguarding  the  single market.    The  Council  noted  the Commission's
intention of submitting proposals on these points as a matter of urgency.

The Commission specifically undertook to ensure that the emergency  action
planned would  not result  in the  burden of  the crisis  being  unequally
shared between  the producers  of "broutards"  and fatteners  or interfere
with normal conditions of intra-Community trade as a  result of artificial
reductions  in the  numbers  available  for  such  trade.   If  there  was
unexpected  distortion of  intra-Community  trade,  appropriate corrective
action would be taken.

The  Council  undertook  to  consider  all  options   designed  to  reduce
production to current or expected levels of consumption.

The Council reserved  its position on  the question of the  single premium
for uncastrated male bovines until it decides  on the measures referred to
above.   At  the  same time,  it  will decide  on the  Commission proposal
regarding the new German Länder.  (For the record: the Commission proposal
extends to the territory of the new German Länder as of 1 January 1997 all
the  provisions relating to the premium arrangements applicable throughout
the rest of the Community, namely  determination of an individual quota of
rights to the suckler cow premium for each producer and application of the
90-head limit for allocation of the premium for male bovine animals.

Deseasonalization premium

The  deseasonalization  premium  has  been  maintained,  with  a  seasonal
slaughter coefficient of 35%.  This figure is to be  applied separately to
Ireland and Northern  Ireland, but if the activating price is  exceeded in
either, the deseasonalization  premium will apply throughout both  Ireland
and Northern Ireland.  The  cost of this measure will be financed from the
BSE reserve.

Sheepmeat and goatmeat

-   The basic price is to remain at its current level; seasonal adjustment
    will continue unchanged.

-   The opening of the private storage procedure will be  speeded up, with
    the Commission being  able to introduce a procedure to fix  the amount
    of aid in advance.

-   The derogation granted to the new German Länder for the application of
    the limits  on ewe premiums  is extended  until 2000.  Unused  premium
    rights will be entirely allocated to the reserve.


The status  quo for  this sector is maintained,  namely a  basic price  of
ECU 1509,39  per  tonne  for the  standard  quality  of  pork  slaughtered
(definition  unchanged),   valid  for  the  period  from  1 July  1996  to
30 June 1997.

Fruit and vegetables

At its meeting from 24-27 June 1996 the Council set the basic and purchase
prices for fresh fruit and vegetables, maintaining the  status quo pending
the adoption of CMO reform in this sector.


-   The status quo is maintained for guide prices.

-   The  31 December 1996  deadline for  establishment  of the  simplified
    register is  extended until  31 December 1998.   The deadline  for the
    completion  of the  full vineyard  register for  the  Douro region  is
    extended until 31 December 1997.

The ban on planting  new vineyards is  extended for two years rather  than
one as  proposed by the Commission.   Nevertheless, each Member  State may
authorize  new vineyards during that period for  the production of quality
wines (quality  wines  p.s.r. and  "vins de  pays")  where the  Commission
recognizes that production falls short of  market demand, up to  the total
of the areas indicated below.  

With effect from 1 September 1996, the ban on replanting will not apply to
vines  exclusively intended for table grapes; the  production of wine from
such grapes will be prohibited from 1 August 1997 and grubbing-up aid will
not be granted for vines of this type.

Grubbing-up  arrangements  are  also  extended  for  two  years   but  are
applicable  only to regions designated by the  Member State concerned (1).
The number of hectares for which grubbing up may  be authorized in each of
the years concerned may not exceed the figures given below.


        (1)   A Member State is free not to designate any region.

                 total new plantings        Maximum annual level of
                 allowed (ha) during        grubbing-up allowed for
                 1996/1997 and/or 1997/1998 1996/1997 and 1997/1998

 Germany         289                        50
 Greece          208                        985
 Spain           3.615                      13.000
 France          2.584                      3.895
 Italy           2.442                      5.785
 Luxembourg      4                          15
 Austria         139                        15
 Portugal        719                        1.255

 Total                     10.000                      25.000

The  Council took  note of  various  Commission commitments  on points  of
detail (role of  wine-making cooperatives  in distilling -  derogation for
Austria as regards withdrawal of wine-making by-products under supervision
- breakdown of quantities for distillation by region and subregion).


-   The guarantee  thresholds fixed  by Council Regulation (EC)  No 415/96
    for the 1996/1997 marketing year are maintained.

-   The premiums and additional amounts are  maintained at the level fixed
    for the 1995/1996 marketing year.

The Council considers that  the creation of  national reserves within  the
tobacco quota regime must be examined in the context of the review of this
regime, with a view to finding an appropriate solution.

Article 3(2) of  Regulation (EEC)  No 2075/92 is  amended so  that Austria
receives for its tobacco the additional amount granted to Germany.


Mountain and hill areas

The Council  recognizes  the specific  difficulties of  mountain and  hill
areas.    Since these  are of  a  structural character,  it  requested the
Commission  to examine urgently the means by which,  these problems can be
better addressed within the sphere of structural policy.

Less-favoured areas

The Commission undertook to submit to the Council a proposal to extend for
two years  in mainland Portugal the  special provisions  in Article 37  of
Regulation  (EEC) No 2328/91 under which compensatory allowances for less-
favoured areas can be granted to  farmers who farm at least one hectare of
utilized agricultural area.


Without  prejudice  to  its decision  on the  detail  of  the Commission's
proposal, which will  be taken in the  light of the  European Parliament's
Opinion, the Council considers that expenditure for the  first year should
be ECU 15 million instead  of ECU 10 million.  Expenditure for  subsequent
years should be determined in the light of experience.

The Council requested the Commission to develop  a strategy and to  submit
to the  Council  as soon  as possible  a strategy  paper setting  out  the
guidelines  for  future  negotiations  on new  tariff  concessions in  the
floriculture sector  to avoid  disruption of  this sector by  unstructured
increases of imports.


After receiving  the  Opinion of  the  European  Parliament,  the  Council
reached political agreement on a Regulation submitted by the Commission at
the  meeting from 24-27 June introducing a derogation  from the basic set-
aside rate  of 17,5%  (adopted in the 1996/1997  price package)  for crops
sown for the 1997/1998 marketing year.

The Regulation fixes the set-aside rate for forthcoming crop sowings at 5%
(basic rate 17,5%) and the set-aside percentage increase to  be applied in
the case of  transfer at 1% (basic rate 3%).  However, where the set-aside
obligation  is   transferred  to   environmentally  sensitive  areas,   no
percentage increase will be applied.

In  addition, the special set-aside which should  have been implemented in
1997/1998  because of  overruns in  base areas  in 1996/1997  will not  be

The  Council  notes  that  the  Commission  intends  to  amend  Regulation
No 1000/94  in order to delay by  two years each of the reductions planned
for the additional base area for the new German Länder.


The Council reached political agreement on a Commission proposal providing
for  a  10 000 tonne  increase  in  the  basic  quota   set  for  Portugal

This  agreement  follows on  from  the  commitment  entered  into  by  the
Commission in the context of the final compromise on  the 1995/1996 prices
package to examine  the arguments in support of Portugal's request  for an
increase in its sugar quota.

-   Fruit and vegetables
-   Products processed from fruit and vegetables

The Council achieved political  agreement on this reform, the main aims of
which are:

-   improving  Community supply  by strengthening  the role  of producers'
    organizations  in their capacity as economic operators, while imposing
    more stringent  criteria at Community level  for their recognition and
    setting up an  operating fund part-financed by  the Community designed
    both to fund  action to improve the quality  of products and make  the
    best  commercial use  of  them and  to increase  Community  withdrawal
    compensation,  pay compensation for products withdrawn from the market
    which  do  not  qualify  for  Community  withdrawal  compensation  and
    increase the prices obtained for products sold for processing;

-   for Member States which so desire, there is also provision for a light
    Community framework for interbranch organizations in this sector;

-   a new  method of managing short-term surpluses  by reducing withdrawal
    compensation to  a  non-remunerative  level  and the  possibility  for
    producer groups to supplement the withdrawal payment (see above);

-   specific  solutions,  in  addition  to  general CMO  instruments,  for
    problems which may  affect some products whose economic  importance is
    at regional or local level;

-   tighter controls, particularly in relation to the proper management of
    the operating  fund by  producer organizations, compliance with  trade
    and health quality standards and correct operation of the entry prices
    arrangements  through coordination  and cohesion  between the  various
    bodies responsible at national and Community  level, which should also
    result in uniform and non-discriminatory application of the controls.

-   setting  up, with Community financing, of 5-year adjustment programmes
    (transitional period for reducing withdrawal compensation) designed to
    help producer organizations expand and make available to their members
    the appropriate  technology for  packaging and marketing products,  to
    make it easier for producers who have traditionally  been dependent on
    withdrawal to  adjust to the market  again and, lastly,  under certain
    circumstances, to support conversion of crops.

The Presidency compromise adopted by the Council includes  the above, with
the final text prepared in the Council's subordinate  bodies being adopted
subject to the changes referred to in the compromise.

1.  Classification of products (standards)

    (a)   Responsibility for extending the  list of products in  Annex I by
          the  management  committee   procedure  was  transferred  to  the
          Commission, subject to the following statement:

        "The  Council notes  the Commission's  intention  of  examining the
        request for additional products to be included  in Annex I; in that
        examination account will  in particular be taken, for each product,
        of the  existence of  relatively large-scale  transactions and  the
        existence of ECE/UN standards."   

    (b)   The Commission proposal for products  intended for processing was
          maintained, subject to the following statement:

        "The Council  notes that  it is  the Commission's intention  not to
        modify   current   practice  with   regard   to   minimum   quality
        requirements for fresh products intended for processing."

2.  Producer organizations (POs)

    (a)   Degree of specialization:

        -   in  addition   to  the   "universal"  POs,   the  following   6
            "specialized" groups of POs are allowed:

          *   fruit
          *   vegetables
          *   products intended for processing
          *   citrus fruit
          *   nuts
          *   mushrooms

        -   the   Member   States   are  authorized   to   recognize  other
            specialized POs existing before the reform;

    (b)   Direct sales by producers:

        these  are  permitted  for  up  to  25%  of  their  production  for
        producers who are members only of "universal" organizations and  up
        to 20% of  their production for producers  who are members of other
        types of PO.

        Commission  statement: "It  should be  noted  that  compliance with
        common quality standards is  recommended for this type of sales but
        is not compulsory."

    (c)   A uniform transitional  period of 5 years will be allowed for all
          measures   (application   of   the   final   measure   from   the
          6th year/marketing year), for each of the measures concerned:

        -   adjustment of existing POs to the new requirements,

        -   adjustment of new POs to the new requirements,

        -   financial limitation of withdrawals,

        -   quantitative limitation of withdrawals,

        -   reduction  of  Community  Withdrawal  Compensation  (CWC):  the
            final  level of CWC  will be  achieved progressively,  in equal
            stages, except as regards the first reduction for  fruit (other
            than citrus) and vegetables.

    (d)   Minimum number of members  and minimum production  volume of  the

        these will  be determined  by the  Commission under  the Management
        Committee procedure, subject to the following statement:

        "The Council notes  the Commission's intention  of determining  the
        minimum number of  producers and  minimum production volume of  POs
        on the basis of  a pragmatic  approach, taking account of  economic
        and administrative realities in the Member States."

    (e)   Special measures  for  regions with  a small  number of  producer

        -   The following new provision was inserted:

          "In regions of  the Community where the degree of organization of
          producers  is particularly low, Member States  may be authorized,
          upon  duly substantiated  request, to pay  producer organizations
          national  financial  assistance  equal  to   half  the  financial
          contribution  of producers.  This assistance  shall be additional
          to the operational fund."

          "In Member  States which suffer  particularly serious  structural
          disadvantages  in  this regard  (such a  Member  State being  one
          where producer  organizations  market  less  than  15%  of  their
          production  of  fruit   and  vegetables  and   where  fruit   and
          vegetables represent  at  least 15%  of agricultural  production)
          this aid can, on  the request of the  Member States concerned  be
          reimbursed from its Community support Framework".

        -   For Portugal,  the same  financing conditions  apply as  before
            the reform on the basis of the following statement:

          "The  Council  notes  the Commission's  intention  of determining
          start-up aid  for new  POs in  such a way  that the  aid paid  to
          Portuguese POs  is not less, as a percentage of the  value of the
          marketed   production  of  the  PO,  than   that  resulting  from
          Regulation No 746/93."

3.  Operational Fund (OF)

    (a)   -   The  national  contribution to  the  financing  of  financial
              assistance for the Operational Fund has been abolished. 

        -   Community financial assistance  is capped at 4% of the value of
            the  marketed   production  of   each  producer   organization,
            provided   that  the  total  amount   of  financial  assistance
            represents less than 2%  of the total turnover  of all producer
            organizations.  In  order to ensure that this limit is compiled
            with,  an advance payment of 2% will be  made and the remainder
            granted once the total

          amount of aid applications  is known.   As from 1999, the  figure
          of 4 will  become 4,5% and the  percentage of the  total turnover
          will be increased from 2 to 2,5%.  

        -   "The  Council  calls  on  the  Commission  to  submit to  it  a
            proposal for  bringing  into  force  again  the  programme  for
            improving  the  production  on the  one  hand  of  peaches  and
            nectarines  and on the other of apples and  pears for a maximum
            area  of 10 000 ha for each  of these groups  of products.  The
            financial  consequences  of  these  measures  shall be  covered
            under   expenditure  for  the  financial  year   1998  and  the
            following financial years.".

    (b)   The OF's contribution to financing withdrawals

        The percentage  has been raised  from 10% to 30%;  for products not
        eligible  for  Community  Withdrawal  Compensation  (not listed  in
        Annex II),  a quantitative  limitation of  10% (quantity  withdrawn
        from  the quantity marketed) has been introduced as  in the case of
        Annex II products.

    (d)   Carryover of contributions to the Operational Fund:

        "The   Council  notes   the  Commission's   intention  of  allowing
        producers' contributions to the  financing of the OF  to be carried
        over to the following  year, under conditions and  procedures to be

4.  Withdrawals

    (a)   Percentage  of  the quantity  marketed  which  may  be withdrawn:
          average  of  10% per  year over  a three-year  period, with  a 3%
          annual margin  of overrun.   The  same treatment  is extended  to
          products not listed in Annex II.

    (c)   Article 29(7) (conditions  for disposing of  unsold products) has
          been amended as follows:

        "Detailed  rules  for  the application  of  this  Article,  and  in
        particular those  relating to free distribution and the disposal of
        products withdrawn, and those  designed to avoid  disruption of the
        alcohol  market  as  a  result  of  the  distillation  of  products
        withdrawn,  shall  be adopted  in  accordance  with  the Management
        Committee procedure.". 

5.  CWC (Community withdrawal compensation)

    (a)   For products other than citrus fruit:

        -   Initial level:  average  price resulting  from EAGGF  1995/1996
            estimates.  An  initial reduction of  20% will  be made in  the
            first year of application.  

        -   Final level: initial level less 40%.

        However, for apples  and pears, the limit  of 10% (see  point 4(a))
        is reduced  to 8,5%  and in  consequence the  initial reduction  is
        limited to 15% and the final reduction to 30%.

  (b)   For citrus fruit:

      -   Initial level: price proposed by the Commission.  

      -   Final level:  standardization of CWC  is limited  to small citrus

        *   Small citrus fruit: ECU 13,00/100kg

        *   Other citrus fruit:

          =   oranges   :   ECU 14,00/100 kg
          =   lemons    :   ECU 13,00/100 kg

6.  Interbranch organizations

    -   Optional recognition by Member States of interbranch organizations

    -   Prior  notification  to  the  Commission  of concerted  interbranch
        practices and agreements.

      The  Commission will have the possibility  of declaring Article 85(1)
      of the Treaty (incompatibility with  the common market) applicable in
      the event  of failure to comply with the conditions laid  down by the

    -   In the case of  multiannual agreements, the  prior notification for
        the first year  is valid for the subsequent years of the agreement;
        however, in that event,  the Commission may, on  its own initiative
        or  at the  request of  another Member  State,  issue a  finding of
        incompatibility at any time.

      In  addition,  the  three-month period  set  for  the  examination of
      concerted practices is reduced to two months.

    -   The  Management Committee will  be informed  of any notification of
        the extension of interbranch agreements.

7.  Annex II

    Melons and  water  melons have  been  added to  the list  of  products
    eligible  for  Community  Withdrawal  Compensation  with  a  price  of
    ECU 4/100 kg (point of departure  and point of arrival).  The limit of
    10%  of marketed production  will be  immediately applicable  to these
    newly eligible products.

8.  General provisions

    (a)   Inclusion of  a new  Article specifying  that rights acquired  by
          POs  under Title IIa (specific measures for  nuts) and Article 14
          (start-up  aid) of Regulation (EEC)  No 1035/72 continue to apply
          until fully utilized.

    (b)   Article  14e of  Regulation  1035/72 (provisions  concerning  the
          promotion  of  nuts) has  been  inserted  in this  Regulation and
          Article 51(1) amended accordingly.

    (c)   Compliance with budgetary constraints:

        "Taking into account the amendments made  to its original proposal,
        the Commission  will ensure,  when implementing  the measures  over
        which it has budgetary  control, that overall spending in the first
        year of the reform complies with the budgetary constraints."

9.  Processed products

    (a)   Granting  of aid  only to  products supplied  on the basis  of PO
          contracts; this  measure  will  be  phased in  over  a  five-year
          transitional period. 

    (b)   Adaptation  of  the  arrangements   for  processed  tomatoes   as

        -   Flat-rate approach to quota levels for the first year:

      *   P   :     for  products other than "concentrate" fixing of quotas
                    at the  level resulting  from the Commission  proposal,
                    with "peeled  tomatoes" then being reduced by 10 000 t,
                    an  amount which will  be transferred to "concentrate".
                    Fixing of the  quota for "concentrate"  at the  present
                    level plus 10 000 t.

              In   addition,  agreement  on  an  increase  of   5%  in  the
              Portuguese  quota  for  processed  tomatoes,  with   the  aid
              reduced in  order to  make this  concession neutral from  the
              budgetary point of view.

      *   E/EL/I:   fixing of their  quota at the level resulting  from the
                    Commission proposal.

      *   F   :     for  concentrate,  maintenance  of  its  quota  at  its
                    current level and,  for the other  products, fixing  of
                    its quota at  the level resulting  from the  Commission

      *   D   :     abolition of its quota.

      -   Reduction  of aid  for concentrate  and its  derivatives, to  peg
          expenditure at the level  which would be obtained  in the absence
          of any increase in the quotas for F and P.

      -   For the following years, maintenance  of the Commission proposal,
          except that: 

      (i)   the "buffer" is reduced to 10%. 

      (ii)  no changes  in the initial  levels of  the quotas will  be made
            until the  third year,  when adjustments  will be  made on  the
            basis of the first and second years.

  10.   Asparagus and hazalnuts

      (a)   Asparagus

          To  facilitate,  in  the case  of  asparagus  for  processing the
          launching  of   specific  measures  to  improve   competitiveness
          referred  to in Article 10 of the  processed products Regulation,
          flat-rate of ECU 500/ha  for a maximum of  9 000 hectares will be
          granted,  under  this  Article,  during  the  first  three  years
          following the implementation of these measures.

      (b)   Hazelnuts

          To  help  the  hazelnut  sector  to   cope  with  a  particularly
          unfavourable  economic  situation,  a  flat-rate  aid  equal   to
          ECU 150/tonne  is  granted  to recognized  producer organizations
          (Regulation No 1035/72)  and to  those which  will be  recognized
          and for  which  an  operational  programme  will  be  implemented
          during 1997.

-   Duration of application of special measures

The  Council  reached  political  agreement  on amending  Regulation (EEC)
No 3438/92  laying down special aid measures for  the transport of certain
fresh fruit  and vegetables originating in  Greece in order  to offset the
additional  costs resulting from the need to  avoid travelling through the
former  Yugoslavia.  This concerns transport by rail, road and waterway to
other Member States with the exception of Italy, Spain and Portugal.

The amendment  extends until 31 December 1996, as proposed by the European
Parliament (instead  of 30 June 1996  as proposed by  the Commission), the
temporary aid given to  the operators concerned in  view of the  fact that
transport  conditions in  some territories  of the  former Yugoslavia  are
still poor despite the cessation of hostilities in the region.

In this stage of gradual abolition, the  cost for the whole year will  not
exceed by more than 50% that envisaged in the financial statement (ECU 4,5


-   Fixing of aid for the 1995 harvest

The Council  reached political agreement (as part of the price package) on
a Regulation granting  hop producers aid for  the 1995 harvest for certain
groups  of varieties.   The amount of aid  fixed by hectare  is calculated
taking account of the  average return on the  areas in full  production as
compared with  the average returns for  previous harvests and  the current
position of the market and trends in costs.  

Under the planned  method of calculation,  the proposed aid is  on average
15% less than that granted for the 1994 harvest.


The  Council adopted, by a qualified majority  with the Italian delegation
voting against  and the Spanish delegation  abstaining, an amendment  to a
Commission  Regulation  opening and  providing  for the  administration of
certain tariff quotas for imports of rice and broken rice.

The Commission  adopted the above Regulation  on 5 July 1996.   Since  the
measures provided  for under that Regulation  were not in  accordance with
the opinion  of the Management Committee  for Cereals, the  Commission was
required to communicate them to the Council (in accordance with Article 23
of Regulation (EEC) No 1766/92 so that the latter could  if necessary take
a different decision by  a qualified majority.   If the Council  failed to
take a  different decision, the measures  adopted by the  Commission would
have  entered  into   force  within  a  period   of  one  month  at  their
communication to the Council.

The  aim  of  the  Regulation is  to  ensure  the  implementation  by  the
Commission  of agreements pursuant to Articles XXIV.6 (consequent upon the
accession  of  Austria,  Finland  and  Sweden  to  the  Union)  and  XXIII
(consequent upon  the conclusion  of consultations  with Thailand)  of the
GATT concerning imports of wholly milled or semi-milled  rice, husked rice
and broken rice.

The general  position which  emerged in  favour of  the amendments to  the
Regulation aims to resolve the  problems raised by delegations concerning,
particularly, detailed submission rules for rice and the administration of
third-country quotas in order to maintain traditional import flows of this

- Austrian memorandum

The Council heard a presentation by the Austrian Minister, Mr Molterer, of
a memorandum on mountain and  hill farming.  The  memorandum described the
difficulties encountered in adapting to the common agricultural policy the
support   instruments  which  existed  in  Austria  before  accession  and
concluded that existing  agricultural and structural policies were  unable
to offer  satisfactory  solutions to  the problems  of  mountain and  hill

The ideas in this document were based in the main on  Austria's experience
in implementing Community legislation  to assist mountain and  hill areas.
The  document  placed  particular  emphasis  on  the  need   to  safeguard
production  potential and  earnings  in these  areas  and on  the  role of
mountain and hill farming  and forestry  in fulfilling a  whole series  of
functions.  Noting that farmers' incomes in these  areas had lagged behind
those  of  farmers  in  other regions,  the  document  made  a  number  of
suggestions  for short-term measures and advocated longer-term methods for
dealing  with  the  new priorities  of  Community  policy in  the  regions

Following  the  Councils  discussions,  the  Commission  stated  that  the
memorandum submitted  by  the Austrian  delegation -  like the  memorandum
submitted by Italy on the same topic in January 1995 and any other similar
initiative  by  Member  States (France  has also  announced  that  it will
shortly be submitting a memorandum  on mountain and hill  farming) - would
be looked at very carefully by it  in preparing the European Conference on
Rural  Development which  it would  be organizing in  Cork in  Ireland, in
cooperation with the Presidency, in November 1996.

- Fees for the programme for the review of active substances

The Council was informed by the Commission of progress in preparatory work
on a proposal  to harmonize  the fees  to be levied by  Member States  for
assessing  dossiers  on  active  substances to  be  examined  pursuant  to
Directive 91/414/EEC concerning the placing  of plant-protection  products
on the market.

The  Directive stipulates  that a  product is  authorized if,  among other
technical  conditions to  be met,  the active  substances included  in its
composition appear in a positive list given in Annex I thereto.   In order
to be included in  this positive  list, an  active substance  must be  the
subject of  an application submitted  by an  applicant to a Member  State.
The application  must be accompanied by  a dossier demonstrating  that the
active substance meets the specified requirements.

By way of derogation, a Member State may, during a period of twelve years,
authorize  the  placing   on  the  market  of  plant-protection   products
containing active substances not listed in Annex I that are already on the
market  two years  after the  date of  notification of  the Directive.   A
programme  of work for the gradual examination  of these active substances
has already been commenced by the Commission.

The Council requested the Commission to submit its proposal as a matter of

-   Harmonization of health measures concerning BSE

The Council  studied a  note from  the French  delegation which  asked the
Commission to examine possible additional measures for the  prevention and
control of bovine spongiform encephalopathy (BSE) which the European Union
might introduce.

Specifically, these  would entail the implementation  of a system  for the
continuous  monitoring of  transmissible spongiform  encephalopathies,  as
well as the  exclusion from human and animal food chains of tissues likely
to contain the pathogenic agent.

The United Kingdom delegation supported these requests.

Commissioner FISCHLER  said that  the Commission had  submitted the French
delegation's recommendations to the Scientific Veterinary Committee and to
the newly-established Multidisciplinary Committee for their opinions, with
the  aim of  examining all  the technical  measures necessary  to reassure
consumers of  beef and  other meat on  scientific grounds,  and to provide
proper health protection.   The aim was to  work out a Community  approach
for  a  number   of  technical  procedures,  avoiding  isolated   national

Following its  discussion, the Council took  note of the  guidelines which
the Commission intended to  follow and invited the Commission to submit to
the  relevant  bodies   any  additional  measures  which  the   Scientific
Committees deemed necessary to prevent any risk of transmission of BSE.

(Adopted without debate.   In the case of legislative acts,  votes against
or abstentions  are indicated.  Decisions  accompanied by statements which
the  Council has  decided to  release to  the public  are indicated  by an
asterisk;  the  statements  in question  may be  obtained  from  the Press


Animal feedingstuffs (*)

Following  the political  agreement reached  at the  meeting on  20-21 May
1996,  the  Council  adopted, by  a qualified  majority,  with  the German
delegation   voting  against,   a   Directive  concerning   additives   in
feedingstuffs (amendment of Directive 70/524/EEC).

The Directive  constitutes a reform of  the system  for authorizing  these
additives,  which  is intended  to overcome  the technical  and monitoring
problems encountered in implementing Directive 70/524/EEC.

The reformed authorization system entails:

-   the definition  of  two  categories  of additives  ("high  technology"
    substances and "generic" substances) in order to enable authorizations
    to be granted under two different sets of conditions;

-   a  procedure by which firms submit dossiers  to the Standing Committee
    on  Feedingstuffs  via  the  Member  States,  with  a  view  to  their
    evaluation and authorization by the Commission;

-   a  specific authorization  for each  substance, issued  by means  of a
    Commission Regulation;

-   restriction  of authorizations for "high technology" substances to one
    or more legal persons;

-   compulsory  revaluation  and reauthorization  of  additives after  ten

-   revised provisions concerning the confidentiality of data contained in
    applications for authorization;

-   abolition  of the present "positive list", accompanied by transitional
    arrangements  allowing substances currently authorized  to continue to
    be  marketed, but  requiring  some categories  to be  reevaluated  and

In addition, the Council adopted the principle of the introduction of fees
at  a later  stage,  to  be charged  by  Member  States for  work  done in
connection with applications.

Pure-bred breeding animals of the bovine species (*)

In accordance with Article 5 of Directive 87/328/EEC on the acceptance for
breeding purposes of pure-bred breeding animals of the bovine species, the
Council agreed to designate the INTERBULL Centre (Uppsala,  Sweden) as the
Community  reference  body  responsible  for  collaborating  in  rendering
uniform the testing methods  and the assessment of  the results for  pure-
bred breeding animals of the bovine species.

Agricultural conversion rates (*)

The  Council adopted by a qualified majority,  with the Italian delegation
voting  against, an  amendment to  Regulation (EC)  No 2990/95  regulating
compensation  for appreciable  reductions in  the  agricultural conversion
rates for Sweden before 1 July 1996.

By extending the validity of that Regulation for six months, the amendment
makes it possible to  continue to treat  the Swedish  krona - which  could
undergo a further appreciable reevaluation after 1 July 1996 - in the same
fashion as  the other currencies that  have previously experienced similar
situations.   Compensation  has been  provided for  past  reevaluations in
Belgium, Denmark, Germany, Luxembourg, the Netherlands and Austria.


The Council adopted a Regulation fixing a supplementary premium payable to
sheepmeat producers in non-less-favoured  areas of Ireland and the  United
Kingdom in respect of Northern Ireland.

The  aim of  the Regulation  is to  grant a  supplementary premium  to the
producers in  question in order to offset a sharp  loss in their income in
Spring  1995, following extremely low market prices for  the time of year.
The premium is limited to the 1995 marketing year.

Less-favoured farming areas

The Council  adopted an  amendment to the list  of less-favoured  areas in
Ireland within the meaning of Directive 75/268/EEC.

The purpose  of the  amendment is  to extend  the  less-favoured areas  in
Ireland  (128.000 hectares),  in accordance  with  current criteria.   The
specific aim is to ensure continuity of holdings by means of aid that will
enable a  minimum  level of  population  to be  maintained to  ensure  the
environmental upkeep of these less-favoured areas.


The Council  adopted Decisions authorizing the  Kingdom of  Spain and  the
Portuguese Republic to renew, until 7 March 1997, the Agreements on mutual
fishery relations with the Republic of South Africa.


Protocols  for   the  protection  and  prevention  of   pollution  of  the
Mediterranean Sea (Barcelona Convention)

The  Council adopted  the  conclusions concerning  the  signature  of  the
revised  Protocol  on  the protection  of  the Mediterranean  Sea  against
pollution from land-based sources.

The proposal for  a Decision submitted to the Council by the Commission in
February 1996  also  concerned  the  signature  of  the  Protocol  on  the
prevention  of   pollution  of   the  Mediterranean  sea  resulting   from
transboundary movements  of hazardous wastes and their disposal.  However,
as the negotiations concerning the second Protocol were not as advanced as
those for the first, it was agreed to separate the two Decisions for their

Internal market

Marketing of natural mineral waters

By  a  qualified  majority and  retaining  the  amendments to  its  common
position voted by the European Parliament,  the Council adopted amendments
to   the   Directive  amending   Council   Directive  80/777/EEC   on  the
approximation   of  the  laws  of  the  Member   States  relating  to  the
exploitation and marketing of natural mineral waters.  Denmark, Sweden and
the United Kingdom voted against and the Netherlands abstained.

The purpose of the Directive  is to adapt the provisions  dating from 1980
to take account of scientific  and technical progress since  then and also
to  rationalize  them  in  line  with  general  Community  legislation  on

The main provisions adapted relate to:

-   the  conditions  under  which the  use of  ozone-enriched  air  may be
    permitted in order to separate unstable elements  from natural mineral

-   the obligation to include a statement of the analytical composition of
    natural  mineral  waters,  in  order  to  ensure  that  consumers  are

-   extension  of  the period  of recognition  for natural  mineral waters
    originating  in third  countries in  order to  simplify administrative

-   extension  of the  scope of  the Directive  to include  bottled waters
    labelled "spring water",

-   introduction of  a safeguard  clause enabling  Member  States to  take
    decisions swiftly in cases of contamination of natural mineral waters,

-   establishment of a procedure  to lay down certain detailed  provisions
    concerning natural  mineral waters,  notably in respect  of limits for
    the levels of certain constituents, labelling, analysis methods, etc.


Driving licences

The Council adopted unanimously, in accordance with its common position of
26 February 1996,  an  amendment   to  Directive  91/439/EEC  on   driving
licences,  which  allows Member  States  which  so wish  to  issue  a  new
Community  model driving  licence in credit card  format.   This new model
constitutes an  alternative to the paper  model provided for  by Directive

Apart from  information relating  to the  driving licence,  the  Directive
allows  the Member  States to  include other  information in  a particular
place on the  licence, subject to the explicit agreement of the holder and
provided that the inclusion of such information does not in any way affect
the use of the model as a driving licence.

The new model will also have a space for the possible inclusion at a later
date, within a Community framework, of a microchip  or equivalent computer

Interoperability of the trans-European high-speed railway system

The Council  adopted the Directive on  the interoperability of  the trans-
European high-speed railway system.

The purpose of the Directive, which is  based on Title XII of the  Treaty,
relating to trans-European networks, is to achieve interoperability of the
trans-European   system,  i.e.  the  ability   of  the   system  to  allow
uninterrupted movement of high-speed trains through Community territory.

In  order to  achieve  this aim,  the Directive  lays  down the  necessary
criteria and procedures for  the adoption of technical specifications  for
interoperability,  particularly  as   regards  the  structural  subsystems
(infrastructure,  energy,   control-and-command,  signalling  and  rolling

With regard to infrastructure, high-speed lines should comprise:

-   specially built high-speed  lines equipped for speeds generally  equal
    to or greater than 250 km/h,

-   specially upgraded  high-speed lines equipped for  speeds of the order
    of 200 km/h,

-   specially upgraded high-speed  lines which have special features  as a
    result of topographical, relief or town-planning constraints, on which
    the speed must be adapted to each case. 

With regard to rolling stock, high-speed advanced-technology trains should
be designed in such a way as to guarantee safe, uninterrupted travel:

-   at a speed of at least 250  km/h on the lines specially built for high
    speed, while  enabling  speeds  of over  300  km/h to  be  reached  in
    appropriate circumstances;

-   at a speed  of the  order of 200  km/h on existing specially  upgraded

-   at the highest possible speed on other lines.

Transport of dangerous goods by rail

The Council adopted the Directive on the  approximation of the laws of the
Member States with regard to the transport of dangerous goods by rail.

The purpose of the  Directive is to establish national safety standards of
a high level, 
i.e.  at  the  level of  the  international  standards of  the  Convention
concerning International  Carriage by Rail (COTIF).   It takes  account of
the  potential risks involved in the transport of dangerous goods by rail,
particularly in  view of  the fact that  such goods  are frequently routed
through urban  areas and that accidents  can occur  during manoeuvring  in
marshalling yards, which are often situated in the centre of towns.

Moreover, in  view of  the progressive  opening up of  the rail  transport
market, the  text lays down  a homogeneous  set of national safety  rules,
which will  prevent distortions  of competition arising between  different
modes of transport of dangerous goods.

The  Directive  provides for  the possibility  of imposing  more stringent
conditions for the transport of dangerous goods through the Channel tunnel
or  tunnels  with  similar  characteristics;  on  the  basis of  currently
available information,  this will  be the case  with the  tunnel under the
Storebaelt in Denmark and the Oeresund tunnel between Denmark and Sweden.

Inland waterways

The  Council adopted the Directive on the  harmonization of the conditions
for obtaining national boatmasters' certificates for the carriage of goods
and passengers by inland waterway in the Community.

The  Directive  falls  within the  framework  of Directive  91/672/EEC  of
16 December 1991  on the reciprocal  recognition of  national boatmasters'
certificates for the carriage of goods and passengers  by inland waterway.
It provides  for a  single  national  boatmasters' certificate,  which  is
issued  on the basis of  harmonized conditions,  uses a Community-designed
model and is mutually recognized by the Member States. 

External relations

Special system of assistance to traditional ACP suppliers of bananas

The  Council  formally  adopted  an  amendment  to  Regulation  No 2686/94
establishing a special system of  assistance to traditional ACP  suppliers
of bananas.

The  new  Regulation  extends  Regulation  2686/94,  which  expired on  28
February 1996, until 31 December 1996.

The  traditional  ACP suppliers  of  bananas are:  Belize, Cameroon,  Cape
Verde, Côte d'Ivoire, Dominica, Grenada, Jamaica, Madagascar, Saint Lucia,
Saint Vincent and the Grenadines, Somalia and Suriname.

Cooperation   Agreement  with  the  Lao  People's  Democratic  Republic  -
negotiating directives

The Council adopted  negotiating directives authorizing the Commission  to
open  negotiations  for  a  Cooperation  Agreement with  the  Lao People's
Democratic Republic.

The Agreement is to be non-preferential, and will  establish the framework
for  bilateral  relations  between the  Community  and  the  Lao  People's
Democratic Republic.  It will cover trade and  cooperation, set priorities
and provide for a review of its implementation  by a Joint Commission.  It
will not include a financial protocol.

Cooperation  Agreement  with   the  Kingdom  of  Cambodia  -   negotiating

The Council adopted negotiating directives for the Commission concerning a
Cooperation Agreement  between the European Community  and the  Kingdom of

The Agreement is to be non-preferential, and will  establish the framework
for bilateral relations between the Community and Cambodia.  It will cover
trade and cooperation,  set priorities  and provide  for a  review of  its
implementation  by a Joint Commission.   It  will not include  a financial


Following the  political agreement reached on  15 June  1996, the  Council
formally adopted  the Regulation on  financial and  technical measures  to
support the reform of  economic and social structures in the framework  of
the Euro-Mediterranean partnership  (MEDA Regulation);  see Press  Release
8931/96 (Presse 208) of 15-16 July 1996 (page 10).

Anti-dumping: polyester fibres

-   coming from India and Korea

  The Council adopted a Regulation (EC) amending Council Regulation  (EEC)
  No 54/93 imposing a definitive anti-dumping duty on imports of synthetic
  fibres of polyesters originating in India and the Republic of Korea.

  After a  review of the case  of Bongaigaon  Refinery and  Petrochemicals
  Ltd., the Regulation sets an anti-dumping duty  of 13% of that company's
  net import price, to  be levied retroactively  as from  the date of  the
  initiation of the review.

-   coming from Belarus

  The Council adopted a Regulation (EC) imposing a definitive anti-dumping
  duty on  imports of polyester staple  fibre originating  in Belarus  and
  collecting definitively the provisional duty imposed.

  The  rate  of   the  duty   is  equivalent   to  43,25%   of  the   net,
  free-at-Community-frontier price, before duty.

Justice and Home Affairs

Europol Convention - role of the Court of Justice

Following the conclusions of the Florence European Council  on 21-22 June,
the Council adopted the act drawing up, on the basis of Article K.3 of the
Treaty on  European Union, the Protocol  on the interpretation, by  way of
preliminary  rulings, by the Court of Justice  of the European Communities
of the Convention on the establishment of a European Police Office.

The Protocol will be signed by the Permanent Representatives of the Member
States in Brussels on 24 July.

European Year against Racism

The Council  and  the representatives  of the  Governments  of the  Member
States,  meeting  within  the  Council, formally  adopted  the  Resolution
concerning the European Year Against Racism (1997), already given in Press
Release 7529/96 (Presse 152) of 3 June 1996.


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