Europaudvalget 2002-03
EUU Alm.del Bilag 381
Offentligt
1461064_0001.png
Modtaget via elektronisk post. Der tages forbehold for evt. fejl
Europaudvalget
(Alm. del - bilag 381)
Det Europæiske Råd
(Offentligt)
Medlemmerne af Folketingets Europaudvalg
og deres stedfortrædere
Bilag
1
Journalnummer
400.C.2-0
Kontor
EU-sekr.
12. december 2002
Til underretning for Folketingets Europaudvalg vedlægges i forbindelse med Det Europæiske Råd i København den 12.-13. december 2002 Rådets rapport om
udvidelsen, 15524/02.
COUNCIL OF
THE EUROPEAN UNION
Brussels, 11 December, 2002
15524/02
LIMITE
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ELARG 418
REPORT
from :
on :
to :
prev. doc :
Subject :
Council
10 December 2002
European Council in Copenhagen
15174/02 ELARG 408
ENLARGEMENT
Delegations will find attached the Presidency's proposal for a global solution to all outstanding issues in the accession negotiations with Cyprus, Hungary, Poland, Estonia, the
Czech Republic, Slovenia, Malta, Slovakia, Latvia, Lithuania at the Copenhagen European Council, adjusted in the light of the discussion at the Council on 10 December 2002.
It is understood that the only issues still to be finalised by the European Council in Copenhagen concern the global amount (including the financial consequences of the agriculture
quota proposal) as well as questions relating to direct payments, the remaining elements of the package being acceptable to delegations on condition that they are part of the overall
final agreement.
____________________
CYPRUS
AGRICULTURE (only issues where EU offers go beyond EUCP)
Issue
Direct Payments
Top-ups and state aid
Presidency proposal
Phasing-in schedule maintained.
Cyprus has the possibility of topping up to the 2001 Cypriot support
level.
In 2004-2006 the topping-up can be financed partly from the EAGGF
guarantee rural development allocation under the following conditions:
• A maximum of 20% of the commitment appropriations available
in this envelope for each year 2004, 2005 and 2006 or 25% in
2004, 20% in 2005 and 15% in 2006can be used for topping-up.
Any further topping-up can only be financed from national
budgets.
• Application of relevant maximum EU co-financing rate (80% in
objective 1 regions)
Aid beyond that level or aid for products not covered by EU direct
payments as linear degressive state aid over a period of maximum 7 years
for an agreed list of products.
See appendix.
Milk Quota
145,200 t
See appendix
Suckler Cow premium
Beef premium
Slaughter premium
Durum wheat
Tobacco
Wine planting rights
500
12,000
21,000
6,183 ha (traditional area)
350 tons
2,000 ha (of existing reserve of 4,100 ha) + normal carry-over of
replanting rights under the acquis (grubbed up before accession and
replanted after accession within acquis time span)
See appendix
Special support
deprived areas
for
5 year TP during which CY can provide state aid above the normal levels
as provided under Regulation (EC) 1257/99.
See appendix.
Fruits & vegetables
5 year TP for the degressive adjustment for withdrawals.
See appendix
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BUDGETARY ISSUES
Issue
Advance payments
Real payments
Presidency proposal
Split of 16% into 10% for 2004 and 6% for 2005 as regards structural
funds.
Reduction from:
- 3% to 2% for 2004 as regards structural and cohesion funds;
- 35% to 23.3% for 2004 as regards rural development.
Schengen facility
Pre-accession aid
Special
cash
flow
facility of € 1 billion
Lump sum budgetary
compensation
No Schengen funds will be made available for CY.
€16m in 2003
Lump sum of €28 m in 2004.
CY receives €180.5m in 2004-2006,
plus, instead of Schengen facility, CY receives a budgetary compensation
of €86m,
plus in addition, a further lump-sum of €33.4m will be made available to
CY.
Final package – appendix: Agriculture - Cyprus
1. Complementary national direct payments
Topping-up
1. Cyprus should be given the possibility to complement direct aid paid to a farmer under any CAP scheme listed in the annex to Regulation (EC) No 1259/1999 up to the total
level of support he would have been entitled to receive in Cyprus prior to accession (2001).
The Cypriot authorities must ensure that, the total direct support the farmer is granted after accession in Cyprus under the relevant EU scheme including all complementary national
direct payments in no case exceeds the level of direct support he would be entitled to receive under that scheme in the existing EU.
2. The option to grant national aid complements should also be available if Cyprus chose to apply the simplified scheme.
3. On the basis of information received from Cyprus the amounts of complementary national aid to be granted are enclosed in table 1 and 2.
The complementary national aid to be granted will be subject to any adjustments which may be rendered necessary by developments in the common agricultural policy.
4. During the years 2004-2006 Cyprus should have the possibility to co-finance the complementary national aid from its national rural development allocation
under EAGGF guarantee (heading 1b). However, the amount available for this purpose shall not exceed 20% of the commitment appropriations available in this
envelope for each of the years 2004, 2005 and 2006 or 25% in 2004, 20% in 2005 and 15% in 2006. Furthermore, the relevant maximum EU co-financing rates
shall apply (80% in objective 1 regions). The national co-financing arrangements will be part of the normal rural development programming process. The
financing from the rural development allocation under EAGGF guarantee shall function according to the normal rules.
5. The arrangement set out under paragraph 4 above is a temporary and sui generis solution and does not constitute a precedent.
From 2007 all national complementary direct payments or aids will be financed exclusively from the national budget of Cyprus.
State aid
In those sectors where Cyprus is providing a higher level of aid than presently in the EU, Cyprus is given the possibility in addition to the Complementary National direct payments to
grant transitional and degressive national aids until the end of 2010. These State aids should be granted in a form that is similar to Community aids, such as decoupled payments.
Taking into account the kind of and amount of national support granted in 2001, Cyprus should be allowed to grant State aid to the (sub)sectors mentioned and up till the amounts
mentioned in table 3.
The state aid to be granted will be subject to any adjustments which may be rendered necessary by developments in the common agricultural policy. Should such adjustments
prove necessary, the amount of the aids or the conditions for the granting thereof should be amended at the Commission’s request or on the basis of a decision by the
Commission.
Cyprus must yearly submit a report to the Commission on the implementation of the State aid measures indicating the aid forms and amounts per (sub)sector.
Table 1:
Table 2:
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Table 3
2. Special support to deprived areas:
CY is granted a 5 year TP during which CY can provide state aid above the normal levels as provided under Regulation (EC) No 1257/1999 to ensure that the average family
income in certain deprived areas does not fall below 80% of the national average family income. This aid can be provided only to farmers participating in rural development
schemes except those related to Articles 4, 5, 6, 7 and 25, 26, 27 and 28.
Cyprus must yearly submit a report on the implementation of the State aid measures indicating the aid forms and amounts.
3. Degressive adjustment for withdrawals (Article 23(4) of Council Regulation (EC) No 2200/96 as amended by Council Regulation (EC) No 2699/2000)
The EU can accept a 5 year transitional period from the date of accession, during which the quantitative limit for withdrawal with respect to apples, pears, peaches and table
grapes should be fixed at 20% of the marketed quantity and with respect to citrus (excluding grapefruit) at 10% for Cyprus.
4. Wine planting rights
Cyprus is authorised to maintain by accession a national reserve of planting rights of 2,000 ha for the production of quality wines. Cyprus shall also provide to the Commission
a list of regions which will be allocated the rights coming from the reserve. The provisions laid down under article 5 of Regulation (EC) No 1793/1999 will apply to this reserve
of 2,000 ha.
With regard to replanting rights owned by individual producers, it is underlined that such replanting rights must be similar to the replanting rights granted under paragraph 2 of
article 4 of Regulation (EC) No 1493/1999 and acquired under Cyprus’ legislation before accession. These rights must be used within the period laid down under article 4
paragraph 5 of Regulation (EC) No 1493/1999.
5. Milk quotas
The milk quota should be set in accordance with the following:
quota – 2004: 145.200 tonnes
deliveries: 141.337 tonnes
direct sales: 3.863 tonnes
The following representative fat contents (Article 11 in Regulation (EEC) No 3950/92) and date for establishing the individual reference quantity (Article 4(1) in Regulation
(EEC) 3950/92 should apply:
Representative fat content:
3.46%
Individual reference quantity:
31.03.2004
BUDGETARY ESTIMATES
CYPRUS
1999 prices, € millions
2003
pre-accession aid
2004
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
cash flow lump-sum
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2004 after budgetary compensation
2005
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
6
37
14
9
1
66
-40
-16
-90
-12
11
12
6
5
0
28
62
-27
-10
-59
-8
-104
-42
69
27
16
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total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2005 after budgetary compensation
2006
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2006 after budgetary compensation
-159
-92
119
27
1
46
18
12
1
77
-40
-17
-92
-13
-162
-85
112
27
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and
payment
appropriations -Accession 1 May 2004; Negotiation Package 10 December.
in € millions, 1999
prices
CYPRUS
Appropriations for Commitments
2004
2005
2006
2004-2006
1. Agriculture.
1a - Common Agricultural Policy
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash-flow lump sum
Budgetary Compensation
Total Appropriations for Commitments
Appropriations for Payments
1,3
0,0
15,8
74,4
27,7
68,9
171,0
0,8
0,0
15,8
90,2
0,0
119,2
209,4
0,4
0,0
16,0
98,9
0,0
112,3
211,2
2,5
0,0
47,7
263,5
27,7
300,4
591,6
14,5
15,0
15,6
45,1
33,5
31,1
36,2
100,8
17,1
16,5
17,6
13,6
18,1
18,1
52,7
48,1
4,9
0,0
4,9
20,3
25,1
11,8
9,3
21,0
22,2
43,2
11,5
11,2
22,8
23,9
46,7
28,2
20,5
48,7
66,4
115,0
1. Agriculture.
1a - Politique agricole commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash flow lump sum
Budgetary Compensation
Total Appropriations for Payments
0,5
0,0
5,7
24,2
27,7
68,9
120,8
0,6
0,0
9,6
60,3
0,0
119,2
179,5
0,6
0,0
12,7
76,1
0,0
112,3
188,4
1,7
0,0
27,9
160,6
27,7
300,4
488,7
5,2
9,0
12,1
26,3
6,1
14,0
17,7
37,7
5,7
0,3
10,2
3,8
10,9
6,8
26,8
10,9
4,9
0,0
4,9
7,5
12,4
11,8
9,3
21,0
15,7
36,8
11,5
11,2
22,8
23,0
45,8
28,2
20,5
48,7
46,3
95,0
HUNGARY
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AGRICULTURE (only issues where EU offers go beyond EUCP)
Issue
Direct Payments
Top-ups
Presidency proposal
Phasing-in schedule maintained.
In 2004-2006, HU has the possibility to top up EU direct payments to
• either 45% of EU level in the years 2004, 50% in 2005 and 55% in
2006. From 2007 Hungary may top-up EU direct payments by 20
percentage points above the applicable phasing-in level in the relevant
year;
• or to the total level of direct support the farmer would have been
entitled to receive, on a product by product basis, in HU prior to accession
(2003) under a like national scheme increased by 10 percentage points;
but in no case higher than 100% of EU-15 level of direct payments.
In 2004-2006 the topping-up up to 40% of the EU level can be financed
partly from EAGGF guarantee rural development allocation under the
following conditions:
• a maximum 20% of the commitment appropriations available in this
envelope for each year 2004, 2005 and 2006 or 25% in 2004, 20% in
2005 and 15% in 2006 can be used for topping-up. Any further
topping-up can only be financed from national budgets.
• application of relevant maximum EU co-financing rate (80% in
objective 1 regions)
Reference yield
Base area
Special
Premium
Milk Quota
Beef
4.73 t/ha
3,487,792 ha
94,620
Basic quota: 1,947,280 t
2006 reserve: 42,780 t
Total quota: 1,990,060 t
See appendix.
Ewes premium
Durum wheat
1,146,000
4,305 ha well established
2,500 ha traditional area
Isoglucose
137,627 t
A quota: 127,627 t
B quota: 10,000 t
Pálinka
Wine
Protection of Hungarian spelling for both HU and Austrian Pálinka. See
appendix.
Enrichment of wine with sucrose.
BUDGETARY ISSUES
Issue
Advance payments
Real payments
Results of Final Negotiations
Split of 16% into 10% for 2004 and 6% for 2005 as regards structural funds.
Reduction from:
- 3% to 2% for 2004 as regards structural and cohesion funds;
- 35% to 23.3% for 2004 as regards rural development.
Schengen facility
Special cash-flow
facility of € 1 b
OTHERS
Issue
Purchase of Land
Institutions
Results of Final Negotiations
Three-year safeguard mechanism (on top of 7 year TP). Managed by COM
and based on serious disturbances in the land market. See appendix.
Additional two seats in EP (this means that in the next EP, HU will have 3
additional MEPs). See appendix.
€148m
Lump sum of € 155m in 2004
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Taxation
Taxation
Taxation
Reduced excise on 50 l. of fruit alcohol per household. See appendix.
VAT exemption threshold for SMEs equivalent to €35.000. See appendix.
Reduced VAT rate on gas and electricity. See appendix.
CHAPTER 4: FREE MOVEMENT OF CAPITAL
Proposed text to be added to the EUCP – Chapter 4
If there is sufficient evidence that, upon expiry of the transitional period, there will be serious disturbances or a threat of serious disturbances on the agricultural land market of
Hungary, the Commission, at the request of Hungary, shall decide upon the extension of the transitional period for up to a maximum of three years.
CHAPTER 10: TAXATION
Proposed text to be added to the EUCPs for the relevant countries
Chapter 10-Taxation
Hungary
• Hungary may grant an exemption from value added tax (VAT) to taxable persons whose annual turnover is less than the equivalent in national currency of € 35 000.
• Without prejudice to a formal decision to be adopted according to the procedure set out in Article 12(3)(b) of the Sixth VAT Directive (77/388/EC), Hungary may
maintain a reduced rate of value added tax (VAT) on the supply of natural gas and electricity until one year after the date of accession.
• Hungary may apply a reduced rate of excise duty, of not less than 50% of the standard national rate of excise duty on ethyl alcohol, to ethyl alcohol produced by fruit
growers' distilleries producing, on an annual basis, more than 10 hectolitres of ethyl alcohol from fruit supplied to them by fruit growers' households. The application of
the reduced rate shall be limited to 50 litres of fruit spirits per producing fruit growers' household per year, destined exclusively for their personal consumption. The
Commission will review this arrangement in 2015 and report to the Council on possible modifications.
Final package – appendix: Agriculture – Hungary
1. Complementary national direct payments
1. Hungary should be given the possibility, subject to authorisation by the Commission, to complement direct aid paid to a farmer under any CAP scheme listed in the
annex to Regulation (EC) No 1259/1999 up to:
either
• 45% of EU level in the years 2004, 50% in 2005 and 55% in 2006. From 2007 Hungary may top-up EU direct payments by 20 percentage points above the applicable
phasing-in level in the relevant year.
or
• to the total level of direct support the farmer would have been entitled to receive, on a product by product basis, in Hungary prior to accession (2003) under a like national
scheme increased by 10 percentage points.
However, the total direct support the farmer could be granted after accession in Hungary under the relevant EU scheme including all complementary national direct
payments should in no case exceed the level of direct support he would be entitled to receive under that scheme in the existing EU.
2. The option to grant national aid complements should also be available if Hungary chose to apply the simplified scheme.
The total amount per sector of complementary national aids that could be granted in a given year after accession when applying the simplified scheme, should be limited by a
specific financial envelope per sector. This specific financial envelope would be equal to the difference between
•
the total amount of support per sector resulting from the calculation method described above under either option 1 or 2 and
•
the total amount of direct support available for Hungary for the same sectors in the year concerned under the simplified scheme.
3. Hungary should have the right to decide, on the basis of objective criteria and subject to authorisation by the Commission, on the amounts of complementary national aid to
be granted. The authorisations by the Commission should:
• if based on 2003 level, specify the relevant national CAP like direct payment schemes
•
define the level up to which the complementary national aids can be paid, the rate of the complementary national aids and, where appropriate, the conditions for
the granting thereof,
•
be granted subject to any adjustments which may be rendered necessary by developments in the common agricultural policy.
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Both under the EU standard scheme and the simplified scheme there should be no complementary national payments and aids for agricultural activities covered by a
common market organisation but not directly supported under the CAP (annex to Regulation (EC) No 1259/1999).
A national direct payment scheme applicable prior to accession should be considered as a CAP like scheme if the national direct support available was granted to farmers in
respect of a production covered by one of the EU direct payment schemes listed in the annex to Regulation (EC) No 1259/1999.
.
1. During the years 2004-2006 the complementary national aid up to 40% of the EU level can be financed by the national rural development allocation under EAGGF guarantee,
thus from heading 1b. However, the amount available for this purpose shall not exceed 20% of the commitment appropriations available in each of the years 2004, 2005 and
2006 or 25% in 2004, 20% in 2005 and 15% in 2006. Furthermore, the relevant maximum EU co-financing rates shall apply (80% in objective 1 regions). The national co-
financing arrangements will be part of the normal rural development programming process. The financing from rural development under EAGGF guarantee shall function
according to the normal rules.
4. The arrangement set out under paragraph 4 above is a temporary and sui generis solution and does not constitute a precedent.
From 2007 all national complementary direct payments will be financed from the national budget.
2. Pálinka
The name "Pálinka", in its Hungarian spelling shall be added as a traditional designation in Regulation (EEC) No 1576/89 under the appropriate category for fruit spirit and
grape marc spirit solely produced in Hungary in accordance with the rules regarding fruit spirit and grape marc spirits as laid down in article 1 respectively paragraph 4(i) and 4
(f) of Regulation (EEC) No 1476/89.
Ex-officio protection under Regulation (EEC) No 1576/89 will only apply to the name "Pálinka" in its Hungarian spelling.
Such ex-officio protection shall also apply for apricot distillates produced solely in the following counties of Austria: Niederösterreich, Burgenland, Steiermark and Wien.
3. Milk quota
The milk quota should be set in accordance with the following:
quota – 2004: 1.947.280 tonnes
deliveries: 1.782.650 tonnes
direct sales: 164.630 tonnes
reserve 2006: 42.780 tonnes
A special reserve should be established for Hungary. This reserve would be released as from the beginning of the quota year 2006/07 (1.4.2006) to the extent that the on-farm
consumption of milk and milk products in Hungary has decreased since 2000.
The decision on releasing the reserve and of its distribution to the deliveries and direct sales quota will be taken by the Commission under the management committee procedure
on the basis of an assessment of a report to be submitted by Hungary to the Commission by the 31.12.2005. This report should detail the results and trends of the actual
restructuring process in the country’s dairy sector and, in particular the shift from production for on-farm consumption to production for the market.
The following representative fat contents (Article 11 in Regulation (EEC) No 3950/92) and date for establishing the individual reference quantity (Article 4(1) in Regulation
(EEC) No 3950/92 should apply:
Representative fat content:
3.85%
Individual reference quantity:
31.03.2002
BUDGETARY ESTIMATES
HUNGARY
1999 prices, € millions
2003
pre-accession aid
2004
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
cash flow lump-sum
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2004 after budgetary compensation
2005
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
199
544
438
72
61
-
271
235
125
209
42
58
155
824
-97
-61
-349
-46
-553
271
197
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total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2005 after budgetary compensation
2006
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2006 after budgetary compensation
-
1.314
-150
-96
-528
-71
-845
470
-
470
124
653
524
97
61
1.459
-150
-99
-542
-74
-866
594
594
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and
payment
appropriations -Accession 1 May 2004; Negotiation Package 10 December.
in € millions, 1999
prices
HUNGARY
Appropriations for Commitments
2004
2005
2006
2004-2006
1. Agriculture.
1a - Common Agricultural Policy
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash-flow lump sum
Budgetary Compensation
Total Appropriations for Commitments
Appropriations for Payments
25,2
49,3
190,9
1.207,0
155,3
0,0
1.362,2
15,1
49,3
185,6
1.681,3
0,0
0,0
1.681,3
7,6
49,3
182,8
2.000,9
0,0
0,0
2.000,9
47,8
147,8
559,3
4.889,2
155,3
0,0
5.044,5
116,4
121,2
126,0
363,7
788,3
899,6
1.159,3
2.847,2
448,1
340,2
619,5
280,1
785,5
373,8
1.853,1
994,1
63,6
0,0
63,6
164,2
227,8
151,9
264,9
416,8
179,4
596,2
152,0
315,9
467,9
190,8
658,8
367,5
580,8
948,4
534,4
1.482,7
1. Agriculture.
1a - Politique agricole commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash flow lump sum
Budgetary Compensation
9,1
49,3
100,2
434,1
155,3
0,0
11,6
49,3
133,0
1.115,0
0,0
0,0
11,3
49,3
158,0
1.335,0
0,0
0,0
31,9
147,8
391,3
2.884,2
155,3
0,0
41,9
72,2
97,5
211,5
209,2
438,0
523,8
1.171,0
202,4
6,8
359,6
78,4
382,9
140,8
944,9
226,1
63,6
0,0
63,6
61,0
124,7
151,9
264,9
416,8
127,2
543,9
152,0
315,9
467,9
185,4
653,3
367,5
580,8
948,4
373,6
1.321,9
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Total Appropriations for Payments
589,4
1.115,0
1.335,0
3.039,5
POLAND
AGRICULTURE (only issues where EU offers go beyond EUCP)
Issue
Direct Payments
Top ups
Presidency proposal
Phasing-in schedule maintained.
In 2004-2006, PL has the possibility to top up EU direct payments to
• either 45% of EU level in the years 2004, 50% in 2005 and 55% in
2006. From 2007 Poland may top-up EU direct payments by 20
percentage points above the applicable phasing-in level in the relevant
year;
• or to the total level of direct support the farmer would have been
entitled to receive, on a product by product basis, in PL prior to accession
(2003) under a like national scheme increased by 10 percentage points;
but in no case higher than 100% of EU-15 level of direct payments.
In 2004-2006 the topping-up up to 40% of the EU level can be financed
partly from EAGGF guarantee rural development allocation under the
following conditions:
• a maximum 20% of the commitment appropriations available in this
envelope for each year 2004, 2005 and 2006 or 25% in 2004, 20% in
2005 and 15% in 2006 can be used for topping-up. Any further
topping-up can only be financed from national budgets.
• application of relevant maximum EU co-financing rate (80% in
objective 1 regions)%
See appendix.
Reference yield
Base area
Milk Quota
3.0 t/ha.
9,308,277 ha.
Basic quota: 8,964,017 t; 2006 restructuring reserve: 416,126 t; total quota:
9,380,143 t.
See appendix.
Minimum
requirements for the
recognition
of
producers
organisations
Tomato threshold
Sugar quota
Isoglucose quota
Potato starch
Fibres
TP of 5 years. See appendix.
194,639 t
1,678,137 t (A: 1,586,210 t; B: 91,926t)
20,571 t
144,985 t
924 t long
462 t short
Special
premium
beef
926,000 (EUCP)
3 year TP on definition of suckler cows.
See appendix.
Eligibility
of
animals for suckler
cow premium
Rural development
PL request on the introduction of a new measure to alleviate negative
measures: tobacco
effects of simplified scheme compared to application of standard scheme in
& hops
the form of a per ha payment (tobacco and hops producers) not accepted.
Import quotas for
rice & bananas
PL requests on:
- an increase of the EU tariff quota for rice by 82,000 t at zero tariff for all
developing countries;
- an increase of the EU tariff quota for bananas by
310,000 t at zero tariff rate for all developing countries.
not accepted
Designation
spirits
of
Protection of designation "herbal vodka from the North Podlasie Lowland
aromatised with an extract of bison grass" and of the name "Polish Cherry".
See Appendix.
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‘Polish wine’
The name ‘Polish wine’ may be granted for wine made from fermented
grape juice. See appendix.
BUDGETARY ISSUES
Issue
Advance payments
Real payments
Results of Final Negotiations
Split of 16% into 10% for 2004 and 6% for 2005 as regards structural funds.
Reduction from:
- 3% to 2% for 2004 as regards structural and cohesion funds;
- 35% to 23.3% for 2004 as regards rural development.
Schengen facility
Special
cash-flow
facility of € 1 b
OTHERS
Issue
Taxation
Taxation
Results of Final Negotiations
Super-reduced VAT of 3% limited to products mentioned in annex H of the
6
th
VAT directive and limited to 4 years as from accession. See appendix.
Reduced VAT rate on housing (7%) until the end of 2007 for supply of
services for construction, renovation and alterration of residential housing,
excluding building materials. See appendix.
A technical transitional period of one year under which Poland can keep its
existing reduced rates on certain ecological fuels. See appendix.
€172m
lump sum of € 443m in 2004
Taxation
CHAPTER 10: TAXATION
Proposed text to be added to the EUCPs for the relevant countries
Chapter 10-Taxation
Poland
• Poland may maintain a reduced rate of value added tax (VAT) not lower than 7% on the supply of services for construction, renovation and alteration of residential
housing not provided as part of a social policy, and excluding building materials, until 31 December 2007.
• Poland may maintain a super-reduced rate of value added tax (VAT) not lower than 3% on the supply of goods and services of a kind normally intended for use in
agricultural production but excluding capital goods such as machinery or buildings (Annex H (10) of the Sixth VAT directive, 77/388/EC) until 30 April 2008.
Final package – appendix: Agriculture – Poland
1. Complementary national direct payments
1. Poland should be given the possibility, subject to authorisation by the Commission, to complement direct aid paid to a farmer under any CAP scheme listed in the
annex to Regulation (EC) No 1259/1999 up to:
either
• 45% of EU level in the years 2004, 50% in 2005 and 55% in 2006. From 2007 Poland may top-up EU direct payments by 20 percentage points above the applicable
phasing-in level in the relevant year;
or
• to the total level of direct support the farmer would have been entitled to receive, on a product by product basis, in Poland prior to accession (2003) under a like national
scheme increased by 10 percentage points.
However, the total direct support the farmer could be granted after accession in Poland under the relevant EU scheme including all complementary national direct
payments should in no case exceed the level of direct support he would be entitled to receive under that scheme in the existing EU.
2. The option to grant national aid complements should also be available if Poland chose to apply the simplified scheme.
The total amount per sector of complementary national aids that could be granted in a given year after accession when applying the simplified scheme, should be limited by a
specific financial envelope per sector. This specific financial envelope would be equal to the difference between
•
the total amount of support per sector resulting from the calculation method described above under either option 1 or 2 and
•
the total amount of direct support available for Poland for the same sectors in the year concerned under the simplified scheme.
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3. Poland should have the right to decide, on the basis of objective criteria and subject to authorisation by the Commission, on the amounts of complementary national aid to be
granted. The authorisations by the Commission should:
• if based on 2003 level, specify the relevant national CAP like direct payment schemes
•
define the level up to which the complementary national aids can be paid, the rate of the complementary national aids and, where appropriate, the conditions for
the granting thereof,
•
be granted subject to any adjustments which may be rendered necessary by developments in the common agricultural policy.
Both under the EU standard scheme and the simplified scheme there should be no complementary national payments and aids for agricultural activities covered by a
common market organisation but not directly supported under the CAP (annex to Regulation (EC) No 1259/1999).
A national direct payment scheme applicable prior to accession should be considered as a CAP like scheme if the national direct support available was granted to farmers in
respect of a production covered by one of the EU direct payment schemes listed in the annex to Regulation (EC) No 1259/1999.
.
1. During the years 2004-2006 the complementary national aid up to 40% of the EU level can be financed by the national rural development allocation under EAGGF guarantee,
thus from heading 1b. However, the amount available for this purpose shall not exceed 20% of the commitment appropriations available in each of the years 2004, 2005 and
2006 or 25% in 2004, 20% in 2005 and 15% in 2006. Furthermore, the relevant maximum EU co-financing rates shall apply (80% in objective 1 regions). The national co-
financing arrangements will be part of the normal rural development programming process. The financing from rural development under EAGGF guarantee shall function
according to the normal rules.
4. The arrangement set out under paragraph 4 above is a temporary and sui generis solution and does not constitute a precedent.
From 2007 all national complementary direct payments will be financed from the national budget.
2. Minimum requirements for the recognition of producers organisations in Poland
Given the value of the fruit and vegetables production in Poland, Poland shall be classified in the same group (called "group 1") as Belgium, France, Spain (except Balearics and
Canary islands), Greece (except some areas), Italy, the Netherlands, Austria and UK (except Northern Ireland).
This proposal will be put forward in the Managing Committee.
However, due to the foreseeable difficulties in creating producer organisations in Poland, Poland shall be granted a 3-year period after accession, during which the minimum
requirements for preliminary recognition of producer organisations, as defined in Regulation (EC) 478/97, be set at 5 producers and € 100,000 for the rest of the Polish territory.
The time-limit for the preliminary recognition will remain 5 years.
This temporary derogation will be implemented by the Commission under the appropriate procedure.
At the end of the 3 year-transition period, the specific requirements applying for pre recognition as laid down in article 3 of Regulation (EC) No 478/97, that is to say, half the
number of the minimum requirements set for the recognition of producer organisations laid down in annexes I and II of Regulation (EC) No 412/97- will apply.
In case the producer organisation, at the end of the 3-year period, does not reach the minimum requirements set in Regulation (EC) 478/97 - the preliminary recognition is
withdrawn.
3. Polish wine
In accordance with Annex VII, C2 of Regulation (EC) 1493/1999 the name "Polish wine" is admitted for fermented products falling under CN code 2206 and made from grape
must or grape concentrated must. Such products labelled as "Polish wine" will be marketed in Poland only.
4. Protection of the name "Polish Cherry"
According to Poland’s new spirit law, and in particular provisions on property law, the name "Wisniowka" or the spirit drink named "Wisniowka/Polish Cherry" cannot be
added to Annex II of Regulation (EEC) No 1576/89.
The name Sherry is reserved and protected for a quality liqueur wine psr in Spain in accordance with Regulation (EC) No 1493/1999 and Regulation (EC) No 1607/2000.
Unlike Sherry, "Polish Cherry" is a liqueur made from cherries. Because there does not appear to be any danger of confusion possible between the two products, the request to
protect the name "Polish Cherry" is acceptable. The name "Polish Cherry" shall be added to Annex II, point 14 of Regulation (EEC) No 1576/89 provided that "Polish Cherry"
fully meets the specifications laid down in Article 1(4)(r) for liqueurs. In addition, in accordance with Directive 2000/13/EC on the labelling of foodstuffs, it is underlined that
the labelling of the spirit drink "Polish Cherry'' must not mislead the purchaser as to its characteristics.
5. Vodka made of raw juice of bison grass
A protection of the geographical designation "Herbal vodka from the North Podlasie Lowland aromatised with an extract of bison grass" under Annex II, point 16 of Regulation
(EEC) No 1576/89 can be accepted, provided that this geographical designation is protected under Poland’s national legislation and that this spirit drink complies with the
requirements laid down in article 1 paragraph 4 (q) of Regulation (EEC) No 1576/89.
Such product will have to be labelled as "Herbal vodka from the North Podlasie Lowland aromatised with an extract of bison grass".
6. Milk quota
The milk quota should be set in accordance with the following:
quota – 2004: 8.964.020 tonnes
deliveries: 7.025.964 tonnes
direct sales: 1.938.056 tonnes
reserve 2006: 416.126 tonnes
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A special reserve should be established for Poland. This reserve would be released as from the beginning of the quota year 2006/07 (1.4.2006) to the extent that the on-farm
consumption of milk and milk products in Poland has decreased since 2000.
The decision on releasing the reserve and of its distribution to the deliveries and direct sales quota will be taken by the Commission under the management committee procedure
on the basis of an assessment of a report to be submitted by Poland to the Commission by the 31.12.2005. This report should detail the results and trends of the actual
restructuring process in the country’s dairy sector and, in particular the shift from production for on-farm consumption to production for the market.
The following representative fat contents (Article 11 in Regulation (EEC) No 3950/92) and date for establishing the individual reference quantity (Article 4(1) in Regulation
(EEC) 3950/92 should apply:
Representative fat content:
3.9%
Individual reference quantity:
31.03.2005
7. Eligibility criteria for suckler cows
For the years 2004 to 2006, Poland may, by way of derogation from Article 3 (f) of Regulation (EC) No 1254/1999, consider cows of the breeds listed in Annex I to Regulation (EC)
No 2342/1999, as eligible for the suckler cow premium as provided for in Subsection 3 of Regulation (EC) No 1254/1999, provided that they have been covered or inseminated by
bulls of a meat breed.
BUDGETARY ESTIMATES
POLAND
1999 prices, € millions
2003
pre-accession aid
2004
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
cash flow lump-sum
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2004 after budgetary compensation
2005
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2005 after budgetary compensation
2006
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2006 after budgetary compensation
-
2.713
509
1.924
2.313
359
104
5.209
-213
-317
-1.727
-238
-2.495
2.713
-
2.240
823
1.505
1.970
266
105
4.669
-213
-306
-1.682
-228
-2.429
2.240
-
1.475
970
421
969
154
95
443
3.051
-123
-194
-1.111
-148
-1.576
1.475
844
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and
payment
appropriations -Accession 1 May 2004; Negotiation Package 10 December.
in € millions, 1999
prices
POLAND
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Appropriations for Commitments
2004
2005
2006
2004-2006
1. Agriculture.
1a - Common Agricultural Policy
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash-flow lump sum
Budgetary Compensation
Total Appropriations for Commitments
Appropriations for Payments
103,7
57,4
590,0
4.855,6
442,8
0,0
5.298,3
62,2
57,4
566,1
6.261,3
0,0
0,0
6.261,3
31,1
57,4
552,6
7.574,9
0,0
0,0
7.574,9
197,0
172,2
1.708,7
18.691,7
442,8
0,0
19.134,5
428,9
446,5
464,1
1.339,5
3.354,2
3.941,7
5.072,7
12.368,6
2.076,6
1.277,6
2.889,8
1.051,9
3.668,9
1.403,8
8.635,3
3.733,3
130,2
0,0
130,2
781,2
911,4
342,8
557,1
899,8
853,6
1.753,4
366,5
674,9
1.041,4
908,2
1.949,6
839,5
1.232,0
2.071,4
2.543,0
4.614,4
1. Agriculture.
1a - Politique agricole commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash flow lump sum
Budgetary Compensation
Total Appropriations for Payments
37,3
57,4
249,1
1.638,4
442,8
0,0
2.081,2
47,8
57,4
371,1
3.846,4
0,0
0,0
3.846,4
46,4
57,4
462,8
4.699,8
0,0
0,0
4.699,8
131,5
172,2
1.083,0
10.184,6
442,8
0,0
10.627,4
154,4
265,9
359,0
779,2
968,6
1.970,4
2.313,4
5.252,4
943,1
25,6
1.675,8
294,6
1.784,6
528,8
4.403,5
849,0
130,2
0,0
130,2
290,5
420,7
342,8
557,1
899,8
605,1
1.504,9
366,5
674,9
1.041,4
882,2
1.923,6
839,5
1.232,0
2.071,4
1.777,8
3.849,2
ESTONIA
AGRICULTURE (only issues where EU offers go beyond EUCP)
Issue
Direct Payments
Top-ups
Presidency proposal
Phasing-in schedule maintained.
In 2004-2006, EE has the possibility to top up EU direct payments to:
• either 45% in the years 2004, 50% in 2005 and 55% in 2006. From
2007, Estonia may top up EU direct payments by 20 percentage
points above the applicable phasing in level in the relevant year;
• or to the total level of direct support the farmer would have been
entitled to receive, on a product by product basis , in Estonia prior to
accession (2003) under a like national scheme increased by 10
percentage points;
but in no case higher than 100% of EU-15 level of direct payments.
In 2004-2006, the topping up to 40% of the EU level can be financed partly
from EAGGF guarantee rural development allocation under the following
conditions:
• a maximum 20% of the commitment appropriations available in this
envelope for each year 2004, 2005 and 2006 or 25% in 2004, 20% in
2005 and 15% in 2006 can be used for topping up. Any further
topping up can only be financed from national budgets.
• Application of relevant maximum EU co-financing rate (80% in
objective 1 regions).
See appendix.
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Reference yield
Base area
Milk Quota
2.4 t/ha
362,827 ha
Basic quota: 624,483 t;
2006 restructuring reserve: 21,885 t;
Total quota: 646,368 t
see annex
National
Premium
Suckler
premium
Dairy
Cow
EE has the possibility to grant national dairy premium in 2004, on the condition that it is not higher than the pre-accession level.
13,416 heads
3 year TP on eligibility of suckler cows - see annex
Slaughter premium
Ewe premium
Rural development
107,813 adults and 30,000 calves
48,000 heads
Under Article 31 of Regulation 1257/1999 a transitional measure for 2004-2006 for afforestation on former arable land without granting compensation for
income foregone
see annex
BUDGETARY ISSUES
Issue
Advance payments
Real payments
Presidency proposal
Split of 16% into 10% for 2004 and 6% for 2005 as regards structural funds.
Reduction from:
- 3% to 2% for 2004 as regards structural and cohesion funds;
- 35% to 23.3% for 2004 as regards rural development.
Transfer
from
cohesion fund to
structural funds
Schengen facility
Pre-accession aid
Special
cash-flow
facility of € 1 bn
OTHERS
Issue
Purchase of Land
Dioxin levels in fish
Baltic Herring
Lynx and bears
Marketing rights for
chemicals produced
from oil shale
Steel imports
Presidency proposal
Up to 7 year TP plus 3 year safeguard clause, managed by COM and based on serious disturbances in land market. See annex.
TP until end 2006 conditional upon proof by EE that human health not endangered by fish consumption. In addition, no export to other Member States
of this fish shall be permitted and appropriate labelling will be ensured. - see annex
Through technical adaptations in the Accession Treaty, it will be provided for that EE can maintain its traditional fishing of small size Baltic Herring for
human consumption, caught in traditional waters.
5 year TP for lynx. See annex.
The Commission will provide special Phare assistance before accession for testing needed for base set level notification of 14 specified oil shale chemicals.
This information must be made available prior to accession, otherwise the products will have to be withdrawn from the market. The testing according to
Annex VIII level 1 or Annex VIII level 2 of directive 67/548/EEC can be completed following accession.
The quota of Russian imports will take into account traditional trade flows. - see annex
Transfer of €31m from cohesion fund to structural funds
€69m.
€ 55m
Lump sum of €16m in 2004.
ESTONIA – DIOXINS
A. Proposed Treaty text
"Regulation (EC) No 466/2001 is amended as follows:
In Article 1 the following new paragraph 1b shall be inserted:
"1b. By way of derogation from paragraph 1, the Commission may authorise Estonia for a transitional period, up to 31 December 2006, to place on the market fish, originating from
the Baltic region, which is intended for consumption in their territory with dioxin levels higher than those set in point 5.2. of section 5 of Annex 1. This derogation will be granted in
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accordance with the procedure laid down in Article 8 of Council Regulation (EEC) No 315/93. To this end, Estonia shall demonstrate that the conditions applicable to Finland and
Sweden laid down in paragraph 1a are fulfilled and that human exposure to dioxins in Estonia is not higher than the highest average level in one of the present Member States.
If such a derogation is granted to Estonia, any future application of it will be considered in the framework of the review of section 5 of Annex 1, provided for in Article 5(3)."
•
Estonia has agreed to provide the following information/commitments to the Accession Conference:
- a commitment to take the necessary measures to ensure that non-complying products are not marketed to other EU Member States, and a commitment to provide the
Commission with details of these measures before accession;
• clarification of whether or not they intend to export such fishery products to third countries in the period up to 31 December 2004 (and that, if so, they do so only after the
explicit agreement of the competent authority of the third country);
- a commitment to provide the Commission with details of the planned monitoring before accession.
Declaration of Estonia to the Conference:
"As regards third countries, Estonia will comply fully with the requirements of Regulation (EC) No 178/2002 of the European Parliament and of the
Council of 28 January 2002, laying down the general principles and requirements of food law, establishing the European Food Safety Authority and
laying down procedures in matters of food safety."
CHAPTER 22 – ENVIRONMENT
Estonia – hunting bears and lynx
Habitats Directive
"The EU cannot accept the Estonian request of being exempted from the strict protection of brown bears (Ursus Arctos) under Annex IV of Directive 92/43/EEC on the
conservation of natural habitats and of wild fauna and flora (Habitats Directive).
The EU notes that under Article 16(1) of the said Directive, Estonia can allow hunting brown bears under specified circumstances and subject to the procedures laid down therein. (A
declaration to this effect will be attached to the act of accession.)
Regarding the Estonian request of exempting lynx (lynx lynx) from Annex IV, and consequently including lynx in Annex V to the Habitats Directive, Estonia has provided the EU
with scientific data on the connection between the population of lynx and the population of roe deer demonstrating a possible connection between the sizes of each population.
Bearing in mind this information and recognizing the importance of natural balance between these two populations, considering also already existing derogations contained in Annex
IV to the directive regarding hunting of other species in certain member states, the EU can accept to include a derogation for Estonia on hunting of Lynx lynx in Annex IV and
consequently in Annex V to the directive.
Five years after Estonia’s accession the Commission will provide the Council with a report on the further application of the derogation taking especially into account the sustainability
of the population of lynx and its effects of sustainability on other wild species. The Council will on this basis review the derogation and may decide to terminate the further application
of the derogation acting by qualified majority on a proposal from the Commission."
Joint declaration to be attached to the Act of Accession:
"As regards brown bears, Estonia will comply fully with the requirements of the Directive 92/43/EEC on the conservation of natural habitats and of wild fauna and flora (Habitats
Directive). By the latest upon accession, Estonia will establish a system of strict protection that complies with Article 12 of the said Directive.
While general hunting of brown bears could not be allowed, the Conference notes that under Article 16 (1) of the Habitats Directive, Estonia can allow hunting brown bears under
specified circumstances and subject to the procedures laid down in Article 16 (2) and (3)."
ESTONIA - STEEL
Text for inclusion in the Accession Treaty, as agreed with Estonia
"The quantitative restrictions applied by the Community on imports of steel and steel products shall be adjusted on the basis of imports of new Member States over recent years
of steel products originating in the supplier countries concerned.
To that effect, the necessary amendments to the bilateral steel agreements and arrangements concluded by the Community with third countries shall be negotiated prior to the date of
accession.
Should the amendments to the bilateral agreements and arrangements not have entered into force by the date of accession, the provisions of the first subparagraph shall apply."
Proposed text to be added to the EUCP – Chapter 4
of Estonia (CONF-EE 22/00).
"The EU stresses that the completion of the internal market is a key element of the
acquis
and that full alignment with the
acquis
in this field by the earliest possible date is therefore
highly desirable. However, in view of the information provided by Estonia , the EU can accept a transitional period of seven years during which Estonia may continue to apply its
national legislation with regard to the acquisition of agricultural land and forests by EU nationals and EU legal persons.
The EU notes that companies established or registered in Estonia , even when partly or fully owned by EU shareholders, and local branches or agencies in Estonia of EU companies,
shall not be covered by the transitional period. In no instance may EU citizens, in respect of acquisition of agricultural land and forests, receive a less favourable treatment than at the
time of signature of the Accession Treaty nor be treated in a more restrictive way than a national from a third country.
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A general review of the transitional period shall be held in the third year of the transitional period. To that aim, the Commission shall report in due time to the Council. The Council
may, acting unanimously on a proposal from the Commission, decide to shorten or lift the transitional period.
EU nationals who wish to establish themselves as self-employed farmers and reside in Estonia , and who have been legally resident and active in farming in Estonia for at least three
years continuously, shall be excluded from the scope of the transitional period and shall not be subject to any procedures other than those applied to nationals of Estonia . The EU
notes that constitutional or legal provisions presently preventing EU nationals from acquiring real estate in Estonia will be abolished by the date of accession at the latest.
If there is sufficient evidence that, upon expiry of the transitional period, there will be serious disturbances or a threat of serious disturbances on the agricultural land market of
Estonia , the Commission, at the request of Estonia , shall decide upon the extension of the transitional period for up to a maximum of three years."
Final package – appendix: Agriculture – Estonia
1. Complementary national direct payments
1. Estonia should be given the possibility, subject to authorisation by the Commission, to complement direct aid paid to a farmer under any CAP scheme listed in the
annex to Regulation (EC) No 1259/1999 up to:
either
• 45% of EU level in the years 2004, 50% in 2005 and 55% in 2006. From 2007 Estonia may top-up EU direct payments by 20 percentage points above the applicable
phasing-in level in the relevant year.
or
• to the total level of direct support the farmer would have been entitled to receive, on a product by product basis, in Estonia prior to accession (2003) under a like national
scheme increased by 10 percentage points.
However, the total direct support the farmer could be granted after accession in Estonia under the relevant EU scheme including all complementary national direct
payments should in no case exceed the level of direct support he would be entitled to receive under that scheme in the existing EU.
2. The option to grant national aid complements should also be available if Estonia chose to apply the simplified scheme.
The total amount per sector of complementary national aids that could be granted in a given year after accession when applying the simplified scheme, should be limited by a
specific financial envelope per sector. This specific financial envelope would be equal to the difference between
•
the total amount of support per sector resulting from the calculation method described above under either option 1 or 2 and
•
the total amount of direct support available for Estonia for the same sectors in the year concerned under the simplified scheme.
3. Estonia should have the right to decide, on the basis of objective criteria and subject to authorisation by the Commission, on the amounts of complementary national aid to
be granted. The authorisations by the Commission should:
• if based on 2003 level, specify the relevant national CAP like direct payment schemes
•
define the level up to which the complementary national aids can be paid, the rate of the complementary national aids and, where appropriate, the conditions for the
granting thereof,
•
be granted subject to any adjustments which may be rendered necessary by developments in the common agricultural policy.
Both under the EU standard scheme and the simplified scheme there should be no complementary national payments and aids for agricultural activities covered by a
common market organisation but not directly supported under the CAP (annex to Regulation (EC) No 1259/1999).
A national direct payment scheme applicable prior to accession should be considered as a CAP like scheme if the national direct support available was granted to farmers in
respect of a production covered by one of the EU direct payment schemes listed in the annex to Regulation (EC) No 1259/1999.
1. During the years 2004-2006 the complementary national aid up to 40% of the EU level can be financed by the national rural development allocation under EAGGF guarantee,
thus from heading 1b. However, the amount available for this purpose shall not exceed 20% of the commitment appropriations available in each of the years 2004, 2005 and
2006 or 25% in 2004, 20% in 2005 and 15% in 2006. Furthermore, the relevant maximum EU co-financing rates shall apply (80% in objective 1 regions). The national co-
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financing arrangements will be part of the normal rural development programming process. The financing from rural development under EAGGF guarantee shall function
according to the normal rules.
4. The arrangement set out under paragraph 4 above is a temporary and sui generis solution and does not constitute a precedent.
From 2007 all national complementary direct payments will be financed from the national budget.
2. State aid to milk producers
During the quota year 2004/2005, Estonia may continue to provide national payments for milking cows up to the level provided the year before accession.
Estonia must submit a report to the Commission on the implementation of the State aid measures indicating the aid forms and amounts.
3. Milk quota
The milk quota should be set in accordance with the following:
quota – 2004: 624.483 tonnes
deliveries: 537.118 tonnes
direct sales: 87.365 tonnes
reserve 2006: 21.885 tonnes
A special reserve should be established for Estonia. This reserve would be released as from the beginning of the quota year 2006/07 (1.4.2006) to the extent that the on-farm
consumption of milk and milk products in Estonia has decreased since 1998
The decision on releasing the reserve and of its distribution to the deliveries and direct sales quota will be taken by the Commission under the management committee procedure
on the basis of an assessment of a report to be submitted by Estonia to the Commission by the 31.12.2005. This report should detail the results and trends of the actual
restructuring process in the country’s dairy sector and, in particular the shift from production for on-farm consumption to production for the market.
The following representative fat contents (Article 11 in Regulation (EEC) No 3950/92) and date for establishing the individual reference quantity (Article 4(1) in Regulation
(EEC) 3950/92 should apply:
Representative fat content:
4.31% (confirmation needed)
Individual reference quantity:
31.03.2002
4. Eligibility criteria for suckler cows
For the years 2004 to 2006, Estonia may, by way of derogation from Article 3 (f) of Regulation (EC) No 1254/1999, consider cows of the breeds listed in Annex I to Regulation (EC)
No 2342/1999, as eligible for the suckler cow premium as provided for in Subsection 3 of Regulation (EC) No 1254/1999, provided that they have been covered or inseminated by
bulls of a meat breed.
5. Rural development
Support for afforestation under article 31 of Regulation (EC) No 1257/99 cannot normally be granted for abandoned land. However, Estonia shall be given the possibility to do so
during a transitional period corresponding to the 2004-2006 programming period, as long as the land in question has been used within the previous 5 years. The support granted may
include planting costs and maintenance costs, but not the payments to cover loss of income.
BUDGETARY ESTIMATES
ESTONIA
1999 prices, € millions
2003
pre-accession aid
2004
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
cash flow lump-sum
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2004 after budgetary compensation
2005
pre-accession aid
57
-
125
67
29
39
5
25
16
181
-8
-6
-37
-5
-56
125
55
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1461064_0019.png
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2005 after budgetary compensation
2006
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2006 after budgetary compensation
-
82
88
9
26
263
-12
-10
-56
-8
-86
177
-
177
35
102
110
12
26
286
-12
-11
-57
-8
-88
198
198
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and
payment
appropriations -Accession 1 May 2004; Negotiation Package 10 December.
in € millions, 1999
prices
ESTONIA
Appropriations for Commitments
2004
2005
2006
2004-2006
1. Agriculture.
1a - Common Agricultural Policy
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash-flow lump sum
Budgetary Compensation
Total Appropriations for Commitments
Appropriations for Payments
7,2
22,9
44,5
279,4
15,8
0,0
295,2
4,3
22,9
42,2
328,1
0,0
0,0
328,1
2,1
22,9
40,6
391,4
0,0
0,0
391,4
13,6
68,7
127,3
998,9
15,8
0,0
1.014,7
14,4
15,0
15,6
44,9
180,3
190,4
247,0
617,7
85,8
94,5
112,6
77,8
143,2
103,8
341,6
276,1
13,6
0,0
13,6
41,0
54,6
33,4
17,3
50,7
44,8
95,5
34,4
21,7
56,1
47,7
103,8
81,4
39,0
120,3
133,6
253,9
1. Agriculture.
1a - Politique agricole commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash flow lump sum
Budgetary Compensation
2,6
22,9
30,7
98,7
15,8
0,0
3,3
22,9
35,1
205,7
0,0
0,0
3,2
22,9
38,2
250,2
0,0
0,0
9,1
68,7
104,0
554,6
15,8
0,0
5,2
8,9
12,0
26,1
39,2
88,1
109,7
236,9
37,3
1,9
66,3
21,8
70,6
39,1
174,1
62,8
13,6
0,0
13,6
15,3
28,8
33,4
17,3
50,7
31,8
82,5
34,4
21,7
56,1
46,3
102,4
81,4
39,0
120,3
93,4
213,7
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1461064_0020.png
Total Appropriations for Payments
114,5
205,7
250,2
570,4
CZECH REPUBLIC
AGRICULTURE (only issues where EU offers go beyond EUCP)
Issue
Direct
Payments
Top-ups
Presidency proposal
Phasing-in schedule maintained.
In 2004-2006, CZ has the possibility to top up EU direct payments to:
• Either 45% of EU level in the years 2004, 50% in 2005 and 55% in 2006.
From 2007 the Czech Republic may top-up EU direct payments by 20
percentage points above the applicable phasing-in level in the relevant year.
However, in the arable crops sector the Czech Republic may in the years 2004-
2006 top up to 50% of the EU level and in the potato starch sector the Czech
Republic may throughout the entire period of phasing in of direct payments
top up to 100% of the EU level;
• or to the total level of direct support the farmer would have been entitled to
receive, on a product by product basis, in the Czech Republic prior to
accession (2003) under a like national scheme increased by 10 percentage
points;
but in no case higher than 100% of EU-15 level of direct payments.
In 2004-2006 the topping-up up to 40% of the EU level can be financed partly
from EAGGF guarantee rural development allocation under the following
conditions:
• a maximum 20% of the commitment appropriations available in this
envelope for each year 2004, 2005 and 2006 or 25% in 2004, 20% in 2005
and 15% in 2006 can be used for topping-up. Any further topping-up can
only be financed from national budgets.
• application of relevant maximum EU co-financing rate (80% in objective 1
regions)
Potato starch
Reference yield
Milk Quota
33,660 t
4.20 t/ha
Basic quota: 2,682,143 t
2006 restructuring reserve: 55,788 t,
total quota: 2,737,931 t.
See appendix.
Suckler
Cow
premium
Special
premium
Slaughter
premium
Fibres
Dried fodder
Fruit
Vegetable
thresholds
&
beef
90,300.
244,349 heads
483,382 adults and 27,380 calves.
1923 t long and 2866 t short.
27,942 t
12,000 t for tomatoes
1287 t for peaches
11 t for pears
Sheep premium
Additional
payments
sheep
Wine
zone
for
Bohemia in A, Moravia in B
New planting rights amounting to 2% of the vineyard existing by accession
Replanting rights within time span provided for in the acquis. See appendix.
Quality
66,733
71,000 euro
growing
Wine planting
rights
Budejovicke pivo and Ceskobudejovicke pivo are recognised as
geographical indications. This is however without prejudice to
existing trade mark or other rights in the enlarged EU.
€100m as additional funds 2004-2006
Rural
development
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BUDGETARY ISSUES
Issue
Advance
payments
Real payments
Presidency proposal
Split of 16% into 10% for 2004 and 6% for 2005 as regards structural funds
offered.
Reduction from:
- 3% to 2% for 2004 as regards structural and cohesion funds;
- 35% to 23.3% for 2004 as regards rural development.
Schengen
facility
Pre-accession
aid
Special
cash
flow facility of €
1 billion
Lump
sum
budgetary
compensation
OTHERS
Issue
Purchase
Land
Transport
Institutions
Taxation
of
Presidency proposal
3 year safeguard clause (on top of 7 year TP) managed by COM and based on
serious disturbances in land market. See appendix.
EU position is maintained
2 additional MEPs (this means that in the next EP, CZ will have 3 additional
MEPs). See appendix.
Reduced excise on 50 l. alcohol per household. See appendix.
No Schengen funds will be made available for CZ.
€170
Lump sum of €175m in 2004
€204m in 2004 – 2006 in lump sum budgetary compensation, an additional €30m
instead of Schengen facility, and an additional €155m as a further lump-sum.
CHAPTER 4: FREE MOVEMENT OF CAPITAL
Proposed text to be added to the EUCP – Chapter 4
If there is sufficient evidence that, upon expiry of the transitional period, there will be serious disturbances or a threat of serious disturbances on the agricultural land market of
the Czech Republic, the Commission, at the request of the Czech Republic, shall decide upon the extension of the transitional period for up to a maximum of three years.
CHAPTER 10: TAXATION
Proposed text to be added to the EUCPs for the relevant countries
Chapter 10-Taxation
Czech Republic
• The Czech Republic may apply a reduced rate of excise duty, of not less than 50% of the standard national rate of excise duty on ethyl alcohol, to ethyl alcohol produced
by fruit growers' distilleries producing, on an annual basis, more than 10 hectolitres of ethyl alcohol from fruit supplied to them by fruit growers' households. The
application of the reduced rate shall be limited to 50 litres of fruit spirits per producing fruit growers' household per year, destined exclusively for their personal
consumption. The Commission will review this arrangement in 2015 and report to the Council on possible modifications.
Final package – appendix: Agriculture – Czech Republic
1. Complementary national direct payments
1. The Czech Republic should be given the possibility, subject to authorisation by the Commission, to complement direct aid paid to a farmer under any CAP scheme
listed in the annex to Regulation (EC) No 1259/1999 up to:
either
• option 1: 45% of EU level in the years 2004, 50% in 2005 and 55% in 2006. From 2007 the Czech Republic may top-up EU direct payments by 20 percentage points
above the applicable phasing-in level in the relevant year. However, in the arable crops sector the Czech Republic may in the years 2004-2006 top up to 50% of the EU
level and in the potato starch sector the Czech Republic may throughout the entire period of phasing in of direct payments top up to 100% of the EU level.
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or
• option 2: to the total level of direct support the farmer would have been entitled to receive, on a product by product basis, in the Czech Republic prior to accession (2003)
under a like national scheme increased by 10 percentage points.
However, the total direct support the farmer could be granted after accession in the Czech Republic under the relevant EU scheme including all complementary national
direct payments should in no case exceed the level of direct support he would be entitled to receive under that scheme in the existing EU.
2. The option to grant national aid complements should also be available if the Czech Republic chose to apply the simplified scheme.
The total amount per sector of complementary national aids that could be granted in a given year after accession when applying the simplified scheme, should be limited by a
specific financial envelope. This specific financial envelope would be equal to the difference between
•
the total amount of support per sector resulting from the calculation method described above under either option 1 or 2 and
•
the total amount of direct support that would be available for the same sectors in the year concerned under the simplified scheme.
3. The Czech Republic should have the right to decide, on the basis of objective criteria and subject to authorisation by the Commission, on the amounts of complementary
national aid to be granted. The authorisations by the Commission should:
• in case of option 2: specify the relevant national CAP like direct payment schemes
•
define the level up to which the complementary national aids can be paid, the rate of the complementary national aids and, where appropriate, the conditions for the
granting thereof,
•
be granted subject to any adjustments which may be rendered necessary by developments in the common agricultural policy.
Both under the EU standard scheme and the simplified scheme there should be no complementary national payments and aids for agricultural activities covered by a
common market organisation not directly supported under the CAP (annex to Regulation (EC) No 1259/1999).
A national direct payment scheme applicable prior to accession should be considered as a CAP like scheme if the national direct support available was granted to farmers in
respect of a production covered by one of the EU direct payment schemes listed in the annex to Regulation (EC) No 1259/1999.
.
1. During the years 2004-2006 the complementary national aid up to 40% of the EU level can be financed by the national rural development allocation under EAGGF guarantee,
thus from heading 1b. However, the amount available for this purpose shall not exceed 20% of the commitment appropriations available in this envelope for each year 2004,
2005 and 2006 or 25% in 2004, 20% in 2005 and 15% in 2006. Furthermore, the relevant maximum EU co-financing rates shall apply (80% in objective 1 regions). The national
co-financing arrangements will be part of the normal rural development programming process. The financing from rural development under EAGGF guarantee shall function
according to the normal rules.
4. The arrangement set out under paragraph 4 above is a temporary and sui generis solution and does not constitute a precedent.
From 2007 all national complementary direct payments will be financed from the national budget.
2. Wine planting rights
The Czech Republic is granted new planting rights for the production of quality wines psr. amounting to 2 % of the total vineyard existing at the date of accession. These rights
will be allocated to a national reserve to which will apply the provisions laid down under article 5 of Regulation (EC) No 1493/1999.
With regard to replanting rights owned by individual producers, it is underlined that such replanting rights must be similar to the replanting rights granted under paragraph 2 of
article 4 of Regulation (EC) No 1493/1999 and acquired under the Czech legislation before accession. These rights must be used within the period laid down under article 4
paragraph 5 of Regulation (EC) No 1493/1999.
3. Milk quotas
The milk quota should be set in accordance with the following:
quota – 2004: 2.682.143 tonnes
deliveries: 2.613.239 tonnes
direct sales: 68.904 tonnes
reserve 2006: 55.787 tonnes
A special reserve should be established for the Czech Republic. This reserve would be released as from the beginning of the quota year 2006/07 (1.4.2006) to the extent that the
on-farm consumption of milk and milk products in the Czech Republic has decreased since 2000.
The decision on releasing the reserve and of its distribution to the deliveries and direct sales quota will be taken by the Commission under the management committee procedure
on the basis of an assessment of a report to be submitted by the Czech Republic to the Commission by the 31.12.2005. This report should detail the results and trends of the
actual restructuring process in the country’s dairy sector and, in particular the shift from production for on-farm consumption to production for the market.
The following representative fat contents (Article 11 in Regulation (EEC) No 3950/92) and date for establishing the individual reference quantity (Article 4(1) in Regulation
(EEC) 3950/92 should apply:
Representative fat content:
4.21%
Individual reference quantity:
31.03.2004
• Geographical indications
Budejovicke pivo and Ceskobudejovicke pivo are recognised as geographical indications. This is however without prejudice to existing trade mark or other rights in the enlarged EU.
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• Wine growing zones
The Czech Republic accepts that Bohemia is placed in A and Moravia in B.
The Czech Republic shall be allowed to replace the obligation for persons having made wine to deliver for distillation all the by-products of that wine-making by the obligation to
withdraw these by-products, under the provisions laid down under Article 27, paragraph 7 of Regulation (EC) No 1493/1999. This withdrawal must be made under supervision and is
subject to further conditions as laid down under Article 50, paragraph 2 of Regulation (EC) No 1623/2000. It is underlined that for the application of this system of withdrawal of
wine by-products the production and market structures in the Czech wine growing zones must be able to ensure that the aim of the obligatory distillation measure are achieved.
BUDGETARY ESTIMATES
CZECH REP.
1999 prices, € millions
2003
pre-accession aid
2004
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
cash flow lump-sum
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2004 after budgetary compensation
2005
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2005 after budgetary compensation
2006
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2006 after budgetary compensation
98
483
447
102
9
1.138
-105
-121
-661
-91
-978
160
85
245
153
392
375
76
9
1.005
-105
-117
-644
-87
-953
52
178
230
181
100
179
44
7
175
687
-66
-74
-425
-56
-622
65
125
190
170
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and
payment
appropriations -Accession 1 May 2004; Negotiation Package 10 December.
in € millions, 1999
prices
CZECH REPUBLIC
Appropriations for Commitments
2004
2005
2006
2004-2006
1. Agriculture.
1a - Common Agricultural Policy
Market measures
Direct payments
Total 1a
45,0
0,0
45,0
109,0
168,9
277,9
111,0
204,5
315,5
265,1
373,4
638,4
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1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash-flow lump sum
Budgetary Compensation
Total Appropriations for Commitments
Appropriations for Payments
147,9
193,0
161,6
439,6
172,0
487,5
481,5
1.120,0
396,3
286,2
531,5
235,6
663,4
314,5
1.591,2
836,3
682,5
767,1
977,9
2.427,5
122,2
127,2
132,2
381,7
19,6
0,0
141,8
1.017,3
174,7
125,4
1.317,4
11,8
0,0
139,0
1.345,6
0,0
178,0
1.523,6
5,9
0,0
138,1
1.603,5
0,0
85,1
1.688,6
37,2
0,0
418,9
3.966,4
174,7
388,5
4.529,6
1. Agriculture.
1a - Politique agricole commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash flow lump sum
Budgetary Compensation
Total Appropriations for Payments
7,1
0,0
51,0
330,5
174,7
125,4
630,7
9,0
0,0
84,8
852,0
0,0
178,0
1.029,9
8,8
0,0
111,0
1.040,8
0,0
85,1
1.125,9
24,9
0,0
246,9
2.223,3
174,7
388,5
2.786,5
44,0
75,8
102,3
222,0
179,4
374,7
447,2
1.001,3
173,7
5,7
308,7
66,0
328,7
118,5
811,1
190,2
45,0
0,0
45,0
55,0
100,1
109,0
168,9
277,9
114,6
392,5
111,0
204,5
315,5
167,1
482,5
265,1
373,4
638,4
336,6
975,1
SLOVENIA
AGRICULTURE (only issues where EU offers go beyond EUCP)
Issue
Direct Payments
Top-ups
Presidency proposal
Phasing-in schedule maintained.
SI has the possibility to top up to the total level of direct
support the farmer would have been entitled to receive, on a
product by product basis, in Slovenia prior to accession (2003)
under a CAP like national scheme increased by: 10 percentage
points in 2004, 15 percentage points in 2005, 20 percentage
points in 2006 and 25 percentage points from 2007.
In 2004-2006, 40% of the top-ups of the level in the EU-15 level can be
financed partly from rural development under the following conditions:
• maximum 20% of the commitment appropriations available in this
envelope for each year 2004, 2005 and 2006 or 25% in 2004, 20% in
2005 and 15% in 2006 can be used for topping-up. Any further
topping-up can only be financed from national budgets.
• this must be nationally co-financed at the rate of at least 20%.
See appendix.
Milk Quota
Basic quota: 560,424 t
2006 reserve: 16,214 t
Total quota: 576,638 t
See appendix.
Wine enrichment
Suckler cows
Slaughter premium
Enrichment of wine with sucrose
86,384 heads.
adults: 161,137;
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calves: 35,852
Additional
payments – beef
Phytosanitary issues
–
quality
requirements
for
seed
Wine growing areas
State aid
Rural development
€2,964,780.
Transition period of five years. See appendix.
See appendix on classification.
Continuation of state aids for the production of oil pumpkins agreed for a
period of up to 5 years on a degressive basis. See appendix.
€150m as additional funds 2004-2006
BUDGETARY ISSUES
Issue
Advance payments
Real payments
Results of Final Negotiations
Split of 16% possible into 10% for 2004 and 6% for 2005 as regards
structural funds.
Reduction from:
- 3% to 2% for 2004 as regards structural and cohesion funds;
- 35% to 23.3% for 2004 as regards rural development.
Schengen facility
Trans
European
Networks
Pre-accession aid
Special cash flow
facility of € 1 bill
Lump
sum
budgetary
compensation
OTHERS
Issue
Purchase of Land
Results of Final Negotiations
Safeguard of 7 years. See appendix.
€107m
Declaration to the Accession Treaty on the importance of transport
infrastructure in Slovenia for the development of a transeuropean transport
network
€45m
Lump sum €52 million in 2004
€68m in 2004-2006 plus an additional €65m
Slovenia
Elements for a declaration on Trans European Networks
The Union recalls the importance of transport infrastructure in Slovenia for the development of a transeuropean transport network and will take due account of this fact when
identifying projects of common interest according to art. 155 of the Treaty.
CHAPTER 4: FREE MOVEMENT OF CAPITAL
Proposed text to be added to the EUCP – Chapter 4
As regards the real estate market, the Republic of Slovenia may resort to the general safeguard clause of this Treaty for a period of up to a maximum of seven years after accession.
p.m. : the modalities of the general safeguard clause have been defined under chapter 31.
Final package – appendix: Agriculture – Slovenia
1. Complementary national direct payments
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1. Slovenia should be given the possibility, subject to authorisation by the Commission, to complement direct aid paid to a farmer under any CAP scheme listed in the annex to
Regulation (EC) No 1259/1999 up to the total level of direct support he would have been entitled to receive, on a product by product basis, in Slovenia prior to accession (2003)
under a CAP like national scheme increased by: 10 percentage points in 2004, 15 percentage points in 2005, 20 percentage points in 2006 and 25 percentage points from 2007.
However, the total direct support the farmer could be granted after accession in Slovenia under the relevant EU scheme including all complementary national direct payments
should in no case exceed the level of direct support he would be entitled to receive under that scheme in the existing EU.
2. The option to grant national aid complements should also be available if Slovenia chose to apply the simplified scheme.
The total amount per sector of complementary national aids that could be granted in a given year after accession when applying the simplified scheme, should be
limited by a specific financial envelope per sector. This specific financial envelope would be equal to the difference between
•
the total amount of support per sector granted in Slovenia prior to accession (2003 level), on a product by product basis, under CAP like direct payments schemes
increased as described above and
•
the total amount of direct support available for Slovenia for the same sectors in the year concerned after accession under the simplified scheme.
3. Slovenia should have the right to decide, on the basis of objective criteria and subject to authorisation by the Commission, on the amounts of complementary
national aid to be granted. The authorisations by the Commission should:
• specify the relevant national CAP like direct payment schemes
•
define the level up to which the complementary national aids can be paid, the rate of the complementary national aids and, where appropriate, the conditions for the granting
thereof,
•
be granted subject to any adjustments which may be rendered necessary by developments in the common agricultural policy.
Both under the EU standard scheme and the simplified scheme there should be no complementary national payments and aids for agricultural activities covered by common
market organisations but not directly supported under the CAP (annex to Regulation (EC) No 1259/1999).
A national direct payment scheme applicable prior to accession should be considered as a CAP like scheme if the national direct support available was granted to farmers in respect of
a production covered by one of the EU direct payment schemes listed in the annex to Regulation (EC) No 1259/1999.
.
4. During the years 2004-2006 the complementary national aid up to 40% of the EU level can be financed by the national rural development allocation under EAGGF guarantee,
thus from heading 1b. However, the amount available for this purpose shall not exceed 20% of the commitment appropriations available in each of the years 2004, 2005 and
2006 or 25% in 2004, 20% in 2005 and 15% in 2006. Furthermore, the relevant maximum EU co-financing rates shall apply (80% in objective 1 regions). The national co-
financing arrangements will be part of the normal rural development programming process. The financing from rural development under EAGGF guarantee shall function
according to the normal rules.
4. The arrangement set out under paragraph 4 above is a temporary and sui generis solution and does not constitute a precedent.
From 2007 all national complementary direct payments or aids will be financed exclusively from the national budget of Slovenia
2. State aid for the production of oil pumpkins
Slovenia is granted a transitional period of 5 years from the date of accession during which period Slovenia may provide state aid to the production of oil pumpkins applying the
following rates of degressivity : 100% for first three years, 80% for fourth year, 50% in fifth year
Slovenia must yearly submit a report to the Commission on the implementation of the State aid measures indicating the aid forms and amounts per (sub)sector.
3. Wine growing areas- Slovenia
With regard to the classification of Slovenia into the EU wine growing zone, the Primorska region should be included in zone CII and the rest of Slovenia into zone B.
However, Slovenia will be authorised for the 3 consecutive wine years 2004-2005, 2005-2006 and 2006-2007 to derogate for the Primorska wine area from the minimum natural
alcoholic strength by volume set for zone CII, for table wines and quality wines psr, when the climatic conditions or vine growth conditions are exceptionally unfavourable and does
not allow to reach the minimum natural alcoholic strength required in zone CII. Slovenia may not allow however for the Primorska wine area a minimum natural alcoholic strength
lower than set for zone CIa for table wines and quality wines psr.
Slovenia will have to present a detailed report to the Commission by the latest three months before the end of this transitional period on the minimum natural alcoholic strength of
the grapevines used in the Primorska region. Before the end of the transition period the Commission will notably on the basis of this report, assess the readiness of the Primorska
wine area to meet the minimum natural alcoholic strength of the CII zone and take, when necessary, the appropriate measures.
The Commission may extend the transitional period by two further wine years notably if the period would appear to be not long enough to have representative data for meeting the
requirements of zone CII.
The Commission will apply by accession the current objective criteria for restructuring aid for vineyards in the Primorska wine area provided for under article 14 of Regulation (EC)
No 1493/1999, taking into account particular situations and needs. Slovenia will benefit from this restructuring aid from the 2004-2005 wine year onwards.
The Commission notes the current conditions for the production of Teran PTP Kras which is a quality wine psr obtained from the Refosk variety and having a minimum natural
alcoholic strength of 9,2%vol.
Teran PTP Kras will benefit from the same transitional period applied to the Primorska wine area. However, the Commission will make a specific assessment of the readiness of the
areas planted for the production of Teran PTP Kras with regard to the application of the CII minimum natural alcoholic strength of 9.5%vol..
Slovenia will have to present a detailed report to the Commission by the latest three months before the end of this transitional period on the minimum natural alcoholic strength of
the grapevines used for production of Teran PTP Kras. Before the end of the transition period the Commission will notably on the basis of this report, assess the readiness of the
Teran PTP Kras to meet the minimum natural alcoholic strength of the CII zone and take, when necessary, the appropriate measures.
4. Milk quota
The milk quota should be set in accordance with the following:
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quota – 2004: 560.424 tonnes
deliveries: 467.063 tonnes
direct sales: 93.361 tonnes
reserve 2006: 16.214 tonnes
A special reserve should be established for Slovenia. This reserve would be released as from the beginning of the quota year 2006/07 (1.4.2006) in proportion to the decrease of the
on-farm consumption of milk and milk products in Slovenia since 2000.
The decision on releasing the reserve and of its distribution to the deliveries and direct sales quota will be taken by the Commission under the management committee procedure on
the basis of an assessment of a report to be submitted by Slovenia to the Commission by the 31.12.2005. This report should detail the results and trends of the actual restructuring
process in the country’s dairy sector and, in particular the shift from production for on-farm consumption to production for the market.
The following representative fat contents (Article 11 in Regulation (EEC) No 3950/92) and date for establishing the individual reference quantity (Article 4(1) in Regulation (EEC)
3950/92 should apply:
Representative fat content:
4.13%
Individual reference quantity:
31.03.2005
5. Quality of seeds and propagating material
Point 69 of doc 20827/02 CONF-SI 67/02 (Quality of seeds and propagating material) should be replaced by the following:
"The EU underlines the importance of achieving full compliance with the acquis upon accession with regard to quality of seeds and propagating material. It takes note of the
information provided by Slovenia in this regard.
The EU notes that Slovenia requests a transition period of five years for locally-available varieties of seeds and plant propagating material to comply with the requirements of
admission to the EU Common Catalogue in line with Directive 2002/53/EC (Common Catalogue of Varieties of agricultural plant species) and Directive 2002/55/EC (markeeting of
vegetable seed).
The EU considers that there are valid reasons to grant a transitional period of five years during which Slovenia would be allowed to postpone the application in its territory of
Directives 2002/53/EC and 2002/55/EC, with regard to the marketing on its territory of seeds of those varieties listed in its Official Catalogues of agricultural plant species and
vegetable plant species which have not been accepted in accordance with the provisions of these Directives. Therefore, the EU can accept this request. During that period, however,
seeds of such varieties shall not be marketed in the territory of other Member States."
BUDGETARY ESTIMATES
SLOVENIA
1999 prices, € millions
2003
pre-accession aid
2004
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
cash flow lump-sum
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2004 after budgetary compensation
2005
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2005 after budgetary compensation
2006
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
27
158
73
28
38
43
125
59
21
38
286
-29
-35
-195
-26
-285
0
66
67
51
43
27
12
38
52
224
-18
-22
-129
-17
-187
37
30
67
45
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total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2006 after budgetary compensation
324
-29
-37
-200
-28
-293
31
36
67
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and
payment
appropriations -Accession 1 May 2004; Negotiation Package 10 December.
in € millions, 1999
prices
SLOVENIA
Appropriations for Commitments
2004
2005
2006
2004-2006
1. Agriculture.
1a - Common Agricultural Policy
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash-flow lump sum
Budgetary Compensation
Total Appropriations for Commitments
Appropriations for Payments
5,5
35,6
74,8
282,8
52,4
29,5
364,7
3,3
35,6
74,0
349,8
0,0
66,4
416,2
1,6
35,6
73,7
396,7
0,0
35,5
432,2
10,4
106,9
222,5
1.029,2
52,4
131,5
1.213,1
33,7
35,0
36,4
105,1
116,4
126,8
162,2
405,4
58,7
57,7
79,3
47,5
98,8
63,4
236,8
168,6
14,9
0,0
14,9
76,7
91,6
38,3
26,9
65,2
83,9
149,0
38,8
32,8
71,6
89,2
160,8
92,0
59,7
151,6
249,8
401,4
1. Agriculture.
1a - Politique agricole commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash flow lump sum
Budgetary Compensation
Total Appropriations for Payments
2,0
35,6
49,7
120,1
52,4
29,5
202,1
2,5
35,6
59,0
242,9
0,0
66,4
309,3
2,5
35,6
66,3
297,3
0,0
35,5
332,8
7,0
106,9
175,0
660,3
52,4
131,5
844,2
12,1
20,9
28,2
61,1
27,0
59,2
72,8
159,1
25,9
1,2
45,9
13,3
48,9
23,9
120,7
38,3
14,9
0,0
14,9
28,5
43,4
38,3
26,9
65,2
59,4
124,6
38,8
32,8
71,6
86,6
158,2
92,0
59,7
151,6
174,6
326,2
MALTA
AGRICULTURE (only issues where EU offers go beyond EUCP)
Issue
Direct Payments
Topping-up
Presidency proposal
Phasing-in schedule maintained.
In 2004-2006, Malta has the possibility to top up EU direct payments to
• either 45% of EU level in the years 2004, 50% in 2005 and 55% in
2006. From 2007 Malta may top-up EU direct payments by 20 percentage
points above the applicable phasing-in level in the relevant year;
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• or to the total level of direct support the farmer would have been
entitled to receive, on a product by product basis, in Malta prior to
accession (2003) under a like national scheme increased by 10 percentage
points;
but in no case higher than 100% of EU-15 level of direct payments.
In 2004-2006 the topping-up up to 40% of the EU level can be financed
partly from EAGGF guarantee rural development allocation under the
following conditions:
• a maximum 20% of the commitment appropriations available in this
envelope for each year 2004, 2005 and 2006 or 25% in 2004, 20% in
2005 and 15% in 2006 can be used for topping-up. Any further
topping-up can only be financed from national budgets.
• application of relevant maximum EU co-financing rate (80% in
objective 1 regions)
See appendix.
Reference yield
Milk Quota
Tomato threshold
Special
Market
Policy Programme
State aid Gozo
2.02 t/ha
48,698 t
27,000 t
See appendix.
Continuation of existing support for transport of agricultural goods from
Gozo to Malta on a degressive basis for a transition period of 5 years. See
appendix.
New planting rights up to total planted wine area in Malta to be used by
2006. If not used by 2005/06, these new planting rights will fall in the
reserve and follow the acquis rules regarding the reserve. See appendix.
150 t with a review in 2005. See appendix.
Regarding the request for a derogation from density requirements: a
transitional period of 5 years from 4.5 LU/ha to 1.8 LU/ha without taking
into account dairy cows.
See appendix.
Vineyard
rights
Olive oil
planting
Stocking density
BUDGETARY ISSUES
Issue
Advance payments
Real payments
Results of Final Negotiations
Split of 16% into 10% for 2004 and 6% for 2005 as regards structural funds.
Reduction from:
- 3% to 2% for 2004 as regards structural and cohesion funds;
- 35% to 23.3% for 2004 as regards rural development.
Pre-accession aid
Schengen facility
Special
cash-flow
facility of € 1 b
Lump
sum
budgetary
compensation
€11m
There will be no Schengen funds for MT.
€ 12m in 2004.
€75m in lump-sum budgetary compensation for 2004-2006
additional €46m instead of Schengen facility
€45 additional lump sum payments.
OTHERS
Issue
Taxation
Gozo
Neutrality
Abortion
&
Results of Final Negotiations
TP on zero VAT rate on food and pharmaceutical products until 31
December 2009.
Unilateral MT declaration on its request for a guarantee that Gozo stays
under Objective I. See appendix.
Protocol on abortion (following the Irish model) to be annexed to the
Accession Treaty. See appendix.
On neutrality MT declaration (following the Irish model) to be annexed to
the Accession Treaty. See appendix.
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MALTA: Draft Protocol on abortion
Proposed text (after relevant preamble):
"Nothing in the Treaty on European Union, or in the Treaties establishing the European Communities, or in the Treaties or Acts modifying or
supplementing those Treaties, shall affect the application in the territory of Malta of national legislation relating to abortion"
DECLARATION BY THE REPUBLIC OF MALTA
ON NEUTRALITY
TO BE ANNEXED TO THE FINAL ACT
"Malta affirms its commitment to the common foreign and security policy of the European Union as set out in the Treaty on European Union.
Malta confirms that its participation in the European Union's common foreign and security policy does not prejudice its neutrality. The Treaty on
European Union specifies that any decision by the Union to move to a common defence would have to be taken by unanimous decision of the
European Council adopted by the Member States in accordance with their respective constitutional requirements."
DECLARATION BY THE REPUBLIC OF MALTA
ON THE ISLAND REGION OF GOZO
"The Government of Malta,
Noting that the island region of Gozo has economic and social specificities as well as handicaps arising from the combined effects of its double insularity, its environmental fragility,
its small population size coupled with a high population density as well as its inherent limited resources,
Noting that the Gross Domestic Product per capita of the island region of Gozo is significantly lower than that of Malta as a whole,
Noting that it is pursuing specific economic and social policies with regard to the island region of Gozo, the object of which is to overcome the permanent structural handicaps from
which it suffers,
Recognising that, upon the accession of Malta to the European Union, as a result of the agreement regarding the eligibility of Malta for the Structural Funds Objectives and for
Cohesion Fund assistance, as well as of the agreements regarding the VAT zero-rate for inter-island passenger transport and the transitional period for the inter-island transport of
agricultural goods, Gozo will be benefiting from measures which specifically address its structural handicaps, in addition to participating in measures of more general economic and
social benefit,
Recognising further that the NUTS III classification accorded to the island region of Gozo may not, on its own, ensure implementation of the European Union’s stated commitment
to take measures for the benefit of less-favoured regions,
Declares that, before the end of each Community budgetary period entailing a redefinition of the Community regional policy, Malta will request that the Commission report to the
Council on the economic and social situation of Gozo and, in particular, on the disparities in the social and economic development levels between Gozo and Malta. The Commission
would be asked to propose appropriate measures, as required, in the framework of the Community regional policy or other relevant Community policies, to ensure the continuation of
the reduction of disparities between Gozo and Malta as well as the further integration of Gozo into the internal market on fair conditions. In particular, in the event that Malta, as a
whole, would no longer be eligible to certain measures of the regional policy, the report would assess whether the specific economic situation of Gozo justifies a continued eligibility
of Gozo to those measures, and under which conditions, during the reference period."
CHAPTER 10: TAXATION
Proposed text to be added to the EUCPs for the relevant countries
Chapter 10-Taxation
Malta
• Malta may maintain an exemption with the right of deduction of input VAT on the supply of foodstuffs for human consumption and pharmaceuticals, until 31 December
2009.
Final package – appendix: Agriculture – Malta
1. Complementary national direct payments
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1. Malta should be given the possibility, subject to authorisation by the Commission, to complement direct aid paid to a farmer under any CAP scheme listed in the annex
to Regulation (EC) No 1259/1999 up to:
either
• 45% of EU level in the years 2004, 50% in 2005 and 55% in 2006. From 2007 Malta may top-up EU direct payments by 20 percentage points above the applicable
phasing-in level in the relevant year.
or
• to the total level of direct support the farmer would have been entitled to receive, on a product by product basis, in Malta prior to accession (2003) under a like national
scheme increased by 10 percentage points.
However, the total direct support the farmer could be granted after accession in Malta under the relevant EU scheme including all complementary national direct
payments should in no case exceed the level of direct support he would be entitled to receive under that scheme in the existing EU.
2. The option to grant national aid complements should also be available if Malta chose to apply the simplified scheme.
The total amount per sector of complementary national aids that could be granted in a given year after accession when applying the simplified scheme, should be limited by a
specific financial envelope per sector. This specific financial envelope would be equal to the difference between
•
the total amount of support per sector resulting from the calculation method described above under either option 1 or 2 and
•
the total amount of direct support available for Malta for the same sectors in the year concerned under the simplified scheme.
3. Malta should have the right to decide, on the basis of objective criteria and subject to authorisation by the Commission, on the amounts of complementary national aid to be
granted. The authorisations by the Commission should:
• if based on 2003 level, specify the relevant national CAP like direct payment schemes
•
define the level up to which the complementary national aids can be paid, the rate of the complementary national aids and, where appropriate, the conditions for
the granting thereof,
•
be granted subject to any adjustments which may be rendered necessary by developments in the common agricultural policy.
Both under the EU standard scheme and the simplified scheme there should be no complementary national payments and aids for agricultural activities covered by a
common market organisation but not directly supported under the CAP (annex to Regulation (EC) No 1259/1999).
A national direct payment scheme applicable prior to accession should be considered as a CAP like scheme if the national direct support available was granted to farmers in
respect of a production covered by one of the EU direct payment schemes listed in the annex to Regulation (EC) No 1259/1999.
.
1. During the years 2004-2006 the complementary national aid up to 40% of the EU level can be financed by the national rural development allocation under EAGGF guarantee,
thus from heading 1b. However, the amount available for this purpose (in combination with the amount for co-financing mention under point 1.4 of this fiche concerning the
complementary national direct payments) shall not exceed 20% of the commitment appropriations available in each of the years 2004, 2005 and 2006 or 25% in 2004, 20% in
2005 and 15% in 2006. Furthermore, the relevant maximum EU co-financing rates shall apply (80% in objective 1 regions). The national co-financing arrangements will be part
of the normal rural development programming process. The financing from rural development under EAGGF guarantee shall function according to the normal rules.
4. The arrangement set out under paragraph 4 above is a temporary and sui generis solution and does not constitute a precedent.
From 2007 all national complementary direct payments will be financed from the national budget.
2. State aid for the transport of produce from Gozo
Malta is granted a transitional period of 5 years from the date of accession during which period Malta may on a linear degressive basis (20% per year) provide state aid to the
ferry transport of agricultural product from Gozo.
Malta must yearly submit a report to the Commission on the implementation of the State aid measures indicating the aid forms and amounts.
3. Special Market Policy Programme for Maltese Agriculture (SMPPMA)
a. Special temporary state aids to support agricultural producers
Maltese producers of tomatoes for processing, fresh fruit and vegetables, wine, pigmeat, milk, poultry and eggs shall benefit from a special temporary State Aid regime intended
to compensate the loss of revenue of farmers resulting from the fall of local prices after accession. This assistance shall be adapted in each sector concerned according to the
assistance existing under the current CAP. The maximum level of State aids destined to producers shall be calculated on the basis of:
- the price differential between the EU prices (including transport) and the Maltese ones (prices taken into consideration shall be producers prices);
- additional amounts per sector for marketing and restructuring.
The transition period shall be 7 years for the animal products and 11 years for the crops. The degressivity of the State aid for animal products shall be as follows: 1
st
year 100%,
2
nd
year 95%, 3
rd
year 90%, 4
th
year 72%, 5
th
year 54%, 6
th
year 36% and 7
th
year 18%. For crops the degressivity should be: 1
st
- 2
nd
year 100%, 3
rd
- 4
th
year 95%, 5
th
-6
th
year
90 percent, 7
th
year 75%, 8
th
year 60%, 9
th
year 45% - 10
th
year 30%, and 11
th
year 15%.
When calculating price differences with regard to the above-mentioned state aid scheme, statistical data from Eurostat should be used. EU producer prices shall be defined using
prices from EU countries that currently export and/or are likely to sell their products to Malta after accession. In order to avoid that the compensatory aid scheme stimulates
production, the state aid shall be limited to the levels of historical production (during a three-year reference period composed of years 1998-1999-2000). However in the fruit
and vegetables sector, the year 1998 shall be used as reference year for the calculation of price differences in relation to the support to producers.
Malta should be allowed to grant State aid to the (sub)sectors mentioned and up till the amounts mentioned in tables below:
Programme for the Crops sectors (Mio €)
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Year
Tomatoes for
Wine Sector
Processing
including
Sector including Additional Aid
Additional Aid
1.37
1.48
2.68
2.68
2.63
2.63
2.15
1.46
0.85
0.42
0.18
18.53
2.76
2.62
1.23
1.10
1.04
0.94
0.83
0.83
0.76
0.51
0.36
12.98
Fresh Fruit
Sector
Fresh Vegetables Total for Crops
Sector
(million Euros)
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTAL
2.43
2.43
2.31
2.31
2.18
2.18
1.82
1.46
1.10
0.73
0.37
19.32
0.96
0.96
0.91
0.91
0.86
0.86
0.72
0.57
0.43
0.29
0.15
7.62
7.52
7.49
7.13
7.00
6.71
6.61
5.52
4.32
3.14
1.95
1.06
58.45
Programme for Animal Products (Mio €)
Year
SMPPMA
Pigmeat Sector
Programme for
including
the Dairy
Restructuring
Sector
Aid
including
Restructuring
Aid
Eggs Sector Poultry Meat Total for
including
Sector
Animal
Restructuring
including
Products
Aid
Restructuring including
Aid)
Restructuring
Aid
2004
2005
2006
2007
2008
2009
2010
TOTAL
2.50
2.45
2.40
1.97
1.63
1.28
0.94
13.17
5.40
5.17
4.94
4.15
3.28
2.46
1.65
27.05
2.30
2.18
2.03
1.70
1.34
0.99
0.59
11.13
1.80
1.70
1.63
1.38
1.15
0.87
0.62
9.15
12.0
11.5
11.0
9.20
7.40
5.60
3.80
60.5
Moreover, for each (sub)sectors, State aids will be allocated within the following ceilings..
Crops (annual quantities):
Tomatoes for processing : 27 000 t
Fresh fruit : 19 400 t
Fresh vegetables : 38 200 t
Wine : 1000 ha
Animal products (annual quantities)
Dairy : 45 000 t
Pigmeat : 125 200 heads
Poultry : 7 000 t
Eggs : 5 000 t
b. Special Temporary state aid to support processors and recognized retailers of imported agricultural products
A special temporary State Aid regime shall support the purchase of imported agricultural products that before accession were benefiting from export refunds or imported from third
countries without duties (sugar, cereals and rice, some dairy products, meats, and semi-processed tomato products) on the basis of traditional trade and consumption habits. A
mechanism shall be provided to guarantee that the support is effectively passed on to consumers. The maximum level of State aids destined to processors and recognized retailers shall
be calculated on the basis of the price differential between the EU prices (including transport) and the world market ones, and shall take into account the level of the export refunds.
This State aid shall be degressive during the 7 year transition period as follows: 1
st
year 100%, 2
nd
year 95%, 3
rd
year 90%, 4
th
- 7
th
year 18% reduction pr. year.
Malta should be allowed to grant State aid to the (sub)sectors mentioned and up till the amounts mentioned in table below:
Supply measures
Mio €
Products
Cereals
2004
3,0
2005
2,9
2006
2,7
2007
2,2
2008
1,6
2009
1,1
2010
0,5
Total
14,0
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Sugar
Meat products
11,0
0,8
10,5
0,8
1,0
0,8
9,9
0,8
0,9
0,7
7,9
0,6
0,7
0,6
5,9
0,5
0,5
0,4
4,0
0,3
0,4
0,3
2,0
0,2
0,2
0,1
51,2
3,9
4,7
3,7
77,4
Dairy products
1,0
Semi-proc.tomato 0,8
pr.
Moreover, for each (sub)sectors, State aids will be allocated within the following ceilings
Sugar : 35 000 t per year
Cereals
Product
Common wheat and meslin seed
Barley, excluding barley seeds
Maize (corn), excluding seeds
Rice
Malt of other cereals excluding wheat flour
Semolina (groats and meal of durum wheat)
Quantity (tonnes per year)
52,000
61,000
62,000
3,000
2,500
3,500
Dairy Products
Product
Milk cream in powder or other solid form, fat content <
1.5%
Natural butter fat content
=85%
immediate pack
Other butter, fat content
=85%
immediate pack
Cheddar cheese
Edam cheese
Other processed cheese (Kefalo-tyri, etc.)
Quantity (tonnes per year)
521
250
250
1,200
1,000
1,500
Meat products
Product
Hindquarters of bovine with bone frozen
Boneless crop chuck and blade and brisket cut bovine
frozen
Other prepared processed domestic swine products
Corned beef in airtight
Quantity (tonnes per year)
4,200
2,000
500
1,200
'Other Products'
Product
Prepared tomatoes dry matter content > 30% in packs
>3kg
Tomatoes preserved whole or in pieces in containers > 3kg
Quantity (tonnes per year)
5,500
3,000
c.
During the years 2004-2006 the aid can be financed by the national rural development allocation under EAGGF guarantee, thus from heading 1b. However, the amount available
for this purpose shall not exceed 20% of the commitment appropriations available in each of the years 2004, 2005 and 2006 or 25% in 2004, 20% in 2005 and 15% in 2006.
Furthermore, the relevant maximum EU co-financing rates shall apply (80% in objective 1 regions). The national co-financing arrangements will be part of the normal rural
development programming process. The financing from rural development under EAGGF guarantee shall function according to the normal rules.
From 2007 all aid will be financed from the national budget.
d.
With regard to the agricultural products covered by the SMPPMA the general economic safeguard clause shall be applicable for Malta up to five years after accession.
e.
Malta must yearly submit a report to the Commission on the implementation of the State aid measures indicating the aid forms and amounts per (sub)sector.
4. Wine planting rights
Malta is granted new planting rights for the production of quality wines psr. up to a total planted wine area in Malta of 1,000 ha. These rights will have to be used at the latest by the
2005/2006 wine year. If these rights are not used by the 2005/2006 wine year, they will be allocated to the reserve to which will apply the provisions laid down under article 5 of
Regulation (EC) No 1493/1999.
5. Olive oil national guaranteed quantity
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The national guaranteed quantity (NGQ) of olive oil for Malta is set provisionally at 150 tonnes. This figure will be revised in 2005 after introduction of the Geographical Information
System (GIS).
By derogation to Article 4 of Regulation (EC) No 1638/98, olive trees planted after 31 December 2001 are excluded from eligibility for aid.
By 1 January 2005 Malta must fully introduce the Geographical Information System (GIS) and provide figures on the basis of the olive tree register as soon as they are available.
6. Milk quota
The milk quota should be set in accordance with the following:
quota – 2004: 48.698 tonnes
deliveries: 48.698 tonnes
The following representative fat contents (Article 11 in Regulation (EEC) No 3950/92) and date for establishing the individual reference quantity (Article 4(1) in Regulation (EEC)
3950/92 should apply:
Representative fat content:
transition period
Individual reference quantity:
31.03.2003
7. Stocking density
By way of derogation from Article 12(1) and (2) of Regulation (EC) No 1254/1999, the requirements relating to stocking density coefficients in Malta shall be phased in on a linear
basis from 4.5 LU/ha for the first year after accession to 1.8 LU/ha for the fifth year after accession. In this period, for determining the stocking density on the holding, account shall
not be taken of dairy cows needed to produce the total reference quantity of milk allocated to the producer.
Malta will submit a report on the implementation of this measure to the Commission before the 31 December 2007.
BUDGETARY ESTIMATES
MALTA
1999 prices, € millions
2003
pre-accession aid
2004
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
cash flow lump-sum
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2004 after budgetary compensation
2005
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2005 after budgetary compensation
2006
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
0
10
15
5
0
31
2
8
13
4
0
27
-21
-6
-34
-5
-66
-39
66
26
7
3
7
2
0
12
32
-14
-4
-23
-3
-43
-11
38
26
11
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trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2006 after budgetary compensation
-21
-6
-35
-5
-67
-36
63
26
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and
payment
appropriations -Accession 1 May 2004; Negotiation Package 10 December.
in € millions, 1999
prices
MALTA
Appropriations for Commitments
2004
2005
2006
2004-2006
1. Agriculture.
1a - Common Agricultural Policy
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash-flow lump sum
Budgetary Compensation
Total Appropriations for Commitments
Appropriations for Payments
0,5
0,0
6,7
35,6
12,2
37,8
85,6
0,3
0,0
6,7
41,9
0,0
65,6
107,5
0,1
0,0
6,8
49,8
0,0
62,9
112,7
0,9
0,0
20,2
127,3
12,2
166,3
305,8
6,2
6,4
6,7
19,3
20,9
25,3
32,5
78,7
14,2
6,7
19,8
5,5
25,1
7,4
59,1
19,6
0,7
0,0
0,7
7,3
8,0
1,7
0,1
1,9
8,0
9,9
1,7
0,3
1,9
8,5
10,5
4,1
0,4
4,5
23,9
28,4
1. Agriculture.
1a - Politique agricole commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash flow lump sum
Budgetary Compensation
Total Appropriations for Payments
0,2
0,0
2,4
12,4
12,2
37,8
62,4
0,2
0,0
4,1
24,6
0,0
65,6
90,2
0,2
0,0
5,4
30,6
0,0
62,9
93,5
0,6
0,0
11,8
67,6
12,2
166,3
246,1
2,2
3,8
5,2
11,2
6,6
13,0
15,0
34,6
6,5
0,1
11,5
1,5
12,2
2,8
30,1
4,4
0,7
0,0
0,7
2,7
3,4
1,7
0,1
1,9
5,7
7,5
1,7
0,3
1,9
8,3
10,2
4,1
0,4
4,5
16,7
21,2
SLOVAKIA
AGRICULTURE (only issues where EU offers go beyond EUCP)
Issue
Direct Payments
Top ups
Presidency proposal
Phasing-in schedule maintained.
In 2004-2006, Slovakia has the possibility to top up EU direct payments to:
• either 45% of EU level in the years 2004, 50% in 2005 and 55% in
2006. From 2007 Slovakia may top-up EU direct payments by 20
percentage points above the applicable phasing-in level in the relevant
year;
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• or to the total level of direct support the farmer would have been
entitled to receive, on a product by product basis, in Slovakia prior to
accession (2003) under a like national scheme increased by 10 percentage
points;
but in no case higher than 100% of EU-15 level of direct payments.
In 2004-2006 the topping-up up to 40% of the EU level can be financed
partly from EAGGF guarantee rural development allocation under the
following conditions:
• a maximum 20% of the commitment appropriations available in this
envelope for each year 2004, 2005 and 2006 or 25% in 2004, 20% in
2005 and 15% in 2006 can be used for topping-up. Any further
topping-up can only be financed from national budgets.
• application of relevant maximum EU co-financing rate (80% in
objective 1 regions)
Establishment
of
eligibility of land for
direct payments
Isoglucose quota
Milk Quota
31 December 2001 cut-off date
42,547 t
Basic quota: 1,013,316 t
Restructuring reserve: 27,472 t
Total quota: 1,040,788 t
See appendix
Suckler
premium
Sheep premium
Cow
28,080
305,756 heads (including goats)
323,000 euro
29,500 t tomatoes
147 t peaches
Additional payment
for sheep
Fruit and vegetable
threshold
Tobacco
Wine enrichment
State
aid
warehouse
financing
on
1715 t
Enrichment of wine with sucrose
3 year TP. See appendix.
Rural development
€90m can be granted as additional funds 2004-2006
BUDGETARY ISSUES
Issue
Advance payments
Real payments
Results of Final Negotiations
Split of 16% into 10% for 2004 and 6% for 2005 as regards structural funds.
Reduction from:
- 3% to 2% for 2004 as regards structural and cohesion funds;
- 35% to 23.3% for 2004 as regards rural development.
Schengen facility
Pre-accession aid
Special
cash-flow
facility of € 1 b
OTHERS
Issue
Purchase of Land
Taxation
Bohunice NPP
Result of Final Negotiations
3 year safeguard clause (on top of 7 year TP), managed by COM and based
on serious disturbances in land market. See appendix.
Reduced excise on 50 l. alcohol per household. See appendix.
Protocol on Bohunice. See appendix.
€47.8m
€123m
Lump sum of € 63m in 2004.
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For the Act of Accession
Protocol No Y
on Unit 1 and Unit 2 of the Bohunice V1 Nuclear Power Plant in Slovakia
THE HIGH CONTRACTING PARTIES,
Noting Slovakia’s commitment to close Unit 1 and Unit 2 of the Bohunice V1 Nuclear Power Plant by 2006 and by 2008 respectively and declaring the Union’s willingness to
continue to provide until 2006 financial aid in continuation of the pre-accession aid planned under the Phare programme in support of Slovakia's decommissioning effort,
Noting the need to adopt implementing provisions regarding the continued Community assistance,
HAVE AGREED AS FOLLOWS:
Article 1
Slovakia commits to the closure of Unit 1 of the Bohunice V1 Nuclear Power Plant by 31 December 2006 and Unit 2 of this plant by 31 December 2008 at the latest and to
subsequent decommissioning of these units.
Article 2
1. During the period 2004-2006, the Community shall provide Slovakia with financial assistance in support of its efforts to decommission and to address the consequences of
the closure and decommissioning of Unit 1 and Unit 2 of the Bohunice V1 Nuclear Power Plant (hereinafter 'the Assistance').
2. The Assistance shall be decided and implemented – also after Slovakia’s accession to the Union - in accordance with the provisions laid down in Council Regulation (EEC)
No 3906/89 of 18 December 1989 on economic aid to certain countries of Central and Eastern Europe, as last amended by Regulation (EC) No 2500/2001.
3. For the period 2004 - 2006 the Assistance shall amount to € 90 million in commitment appropriations, to be committed in equal annual tranches.
4. The Assistance or parts thereof may be made available as a Community contribution to the Bohunice International Decommissioning Support Fund, managed by the European
Bank for Reconstruction and Development.
Article 3
The European Union acknowledges that the decommissioning of the Bohunice V1 Nuclear Power plant will have to continue beyond the current financial perspective and that this
effort represents for Slovakia a significant financial burden. Decisions on the continuation of EU assistance in this field after 2006 will take the situation into account.
CHAPTER 4: FREE MOVEMENT OF CAPITAL
Proposed text to be added to the EUCP – Chapter 4
If there is sufficient evidence that, upon expiry of the transitional period, there will be serious disturbances or a threat of serious disturbances on the agricultural land market of
Slovakia, the Commission, at the request of Slovakia, shall decide upon the extension of the transitional period for up to a maximum of three years.
CHAPTER 10: TAXATION
Proposed text to be added to the EUCPs for the relevant countries
Chapter 10-Taxation
Slovakia
• Slovakia may apply a reduced rate of excise duty, of not less than 50% of the standard national rate of excise duty on ethyl alcohol, to ethyl alcohol produced by fruit
growers' distilleries producing, on an annual basis, more than 10 hectolitres of ethyl alcohol from fruit supplied to them by fruit growers' households. The application of
the reduced rate shall be limited to 50 litres of fruit spirits per producing fruit growers' household per year, destined exclusively for their personal consumption. The
Commission will review this arrangement in 2015 and report to the Council on possible modifications.
Final package – appendix: Agriculture – Slovakia
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1. Complementary national direct payments
1. Slovakia should be given the possibility, subject to authorisation by the Commission, to complement direct aid paid to a farmer under any CAP scheme listed in the
annex to Regulation (EC) No 1259/1999 up to:
either
• 45% of EU level in the years 2004, 50% in 2005 and 55% in 2006. From 2007 Slovakia may top-up EU direct payments by 20 percentage points above the applicable
phasing-in level in the relevant year.
or
• to the total level of direct support the farmer would have been entitled to receive, on a product by product basis, in Slovakia prior to accession (2003) under a like national
scheme increased by 10 percentage points.
However, the total direct support the farmer could be granted after accession in Slovakia under the relevant EU scheme including all complementary national direct
payments should in no case exceed the level of direct support he would be entitled to receive under that scheme in the existing EU.
2. The option to grant national aid complements should also be available if Slovakia chose to apply the simplified scheme.
The total amount per sector of complementary national aids that could be granted in a given year after accession when applying the simplified scheme, should be limited by a
specific financial envelope per sector. This specific financial envelope would be equal to the difference between
•
the total amount of support per sector resulting from the calculation method described above under either option 1 or 2 and
•
the total amount of direct support available for Slovakia for the same sectors in the year concerned under the simplified scheme.
3. Slovakia should have the right to decide, on the basis of objective criteria and subject to authorisation by the Commission, on the amounts of complementary national aid to
be granted. The authorisations by the Commission should:
• if based on 2003 level, specify the relevant national CAP like direct payment schemes
•
define the level up to which the complementary national aids can be paid, the rate of the complementary national aids and, where appropriate, the conditions for
the granting thereof,
•
be granted subject to any adjustments which may be rendered necessary by developments in the common agricultural policy.
Both under the EU standard scheme and the simplified scheme there should be no complementary national payments and aids for agricultural activities covered by a
common market organisation but not directly supported under the CAP (annex to Regulation (EC) No 1259/1999).
A national direct payment scheme applicable prior to accession should be considered as a CAP like scheme if the national direct support available was granted to farmers in
respect of a production covered by one of the EU direct payment schemes listed in the annex to Regulation (EC) No 1259/1999.
.
1. During the years 2004-2006 the complementary national aid up to 40% of the EU level can be financed by the national rural development allocation under EAGGF guarantee,
thus from heading 1b. However, the amount available for this purpose shall not exceed 20% of the commitment appropriations available in each of the years 2004, 2005 and
2006 or 25% in 2004, 20% in 2005 and 15% in 2006. Furthermore, the relevant maximum EU co-financing rates shall apply (80% in objective 1 regions). The national co-
financing arrangements will be part of the normal rural development programming process. The financing from rural development under EAGGF guarantee shall function
according to the normal rules.
4. The arrangement set out under paragraph 4 above is a temporary and sui generis solution and does not constitute a precedent.
From 2007 all national complementary direct payments will be financed from the national budget.
2. State aid on warehouse financing
Until 31 December 2006 Slovakia may continue granting a State aid to ensure the functioning of the Warehouse receipt and Goods receipt system as described in Act No.
144/1998 Coll. on a Warehouse Receipt and Goods Receipt effective as of 1 June 1998.
Slovakia must submit a yearly report to the Commission on the implementation of this State aid measure indicating the aid form and the amounts.
3. Milk quota
The milk quota should be set in accordance with the following:
quota – 2004: 1.013.316 tonnes
deliveries: 990.810 tonnes
direct sales: 22.506 tonnes
reserve 2006: 27.427 tonnes
A special reserve should be established for Slovakia. This reserve would be released as from the beginning of the quota year 2006/07 (1.4.2006) to the extent that the on-farm
consumption of milk and milk products in Slovakia has decreased since 2000.
The decision on releasing the reserve and of its distribution to the deliveries and direct sales quota will be taken by the Commission under the management committee procedure
on the basis of an assessment of a report to be submitted by Slovakia to the Commission by the 31.12.2005. This report should detail the results and trends of the actual
restructuring process in the country’s dairy sector and, in particular the shift from production for on-farm consumption to production for the market.
The following representative fat contents (Article 11 in Regulation (EEC) No 3950/92) and date for establishing the individual reference quantity (Article 4(1) in Regulation
(EEC) 3950/92 should apply:
Representative fat content:
3.71%
Individual reference quantity:
31.03.2004
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BUDGETARY ESTIMATES
SLOVAKIA
1999 prices, € millions
2003
pre-accession aid
2004
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
cash flow lump-sum
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2004 after budgetary compensation
2005
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2005 after budgetary compensation
2006
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2006 after budgetary compensation
-
353
64
260
289
45
52
709
-54
-42
-229
-31
-356
353
102
205
244
33
52
636
-54
-41
-223
-30
-347
289
-
289
-
173
120
57
118
19
21
63
398
-33
-26
-147
-20
-225
173
123
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and
payment
appropriations -Accession 1 May 2004; Negotiation Package 10 December.
in € millions, 1999
prices
SLOVAKIA
Appropriations for Commitments
2004
2005
2006
2004-2006
1. Agriculture.
1a - Common Agricultural Policy
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
53,5
55,7
57,9
167,0
435,9
495,1
629,0
1.560,0
261,5
174,4
351,5
143,6
437,3
191,7
1.050,3
509,7
16,9
0,0
16,9
108,2
125,2
48,1
73,0
121,2
118,3
239,4
49,2
88,1
137,3
125,8
263,1
114,3
161,2
275,4
352,3
627,7
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Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash-flow lump sum
Budgetary Compensation
Total Appropriations for Commitments
Appropriations for Payments
30,0
12,9
15,9
112,3
673,4
63,2
0,0
736,6
30,0
7,7
15,9
109,3
843,9
0,0
0,0
843,9
30,0
3,9
15,9
107,7
999,8
0,0
0,0
999,8
24,5
47,8
329,3
2.517,0
63,2
0,0
2.580,2
1. Agriculture.
1a - Politique agricole commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash flow lump sum
Budgetary Compensation
Total Appropriations for Payments
19,2
0,0
4,6
15,9
39,8
215,2
63,2
0,0
278,4
33,1
30,0
5,9
15,9
85,0
534,0
0,0
0,0
534,0
44,8
30,0
5,8
15,9
96,5
645,2
0,0
0,0
645,2
16,3
47,8
221,3
1.394,3
63,2
0,0
1.457,5
97,1
118,2
244,0
289,2
651,3
114,7
3,5
203,8
40,2
217,0
72,2
535,4
115,9
16,9
0,0
16,9
40,2
57,2
48,1
73,0
121,2
83,8
205,0
49,2
88,1
137,3
122,2
259,5
114,3
161,2
275,4
246,3
521,7
LATVIA
AGRICULTURE (only issues where EU offers go beyond EUCP)
Issue
Direct Payments
Top-ups
Presidency proposal
Phasing-in schedule maintained.
In 2004-2006, LV has the possibility to top up EU direct payments to:
• either 45% of EU level in the years 2004, 50% in 2005 and 55% in
2006. From 2007 Latvia may top-up EU direct payments by 20
percentage points above the applicable phasing-in level in the relevant
year;
• or to the total level of direct support the farmer would have been
entitled to receive, on a product by product basis, in Latvia prior to
accession (2003) under a like national scheme increased by 10 percentage
points;
but in no case higher than 100% of EU-15 level of direct payments.
In 2004-2006 the topping-up up to 40% of the EU level can be financed
partly from EAGGF guarantee rural development allocation under the
following conditions:
• a maximum 20% of the commitment appropriations available in this
envelope for each year 2004, 2005 and 2006 or 25% in 2004, 20% in
2005 and 15% in 2006 can be used for topping-up. Any further
topping-up can only be financed from national budgets;
• application of relevant maximum EU co-financing rate (80% in
objective 1 regions).
See appendix on list of products for which a gradual phasing-out of national
subsidies will apply (incl. length and amounts)
Milk Quota
Basic quota: 695,395 t
2006 restructuring reserve: 33,253 t
total quota: 728,648 t.
See appendix for details.
Reference yield
Base area
Potato starch
Fibres
2.5 t/ha
443,580 ha
5,778 t
360 t long
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1,313 t short
Reference yields for
drained and non-
drained land
Suckler
premium
Fat
Content
Drinking Milk
Cow
in
Regarding the ability to differentiate reference yields for drained and non-
drained land, the existing acquis could provide for this request.
19,368
TP for up to 5 years. See appendix.
TP for up to 5 years. See appendix.
Use of untreated seeds, planting material and propagating material produced
in conventional farms until 1 January 2006.
Certified organic apiaries to use sugar produced as conventional farms as
additional bee-feeding until 1 January 2006.
Use in organic farms of potassium permanganate preparation allowed for 18
months after accession.
Abandonned land
Letter from the Commission
Catalogue of Plant
Varieties
Organic farming
BUDGETARY ISSUES
Issue
Advance payments
Real payments
Results of Final Negotiations
Split of 16% into 10% for 2004 and 6% for 2005 as regards structural funds.
Reduction from:
- 3% to 2% for 2004 as regards structural funds;
- 35% to 23.3% for 2004 as regards rural development.
Schengen facility
Special
cash-flow
facility of € 1 b
OTHERS
Issue
Purchase of Land
Lynx
Results of Final Negotiations
Up to 7 year TP plus 3 year safeguard clause, managed by COM and based
on serious disturbances in land market. See appendix.
LV request of inclusion of lynx into Annex 5 of Directive, implying
managed hunting without need for compliant management plan not
accepted.
Through technical adaptations in the Accession Treaty, it will be provided
for that LV can maintain its traditional fishing of smallest size Baltic Herring
(10g) for human consumption, caught in traditional waters.
VAT exemption for heating until end 2004. See appendix.
Introduction of LV unilateral declaration into Accession Treaty concerning
voting rights in the Council. See annex.
€ 71m
Lump sum of € 19m in 2004
Baltic Herring
VAT on heating
Institutions
Proposed text to be added to the EUCP – Chapter 4
Latvia (CONF-LV 28/01).
The EU stresses that the completion of the internal market is a key element of the
acquis
and that full alignment with the
acquis
in this field by the earliest possible date is therefore
highly desirable. However, in view of the information provided by Latvia, the EU can accept a transitional period of seven years during which Latvia may continue to apply its national
legislation with regard to the acquisition of agricultural land and forests by EU nationals and EU legal persons.
The EU notes that companies established or registered in Latvia, even when partly or fully owned by EU shareholders, and local branches or agencies in Latvia of EU companies, are
not considered by Latvia as EU companies and that these shall not be covered by the transitional period. In no instance may EU citizens, in respect of acquisition of agricultural land
and forests, receive a less favourable treatment than at the time of signature of the Accession Treaty nor be treated in a more restrictive way than a national from a third country.
A general review of the transitional period shall be held in the third year of the transitional period. To that aim, the Commission shall report in due time to the Council. The Council
may, acting unanimously on a proposal from the Commission, decide to shorten or lift the transitional period.
EU nationals who wish to establish themselves as self-employed farmers and reside in Latvia, and who have been legally resident and active in farming in Latvia for at least three years
continuously, shall be excluded from the scope of the transitional period and shall not be subject to any procedures other than those applied to nationals of Latvia. The EU notes that
constitutional or legal provisions presently preventing EU nationals from acquiring real estate in Latvia will be abolished by the date of accession at the latest.
If there is sufficient evidence that, upon expiry of the transitional period, there will be serious disturbances or a threat of serious disturbances on the agricultural land market of Latvia,
the Commission, at the request of Latvia, shall decide upon the extension of the transitional period for up to a maximum of three years.
CHAPTER 10: TAXATION
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Proposed text to be added to the EUCPs for the relevant countries
Chapter 10-Taxation
Latvia
• Latvia may maintain an exemption from value added tax (VAT) on the supply of heating to households, until 31 December 2004.
Final package – appendix: Agriculture – Latvia
1. Complementary national direct payments
Topping up
1. Latvia should be given the possibility, subject to authorisation by the Commission, to complement direct aid paid to a farmer under any CAP scheme listed in the annex to
Regulation (EC) No 1259/1999 up to:
either
• 45% of EU level in the years 2004, 50% in 2005 and 55% in 2006. From 2007 Latvia may top-up EU direct payments by 20 percentage points above the applicable
phasing-in level in the relevant year;
or
• to the total level of direct support the farmer would have been entitled to receive, on a product by product basis, in Latvia prior to accession (2003) under a like national
scheme increased by 10 percentage points.
However, the total direct support the farmer could be granted after accession in Latvia under the relevant EU scheme including all complementary national direct
payments should in no case exceed the level of direct support he would be entitled to receive under that scheme in the existing EU.
2. The option to grant national aid complements should also be available if Latvia chose to apply the simplified scheme.
The total amount per sector of complementary national aids that could be granted in a given year after accession when applying the simplified scheme, should be limited by a
specific financial envelope per sector. This specific financial envelope would be equal to the difference between
•
the total amount of support per sector resulting from the calculation method described above under either option 1 or 2 and
•
the total amount of direct support available for Latvia for the same sectors in the year concerned under the simplified scheme.
3. Latvia should have the right to decide, on the basis of objective criteria and subject to authorisation by the Commission, on the amounts of complementary national aid to be
granted. The authorisations by the Commission should:
• if based on 2003 level, specify the relevant national CAP like direct payment schemes
•
define the level up to which the complementary national aids can be paid, the rate of the complementary national aids and, where appropriate, the conditions for
the granting thereof,
•
be granted subject to any adjustments which may be rendered necessary by developments in the common agricultural policy.
Both under the EU standard scheme and the simplified scheme there should be no complementary national payments and aids for agricultural activities covered by a
common market organisation but not directly supported under the CAP (annex to Regulation (EC) No 1259/1999).
A national direct payment scheme applicable prior to accession should be considered as a CAP like scheme if the national direct support available was granted to farmers in
respect of a production covered by one of the EU direct payment schemes listed in the annex to Regulation (EC) No 1259/1999.
1. During the years 2004-2006 the complementary national aid up to 40% of the EU level can be financed by the national rural development allocation under EAGGF guarantee,
thus from heading 1b. However, the amount available for this purpose shall not exceed 20% of the commitment appropriations available in each of the years 2004, 2005 and
2006 or 25% in 2004, 20% in 2005 and 15% in 2006. Furthermore, the relevant maximum EU co-financing rates shall apply (80% in objective 1 regions). The national co-
financing arrangements will be part of the normal rural development programming process. The financing from rural development under EAGGF guarantee shall function
according to the normal rules.
4. The arrangement set out under paragraph 4 above is a temporary and sui generis solution and does not constitute a precedent.
From 2007 all national complementary direct payments will be financed from the national budget.
State aid
In those sectors where Latvia is providing a higher level of aid than presently in the EU, Latvia is given the possibility in addition to the Complementary National direct
payments to grant transitional and degressive national aids until the end of 2008. These State aids should be granted in a form that is similar to Community aids, such as
decoupled payments.
Latvia should be allowed to grant State aid to the (sub)sectors mentioned and up till the amounts mentioned in the table.
The state aid to be granted will be subject to any adjustments which may be rendered necessary by developments in the common agricultural policy. Should such
adjustments prove necessary, the amount of the aids or the conditions for the granting thereof should be amended at the Commission’s request or on the basis of a
decision by the Commission.
Latvia must yearly submit a report to the Commission on the implementation of the State aid measures indicating the aid forms and amounts per (sub)sector.
Table
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2. Milk quota
The milk quota should be set in accordance with the following:
quota – 2004: 695.395 tonnes
deliveries: 468.943 tonnes
direct sales: 226.452 tonnes
reserve 2006: 33.253 tonnes
A special reserve should be established for Latvia. This reserve would be released as from the beginning of the quota year 2006/07 (1.4.2006) to the extent that the on-farm
consumption of milk and milk products in Latvia has decreased since 1998.
The decision on releasing the reserve and of its distribution to the deliveries and direct sales quota will be taken by the Commission under the management committee procedure
on the basis of an assessment of a report to be submitted by Latvia to the Commission by the 31.12.2005. This report should detail the results and trends of the actual
restructuring process in the country’s dairy sector and, in particular the shift from production for on-farm consumption to production for the market.
The following representative fat contents (Article 11 in Regulation (EEC) No 3950/92) and date for establishing the individual reference quantity (Article 4(1) in Regulation
(EEC) 3950/92 should apply:
Representative fat content:
LV
4.07%
Individual reference quantity:
LV
31.03.2004
3. Fat content in drinking milk
By way of derogation from Article 3(1)(b) and (c) of Regulation (EC) No 2597/97, the requirements relating to the fat content of drinking milk (whole milk and semi-skimmed milk)
shall not apply to drinking milk produced in Latvia for a period of five years from the date of accession. Drinking milk which does not comply with the requirements relating to fat
content may be marketed only in Latvia or exported to a third country.
4. Quality requirements for seed
Latvia may postpone for a period of five years following the date of accession the application of Directives 2002/53/EC and 2002/55/EC with regard to the marketing in its territory
of seeds of varieties listed in its respective national catalogues of varieties of agricultural plant species and varieties of vegetable plant species which have not been officially accepted in
accordance with the provisions of those Directives. During that period, such seeds shall not be marketed in the territory of other Member States.
BUDGETARY ESTIMATES
LATVIA
1999 prices, € millions
2003
pre-accession aid
2004
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
cash flow lump-sum
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2004 after budgetary compensation
2005
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2005 after budgetary compensation
86
116
151
17
29
398
-11
-13
-73
-10
-106
292
-
292
-
195
99
42
66
10
28
19
264
-7
-8
-48
-6
-69
195
84
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2006
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2006 after budgetary compensation
52
156
189
22
28
447
-11
-14
-75
-10
-109
338
-
338
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and
payment
appropriations -Accession 1 May 2004; Negotiation Package 10 December.
in € millions, 1999
prices
LATVIA
Appropriations for Commitments
2004
2005
2006
2004-2006
1. Agriculture.
1a - Common Agricultural Policy
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash-flow lump sum
Budgetary Compensation
Total Appropriations for Commitments
Appropriations for Payments
10,6
23,7
61,1
484,0
19,5
0,0
503,4
6,4
23,7
58,0
550,3
0,0
0,0
550,3
3,2
23,7
55,9
578,0
0,0
0,0
578,0
20,2
71,1
175,1
1.612,3
19,5
0,0
1.631,8
26,8
27,9
29,0
83,8
324,5
347,9
363,5
1.035,9
150,9
173,6
207,8
140,1
216,1
147,4
574,8
461,1
8,9
0,0
8,9
89,4
98,3
21,6
25,2
46,7
97,7
144,4
23,6
31,1
54,7
103,9
158,6
54,1
56,3
110,3
291,0
401,4
1. Agriculture.
1a - Politique agricole commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash flow lump sum
Budgetary Compensation
Total Appropriations for Payments
3,8
23,7
37,2
145,5
19,5
0,0
165,0
4,9
23,7
45,2
312,5
0,0
0,0
312,5
4,8
23,7
50,9
395,2
0,0
0,0
395,2
13,5
71,1
133,3
853,2
19,5
0,0
872,7
9,7
16,6
22,4
48,7
66,2
151,3
188,6
406,1
62,7
3,5
111,4
39,9
118,6
70,0
292,7
113,4
8,9
0,0
8,9
33,2
42,1
21,6
25,2
46,7
69,3
116,0
23,6
31,1
54,7
101,0
155,7
54,1
56,3
110,3
203,5
313,8
LITHUANIA
AGRICULTURE (only issues where EU offers go beyond EUCP)
Issue
Direct Payments
Top-ups
Presidency proposal
Phasing-in schedule maintained.
In 2004-2006, Lithuania has the possibility to top up EU direct payments to
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• either 45% of EU level in the years 2004, 50% in 2005 and 55% in
2006. From 2007 Lithuania may top-up EU direct payments by 20
percentage points above the applicable phasing-in level in the relevant
year;
• or to the total level of direct support the farmer would have been
entitled to receive, on a product by product basis, in LT prior to accession
(2002) under a like national scheme increased by 10 percentage points;
but in no case higher than 100% of EU-15 level of direct payments.
In 2004-2006 the topping-up up to 40% of the EU level can be financed
partly from EAGGF guarantee rural development allocation under the
following conditions:
• a maximum 20% of the commitment appropriations available in this
envelope for each year 2004, 2005 and 2006 or 25% in 2004, 20% in
2005 and 15% in 2006 can be used for topping-up. Any further
topping-up can only be financed from national budgets.
• application of relevant maximum EU co-financing rate (80% in
objective 1 regions)
See appendix.
Sugar quota
Reference yield
Base area
Milk Quota
103,000 t (EUCP)
2.7 t/ha.
1,146,633 ha
Basic quota:1,646,939 t
2006 restructuring reserve:57,900 t
Total quota:1,704,839 t.,
see appendix
Potato starch
Suckler
premium
Fibres
Cow
1,211 t
47,232
3 year TP on the eligibility criteria for suckler cows. See appendix.
2,263 t long
3,463 t short
BUDGETARY ISSUES
Issue
Advance payments
Real payments
Results of Final Negotiations
Split of 16% into 10% for 2004 and 6% for 2005 as regards structural funds.
Reduction from:
- 3% to 2% for 2004 as regards structural and cohesion funds;
- 35% to 23.3% for 2004 as regards rural development.
Schengen facility
Special
cash-flow
facility of € 1 bn
OTHERS
Issue
Purchase of Land
Ignalina
Kaliningrad
Results of Final Negotiations
Up to 7 year TP plus 3 year safeguard clause, managed by COM and based
on serious disturbances in land market. See appendix.
Protocol on Ignalina with €285m for 2004-2006 and outlook for an
appropriate level for beyond 2006. See appendix.
Protocol, declaration and Council Conclusions (including financial
assistance). See appendix.
€137m to be disbursed at the rate of 33% in 2004, 45% in 2005 and 22% in
2006.
Lump sum of € 35m in 2004.
Proposed text to be added to the EUCP – Chapter 4
Lithuania (CONF-LT 20/01).
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The EU stresses that the completion of the internal market is a key element of the
acquis
and that full alignment with the
acquis
in this field by the earliest possible date is
therefore highly desirable. However, in view of the information provided by Lithuania, the EU can accept a transitional period of seven years during which Lithuania may
continue to apply its national legislation with regard to the acquisition of agricultural land and forests by EU nationals and EU legal persons.
The EU notes that companies established or registered in Lithuania, even when partly or fully owned by EU shareholders, and local branches or agencies in Lithuania of EU
companies, are not considered by Lithuania as EU companies and that these shall not be covered by the transitional period. In no instance may EU citizens, in respect of
acquisition of agricultural land and forests, receive a less favourable treatment than at the time of signature of the Accession Treaty nor be treated in a more restrictive way than
a national from a third country.
A general review of the transitional period shall be held in the third year of the transitional period. To that aim, the Commission shall report in due time to the Council. The
Council may, acting unanimously on a proposal from the Commission, decide to shorten or lift the transitional period.
EU nationals who wish to establish themselves as self-employed farmers and reside in Lithuania, and who have been legally resident and active in farming in Lithuania for at
least three years continuously, shall be excluded from the scope of the transitional period and shall not be subject to any procedures other than those applied to nationals of
Lithuania. The EU notes that constitutional or legal provisions presently preventing EU nationals from acquiring real estate in Lithuania will be abolished by the date of
accession at the latest.
If there is sufficient evidence that, upon expiry of the transitional period, there will be serious disturbances or a threat of serious disturbances on the agricultural land market of
Lithuania, the Commission, at the request of Lithuania, shall decide upon the extension of the transitional period for up to a maximum of three years.
For the Act of Accession
Protocol No X
on the Ignalina Nuclear Power Plant in Lithuania
THE HIGH CONTRACTING PARTIES,
Declaring the Union’s willingness to continue to provide adequate additional Community assistance to Lithuania's decommissioning effort also after Lithuania's accession to the
European Union for the period until 2006 and beyond and noting that Lithuania, bearing in mind this expression of Union solidarity, has committed to close Unit 1 of the
Ignalina Nuclear Power Plant before 2005 and Unit 2 by 2009,
Recognising that the decommissioning of the Ignalina Nuclear Power Plant with two 1500 MW RBMK-type reactor units inherited from the former Soviet Union is of
unprecedented nature and represents for Lithuania an exceptional financial burden not commensurate with the size and economic strength of the country and that this
decommissioning will continue beyond the Community's current Financial Perspectives,
Noting the need to adopt implementing provisions for the additional Community assistance to address the consequences of the closure and the decommissioning of the Ignalina
Nuclear Power Plant,
Noting that Lithuania will pay due attention to the needs of the regions most affected by the closure of the Ignalina Nuclear Power Plant in its use of Community assistance,
Declaring that certain measures that will be supported through public aids shall be considered as compatible with the internal market, such as the decommissioning of the
Ignalina Nuclear Power Plant, and the environmental upgrading in line with the acquis and modernisation of conventional electricity production capacity needed to replace the
two Ignalina Nuclear Power Plant reactors after their closure,
HAVE AGREED AS FOLLOWS:
Article 1
Acknowledging the readiness of the Union to provide adequate additional Community assistance to the efforts by Lithuania to decommission the Ignalina Nuclear Power Plant
and highlighting this expression of solidarity, Lithuania commits to the closure of Unit 1 of the Ignalina Nuclear Power Plant before 2005 and of Unit 2 of this plant by 31
December 2009 at the latest and to the subsequent decommissioning of these units.
Article 2
1. During the period 2004-2006, the Community shall provide Lithuania with additional financial assistance in support of its efforts to decommission and to address the
consequences of the closure and decommissioning of the Ignalina Nuclear Power Plant (hereinafter 'the Ignalina Programme').
2. Measures under the Ignalina Programme shall be decided and implemented in accordance with the provisions laid down in Regulation (EEC) No 3906/89 of 18 December
1989 on economic aid to certain countries of Central and Eastern Europe, as last amended by Regulation (EC) No 2500/2001.
3. The Ignalina Programme shall, inter alia, cover: measures in support of the decommissioning of the Ignalina Nuclear Power Plant; measures for the environmental upgrading
in line with the acquis and modernisation measures of conventional production capacity to replace the production capacity of the two Ignalina Nuclear Power Plant reactors; and
other measures which are consequential to the decision to close and decommission this plant and which contribute to the necessary restructuring, environmental upgrading and
modernisation of the energy production, transmission and distribution sectors in Lithuania as well as to enhancing the security of energy supply and improving energy efficiency
in Lithuania.
4. The Ignalina Programme shall include measures to support plant personnel in maintaining a high level of operational safety at the Ignalina Nuclear Power Plant in the periods
prior to the closure and during the decommissioning of the said reactor units.
5. For the period 2004 - 2006 the Ignalina Programme shall amount to € 285 million in commitment appropriations, to be committed in equal annual tranches.
6. The contribution under the Ignalina Programme may, for certain measures, amount to up to 100% of the total expenditure. Every effort should be made to continue the co-
financing practice established under the pre-accession assistance for Lithuania's decommissioning effort as well as to attract co-financing from other sources, as appropriate.
7. The assistance under the Ignalina Programme, or parts thereof, may be made available as a Community contribution to the Ignalina International Decommissioning Support
Fund, managed by the European Bank for Reconstruction and Development.
8. Public aid from national, Community and international sources:
-for the environmental upgrading in line with the acquis and modernisation measures of the Lithuanian Thermal Power Plant in Elektrenai as the key replacement
for the production capacity of the two Ignalina Nuclear Power Plant reactors; and
-for the decommissioning of the Ignalina Nuclear Power Plant
shall be compatible with the internal market as defined in the EC Treaty.
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9. Public aid from national, Community and international sources in support of Lithuania's efforts to address the consequences of the closure and of the decommissioning of
Ignalina Nuclear Power Plant may, on a case by case basis, be considered to be compatible - under the EC Treaty- with the internal market, in particular public aid provided for
enhancing the security of energy supply.
Article 3
1. Recognising that the decommissioning of the Ignalina Nuclear Power Plant is of a long-term nature and represents for Lithuania an exceptional financial burden not
commensurate with its size and economic strength, the Union shall, in solidarity with Lithuania, provide adequate additional Community assistance to the decommissioning
effort beyond 2006.
2. The Ignalina Programme will be, for this purpose, seamlessly continued and extended beyond 2006. Implementing provisions for the extended Ignalina Programme shall be
decided in accordance with the procedure laid down in Article [38] of the Act of Accession and enter into force, at the latest, by the date of expiry of the current Financial
Perspectives.
3. The Ignalina Programme, as extended in accordance with the provisions of article 3 (2), shall be based on the same elements and principles as described in Article 2.
4. For the period of the next Financial Perspectives, the overall average appropriations under the extended Ignalina Programme shall be appropriate. of a comparable level to the
average amounts committed for each of the years 2004-2006. Programming of these resources will be based on actual payment needs and absorption capacity.
Article 4
Without any prejudice to the provisions of article 1, the general safeguard clause referred to in article [x] shall apply until 31 December 2012 if energy supply is disrupted in
Lithuania.
Draft Declaration of the EU on the transit of persons by land between the region of Kaliningrad and other parts of the Russian Federation
annexed to the Accession Treaty
"The Community shall assist Lithuania in fulfilling the conditions for full participation in the Schengen
acquis
as soon as possible in order to secure that Lithuania will be included in
the first group of new Member States to participate fully in the Schengen acquis. Full participation will depend on an objective evaluation that all necessary conditions are fulfilled
according to the Schengen acquis."
COUNCIL CONCLUSIONS
adopted on 10 December 2002
"Given the need to ensure that the new arrangement based on the Schengen
acquis
on the Facilitated Transit Document (FTD) and the Facilitated Rail Transit Document (FRTD) can
be covered by the guarantees provided for through the Protocol on the transit of persons by land between the region of Kaliningrad and other parts of the Russian Federation to be
annexed to the Treaty on Accession, the Council commits itself to take all necessary steps with a view to adoption of the new arrangement on the FTD and FRTD before the
signature of the Accession Treaty. As was the case for the overall agreement on Kaliningrad, this new arrangement based on the Schengen
acquis
shall be developped and decided in
close consultation with Lithuania.
The Council confirms that the Union is ready to provide financial assistance to Lithuania to cover the additional costs of implementing the measures concerning Lithuania foreseen in
the EU-Russia joint statement of 11 November 2002. It invites the Commission before the end of the year to establish these additional costs in consultation with Lithuania and take
the necessary steps with the aim of mobilising funding from early 2003. The estimated costs for 2003 based on present information amount to € 9 mio."
Draft Protocol on the transit of persons by land between the region of Kaliningrad and other parts of the Russian Federation
(to be dealt with under Chapter 31 Lithuania) annexed to the Accession Treaty
"THE HIGH CONTRACTING PARTIES,
CONSIDERING the particular situation of the region of Kaliningrad of the Russian Federation in the context of the Union’s enlargement,
RECOGNIZING the obligations and commitments of Lithuania with regard to the
acquis
establishing an area of freedom, security and justice,
NOTING, in particular, that Lithuania shall fully apply and implement the EC
acquis
regarding the list of countries whose nationals must be in possession of visas when crossing the
external borders and those whose nationals are exempt from that requirement as well the EC
acquis
regarding the uniform format for a visa as from accession at latest,
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RECOGNISING that the transit of persons by land between the region of Kaliningrad and other parts of the Russian Federation through EU territory is a matter concerning the
Union as a whole and should be treated as such and must not entail any unfavourable consequence for Lithuania,
CONSIDERING the decision to be taken by the Council to remove controls at internal borders after it has verified that the necessary conditions to that effect have been met,
DETERMINED to assist Lithuania in fulfilling the conditions for full participation in the Schengen area without internal frontiers as soon as possible,
HAVE AGREED on the following provisions:
Article 1
The Community rules and arrangements on transit of persons by land between the region of Kaliningrad and other parts of the Russian Federation, and in particular Council
Regulation [number
to be inserted after adoption]
shall not in themselves delay or prevent the full participation of Lithuania in the Schengen acquis, including the removal of internal border
controls.
Article 2
The Community shall assist Lithuania in implementing the rules and arrangements for the transit of persons between the region of Kaliningrad and the other parts of the Russian
Federation with a view of its full participation in the Schengen area as soon as possible.
The Community shall assist Lithuania in managing the transit of persons between the region of Kaliningrad and the other parts of the Russian Federation and shall, notably, bear any
additional costs incurred by implementing the specific provisions of the acquis provided for such transit.
Article 3
Without prejudice to the sovereign rights of Lithuania, any further decision concerning the transit of persons between the region of Kaliningrad and other parts of the Russian
Federation will be only adopted after the accession of Lithuania by the Council acting unanimously on a proposal by the Commission.
Final package – appendix: Agriculture – Lithuania
1. Complementary national direct payments
1. Lithuania should be given the possibility, subject to authorisation by the Commission, to complement direct aid paid to a farmer under any CAP scheme listed in the
annex to Regulation (EC) No 1259/1999 up to:
either
• 45% of EU level in the years 2004, 50% in 2005 and 55% in 2006. From 2007 Lithuania may top-up EU direct payments by 20 percentage points above the applicable
phasing-in level in the relevant year.
or
• to the total level of direct support the farmer would have been entitled to receive, on a product by product basis, in Lithuania prior to accession (2002) under a like
national scheme increased by 10 percentage points.
However, the total direct support the farmer could be granted after accession in Lithuania under the relevant EU scheme including all complementary national direct
payments should in no case exceed the level of direct support he would be entitled to receive under that scheme in the existing EU.
2. The option to grant national aid complements should also be available if Lithuania chose to apply the simplified scheme.
The total amount per sector of complementary national aids that could be granted in a given year after accession when applying the simplified scheme, should be limited
by a specific financial envelope per sector. This specific financial envelope would be equal to the difference between
•
the total amount of support per sector resulting from the calculation method described above under either option 1 or 2 and
•
the total amount of direct support available for Lithuania for the same sectors in the year concerned under the simplified scheme.
3. Lithuania should have the right to decide, on the basis of objective criteria and subject to authorisation by the Commission, on the amounts of complementary national
aid to be granted. The authorisations by the Commission should:
if based on 2003 level, specify the relevant national CAP like direct payment schemes
•
define the level up to which the complementary national aids can be paid, the rate of the complementary national aids and, where appropriate, the conditions for the
granting thereof,
•
be granted subject to any adjustments which may be rendered necessary by developments in the common agricultural policy.
Both under the EU standard scheme and the simplified scheme there should be no complementary national payments and aids for agricultural activities covered by a
common market organisation but not directly supported under the CAP (annex to Regulation (EC) No 1259/1999).
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A national direct payment scheme applicable prior to accession should be considered as a CAP like scheme if the national direct support available was granted to farmers in
respect of a production covered by one of the EU direct payment schemes listed in the annex to Regulation (EC) No 1259/1999.
4. During the years 2004-2006 the complementary national aid up to 40% of the EU level can be financed by the national rural development allocation under EAGGF
guarantee, thus from heading 1b. However, the amount available for this purpose shall not exceed 20% of the commitment appropriations available in each of the years 2004,
2005 and 2006 or 25% in 2004, 20% in 2005 and 15% in 2006. Furthermore, the relevant maximum EU co-financing rates shall apply (80% in objective 1 regions). The national
co-financing arrangements will be part of the normal rural development programming process. The financing from rural development under EAGGF guarantee shall function
according to the normal rules.
5. The arrangement set out under paragraph 4 above is a temporary and sui generis solution and does not constitute a precedent.
From 2007 all national complementary direct payments will be financed from the national budget.
2. Milk quota
The milk quota should be set in accordance with the following:
quota – 2004: 1.646.939 tonnes
deliveries: 1.256.440 tonnes
direct sales: 390.499 tonnes
reserve 2006: 57.900 tonnes
A special reserve should be established for Lithuania. This reserve would be released as from the beginning of the quota year 2006/07 (1.4.2006) to the extent that the on-farm
consumption of milk and milk products in Lithuania has decreased since 2000.
The decision on releasing the reserve and of its distribution to the deliveries and direct sales quota will be taken by the Commission under the management committee procedure
on the basis of an assessment of a report to be submitted by Lithuania to the Commission by the 31.12.2005. This report should detail the results and trends of the actual
restructuring process in the country’s dairy sector and, in particular the shift from production for on-farm consumption to production for the market.
The following representative fat contents (Article 11 in Regulation (EEC) No 3950/92) and date for establishing the individual reference quantity (Article 4(1) in Regulation
(EEC) 3950/92 should apply:
Representative fat content:
3,99%
Individual reference quantity:
31.03.2003
3. Eligibility criteria for suckler cows
For the years 2004 to 2006, Lithuania may, by way of derogation from Article 3 (f) of Regulation (EC) No 1254/1999, consider cows of the breeds listed in Annex I to
Regulation (EC) No 2342/1999, as eligible for the suckler cow premium as provided for in Subsection 3 of Regulation (EC) No 1254/1999, provided that they have been
covered or inseminated by bulls of a meat breed.
BUDGETARY ESTIMATES
LITHUANIA
1999 prices, € millions
2003
pre-accession aid
2004
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
cash flow lump-sum
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2004 after budgetary compensation
2005
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
110
228
203
18
109
668
-33
-22
-118
-16
-189
127
73
94
11
84
35
423
-22
-14
-78
-10
-124
299
-
299
115
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1461064_0050.png
Net balance before budgetary compensation
Budgetary compensation
Net balance 2005 after budgetary compensation
2006
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total allocated expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before budgetary compensation
Budgetary compensation
Net balance 2006 after budgetary compensation
-
479
-
479
66
294
248
25
127
759
-33
-22
-122
-17
-194
565
565
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and
payment
appropriations -Accession 1 May 2004; Negotiation Package 10 December.
in € millions, 1999
prices
LITHUANIA
Appropriations for Commitments
2004
2005
2006
2004-2006
1. Agriculture.
1a - Common Agricultural Policy
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash-flow lump sum
Budgetary Compensation
Total Appropriations for Commitments
Appropriations for Payments
29,5
95,0
13,5
45,2
183,3
729,8
34,8
0,0
764,6
30,7
95,0
8,1
45,2
179,1
885,6
0,0
0,0
885,6
32,0
95,0
4,1
45,2
176,3
1.014,0
0,0
0,0
1.014,0
25,7
135,7
538,7
2.629,5
34,8
0,0
2.664,3
92,2
389,9
436,5
539,6
1.366,0
200,5
189,4
280,5
156,0
341,5
198,1
822,5
543,5
23,2
0,0
23,2
133,4
156,6
56,1
68,2
124,3
145,7
270,0
59,2
83,8
143,1
155,1
298,1
138,6
152,1
290,6
434,2
724,8
1. Agriculture.
1a - Politique agricole commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
sub-total
Cash flow lump sum
Budgetary Compensation
Total Appropriations for Payments
10,6
34,2
4,9
45,2
95,0
261,4
34,8
0,0
296,2
18,3
57,5
6,2
45,2
127,3
558,1
0,0
0,0
558,1
24,7
75,7
6,1
45,2
151,8
693,5
0,0
0,0
693,5
17,2
135,7
374,0
1.513,0
34,8
0,0
1.547,8
53,6
93,6
203,3
248,0
544,9
89,8
3,8
159,6
43,7
169,9
78,1
419,3
125,6
23,2
0,0
23,2
49,6
72,8
56,1
68,2
124,3
103,3
227,6
59,2
83,8
143,1
150,6
293,7
138,6
152,1
290,6
303,5
594,1
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1461064_0051.png
ANNEXES
ANNEX
I
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and payment appropriations
From Commission information note of 30/01/2002 and Brussels European Council of 25/10/2002- in euro million, 1999 prices
- Accession 1st of May NEGOTIATION PACKAGE 10 DECEMBER
Year 2004
Appropriations
Commitments
1. Agriculture.
1a - Common Agricultural
Policy
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural
capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Shengen
Total Heading 3
5. Administration
Total
Appropriations
for 74,4 1.017,3 279,4 1.207,0 4.855,6 282,8 729,8 484,0 673,4 35,6
Commitments (Heading 1, 2
and 3)
1,3
0,0
15,8
19,6
7,2
25,2
49,3
190,9
103,7
0,0 22,9
141,8 44,5
14,5
122,2 14,4
116,4
428,9 33,7 29,5 26,8 53,5
95,0
30,0
0,5
0,0
6,7
5,5 13,5 10,6 12,9
6,2
846
125
200
250
0,0 1.421,1 1.176
503
503
8 10.151 10.794
851
125
200
33,5
682,5 180,3
788,3 3.354,2 116,4 389,9 324,5 435,9 20,9
8
actions
after
17,1
16,5
396,3 85,8
286,2 94,5
448,1 2.076,6 58,7 200,5 150,9 261,5 14,2
340,2 1.277,6 57,7 189,4 173,6 174,4
6,7
8
3.718 4.167
2.617 2.884
0
16
6.335 7.067
4,9
0,0
4,9
20,3
25,1
45,0 13,6
0,0
0,0
45,0 13,6
147,9 41,0
193,0 54,6
63,6
0,0
63,6
164,2
227,8
130,2 14,9 23,2
0,0
0,0
0,0
130,2 14,9 23,2
8,9 16,9
0,0
0,0
8,9 16,9
0,7
0,0
0,7
7,3
8,0
0
322
0
322
516
0
516
for CY
CZ
EE
HU
PL
SI
LT
LV
SK
MT
not
Total Info
allocated
Note
781,2 76,7 133,4 89,4 108,2
911,4 91,6 156,6 98,3 125,2
1.570 1.532
1.892 2.048
57,4 35,6 45,2 23,7 15,9
590,0 74,8 183,3 61,1 112,3
Appropriations for Payments
1. Agriculture.
1a
-
Politique
commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural
capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
5. Administration
actions
after
agricole
CY
CZ
EE
HU
PL
SI
LT
LV
SK
MT
not
Total Info
allocated
Note
4,9
0,0
4,9
7,5
45,0
0,0
45,0
55,0
13,6
0,0
13,6
15,3
63,6
0,0
63,6
61,0
130,2
0,0
130,2
290,5
420,7
14,9
0,0
14,9
28,5
43,4
23,2
0,0
23,2
49,6
72,8
8,9
0,0
8,9
33,2
42,1
16,9
0,0
16,9
40,2
57,2
0,7
0,0
0,7
2,7
3,4
0
322
0
322
584
516
0
516
748
12,4 100,1
28,8 124,7
906 1.264
5,7 173,7
0,3
5,7
37,3 202,4
1,9
6,8
943,1
25,6
968,6
154,4
37,3
57,4
249,1
25,9
1,2
27,0
12,1
2,0
35,6
49,7
89,8
3,8
93,6
10,6
34,2
4,9
45,2
95,0
62,7 114,7
3,5
3,5
6,5
0,1
6,6
2,2
0,2
0,0
2,4
12,4
4 1.666 2.105
52 1.298
0
13
4 1.718 3.416
305
34
72
250
0,0 660,9
503
503
503
340
83
80
6,1 179,4
5,2
0,5
0,0
5,7
44,0
7,1
0,0
51,0
39,2 209,2
5,2
2,6
22,9
41,9
9,1
49,3
66,2 118,2
9,7
3,8
23,7
37,2
19,2
0,0
4,6
15,9
39,8
30,7 100,2
Total
Appropriations
for 24,2 330,5
Payments (Heading 1, 2 and 3)
98,7 434,1 1.638,4 120,1 261,4 145,5 215,2
4 3.788 5.687
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1461064_0052.png
(1) : 8 mio € of technical assistance is not allocated.
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and payment appropriations
from Commission information note of 30/01/2002 and Brussels European Council of 25/10/2002- in euro million, 1999
prices
- Accession 1st of May NEGOTIATION PACKAGE 10 DECEMBER
Year 2005
Appropriations
Commitments
1. Agriculture.
1a - Politique
commune
Market measures
Compensatory direct aids
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after
capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Shengen
Total Heading 3
5. Administration
Total
Appropriations
for 90,2 1.345,6 328,1 1.681,3 6.261,3 349,8 885,7 550,3 843,9 41,9
Commitments (Heading 1, 2
and 3)
0,8
0,0
15,8
11,8
4,3
15,1
49,3
185,6
62,2
3,3
0,0 22,9
139,0 42,2
15,0
127,2 15,0
121,2
446,5 35,0 30,7 27,9 55,7 6,4
95,0
8,1
6,4
30,0
7,7 0,3
881
125
120
250
0,0 1.375,9 1.096
558
558
13 12.949 13.399
886
90
120
31,1
767,1 190,4
899,6 3.941,7 126,8 436,5 347,9 495,1 25,3
13
17,6
13,6
531,5 112,6
235,6 77,8
619,5 2.889,8 79,3 280,5 207,8 351,5 19,8
280,1 1.051,9 47,5 156,0 140,1 143,6 5,5
13
5.123 5.751
2.152 2.371
0
27
7.275 8.150
agricole
11,8
9,3
21,0
22,2
43,2
109,0 33,4
168,9 17,3
277,9 50,7
161,6 44,8
439,6 95,5
151,9
264,9
416,8
179,4
342,8 38,3 56,1 21,6 48,1 1,7
557,1 26,8 68,2 25,1 73,0 0,1
899,8 65,2 124,3 46,7 121,2 1,9
853,6 83,9 145,7 97,7 118,3 8,0
0
815
749
for CY
CZ
EE
HU
PL
SI
LT
LV
SK
MT
Not
Totaux Info
allocated
Note
1.211 1.173
2.025 1.922
1.715 1.674
3.741 3.596
596,2 1.753,4 149,0 270,0 144,4 239,4 9,9
57,4 35,6 45,2 23,7 15,9 0,0
566,1 74,0 179,1 58,0 109,3 6,7
Appropriations for Payments
1. Agriculture.
1a
-
Politique
commune
Market measures
Compensatory direct aids
Total 1a
1b - Rural development
Total Heading 1
2. Structural
capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
5. Administration
actions
after
agricole
CY
CZ
EE
HU
PL
SI
LT
LV
SK
MT
not
Total Info
allocated
Note
11,8 109,0
9,3 168,9
21,0 277,9
15,7 114,6
36,7 392,5
33,4
17,3
50,7
31,8
82,5
151,9
264,9
416,8
127,2
342,8
557,1
899,8
605,1
38,3
26,8
56,1
68,2
21,6
25,1
69,3
48,1
73,0
83,8
1,7
0,1
1,9
5,7
7,5
815
749
1.211 1.173
2.025 1.922
1.216 1.186
0 3.241 3.109
65,2 124,3
59,4 103,3
46,7 121,2
543,9 1.504,9 124,6 227,6 116,0 205,0
10,2 308,7
3,8
66,0
66,3
21,8
88,1
8,9
3,3
22,9
35,1
359,6 1.675,8
78,4
294,6
45,9 159,6 111,4 203,8
13,3
43,7
39,9
40,2
11,5
1,5
13,0
3,8
0,2
0,0
4,1
24,6
7 2.960 4.412
603 1.632
0
25
7 3.563 6.068
524
87
92
250
0,0 954,2
558
758
558
588
67
103
14,0 374,7
9,0
0,6
0,0
9,6
75,8
9,0
0,0
84,8
438,0 1.970,4
72,2
11,6
49,3
133,0
265,9
47,8
57,4
371,1
59,2 203,3 151,3 244,0
20,9
2,5
35,6
18,3
57,5
6,2
45,2
4,9
23,7
45,2
16,6
33,1
30,0
5,9
15,9
85,0
59,0 127,3
Total
Appropriations
for 60,3 852,0 205,7 1.115,0 3.846,4 242,9 558,1 312,5 534,0
Payments (Heading 1, 2 and
3)
(1) : 13 mio € of technical assistance is not allocated.
7 8.317 10.493
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and payment appropriations
from Commission information note of 30/01/2002 and Brussels European Council of 25/10/2002- in euro million, 1999
prices
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1461064_0053.png
- Accession 1st of May NEGOTIATION PACKAGE 10 DECEMBER
Year 2006
Appropriations
Commitments
1. Agriculture.
1a - Politique
commune
Market measures
Compensatory direct aids
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after
capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Shengen
Total Heading 3
5. Administration
Total Appropriations for 98,9 1.603,5 391,4 2.000,9 7.574,9 396,7 1.014,0 578,0 999,8 49,8
Commitments (Heading 1,
2 and 3)
0,4
0,0
16,0
5,9
2,1
7,6
49,3
182,8
31,1
1,6
0,0 22,9
138,1 40,6
57,4 35,6
552,6 73,7
15,6
132,2 15,6
126,0
464,1 36,4
32,0 29,0 57,9 6,7
95,0
4,1
3,2
30,0
3,9 0,1
916
125
60
250
0,0 1.350,6 1.071
612
612
17 15.337 15.966
921
90
60
36,2
977,9 247,0 1.159,3 5.072,7 162,2
539,6 363,5 629,0 32,5
17
18,1
18,1
663,4 143,2
314,5 103,8
785,5 3.668,9 98,8
373,8 1.403,8 63,4
341,5 216,1 437,3 25,1
198,1 147,4 191,7 7,4
17
6.415 7.195
2.822 3.111
0
44
9.237 10.350
agricole
11,5
11,2
22,8
23,9
46,7
111,0 34,4
204,5 21,7
315,5 56,1
172,0 47,7
487,5 103,8
152,0
315,9
190,8
366,5 38,8
674,9 32,8
908,2 89,2
59,2 23,6 49,2 1,7
83,8 31,1 88,1 0,3
143,1 54,7 137,3 1,9
155,1 103,9 125,8 8,5
298,1 158,6 263,1 10,5
0
848
734
for CY
CZ
EE
HU
PL
SI
LT
LV
SK
MT
not
Totaux Info
allocated
Note
1.464 1.418
2.312 2.152
1.825 1.781
4.137 3.933
467,9 1.041,4 71,6
658,8 1.949,6 160,8
45,2 23,7 15,9 0,0
176,3 55,9 107,7 6,8
Appropriations for Payments CY
1. Agriculture.
1a - Politique
commune
Market measures
Compensatory direct aids
Total 1a
1b - Rural development
Total Heading 1
2. Structural actions after
capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
5. Administration
0,6
0,0
12,7
12,1
17,7
10,9
6,8
agricole
11,5
11,2
22,8
23,0
45,8
CZ
EE
HU
PL
SI
LT
LV
SK
MT
not
Total Info
allocated
Note
111,0 34,4
204,5 21,7
315,5 56,1
167,1 46,3
482,5 102,4
152,0
315,9
185,4
366,5 38,8 59,2 23,6 49,2 1,7
674,9 32,8 83,8 31,1 88,1 0,3
882,2 86,6 150,6 101,0 122,2 8,3
0
848
734
1.464 1.418
2.312 2.152
1.773 1.730
4.085 3.882
467,9 1.041,4 71,6 143,1 54,7 137,3 1,9
653,3 1.923,6 158,2 293,7 155,7 259,5 10,2
328,7 70,6
118,5 39,1
447,2 109,7
102,3 12,0
8,8
3,2
382,9 1.784,6 48,9 169,9 118,6 217,0 12,2
140,8
528,8 23,9 78,1 70,0 72,2 2,8
8
3.152 4.266
1.081 2.198
0
40
523,8 2.313,4 72,8 248,0 188,6 289,2 15,0
97,5
11,3
49,3
158,0
359,0 28,2 24,7 22,4 44,8 5,2
75,7
46,4
2,5
6,1
4,8
30,0
5,8 0,2
8
4.233 6.504
708
106
89
250
693
74
76
843
612
0,0 22,9
111,0 38,2
57,4 35,6 45,2 23,7 15,9 0,0
462,8 66,3 151,8 50,9 96,5 5,4
0,0 1.153,4
612
Total
Appropriations
for 76,1 1.040,8 250,2 1.335,0 4.699,8 297,3 693,5 395,2 645,2 30,6
Payments (Heading 1, 2 and
3)
(1) : 16 mio € of technical assistance is not allocated.
8 10.084 11.841
Financial framework for enlargement 2004-2006 - Indicative allocation of Commitment and payment appropriations
from Commission information note of 30/01/2002 and Brussels European Council of 25/10/2002- in euro million, 1999
prices
- Accession 1st of May NEGOTIATION PACKAGE 10 DECEMBER
Years 2004 to 2006
Appropriations for
Commitments
1. Agriculture.
1a
-
Common
Agricultural Policy
CY
CZ
EE
HU
PL
SI
LT
LV
SK
MT
not
Total Info
allocated
Note
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1461064_0054.png
Market measures
Direct payments
Total 1a
28,19
20,49
48,68
265,1 81,4
373,4 39,0
638,5 120,3
481,5 133,6
367,5
839,5
92,0
59,7
151,6
249,8
401,4
138,6
152,1
290,6
434,2
724,8
54,1
56,2
110,3
291,0
401,4
114,3
161,1
275,4
4,1
0,4
4,5
0
0
0
0
0
1.985 1.999
2.675 2.591
4.660 4.590
5.110 4.987
9.770 9.577
580,8 1.232,0
948,4 2.071,4
534,4 2.543,0
1b
-
Rural
66,35
development
Total Heading 1
2.
Structural
actions
after
capping
Structural Fund
Cohesion Fund
Unification
Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Shengen
Total Heading 3
5. Administration
45,14
0,00
2,51
0,00
47,65
of
352,3 23,9
627,7 28,4
115,03 1.120,0 253,9 1.482,7 4.614,4
52,71 1.591,2 341,6 1.853,1 8.635,3
48,12
0,00
836,3 276,1
0,0
0,0
994,1 3.733,3
0,0
0,0
236,8
168,6
0,0
822,5
543,5
0,0
574,8 1.050,3 59,1
461,1
0,0
509,7 19,6
0,0
0,0
38 15.256 17.113
0
0
7.590 8.366
0
87
100,83 2.427,5 617,7 2.847,2 12.368,6
381,7 44,9
0,0
0,0
37,2 13,6
0,0 68,7
418,9 127,3
363,7 1.339,5
0,0
47,8
147,8
0,0
197,0
172,2
405,4 1.366,0 1.035,9 1.560,0 78,7
105,1
0,0
10,4
106,9
222,5
92,2
285,0
25,7
135,7
538,7
83,8
0,0
20,2
71,1
175,1
167,0 19,3
90,0
24,5
47,8
0,0
0,9
0,0
38 22.846 25.566
0
0
0
0
2.642 2.658
375
380
750
1.673,0
38 38.436 38.486
305
380
559,3 1.708,7
329,3 20,2
0,0 4.147,6 3.343
Total
263,51 3.966,4 998,9 4.889,2 18.691,8 1.029,2 2.629,5 1.612,3 2.517,0 127,3
Appropriations for
Commitments
(Heading 1, 2 and
3)
Appropriations
Payments
1. Agriculture.
for CY
CZ
EE
HU
PL
SI
LT
LV
SK
MT
not
Total Info
allocated
Note
1a - Politique agricole
commune
Market measures
Direct payments
Total 1a
1b - Rural development
Total Heading 1
2. Structural
after capping
Structural Fund
Cohesion Fund
Unification of Cyprus
Total Heading 2
3. Internal Policies
Existing policies
Nuclear safety
Institution building
Schengen
Total Heading 3
5. Administration
Total Appropriations for 160,6 2.223,3 554,6 2.884,2 10.184,6 660,3 1.513,0 853,2 1.394,3 67,6
Payments (Heading 1, 2
and 3)
(1) : 37 mio € of technical assistance is not allocated.
Note: in case of a political settlement for Cyprus an additional amount of 273 million euro in commitments and 127 million euro in payments should be foreseen for
the three years 2004/2005/2006
26,3
0,0
1,7
0,0
27,9
222,0 26,1
0,0
24,9
0,0
9,1
211,5
0,0
31,9
147,8
779,2 61,1
0,0
131,5
0,0
7,0
53,6 48,7
167,4
0,0
17,2 13,5
135,7 71,1
374,0 133,3
97,1 11,2
60,0 0,0
16,3 0,6
47,8 0,0
221,3 11,8
0
0
0
0
1.537 1.621
227
254
750
1.673,2
20 22.189 26.346
224
259
actions
26,8
10,9
0,0
811,1 174,1
190,2 62,8
0,0
0,0
944,9 4.403,5 120,7
226,1
0,0
849,0 38,3
0,0
0,0
419,3 292,7
125,6 113,4
0,0
0,0
544,9 406,1
535,4 30,1
115,9 4,4
0,0 0,0
651,3 34,6
20
0
0
20
7.778 10.783
1.737 5.128
0
78
9.515 15.988
28,2
20,5
48,7
46,3
95,0
265,1 81,4
373,4 39,0
638,5 120,3
336,6 93,4
367,5
839,5 92,0
138,6 54,1
152,1 56,2
290,6 110,3
303,5 203,5
594,1 313,8
114,3 4,1
161,1 0,4
275,4 4,5
246,3 16,7
521,7 21,2
0
0
0
0
0
1.985 1.999
2.675 2.591
4.660 4.590
3.572 3.664
8.232 8.254
580,8 1.232,0 59,7
948,4 2.071,4 151,6
373,6 1.777,8 174,6
975,1 213,7 1.321,9 3.849,2 326,2
37,7 1.001,3 236,9 1.171,0 5.252,4 159,1
0,0 68,7
246,9 104,0
172,2 106,9
391,3 1.083,0 175,0
0,0 2.768,5 2.104
NET BUDGETARY POSITIONS AFTER
ENLARGEMENT OF THE N-10
1999 prices
2003
ACCESSION
ON 1 MAY 2004
deflator:
own 1,0866
resources
+other
expenditure:
2004
1,1073
deflator: agriculture 1,0824 1,10408
+ structural funds:
NEGOTIATION
PACKAGE
10
December
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1461064_0055.png
2004 EU- 29,59% of
total
15 direct
expenditure
aids =
96.010
CY
2003
pre-accession
aid
2004
pre-accession
aid
agriculture
structural actions
internal actions
additional
expenditure
cashflow
sums
lump-
CZ EE
HU
PL
SI
LT LV
SK
MT TOTAL
16 170
55 197
844
45 115
84 123
11
1.661
11 181
12 100
6 179
5
0
44
7
67 235
29 125
39 209
5
25
42
58
970
421
969
154
95
443
51 127
43
27
12
38
52
73
94
11
84
35
99 120
42
10
28
19
57
19
21
63
7
3
7
2
0
12
32
1.869
906
1.714
305
356
998
6.148
66 118
28 175
16 155
total allocated
expenditure
trad.
resources
own
62 687 181 824 3.051 224 423 264 398
-27
-10
-8
-66
-74
-56
-8
-6
-5
-97
-61
-46
-123
-194
-148
-18
-22
-17
-22
-14
-10
-7
-8
-6
-33
-26
-20
-14
-4
-23
-3
-43
-415
-420
-2.406
-320
-3.560
VAT resource
GNP resource
UK rebate
total
own
resources
Net
balance
before
budgetary
compensation
Budgetary
compensation
Net
balance
after budgetary
compensation
-59 -425 -37 -349 -1.111 -129
-78 -48 -147
-104 -622 -56 -553 -1.576 -187 -124 -69 -225
-42
65 125 271 1.475
37 299 195 173
-11
2.588
69 125
-
-
-
30
-
-
-
38
262
27 190 125 271 1.475
67 299 195 173
26
2.849
2005
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total
allocated
expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before
budgetary
compensation
Budgetary
compensation
Net
balance
budgetary
compensation
after
6
37
14
9
1
153 57
392 82
375 88
76
9
9 26
199
823
43 110
86 102
2
8
4
0
1.581
3.241
3.556
524
430
9.332
544 1.505 125 228 116 205
438 1.970
72
61
266
105
21
18
17
29
33
52
59 203 151 244 13
38 109
66 1.005 263 1.314 4.669 286 668 398 636 27
-40 -105 -12 -150
-16 -117 -10
-12
-87
-8
-96
-71
-213 -29
-306 -35
-228 -26
-33
-22
-16
-11
-13
-10
-54 -21
-41
-30
-6
-5
-667
-662
-493
-90 -644 -56 -528 -1.682 -195 -118
-73 -223 -34 -3.642
-159 -953 -86 -845 -2.429 -285 -189 -106 -347 -66 -5.464
-92
52 177
470 2.240
0 479 292 289 -39
3.868
119
178
-
-
-
66
-
-
- 66
429
27
230 177
470 2.240
67 479 292 289 26
4.297
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2006
pre-accession aid
agriculture
structural actions
internal actions
additional expenditure
total
allocated
expenditure
trad. own resources
VAT resource
GNP resource
UK rebate
total own resources
Net balance before
budgetary
compensation
Budgetary
compensation
Net
balance
budgetary
compensation
after
1
46
18
12
1
98 35
483 102
447 110
102 12
9 26
124
509
27
66
52
64
0
976
4.085
4.225
708
445
653 1.924 158 294 156 260 10
524 2.313
97
61
359
104
73 248 189 289 15
28
25
22
28
45
52
5
0
38 127
77 1.138 286 1.459 5.209 324 759 447 709 31 10.439
-40 -105 -12 -150
-17 -121 -11
-13
-91
-8
-99
-74
-213 -29
-317 -37
-238 -28
-33
-22
-17
-11
-14
-10
-54 -21
-42
-31
-6
-5
-667
-687
-514
-92 -661 -57 -542 -1.727 -200 -122
-75 -229 -35 -3.740
-162 -978 -88 -866 -2.495 -293 -194 -109 -356 -67 -5.608
-85
160 198
594 2.713
31 565 338 353 -36
4.831
112
85
-
-
-
36
-
-
- 63
296
27
245 198
594 2.713
67 565 338 353 26
5.127
Note: in case of political settlement for Cyprus an additional amount of 127 million € in
payments should be foreseen for the three years 2004/2005/2006
NEGOTIATION PACKAGE WITH ACCESSION ON 1
MAY 2004
MARGIN AVAILABLE UNDER THE BERLIN CEILINGS FOR PAYMENTS
(Version 10 December)
SCENARIO
Berlin ceiling
Commission
Brussels
Information
European
Note 30
Council 24-25
January 2002 October 2002
Negotiation
package
Accession 1
May 2004
(version 10
Dec)
TOTAL PAYMENTS (all Headings) BEFORE RESIDUAL COMPENSATORY
MEASURES
2004
2005
2006
8.890
11.440
14.220
5.686
10.493
11.840
4.920
7.016
9.649
4.786
8.317
10.084
MARGIN UNDER THE BERLIN CEILING FOR PAYMENTS BEFORE
RESIDUAL COMPENSATORY MEASURES
2004
2005
2006
3.204
947
2.380
3.970
4.424
4.571
4.104
3.123
4.136
RESIDUAL COMPENSATORY MEASURES
2004
2005
2006
855
141
123
976
453
223
262
429
296
MARGIN UNDER THE BERLIN CEILING FOR PAYMENTS AFTER RESIDUAL
COMPENSATORY MEASURES
2004
2005
2006
2.349
806
2.257
2.994
3.971
4.348
3.842
2.694
3.840
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TOTAL MARGIN 2004-2006 UNDER BERLIN CEILING FOR PAYMENTS
5.412
11.313
10.376
Note: in case of a political settlement for Cyprus an additional amount of € 127
million in payments should be foreseen for the three years 2004/2005/2006
NEGOTIATION PACKAGE WITH ACCESSION ON 1
MAY 2004
MARGIN AVAILABLE UNDER THE BERLIN CEILINGS FOR COMMITMENTS
(Version 10 December)
SCENARIO
Berlin ceiling
Commission
Brussels
Information
European
Note 30
Council 24-25
January 2002 October 2002
Negotiation
package
Accession 1
May 2004
(version 10
Dec)
TOTAL
COMMITMENTS
(all
COMPENSATORY MEASURES
2004
2005
2006
11.610
14.200
16.780
Headings)
BEFORE
RESIDUAL
10.794
13.400
15.966
10.080
12.601
14.964
11.149
12.949
15.337
MARGIN UNDER THE BERLIN CEILING FOR COMMITMENTS BEFORE
RESIDUAL COMPENSATORY MEASURES
2004
2005
2006
816
800
814
1.530
1.599
1.816
461
1.251
1.443
RESIDUAL COMPENSATORY MEASURES
2004
2005
2006
855
141
123
976
453
223
262
429
296
MARGIN UNDER THE BERLIN CEILING FOR COMMITMENTS AFTER
RESIDUAL COMPENSATORY MEASURES
2004
2005
2006
-39
659
691
554
1.146
1.593
199
822
1.147
TOTAL MARGIN 2004-2006 UNDER BERLIN CEILING FOR COMMITMENTS
1.311
3.293
2.168
Note: in case of a political settlement for Cyprus an additional amount of € 273
million in commitments should be foreseen for the three years 2004/2005/2006
ANNEX II
Article
On the eligibility of the new Member States (list…) for expenditure under the first three Headings of the EU budget as defined in the Interinstitutional Agreement of 6 May 1999
• Save as otherwise provided for in this Treaty, no financial commitments shall be made under the following pre-accession funds (Phare, Phare CBC, instruments dedicated to
Cyprus and Malta, ISPA, Sapard) in favour of the new Member States after December, 31
st
, 2003. The new Member States shall receive the same treatment as the present
Member States as regards expenditure under the first three Headings of the EU budget, as defined in the Interinstitutional Agreement of May 6
th
, 1999, as from January 1
st
,
2004, subject to the individual specifications and exceptions below. However, no financial commitment under the 2004 budget for any programme or agency concerned may be
made before the accession of the relevant new Member State has taken place.
• Paragraph 1 of this Article shall not apply to expenditure under EAGGF Guarantee section according to Articles 2 (1), 2(2), and 3(3) of Council Regulation (EC)
No 1258/1999 on the financing of the common agricultural policy, which will become eligible for Community funding only from the date of accession, in accordance with
Article 2 of this Treaty.
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However, Paragraph 1 of this Article shall apply to expenditure under EAGGF Guarantee-funded rural development, according to Article 47a of Council Regulation (EC)
No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF), subject to the conditions set out in the
amendment of this Regulation in the Annex to Title I of Part IV of this Treaty.
• Article 52 § 4 of Council Regulation (EC) No 1260/99 of 21 June 1999 laying down general provisions on the Structural Funds is amended as follows
:
"Notwithstanding the date specified in Article 30(2), expenditure actually paid, in respect of which the Commission has received an application for assistance from a new
Member State before the date of accession and which fulfils all the conditions laid down in said Regulation, may be regarded as eligible for a contribution from the Funds
as of January 1
st
, 2004."
• The following paragraph 3bis is added to article 11 of the Cohesion Fund Regulation (EC) No 1164/94 of 16 May 1994:
:
"Expenditure within the meaning of Article 7 (1) shall be deemed eligible for assistance from the Fund only if incurred by the new beneficiary Member State after January
1
st
, 2004 and provided that all requirements of the Regulation have been fulfilled."
•
• As of January 1st 2004, the new Member States will participate in Community programmes and agencies according to the same terms and conditions as the present
Member States with funding from the General Budget of the EU. Therefore, the terms and conditions laid down in Association Council Decisions, Agreements and
Memoranda of Understanding between the European Communities and candidate countries regarding their participation in Community programmes and agencies are
superseded by the provisions governing the relevant programmes and agencies as of January 1
st
2004.
• Should any candidate country party to this Treaty not accede to the Community during 2004, any application made by or from the country concerned for funding by
expenditure under the first three Headings of the EU budget for 2004 shall be null and void, unless it is covered by a relevant Association Council Decision, Agreement or
Memorandum of Understanding. In this case the latter shall continue to apply in respect of that country throughout the entire year 2004.
• If any measures are necessary to facilitate the transition from the existing régime to that resulting from the application of this article, the Commission shall adopt the
required measures.
ANNEX III
Disbursement of funds to new Member States in 2004
• Background
The new Member States have expressed concern as regards receiving funds (disbursed) in the first year of accession. They fear that the delay of accession will mean that
no or only very small actual disbursements will be made in 2004. This note aims to explore, how much and under what conditions can be disbursed in 2004.
• The deferred date of accession makes it legally impossible to commit or pay any funds under the first three headings of the EU budget before 1
st
May, 2004. However, the
Commission has proposed that the new Member States will become fully eligible for such funds as of 1
st
January, 2004. This means, in effect, that all preparations (calls
for proposals, processing of applications, preparing of Commission Decisions) for Community funding under the 2004 budget can go ahead as if they were members fully
as of 1
st
January. Expenditure related to the Structural and Cohesion Funds incurred between January and May is eligible for funding retroactively, providing it fulfils all
the criteria of the relevant Regulations and is subsequently approved by the Commission.
• Structural Funds
Annex 1 to the conclusions of the Brussels Council of 24/25 October foresees a payment on account in the first year of 16% of the total contribution of the Structural
Funds over the period of 2004-2006. Furthermore, 3% average annual payment appropriations are foreseen. In the course of the negotiations the parameters have been
changed to 10% payment on account in the first year, followed by 6% in the second, with an annual average of 2% payment appropriations.
The pre-condition for disbursement of a payment on account is the adoption of the relevant programme by the Commission and fulfilment of the conditions of Article 5 of
Regulation 438, relating to management systems in place in the Member State. A great deal of the preparatory work in this respect is being done in the framework of the
pre-accession strategy. Furthermore, the Commission has established a road map for the preparation of Structural and Cohesion Funds; this foresees the presentation and
negotiation of the Single Programming Documents and the Community Support Framework in the course of 2003. Final programming documents are expected to be
available early in 2004. Interservice Consultation can be processed before accession, as a result of the new Member States’ eligibility for Community funds as of 1
st
January, 2004, and new Member States can, in principle start implementing projects, though without any legal guarantees regarding approval by the Commission.
However, consultation of the committees foreseen by the Regulation and formal Decision by the Commission cannot take place before accession. The plan is to have the
process finalised by end June 2004, thus paving the way for the
disbursement of the payment on account by July or August,
provided all conditions are fulfilled. A
declaration to this effect could be made.
Real payments for structural and cohesion funds will prove to be very difficulty in 2004.
•
• Rural development funds
The EU attaches great importance to the mobilisation of funds from the temporary guarantee rural development instrument at the earliest opportunity. To this end:
candidates will be able to submit their plans for Commission approval from 1 January 2004. This will be provided for in the act of accession:
• candidates will be able to start making commitments to beneficiaries from the date at which they submit their plan.
• expenditure (i.e. payments to beneficiaries) from 1 January 2004 onwards will be eligible for funding by the EU after accession on condition that it meets the criteria in the
approved
plan. This will be provided for in the act of accession
• an advance of 12.5% of the funds available under the temporary guarantee rural development instrument will be made to the new member states upon approval of their rural
development plans according to article 48 of Regulation (EC)445/2002.
The above timetable notwithstanding, the candidates are invited to submit their draft rural development plans to the Commission as soon as possible. This will allow informal
discussion of their contents in advance of 1 January 2004, with the aim of approving the plans officially as soon as possible after accession.
ANNEX IV
Subject: SCHENGEN/EXTERNAL BORDERS TEMPORARY FUND
• Introduction
This note outlines possible modalities for the creation of a temporary fund for Schengen acquis and external border control in the period 2004-2006.
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1461064_0059.png
• Purpose
The aim of the Fund is to help beneficiary Member States to finance actions at the new EU external borders for Schengen acquis and external border control
The new Member States will not be quite ready to join Schengen immediately upon accession, but they have been working for many years and have made
significant progress towards this goal. Basic physical infrastructure is expected to be largely in place by accession, though scope for upgrading remains. Further
preparatory work is required before internal borders can be lifted. The most costly remaining investments concern both hard and software to ensure
interconnectivity with the Schengen Information System (SIS 2), as well as operating equipment (eg. laboratory equipment, infrared scanners, forged document
detectors, possibly also high speed boats, surveillance helicopters, vehicles). Measures for staff training will be required to operate actual border controls, but also
in related fields such as combat of trafficking of human beings and drugs, organised crime, visas and migration, etc. as well as the judiciary and internal security in
the wider sense.
The eligibility criteria can be outlined as follows:
• investment in construction, renovation or upgrading of border crossing infrastructure and related buildings;
• investments in any kind of operating equipment (eg. laboratory equipment, detection tools, Schengen Information System-SIS 2 hardware and software, transport means);
• training of border guards;
• support to costs for logistics and operations.
1. Funding and allocations
It is proposed to allocate a total of € 750.3 million to the fund for the period 2004-2006. It will be allocated to beneficiary new Member States according to table 1
in the form of a lump sum grant payment.
1. Implementation modalities
Those new Member States, which will benefit from this fund, will be responsible for selecting and implementing individual operations in compliance with the financing
decision. They will also be responsible for co-ordinating use of the fund with assistance from other Community instruments, ensuring compatibility with Community
policies and measures and compliance with the Financial Regulation of the Communities.
The grant must be used within three years and any unused funds will be recovered by the Commission. The beneficiary new Member States will have to submit, no later
than 6 months after expiry of the three-year deadline, a comprehensive report on the financial execution of the grant with a statement justifying the expenditure.
1. Role of the Commission
The Commission retains the right of verification, through the Anti-Fraud Office (OLAF), and to carry out on-the-spot checks by Commission services and the Court of
Auditors, in accordance with the appropriate procedures.
Table 1
Total
2004-2006
Slovenia
Slovakia
Hungary
Poland
Lithuania
Latvia
Estonia
Czech Rep
Malta
Cyprus
Total
106,9
47,8
147,8
172,2
135,7
71,1
68,7
0,0
0,0
0,0
750,3
ANNEX V
Subject: Final package – institutions
• The issue
The attached proposal on Chapter 30 covers the following elements related to institutions:
• Transitional measures for 2004 on (a) the number of seats in the present election term of the European Parliament, (b) the Council voting system, and (c) the organisation of
the Commission
• European Parliament: number of seats in the 2004–2009 election term
• Council: new weighting of votes and qualified majority threshold
• Council Presidency: rotation system
• Commission: term of office of the new Commission
• Text to be added to the EU Common Position
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1461064_0060.png
for the 10 Laeken countries on Chapter 30:
• European Parliament
The EU notes that the number of seats in the European Parliament for the new member states from the date of accession will be those set out in Annex I.
2004-2009 term of the Parliament
The EU notes that as from the start of the 2004-2009 term of the European Parliament, each Member State shall be allocated a number of seats as contained in Annex II.
• Council
Period between 1 May 2004 and 31 October 2004
The EU notes that for the period between 1 May 2004 and 31 October 2004, where the Council is required to act by a qualified majority, the votes of its members shall be
weighted as set out in the table appearing at Annex III.
Acts of the Council shall require for their adoption at least 88 votes in favour where the Treaty requires them to be adopted on a proposal from the Commission. In other
cases, for their adoption, acts of the Council shall require at least 88 votes in favour, cast by at least two-thirds of the members.
In the event of fewer than ten new Member States acceding to the European Union under the forthcoming Treaty of Accession, the threshold for the qualified majority
shall be fixed by Council decision so as to correspond as closely as possible to 71,26% of the total number of votes.
Weighting of votes and qualified majority threshold after 1 November 2004
The EU notes that where the Council is required to act by a qualified majority, the votes of its members shall, as from 1 November 2004, be weighted as set out in the
table appearing in Annex IV. As of the same date, acts of the Council shall require for their adoption at least 232 votes in favour, cast by a majority of the members,
where the Treaty requires them to be adopted on a proposal from the Commission. In other cases, for their adoption, acts of the Council shall require at least 232 votes in
favour, cast by at least two-thirds of the members. When a decision is to be adopted by the Council by a qualified majority, a member of the Council may request
verification that the Member States constituting the qualified majority represent at least 62% of the total population of the Union. If that condition is shown not to have
been met, the decision in question shall not be adopted.
In the event of fewer than ten new Member States acceding to the European Union under the forthcoming Treaty of Accession, the threshold for the qualified majority
shall be fixed by Council decision by applying a strictly linear, arithmetical interpolation, rounded up or down to the nearest vote, between 71% for a Council with 300
votes and the level foreseen above for an EU of 25 Member States (72,27%)."
Council Presidencies – rotation order
The EU notes that the EC Treaty provides for the office of President to be held in turn by each Member State in the Council. In order to give new Member States the time
to prepare for their Presidency, the European Council confirms that the present rotation order will continue until the end of 2006. The Council will decide on the question
of the order of Presidencies for 2007 and onwards as soon as possible and at the latest one year after accession of the first new Member States.
• Organisation of the Commission
Period between 1 May 2004 and 31 October 2004
The EU recalls that as from accession the new Member States shall be entitled to have one of its nationals as member of the Commission. For the period between 1 May
2004 and 31 October 2004, the new Members should be appointed by the Council, acting by qualified majority, in analogy to Article 215 EC Treaty, and by common
accord with the President of the Commission. The term of office of the present and the additional Members of the Commission shall expire on 31 October 2004.
Period between 1 November 2004 and 31 October 2009
The EU notes that a new Commission composed of one national of each Member State shall take up its duties on 1 November 2004 for a period of five years until 30
October 2009. This will substitute for the date of 1 January 2005 in Article 4(1) of the Protocol on enlargement of the European Union annexed to the Treaties.
- o-
Following consultations with the European Parliament the EU will confirm a final position by the end of January 2003 with regard to the arrangements that affect the
prerogatives of the European Parliament, in particular in relation to the nomination and term of office of the Commission.
ANNEX I TO ANNEX V
ALLOCATION OF SEATS IN THE EUROPEAN PARLIAMENT FOR THE
NEW MEMBER STATES
MEMBER STATES
Poland
Czech Republic
Hungary
Slovakia
Lithuania
Latvia
Slovenia
Estonia
Cyprus
Malta
54
24
24
14
13
9
7
6
6
5
ANNEX II TO ANNEX V
ALLOCATION OF SEATS IN THE EUROPEAN PARLIAMENT FOR THE
2004-2009 ELECTION TERM
SEATS
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MEMBER STATES
Germany
United Kingdom
France
Italy
Spain
Poland
Netherlands
Greece
Czech Republic
Belgium
Hungary
Portugal
Sweden
Austria
Slovakia
Denmark
Finland
Ireland
Lithuania
Latvia
Slovenia
Estonia
Cyprus
Luxembourg
Malta
TOTAL EU
SEATS
99
78
78
78
54
54
27
24
24
24
24
24
19
18
14
14
14
13
13
9
7
6
6
6
5
732
ANNEX III TO ANNEX V
THE WEIGHTING OF VOTES IN THE COUNCIL FOR THE PERIOD BETWEEN 1 MAY 2004 AND 31 OCTOBER 2004
MEMBER
STATES
Germany
United Kingdom
France
Italy
Spain
Poland
Netherlands
Greece
Czech Republic
Belgium
Hungary
Portugal
Sweden
Austria
Slovakia
Denmark
Finland
Ireland
Lithuania
Latvia
Slovenia
Estonia
Cyprus
Luxembourg
Malta
TOTAL
VOTES
10
10
10
10
8
8
5
5
5
5
5
5
4
4
3
3
3
3
3
3
3
3
2
2
2
124
ANNEX IV TO ANNEX V
THE WEIGHTING OF VOTES IN THE COUNCIL
AS FROM 1 NOVEMBER 2004
MEMBER STATES
Germany
VOTES
29
29
United Kingdom
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France
Italy
Spain
Poland
Netherlands
Greece
Czech Republic
Belgium
Hungary
Portugal
29
29
27
27
13
12
12
12
12
12
10
10
7
7
7
7
7
4
4
4
4
4
3
321
ANNEX VI
Sweden
Austria
Slovakia
Denmark
Finland
Ireland
Lithuania
Latvia
Slovenia
Estonia
Cyprus
Luxembourg
Malta
TOTAL
CHAPTER 31: OTHER
Declaration by the European Commission
on the general safeguard clause,
the internal market safeguard clause and
the justice and home affairs safeguard clause
Before deciding on whether to apply the internal market and justice and home affairs safeguard clauses, the European Commission will hear the view(s) and positions of the
Member State(s) which will be directly affected by such measures and will duly take into account these views and positions.
The general economic safeguard clause also covers agriculture. It may be triggered when in specific agricultural sectors difficulties arise, which are serious and liable to persist,
or which could bring about serious deterioration in the economic situation of a given area.
ANNEX VII
DRAFT PROTOCOL ON AMENDMENTS TO
THE STATUTE OF THE EUROPEAN INVESTMENT BANK
FIRST PART
AMENDMENTS TO THE STATUTE OF THE EUROPEAN INVESTMENT BANK
Article 1
The Protocol on the Statute of the European Investment Bank shall be amended as follows:
- Articles 3, 4 (1) - first subparagraph, 11 (2) - first, second and third subparagraphs,
12 (2) and 13 (1) – first subparagraph shall be superseded by the following texts;
- a new fourth subparagraph shall be added after the article 11 (2) third subparagraph,
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" Article 3
In accordance with Article 266 of this Treaty, the following shall be members of the Bank :
- the Kingdom of Belgium,
- the Kingdom of Denmark,
- the Federal Republic of Germany,
- the Hellenic Republic,
- the Kingdom of Spain,
- the French Republic,
- Ireland,
- the Italian Republic,
- the Grand Duchy of Luxembourg,
- the Kingdom of the Netherlands,
- the Republic of Austria,
- the Portuguese Republic,
- the Republic of Finland,
- the Kingdom of Sweden,
- the United Kingdom of Great Britain and Northern Ireland,
- the Republic of Hungary,
- the Republic of Poland,
- the Republic of Slovakia,
- the Republic of Slovenia,
- the Republic of Lithuania,
- the Republic of Latvia,
- the Republic of Estonia,
- the Republic of Malta,
- the Republic of Cyprus,
- the Czech Republic. "
" Article 4 (1) – first subparagraph
1. The capital of the Bank shall be 163 727 670 000 euro, subscribed by the Member States as follows :
Germany
France
Italy
United Kingdom
Spain
Belgium
Netherlands
Sweden
Denmark
Austria
Poland
Finland
Greece
Portugal
Czech Republic
Hungary
Ireland
Slovakia
26 649 532 500
26 649 532 500
26 649 532 500
26 649 532 500
15 989 719 500
7 387 065 000
7 387 065 000
4 900 585 500
3 740 283 000
3 666 973 500
3 635 030 500
2 106 816 000
2 003 725 500
1 291 287 000
1 212 590 000
1 121 583 000
935 070 000
408 489 500
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Slovenia
Lithuania
Luxembourg
Cyprus
Latvia
Estonia
Malta
379 429 000
250 852 000
187 015 500
180 747 000
156 192 500
115 172 000
73 849 000
" Article 11 (2) – first, second, third subparagraphs
2. The Board of Directors shall consist of twenty-six (26) directors and sixteen (16) alternate directors.
The directors shall be appointed by the Board of Governors for five years, one nominated by each Member State, and one nominated by the Commission.
The alternate directors shall be appointed by the Board of Governors for five years as shown below:
- two alternates nominated by the Federal Republic of Germany,
- two alternates nominated by the French Republic,
- two alternates nominated by the Italian Republic,
- two alternates nominated by the United Kingdom of Great Britain and Northern Ireland,
one alternate nominated by common accord of the Kingdom of Spain and the Portuguese Republic,
- one alternate nominated by common accord of the Kingdom of Belgium, the Grand Duchy of Luxembourg and the Kingdom of the Netherlands,
- one alternate nominated by common accord of the Kingdom of Denmark, the Hellenic Republic and Ireland,
one alternate nominated by common accord of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden,
three alternates nominated by common accord of the Republic of Cyprus, the Republic of Hungary, the Republic of Poland, the Republic of Slovakia, the Republic of Slovenia, the Republic of Lithuania, the Republic
of Latvia, the Republic of Estonia, the Czech Republic and the Republic of Malta
one alternate nominated by the Commission."
"Article 11 (2) fourth subparagraph to be added :
The Board of Directors shall co-opt six (6) non-voting experts : three (3) as members and three (3) as alternates."
"Article 12 (2)
2. Save as otherwise provided in this Statute, decisions of the Board of Directors shall be taken by at least one third (1/3) of the members entitled to vote representing at least fifty per cent (50%) of the subscribed
capital. A qualified majority shall require eighteen (18) votes in favour and sixty-eight per cent (68%) of the subscribed capital. The rules of procedure of the Bank shall lay down the quorum required for the decisions
of the Board of Directors to be valid. "
"Article 13 (1) – first subparagraph
1. The Management Committee shall consist of a President and eight Vice-Presidents appointed for a period of six years by the Board of Governors on a proposal from the Board of Directors. Their appointments
shall be renewable."
SECOND PART
TRANSITIONAL PROVISIONS
Article 2
The Kingdom of Spain shall pay the amount of 309 686 775 euro as share of the capital paid in for its subscribed capital increase. This contribution shall be paid in eight equal
instalments falling due on 30/09/2004, 30/09/2005, 30/09/2006, 31/03/2007, 30/09/2007, 31/03/2008, 30/09/2008 and 31/03/2009.
The Kingdom of Spain shall contribute, in eight equal instalments falling due on the dates referred above , to the reserves and provisions equivalent to reserves, as well as to the
amount still to be appropriated to the reserves and provisions, comprising the balance of the profit and loss account, established at the end of the month preceding accession, as
entered on the balance sheet of the Bank, in amounts corresponding to 4.1292 % of the reserves and provisions.
Article 3
From the date of the accession, the new Member States shall pay the following amounts corresponding to their share of the capital paid in for the subscribed capital as defined in
Article 4 of the Statute.
Poland
Czech Republic
Hungary
Slovakia
Slovenia
181 751 525 Euro
60 629 500 Euro
56 079 150 Euro
20 424 475 Euro
18 971 450 Euro
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Lithuania
Cyprus
Latvia
Estonia
Malta
12 542 600 Euro
9 037 350 Euro
7 809 625 Euro
5 758 600 Euro
3 692 450 Euro
These contributions shall be paid in eight equal instalments falling due on 30/09/2004, 30/09/2005, 30/09/2006, 31/03/2007, 30/09/2007, 31/03/2008, 30/09/2008 and
31/03/2009
Article 4
The new Member States shall contribute, in eight equal instalments falling due on the dates referred to in Article 3 , to the reserves and provisions equivalent to reserves, as well as to
the amount still to be appropriated to the reserves and provisions, comprising the balance of the profit and loss account, established at the end of the month preceding accession, as
entered on the balance sheet of the Bank, in amounts corresponding to the following percentages of the reserves and provisions:
Poland
Czech Republic
Hungary
Slovakia
Slovenia
Lithuania
Cyprus
Latvia
Estonia
Malta
2.4234 %
0.8084 %
0.7477 %
0.2723 %
0.2530 %
0.1672 %
0.1205 %
0.1041 %
0.0768 %
0.0492 %
Article 5
The capital and payments provided for in Articles 2, 3 and 4 of this Protocol shall be paid in by the Kingdom of Spain and the new Member States in cash in euro, save by way
of derogation decided unanimously by the Board of Governors.
Article 6
1. Upon accession, the Board of Governors shall appoint a director for each of the new Member States, as well as alternate directors, as indicated in Article 11 (2) of the Statute.
2. The terms of office of the directors and alternate directors so appointed shall expire at the end of the annual meeting of the Board of Governors during which the annual report
for the 2007 financial year is examined.
3. Upon accession, the Board of Directors shall co-opt the experts and the alternate experts.
______________________