General Introduction Council Working Group Brussels, 22 January 2007 Single Common Market Organisation European Commission Directorate General for Agriculture and Rural Development – Unit for Agricultural Law and Simplification

Single CMO 21 CMOs + 23 additional Council acts One horizontal Regulation

Political basis Communication on “Simplification and Better Regulation for the Common Agricultural Policy”, , COM (2005) 509 final

Consistency with other policies and objectives Interinstitutional Agreement on better law- making of 16 December 2003 Communication on “Implementing the Community Lisbon programme- A strategy for the simplification of the regulatory environment”, , COM (2005) 535 final

Further examples of codification of legal substances Rural Development (Regulation (EC) No 1698/2005) Direct Payments (Regulation (EC) No 1782/2003) Customs Code Food Law (Regulation (EC) No 178/2002)

Objectives To simplify and streamline the legislative structure of the CAP. To extend the horizontal approach of the 2003 Reform ( when all direct payments were put under one “roof”) to the 21 CMOs

The Single CMO as part of the overall simplification strategy of DG AGRI The single CMO is only one out of several activities under the simplification strategy of the DG. Further activities are: “Action Plan” Study on the administrative burden on farmers Review of Cross-Compliance Health Check Substantive policy reforms (fruit & vegetables, wine)

Simplification effects Reduce the number of legal acts and provisions governing the CAP : –41 Council acts being repealed –just under 200 instead of currently around 620 Articles –80 pages in the OJ instead of some 500 pages currently Streamline the instruments and measures of the CAP Increase the transparency of the CAP’s legal framework Make the CAP rules more accessible –for those working with legal texts (in particular farming advisors, food- industry, farmers’ associations and unions etc.)

Result: 4 pillars regulate the CAP by essentially four Council regulations: -Council Regulation on a CMO (the classic 1st pilar) -Council Regulation (EC) No 1782/2003 on direct payments -Council Regulation (EC) No 1698/2005 on rural development -Council Regulation (EC) No 1290/2005 on the financing of the CAP

Characteristics of the horizontal CMO (1) Technical simplification:  Revise the legal framework, administrative procedures and management mechanisms without changing the underlying policies.

Characteristics of the horizontal CMO (2) Council/Commission powers: technical and institutional cleaning up:  Reduce the amount of technical details in Council legislation.  Tackle the so-called “2 nd generation Council Regulations” Harmonise existing rules, where appropriate

Legal Bases Article 37 EC-Treaty: general legal basis for acts to be adopted by the Council in the CAP Article 34(1) EC-Treaty: «In order to attain the objectives set out in Article 33, a common organisation of agricultural markets shall be established.” Article 36 EC-Treaty: application of competition rules in agriculture

Scope (1) Target: –to cover all agricultural products that are currently governed by a CMO. –take on board changes « en cours de route » Step-by-step approach: –Current proposal: leave out those provisions of the fruit & vegetables and wine sectors which are currently undergoing a policy review. –Later stage: Incorporated those provisions once the policy decisions in these sectors have been taken.

Scope (2)  For the sake of completeness and consistency the proposal includes: –market measures for agricultural products which are currently not subject to a CMO (silk worms, alcohol and apiculture products) without making these products subject to fully-fledged CMO-rules –the provisions on competition and state aid rules for the production of and trade in agricultural products –rules on sugar and milk quotas –specific provisions on private storage and public intervention

COMMON MARKET ORGANISATIONS INCORPORATED IN THE PROPOSED HORIZONTAL CMO 1.Reg. (EEC) No 234/68 Live trees and other plants, bulbs, roots and the like, cut flowers and ornamental foliage 2.Reg. (EEC) No 827/68 "Solde" (CMO for many products not covered by other CMOs) 3.Reg. (EEC) No 2759/75 Pigmeat 4.Reg. (EEC) No 2771/75 Eggs 5.Reg. (EEC) No 2777/75 Poultrymeat 6.Reg. (EEC) No 2075/92 Raw tobacco 7.Reg. (EC) No 1254/1999 Beef and veal 8.Reg. (EC) No 1255/1999 Milk and milk products 9.Reg. (EC) No 1673/2000 Flax and hemp 10.Reg. (EC) No 2529/2001 Sheep and goat meat 11.Reg. (EC) No 1784/2003 Cereals 12.Reg. (EC) No 1785/2003 Rice 13.Reg. (EC) No 1786/2003 Dried fodder 14.Reg. (EC) No 865/2004 Olive Oil 15.Reg. (EC) No 1947/2005 Seeds 16.Reg. (EC) No 1952/2005 Hops 17.Reg. (EC) No 318/2006 Sugar 18.Reg. (EEC) No 404/93 Bananas 19.Reg. (EC) No 2200/96 Fresh fruit & vegetables 20.Reg. (EC) No 2201/96 Processed fruit & vegetables 21. Reg. (EC) No 1493/1999 Wine

FURTHER COUNCIL ACTS INCORPORATED IN THE PROPOSED HORIZONTAL CMO 1.Reg. (EEC) No 2729/75 Import levies on mixtures of cereals, rice and broken rice 2. Reg. (EEC) No 707/76 Recognition of producer groups of silkworm rearers 3.Reg. (EEC) No 1055/77 Storage and movement of products bought in by an intervention agency 4.Reg. (EEC) No 2931/79 Exportation of agricultural products which may benefit from a special import treatment in a third country 5.Reg. (EEC) No 1898/87 Protection of designations used in marketing of milk and milk products 6. Reg. (EEC) No 3730/87 General rules for the supply of food from intervention stocks to designated organizations for distribution to the most deprived persons in the Community 7.Reg. (EEC) No 386/90 Monitoring carried out at the time of export of agricultural products receiving refunds 8.Reg. (EEC) No 1186/90 Classification of carcases of adult bovine animals 9.Reg. (EEC) No 2204/90 Additional general rules on the common organisation of the market in milk and milk products as regards cheese 10.Reg. (EEC) No 2077/92 Inter-branch organizations and agreements in the tobacco sector 11.Reg. (EC) No 2991/94 Standards for spreadable fats 12.Reg. (EC) No 2597/97 Additional rules on the common organisation of the market in milk and milk products for drinking milk 13.Reg. (EC) No 2250/99 Tariff quota for butter of New Zealand origin 14.Reg. (EC) No 1788/2003 Levy in the milk and milk products sector 15.Reg. (EC) No 1183/2006 Community scale for the classification of carcasses of adult bovine animals. 16.Reg. (EEC) No 2517/69 Fruit production 17.Reg. (EEC) No 2728/75 Aids potatoes for starch manufacture 18.Reg. (EEC) No 1358/80 Prices for adult bovine animals 19. Reg. (EEC) No 4088/87 Imports of certain flowers 20.Council Decision 74/583/EEC Sugar

Structure I.Introductory provisions (e.g. scope, definitions, marketing years) II.Provisions concerning the internal market (e.g. public intervention, private storage, special intervention measures, quotas, aid schemes) III.Provisions concerning trade with third countries (e.g. licences, import duties, import tariff quotas, special safeguards, export refunds, safeguard clause, inward and outward processing) IV.Competition rules (antitrust, state aides) V.General provisions (e.g disturbance clause, communications, management committee) VI.Transitional and final provisions (e.g. amendments, repeals, transitional clause, entry into force) Annexes

One Management Commitee for the single CMO Replace the currently operating sector specific committees by one committee.  The legal existence of only one management committee does not prejudge the way the practical operation of this committee is organised.

Entry into force and application (1) Target: to ensure a smooth transition to the new legal framework Approach: -New CMO regulation to enter into force on the seventh day following the publication in the Official Journal. -However, the new provisions should not become applicable in the course of marketing years and -Commission and Member States should be given the time needed for preparing and adopting the necessary implementing acts.

Entry into force and application (2) On the assumption of a formal adoption of the proposed Regulation by the Council in autumn 2007 its provisions should become applicable: -in sectors for which marketing years are provided for, from the beginning of the relevant marketing years in in sectors for which no marketing years are provided for, from 1 January In line with the current arrangements the provisions on sugar quotas should apply no longer than the end of the 2014/2015 sugar marketing year and the 2014/2015 milk quota year.