THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community;

Having regard to the Council Directive of 17 April 1972 ( 1 ) on the modernization of farms, and in particular Article 10 thereof;

Having regard to the proposal from the Commission;

Whereas according to the abovementioned Directive, where it is provided in the development plan that the farm will concentrate on the production of beef and veal or mutton and lamb, the incentives laid down in Article 8 of that Directive are to be supplemented by a guidance premium;

Whereas in view of the present structure of farms suitable for modernization in accordance with the said Directive by concentrating on the production of beef and veal or mutton and lamb, the guidance premium should be calculated per hectare of land required for such meat production, taking into account the change which the premium is to effect;

HAS ADOPTED THIS DIRECTIVE:

— 48 units of account per hectare within a ceiling of 4 800 units of account per farm in the first year,

— 32·5 units of account per hectare within a ceiling of 3 250 units of account per farm in the second year,

— 16·5 units of account per hectare within a ceiling of 1 650 units of account per farm in the third year.