~~THE COUNCIL OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Economic Community, and in particular Articles 42 and 43 thereof,Having regard to the proposal from the CommissionOJ No C 56, 26. 2. 1993, p. 21~~.,~~Having regard to the opinion of the European ParliamentOJ No C 194, 19. 7. 1993, p. 365~~.,~~Having regard to the opinion of the Economic and Social CommitteeOJ No C 201, 26. 7. 1993, p. 22~~.,~~Whereas the European Council, meeting in Rhodes on~~ 2 ~~and~~ ~~3 December 1988, acknowledged the specific socio-economic problems experienced by certain island regions in the Community; whereas measures should be implemented in order to respond to these specific problems;~~Whereas the exceptional geographical situation of the Aegean islands in relation to the sources of supply of food and agricultural products essential for everyday consumption or agricultural production on the Aegean islands imposes costs which constitute a severe handicap to the secotrs (SIC! sectors) concerned; whereas this natural handicap can be offset by the introduction of specific supply arrangements for essential basic products;Whereas the quantities of products benefiting from the specific supply arrangements must be determined within the framework of periodic forecast supply balances which may be adjusted during the year on the basis of the essential requirements of the local market and taking account of local production; whereas, in view of the measures adopted to encourage the development of local production, these arrangements should be applied in the fruit and vegetable sector over a period of five years and on a reducing basis;~~Whereas the arrangements in question are intended to reduce production costs and consumer prices; whereas their actual impact should therefore be monitored;Whereas, to avoid any deflection of trade, products covered by the specific supply arrangements may not be redispatched to other parts of the Community or re-exported to third countries;Whereas a suitable and effective management and control system should be established for the implementation of the arrangements;Whereas the specific conditions of agriculture on the Aegean islands require special attention; whereas measures are necessary both for stockfarming and animal products and for crop products;~~Whereas, to promote the development of traditional stockfarming on the islands, supplementary premiums should be granted for the fattening of male bovine animals and for the maintenance of suckler cows and private storage aid should be granted for cheeses traditionally manufactured on the islands;~~Whereas measures should be taken in the fruit and vegetables and flower-growing sector to support and increase production and improve farm productivity and product quality;Whereas measures should also be taken to support the production of potatoes for human consumption and of seed potatoes;~~Whereas, in order to help support traditional viticulture on this islands, aid should be granted for vines producing quality wines psr which meet the requirements laid down in Community rules and form part of a quality improvement programme;~~Whereas, in order to support and encourage quality improvements in local production of quality liqueur wines psr, aid should be granted to offset storage costs for the ageing of such products;~~Whereas, in order to help support traditional olive-growing on the islands, to maintain production potential and to preserve the countryside and the natural environment, a per-hectare aid should be granted, provided that olive groves are kept in a way that guarantees regular production;Whereas bee-keeping is a sector linked to maintaining the important and fragile flora of the Aegean islands while at the same time providing the inhabitants with extra income; whereas, therefore, that traditional activity should be supported through the grant of an aid helping to reduce the high production costs; whereas that aid should be granted as part of the initiatives to improve the marketing conditions for honey to be carried out by associations of producers; whereas, in anticipation of such associations being set up, a limited amount of aid should be allocated to all honey producers for a restricted period;Whereas farms on the Aegean islands present major structural weaknesses from which specific difficulties derive; whereas a number of derogations are therefore necessary form the rules which restrict or prohibit the grant of certain forms of structural aid;Whereas certain structural measures essential for the development of agriculture on the Aegean islands in question are financed under Community support frameworks to promote the development and structural adjustment of regions whose development is lagging behind (objective 1) pursuant to Articles 130a and 130c of the Treaty;Whereas the problems experienced by the Aegean islands are accentuated by the lack of size of the islands; whereas, in order to direct the priorities and guarantee the effectiveness of the measures envisaged, these should only be applied to islands with populations not exceeding ~~100000~~ ~~inhabitants, known as the "smaller islands",HAS ADOPTED THIS REGULATION:~~

~~Article 1~~This Regulation lays down specific measures to remedy, in respect of certain agricultural products and means of agricultural production, the difficulties caused by the remote and insular nature of the smaller Aegean islands, hereafter referred to as the "smaller islands".~~For the purposes of this Regulation "smaller islands" are any islands in the Aegean Sea the permanent population of which does not exceed~~ ~~100000~~ ~~inhabitants.~~

~~TITLE ISpecific supply arrangements~~

~~Article 2~~Specific supply arrangements are hereby introduced for the agricultural products listed in the Annex to this Regulation, which are essential for human consumption and as inputs in agricultural production in the smaller Aegean islands as well as for processing.~~A forecast supply balance shall be drawn up stating the quantity of the agricultural products referred to in the above paragraph needed to meet supply requirements each year.~~

~~Article 3~~1.~~Under the specific supply arrangements, aid shall be granted for the supply to the smaller Aegean islands of the products referred to in Article 2.~~The amount of aid shall be fixed for a group of islands taking into consideration the additional costs of marketing products in these islands, calculated from the usual ports of shipment in mainland Greece, and from the ports of islands of transit or of loading for the islands of final destination.~~90 % of the amount of the aid shall be financed by the Community and 10 % by the Member State.~~2.~~In implementing the specific supply arrangements, account shall be taken, in particular, of the following:(a)the specific needs of the smaller Aegean islands and the precise quality requirements;(b)traditional trade flows with ports in mainland Greece and between the islands;(c)the economic aspect of the proposed aid;(d)where applicable, the need not to obstruct the potential development of local products.~~3.~~A condition for benefiting from the specific supply arrangements shall be that the advantages are actually passed on to the end-user.~~4.~~Products covered by the specific supply arrangements may not be re-exported to third countries or re-dispatched to the rest of the Community.~~5.Where the products referred to in paragraph 1 are processed in the smaller Aegean islands, the prohibition referred to in paragraph 4 shall not apply to traditional exports or to traditional shipments of the processed products to the rest of the Community. In the case of traditional exports, no refund shall be granted.

~~Article 3a~~1.~~Detailed rules for applying this Title shall be adopted in accordance with the procedure referred to in Article 13a(2). They shall cover in particular:(a)~~the grouping of the smaller Aegean islands on the basis of their distance from the usual ports of shipment in mainland Greece, and in relation to the ports of islands of transit or of loading from which the islands of final destination are usually supplied;~~(b)the fixing of the amount of aid under the specific supply arrangements;(c)the provisions to ensure effective monitoring and that the advantages are actually passed on to the end user;(d)the introduction, if necessary, of a system of delivery licences.~~2.The Commission shall draw up supply balances in accordance with the procedure referred to in Article 13a(2). It may revise those balances, and the list of products in the Annex, in accordance with the same procedure, in the light of changes in the requirements of the smaller Aegean islands.

~~Article 4Detailed rules for the application of this Title shall be adopted according to the procedure laid down in Article 23 of Council Regulation (EEC) No 1766/92 of~~ ~~30 June 1992~~ ~~on the common organization of the market in cerealsOJ No L 181, 1. 7. 1992, p. 21~~. ~~or the corresponding Articles of the regulations on the common organization of the markets in the sectors concerned.They shall cover in particular:determination of the quantities of products covered by the supply arrangements,the amounts of the aid,the provisions to ensure effective monitoring and that the advantages are actually passed on to the end user.~~

~~TITLE IIMeasures to support local products~~

~~Article 5~~The aids provided for under this Title shall be granted for the support of traditional activities, improvement of the quality of and development of local products in accordance with the requirements of the markets on the islands in question and for the revitalization of certain agricultural activities which are a traditional and natural vocation on the islands in question.

~~Article 6~~1.~~In case of application of the exclusion provided for in Article 70 of Council Regulation (EC) No 1782/2003OJ L 270, 21.10.2003, p. 1~~. of ~~29 September 2003~~ establishing common rules for direct support schemes under the Common Agricultural Policy and establishing certain support schemes for farmers, the Hellenic Republic shall present to the Commission a programme to assist traditional activities connected with beef and veal, as well as sheep and goat production, within the limits of the consumption needs of minor Aegean Islands.~~The programme shall be prepared and implemented by the competent authorities designated by the Member State.~~2.~~The Community shall finance the programme up to an annual amount equal to the sum of premiums actually paid in 2003 pursuant to Regulation (EC) No 1254/1999OJ L 160, 26.6.1999, p. 21. Regulation as last amended by Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003, p. 1~~).~~, to this Regulation and to Regulation (EC) No 2529/2001OJ L 341, 22.12.2001, p. 3~~. ~~for producers established in the minor Aegean Islands.~~The Commission shall increase such amount in order to take into consideration the development of the local production. However, the annual amount shall in no case be higher than the sum of the ceilings applicable in 2003 for beef premiums pursuant to this Regulation multiplied by the base and complementary premiums and payments applicable in 2003 and the sum of all premiums rights held by producers established in the minor Aegean Islands at the date of ~~30 June 2003~~ ~~pursuant to Regulation (EC) No 2529/2001 and the pertinent proportion of the national reserve multiplied by the premiums and payments applicable in 2003.~~3.The Commission shall adopt the implementing arrangements, approve and modify the programme as well as fix and increase the amount provided for in paragraph 2, first subparagraph, of this Article in accordance with the procedure referred to in Article 144(2) of Regulation (EC) No 1782/2003 + ~~The Commission may, in accordance with the same procedure, revise the limit set forth in paragraph 2, second subparagraph.~~4.~~Before 15 April every year, Greek authorities shall present a report on the implementation of the programme.~~

~~Article 7~~1.~~Aid per hectare shall be granted to producers and producers groups and organizations recognized pursuant to Article 13 of Council Regulation (EEC) No 1035/72 of~~ ~~18 May 1972~~ ~~on the common organization of the market in fruit and vegetablesOJ No L 118, 20. 5. 1972, p. 1. Regulation as last amended by Regulation (EEC) No 746/93 (OJ No L 77, 31. 3. 1993, p. 14~~). ~~and Council Regulation (EEC) No 1360/78 of~~ ~~19 June 1978~~ ~~on producers groups and associations thereofOJ No L 166, 23. 6. 1978, p. 1. Regulation as last amended by Regulation (EEC) No 746/93 (OJ No L 77, 31. 3. 1993, p. 14~~). respectively that undertake a programme of initiatives, approved by the competent authorities, with a view to the development and/or diversification of production and/or the improvement of the quality of the fruit, vegetables and flowers listed in Chapters 6, 7 and 8 of the combined nomenclature. The eligible initiatives shall seek in particular to develop production and product quality, particularly through varietal conversion and crop improvements. These initiatives shall form an integral part of programmes conducted over at least three years.~~The aid shall be granted for programmes covering a minimum area of 0,3 hectares.~~2.The amount of Community aid shall be a maximum of ECU 603,75/ha if the Member State provides official financing of at least ECU 362,25/ha and the contribution of the individual producer or group amounts to at least ECU 241,50/ha. If the contributions of the Member State and/or the producers are less than the amounts specified, the Community aid shall be reduced proportionately.~~The aid shall be paid each year of execution of the programme, for a period not exceeding three years.~~3.The aid shall be increased by ECU 120,75/ha where the programme of initiatives is submitted and carried out by a producer group or organization and where, for its implementation, recourse to technical assistance is envisaged. The additional aid shall be granted in respect of programmes involving a minimum area of 2 ha.4.~~This Article shall not apply to the production of potatoes for human consumption falling within CN codes~~ ~~07019051~~, ~~07019059~~ ~~and~~ ~~07019090~~ ~~or the production of seed potatoes falling within CN code~~ ~~07011000, nor to the production of tomatoes falling within CN code~~ ~~0702~~.5.~~Detailed rules for the application of this Article, including control provisions, shall be adopted in accordance with the procedure laid down in Article 33 of Regulation (EEC) No 1035/72.~~

~~Article 8~~1.~~Aid per hectare shall be granted for the cultivation of potatoes for human consumption falling within CN codes~~ ~~07019050~~ ~~and~~ ~~07019090~~ ~~and for the cultivation of seed potatoes falling within CN code~~ ~~07011000, up to a limit of~~ ~~2200~~ ~~hectares cultivated and harvested per year.The amount of the aid shall be not more than EUR 603 per hectare.~~2.~~Detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 13a(2).~~

~~Article 9~~1.~~Aid per hectare shall be granted for the continued cultivation of vines for the production of quality wines psr in the traditional areas of production.The following areas shall be eligible for aid:(a)~~areas planted to vine varieties included among the varieties classified by the Member States as being suitable for the production of each of the quality wines psr produced in their territory, as referred to in Article 19 of Council Regulation (EC) No 1493/1999~~OJ L 179, 14.7.1999, p. 1. Regulation as last amended by Regulation (EC) No 1622/2000 (OJ L 194, 31.7.2000, p. 1~~).~~, and(b)~~areas where the yield per hectare is lower than a maximum to be fixed by the Member State, expressed as quantities of grapes, grape musts or wine, under the terms of Annex VI(I) to Regulation (EC) No 1493/1999.2.The amount of the aid shall be EUR 476 per hectare per year. The aid shall be granted exclusively to producer groups or organisations initiating a measure to improve the quality of the wines produced in accordance with a programme approved by the competent authorities; the programme shall include in particular means for improving vinification, storage and distribution conditions.3.~~Chapter II of Title II of Regulation (EC) No 1493/1999 shall not apply to the smaller Aegean islands.~~4.~~Detailed rules for applying this Article shall be adopted as necessary in accordance with the procedure referred to in Article 13a(2).~~

~~Article 10~~1.Aid shall be granted for the ageing of locally produced traditional quality liqueur wines involving an ageing process of not less than two years. The aid shall be paid during the second year of ageing for up to a maximum quantity of ~~40000~~ ~~hl per year.The amount of aid shall be set at ECU 0,02/hl per day.~~2.~~Detailed rules for the application of this Article shall be adopted, as necessary, in accordance with the procedure laid down in Article 83 of Regulation (EEC) No 822/87.~~

~~Article 11~~1.~~Aid per hectare shall be granted for the maintenance of olive groves in traditional olive-growing zones, provided that the groves are kept and maintained in good production conditions.The amount of the aid shall be EUR 145 per hectare per year.~~2.Detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 13a(2). In particular they shall fix the conditions for the application of the aid arrangements referred to in paragraph 1, the conditions for proper maintenance of olive groves and the control provisions.

~~Article 12~~1.~~Aid shall be granted for the production of honey of specific quality from the smaller Aegean islands, containing a large proportion of thyme honey.~~The aid shall be paid, on the basis of the number of registered hives in production, to associations of bee-keepers recognised by the competent authorities which undertake to implement annual programmes of initiatives designed to improve the conditions under which quality honey is produced.~~The amount of the aid shall be EUR 12 per hive per year.~~2.~~The aid referred to in paragraph 1 shall be granted for up to~~ ~~100000~~ ~~hives per year.~~3.~~Detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 13a(2).~~

~~TITLE IIIDerogations applicable to structural measures~~

~~Article 13~~1.~~Notwithstanding Article 7 of Council Regulation (EC) No 1257/1999 of~~ ~~17 May 1999~~ ~~on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain RegulationsOJ L 160, 26.6.1999, p. 80~~., the total value of the aid, expressed as a percentage of the volume of eligible investments, may be increased by a maximum 15 percentage points for investments intended in particular to encourage diversification, restructuring or a move towards sustainable agriculture on agricultural holdings in the smaller Aegean islands.2.Notwithstanding Article 28(2) of Regulation (EC) No 1257/1999, the total value of the aid, expressed as a percentage of the volume of eligible investments, shall not exceed 65 % for investments in small and medium-sized enterprises engaged in processing and marketing agricultural products consisting mainly of local produce in sectors to be defined in the programme complement referred to in Article 18(3) of Council Regulation (EC) No 1260/1999 of ~~21 June 1999~~ ~~laying down general provisions on the Structural FundsOJ L 161, 26.6.1999, p. 1~~..3.~~The measures planned under this Article shall be described as part of the operational programmes as referred to in Article 18 of Regulation (EC) No 1260/1999 covering the smaller Aegean islands.~~

~~Article 13a~~1.~~The Commission shall be assisted by the Management Committee for Cereals established by Article 22 of Council Regulation (EEC) No 1766/92OJ L 181, 1.7.1992, p. 21~~.~~, or by one of the management committees established by the regulations on the common organisations of the market for the products concerned, hereinafter "Committee".In the case of agricultural products covered by Council Regulation (EEC) No 827/68OJ L 151, 30.6.1968, p. 16. Regulation as last amended by Regulation (EC) No 195/96 (OJ L 26, 2.2.1996, p. 13~~). ~~and products not covered by a common organisation of the market, the Commission shall be assisted by the Management Committee for Hops established by Article 20 of Council Regulation (EEC) No 1696/71OJ L 175, 4.8.1971, p. 1. Regulation as last amended by Regulation (EC) No 191/2000 (OJ L 23, 28.1.2000, p. 4~~)..2.~~Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply.The period referred to in Article 4(3) of Decision 1999/468/EC shall be set at one month.~~3.~~The Committee shall adopt its rules of procedure.~~

~~TITLE IVFinal provisions~~

~~Article 14~~The measures provided for in this Regulation, except for Article 13, shall constitute intervention intended to stabilise the agricultural markets within the meaning of Article 2(2) of Regulation (EC) No 1258/1999~~OJ L 160, 26.6.1999, p. 103~~..

~~Article 14aThe Member States shall take the measures necessary to ensure compliance with this Regulation, in particular as regards controls and administrative penalties, and shall inform the Commission thereof.Detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 13a(2).~~

~~Article 15~~1.~~Greece shall present an annual report to the Commission on the implementation of the measures provided for in this Regulation.~~2.At the end of every five-year period of implementation of the measures provided for in this Regulation, the Commission shall submit to the European Parliament and the Council a general report on the impact of the measures taken pursuant to this Regulation, accompanied where appropriate by proposals concerning any adjustments which may prove necessary.~~The first report shall be presented before the end of 2005.~~

~~Article 16This Regulation shall enter into force on the third day following its publication in the~~ ~~Official Journal of the European Communities~~.

~~This Regulation shall be binding in its entirety and directly applicable in all Member States.ANNEX~~

~~List of products covered by the specific supply arrangements under Title I for the smaller Aegean islandsFeedingstuffs~~

~~Description~~	~~CN code~~
~~Wheat flour~~	~~1101~~ ~~and1102~~
~~Durum wheat~~	~~10011000~~
~~Wheat of bread-making quality~~	~~10019099~~
~~— cereals~~
~~— wheat~~	~~1001~~
~~— rye~~	~~1002~~
~~— barley~~	~~1003~~
~~— oats~~	~~1004~~
~~— maize~~	~~1005~~
~~— cotton seeds~~	~~12072090~~
~~— alfalfa and fodder~~	~~1214~~
~~— food industry wastes and residues~~	~~2302~~ to~~2308~~
~~— preparations of a kind used in animal fee~~	~~230990~~

Council Regulation (EEC) No 2019/93 of 19 July 1993 introducing specific measures for the smaller Aegean islands concerning certain agricultural products