31 . 12 . 86 Official Journal of the European Communities No L 382 / 3
COUNCIL DECISION
of 16 December 1986
on the grant of a national aid in the form of a payment on account of the premium for ewes in
the sheepmeat sector in France
( 86 / 648 / EEC )
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European
Economic Community , and in particular the third
subparagraph of Article 93 ( 2 ) thereof,
Having regard to the request submitted by the French
Government on 2 December 1986 ,
Whereas Articles 92 , 93 and 94 of the Treaty , which concern
national aid , were made applicable to the production and
marketing of the sheepmeat and goatmeat products referred
to in Article 23 of Council Regulation (EEC) No 1 837 / 80 of
27 June 1980 on the common organization of the market in
sheepmeat and goatmeat (');
Whereas the two consecutive periods of drought in the
summer of 1985 and the summer of 1986 resulted in serious
feeding problems in the sheepmeat sector in France ; whereas
farmers have been obliged to slaughter a large proportion of
their herds and to incur debts to buy replacement fodder as
feed for the animals which were not slaughtered ;
market prices in French francs which are comparable to those
of 1981 ; whereas the turnover of the farmers concerned is
currently dropping very considerably as a result ;
Whereas the Commission , in view of the high level of
indebtedness of the farmers and of the ensuing cash flow
difficulties , has authorized the French Government , as an
exceptional measure , to make a payment on account
amounting to 75 % of the premium for ewes to farmers
whose holdings are situated in the less-favoured areas of
France ;
Whereas , however , the same acute cash flow problems are a
burden on all French sheep farmers whether or not their
holdings are situated in a less-favoured area ; whereas the
relevant rules provide for the possibility ofmaking a payment
on account only to holdings situated in less-favoured
areas ;
Whereas the French Government has decided to come to the
aid of those farmers whose holdings are situated in an area
which is not less-favoured ; whereas , to this end , the French
Government has considered advancing to them also , but
from national funds , a sum corresponding to 75 % of the
premium for ewes which those farmers may claim at the end
of the marketing year , i.e. in March 1987 ;
Whereas the French Government notified this projected
national aid to the Commission in accordance with Article 93
( 3 ) of the Treaty ;
Whereas the Commission considered that the projected aid
was not compatible with the common market , and
particurlarly with the common organization provided for by
Regulation (EEC ) No 1837 / 80 ;
Whereas the drop on the sheepmeat market in France is the
result of the unforeseeable and abnormal combination of two
factors foreign to the normal operation of that market , and
whereas this drop represents a heavy burden on the income of
the farmers in question ;
Whereas there are therefore exceptional circumstances to
justify considering the national aid in question as a
derogation , to the extent and for the period strictly necessary
in order to relieve the cash flow problems of the French
farmers in question , as compatible with the common
market ,
Whereas the additional supply of meat resulting from this
abnormal slaughter of herds has resulted in a considerable
drop in the market prices of sheepmeat in France ; whereas ,
furthermore , the debts incurred by farmers to purchase
fodder which otherwise would have been unnecessary weigh
heavily on the cash flow of farmers and even threaten the
survival of some holdings ;
Whereas the considerable drop in the pound sterling on the
exchange markets as from August 1986 has stimulated
United Kingdom exports of sheepmeat to the French market ;
whereas this meat may be supplied at relatively low prices in
French francs as a result of the exchange rate trends ; whereas
this additional low-priced supply has also affected the level of
French prices , which were already falling as a result of the
effects of the drought ;
Whereas the combination of these two factors foreign to the
normal operation of the said market has resulted in current
(M OJ No L 183 , 16 . 7 . 1980 , p. 1 .
No L 382 / 4 Official Journal of the European Communities 31 . 12 . 86
HAS DECIDED AS FOLLOWS : Article 2
This Decision is addressed to the "French Republic .
Done at Brussels , 16 December 1986 .
Article 1
The national aid granted by the French Government in the
form of a payment on account of the premium for ewes , to
French sheep farmers whose holdings are situated in areas
which are not less-favoured areas of France , shall be
considered , up to a rate of 75 % of the estimated premium
and until the end of the 1985 / 86 marketing year , as
compatible with the common market .
For the Council
The President
M. JOPLING
Full & Egal Universal Law Academy