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Leaked proposals on the future EU market measures
Published 14 September 11
Draft proposals on the future single Common Market Organisation (CMO) regulation were leaked last week, providing an overview of future market measures. It has been proposed that the new regulation will be simplified, with intervention measures and disturbance clauses contained within two types of situations: (i) market disturbance in all sectors and (ii) mitigation of the market impact from animal disease or public health risks which would apply to milk & milk products, beef & veal, pigmeat, sheep & goatmeat, and the eggs & poultry sector.
Included in the text is a proposal to expand product coverage for recognition of Producer Organisations to all sectors in the current Single CMO. Specific to dairy, the draft proposal includes the main elements of the 'Dairy Package' although these will be updated to reflect the text as agreed by the Parliament and the Council. The Community has indicated that SMP will be eligible for private storage aid, although aid for skimmed milk and SMP intended for feeding-stuff and for casein processing is set to be discontinued.
Funding of all market measures are to be financed from a proposed €3.5bn 'emergency reserve' which falls outside of the Multi-Annual Financial Framework (MFF), allowing the bulk of Pillar 1 funds to be devoted to direct payments and allowing for quicker response from the Commission to market disturbance.
The proposals will form part of the package of reforms due to be released on 12 October, which will then enter the formal co-legislative process with Parliament and Council. It is the Commission's aim to have the measures in force by January 2014.