PURPOSE: to discontinue the possibility for Finland to grant national aid for seeds and cereal seed after a transitional period.

LEGISLATIVE ACT : Council Regulation (EC) No 1247/2007 amending Regulation (EC) No 1947/2005 as regards national aid granted by Finland for seeds and cereal seed

CONTENT: pursuant to the Council Regulation (EC) No 1947/2005, Finland may grant aid respectively for certain quantities of seeds and for certain quantities of cereal seed produced solely in Finland because of its specific climatic conditions.

A recent report has shown that seeds and cereal seed producers in Finland have access to other aid schemes and can therefore benefit from subsidies aimed at compensating Finnish farmers for the climatic conditions in which they operate. The report also shows that the production volume of cereal seed in Finland has experienced an upward trend and that the quantity of imported cereal seed is small compared to the domestically produced quantity. Furthermore, the report points out that when domestic seeds production has decreased, imports have increased and vice versa, leading to the conclusion that substitution of imports for domestically produced seeds is possible and that national Finnish aid may distort competition with imported products.

Timothy seed is multiplied in Finland in nearly optimal and relatively competitive conditions. Maintaining coupled aid for timothy production will undoubtedly permit a high level of timothy seed production to be maintained in Finland. National aid for timothy seed production should therefore be abolished.

For these reasons and for the proper functioning of the internal market, this Regulation discontinues the possibility for Finland to grant national aid for seeds and cereal seed. However, in order to enable farmers in Finland to prepare for the new situation created by the abolition of national aid, aid for the production of seeds and cereal seed, with the exception of timothy seeds, is maintained during a final transitional period, i.e. the 2010 harvest, after which it will be abolished.

By 31 December 2008 at the latest, Finland must transmit to the Commission a detailed report on the results of the aid authorised.

ENTRY INTO FORCE : 29/10/2007

The European Parliament adopted the resolution drafted by Neil PARISH (EPP-ED, UK) and approved the Commission’s proposal on amending Regulation (EC) No 1947/2005 as regards national aid granted by Finland for seeds and cereal seed.

The Committee on Agriculture and Rural Development adopted the report drafted by Neil PARISH

(EPP-ED, UK) and approved the Commission’s proposal on amending Regulation (EC) No 1947/2005 as regards national aid granted by Finland for seeds and cereal seed.

PURPOSE: amending Regulation (EC) No 1947/2005 as regards national aid granted by Finland for seeds and cereal seed.

PROPOSED ACT: Council Regulation.

CONTENT: in accordance with Article 8(2) of Council Regulation (EC) No 1947/2005 the Commission shall forward to the Council a report on the results of the national aid authorised in Finland for certain quantities of seeds and for certain quantities of cereal seed together with any necessary proposals.

The findings on the results of the aid granted in Finland for seeds and cereal seed production are made clear in the report “on the results of the aid authorised in Finland for certain quantities of seeds and certain quantities of cereal seed”. The report describes the developments within the seed and cereal seed sectors in Finland during the period 2000 to 2005.

That report shows that seeds and cereal seed producers in Finland have access to and benefit from other aid schemes, which compensate Finnish farmers for the climatic conditions in which they operate.

The report also shows that the production volume of cereal seed in Finland expe rienced an upward trend and that the imported quantity of cereal seed is small compared to the domestically produced quantity. Furthermore, there is evidence in the report to show that when domestic seeds production decreased, imports increased and vice versa, leading to the conclusion that substitution of domestic seeds with imports is possible and that national Finnish aid may distort competition with imported products.

For the above reasons and for the proper functioning of the single market, the Commission considers it appropriate to discontinue the possibility for Finland to grant national aid for seeds and cereal seed starting from 2011.

However, in order to provide farmers in Finland with the opportunity to prepare for a situation without national aid, it is appropriate to grant aid for the production of seeds and cereal seed, with the exception of Timothy seeds, during a final, additional transitional period after which it will be abolished.

With a view to an interim review of the national aid system, Finland shall transmit, by 31 December 2008 at the latest, to the Commission a detailed report on the results of the aid authorised.

PURPOSE: amending Regulation (EC) No 1947/2005 as regards national aid granted by Finland for seeds and cereal seed.

PROPOSED ACT: Council Regulation.

CONTENT: in accordance with Article 8(2) of Council Regulation (EC) No 1947/2005 the Commission shall forward to the Council a report on the results of the national aid authorised in Finland for certain quantities of seeds and for certain quantities of cereal seed together with any necessary proposals.

The findings on the results of the aid granted in Finland for seeds and cereal seed production are made clear in the report “on the results of the aid authorised in Finland for certain quantities of seeds and certain quantities of cereal seed”. The report describes the developments within the seed and cereal seed sectors in Finland during the period 2000 to 2005.

That report shows that seeds and cereal seed producers in Finland have access to and benefit from other aid schemes, which compensate Finnish farmers for the climatic conditions in which they operate.

The report also shows that the production volume of cereal seed in Finland expe rienced an upward trend and that the imported quantity of cereal seed is small compared to the domestically produced quantity. Furthermore, there is evidence in the report to show that when domestic seeds production decreased, imports increased and vice versa, leading to the conclusion that substitution of domestic seeds with imports is possible and that national Finnish aid may distort competition with imported products.

For the above reasons and for the proper functioning of the single market, the Commission considers it appropriate to discontinue the possibility for Finland to grant national aid for seeds and cereal seed starting from 2011.

However, in order to provide farmers in Finland with the opportunity to prepare for a situation without national aid, it is appropriate to grant aid for the production of seeds and cereal seed, with the exception of Timothy seeds, during a final, additional transitional period after which it will be abolished.

With a view to an interim review of the national aid system, Finland shall transmit, by 31 December 2008 at the latest, to the Commission a detailed report on the results of the aid authorised.