The European Parliament adopted the own-initiative report by Maria Esther HERRANZ-GARCIA (PPE-DE, ES) on the simplification of the COM in fruit and vegetables. It expresses its firm opposition to the Commission’s decision to postpone presentation of a proposal to reform the fruit and vegetable sector. (Please refer to the summary dated 26/04/2005).

The European Parliament adopted the own-initiative report by Maria Esther HERRANZ-GARCIA (PPE-DE, ES) on the simplification of the COM in fruit and vegetables. It expresses its firm opposition to the Commission’s decision to postpone presentation of a proposal to reform the fruit and vegetable sector. (Please refer to the summary dated 26/04/2005).

The committee adopted the own-initiative report by Maria Esther HERRANZ-GARCIA (PPE-DE, ES) on the simplification of the COM in fruit and vegetables. The committee urged the Commission to come up with its legislative proposals for the reform of this sector " by July 2005 ". It wanted the Commission to introduce greater flexibility and subsidiarity in the conditions governing recognition and operation.

The committee said that the current ceiling for the Community contribution to the operational funds should be maintained in general terms. However, it should be increased from 4.1% to 6% in case of transnational partnerships, mergers, associations and cooperation between organisations, since the current limit is incompatible with the cofinancing percentage for transnational partnerships.

MEPs also believed it necessary to increase the level of Community cofinancing to 60% in cases of cooperation, mergers and associations between producer organisations which fulfil minimum criteria as regards sales volumes and constitute an added value in terms of the concentration of supply with regard to the situation at the outset, taking into account the number of member producers.

The report called for the introduction of an effective system for managing market crises in order to prevent abandonment of the sector in the face of major price collapses which, moreover, do not in practice have repercussions on consumer prices. This system should enable producer organisations to play an active role in the marketing of their products; nevertheless, provision should be made for crisis management systems both in a horizontal regulation and in the organisation of the market in fruit and vegetables.

MEPs deplored the lack of a Community strategy and research to revive consumption and said that, in connection with the regulations aimed at promoting Community agricultural products inside and outside the EU, a specific item should be created, amounting to EUR15 million each year, for increasing fruit and vegetable consumption. That item should be periodically reviewed on the basis of the uptake of funds for generic campaigns which have to highlight "EU origin" and draw attention to quality and not only to quantity.

Support schemes for the processing of soft fruits (such as sour cherries, currants, raspberries, strawberries and gooseberries) and apples should also be introduced in order to adjust to the present production and market conditions.

Lastly, the committee called for the budget devoted to the fruit and vegetable sector to be fully used and for any saving resulting from the reform to be ploughed back into that budget, making optimum use of the various support measures for producers.

PURPOSE : to present the Commission's actions on the simplification of the common market organisation in fruit and vegetables.

CONTENT : the present document aims to describe how the Commission managed to follow, in the years 2002, 2003 and 2004, the Council requests to act on certain areas of shortcomings identified in the functioning of the fruit and vegetables common market organisation (CMO).

It is also intended to stimulate a debate in the Council, in the European Parliament and within the sector1. Depending on the outcome of this debate, the report could be followed by legislative proposals in due course.

In order to stimulate and focus the debate on possible improvements that could be introduced in due time into the basic regulation to make it operate more effectively, this reports aims also to raise some strategic questions: Is there a need to reform the basics of the CMO as established by the 1996 reform? What can be done in order to simplify the implementation of the CMO for Pos and make POs services more attractive for producers? What can be done to improve the grouping of supply in regions where the organisation is weak, in particular in the new Member States? Should the specific cross-compliance for fruit and vegetables be maintained or integrated in the new cross compliance framework developed in the CAP reform? What can be done to improve the supply of quality products and/or products obtained under environmentally friendly conditions? What can be done to ensure a better crisis management? Is there a need to introduce radical changes in the specific aid schemes for processed products and citrus? How can the coherence of the fruit and vegetables regime and the Rural Development regulation be improved? How can a better use of the current budget be ensured?

This document will be followed by a working document of the Commission services presenting: an analysis of the principal figures of the sector (trends on world and EU supply and demand, on world and EU trade as well as on production structure and income situation in EU); an analysis of the implementation of one of the CMO's pillars, the producer organisations (POs) and the related Operational Funds; an analysis of budgetary issues in the recent years.

PURPOSE : to present the Commission's actions on the simplification of the common market organisation in fruit and vegetables.

CONTENT : the present document aims to describe how the Commission managed to follow, in the years 2002, 2003 and 2004, the Council requests to act on certain areas of shortcomings identified in the functioning of the fruit and vegetables common market organisation (CMO).

It is also intended to stimulate a debate in the Council, in the European Parliament and within the sector1. Depending on the outcome of this debate, the report could be followed by legislative proposals in due course.

In order to stimulate and focus the debate on possible improvements that could be introduced in due time into the basic regulation to make it operate more effectively, this reports aims also to raise some strategic questions: Is there a need to reform the basics of the CMO as established by the 1996 reform? What can be done in order to simplify the implementation of the CMO for Pos and make POs services more attractive for producers? What can be done to improve the grouping of supply in regions where the organisation is weak, in particular in the new Member States? Should the specific cross-compliance for fruit and vegetables be maintained or integrated in the new cross compliance framework developed in the CAP reform? What can be done to improve the supply of quality products and/or products obtained under environmentally friendly conditions? What can be done to ensure a better crisis management? Is there a need to introduce radical changes in the specific aid schemes for processed products and citrus? How can the coherence of the fruit and vegetables regime and the Rural Development regulation be improved? How can a better use of the current budget be ensured?

This document will be followed by a working document of the Commission services presenting: an analysis of the principal figures of the sector (trends on world and EU supply and demand, on world and EU trade as well as on production structure and income situation in EU); an analysis of the implementation of one of the CMO's pillars, the producer organisations (POs) and the related Operational Funds; an analysis of budgetary issues in the recent years.