Reform of the common agricultural policy (CAP)

On the first day of the Council meeting, as regards agriculture, ministers were briefed on the state ofplay of the trilogues on the reform of the common agricultural policy (CAP) and debated more specifically on active farmers, the young farmers' scheme and the small farmers' scheme.

In addition, a qualified majority in favour of a decision on the EU position in the framework of the International Organisation of Vine and Wine (OIV) could not be reached.

Concerning fisheries issues, the Council held a debate on the outcome of the trilogues on the reform of the common fisheries policy (CFP). The Presidency told the Council of an agreement with the European Parliament reached at the end of the third trilogue on the market regulation of the CFP. Ministers also debated on a possible adjustment of the negotiating mandate to finalise the discussions with the other EU institutions on the basic regulation of the CFP.

Finally, the ministers were briefed on the consequence on agriculture of the proposal on tobacco products, the North East Atlantic mackerel stock, and a global summit on oceans.

Twelve trilogues took place since the beginning of the negotiations in April this year: four on the single CMO regulation, three each on the direct payments and the rural development regulations, and two on the horizontal regulation.

As regards direct payments, the Presidency wished to hear the views from the member states on active farmers, the young farmers' scheme and the small farmers' scheme.

Member states supported the Presidency in its work to find a compromise with the European Parliament and the Commission before the end of June.

On active farmer requirements, several delegations could consider the Presidency proposal for a short common negative list of criteria excluding potential beneficiaries, if member states would have the flexibility to complete this list according to national needs. However some member states repeated their opposition to a mandatory negative list.

Although diverging views were expressed on the voluntary or mandatory nature of the young farmers' scheme and the small farmers' scheme, a number of member states pointed out their willingness to stay open for possible flexibility on these issues.

The trilogues are covering the four main texts of the CAP reform:

•    the proposal for a regulation establishing rules for direct payments to farmers (direct payment regulation) (15396/3/11).;

•    the proposal for a regulation establishing a common organisation of the markets in agricultural products (single common market organisation (CMO) regulation) (15397/2/11);
•    the proposal for a regulation on support for rural development (rural development regulation) (15425/1/11);

•    the proposal for a regulation on the financing, management and monitoring of the CAP (horizontal regulation) (15426/1/11).

In March, the Council reached agreement on a general approach on the reform of the CAP (8005/13; 7183/13, 7329/13, 7303/13, 7304/13; 7539/13 + ADD1). This general approach constituted a political agreement in the Council on the CAP reform package enabling negotiations to be launched between the Council, the Parliament and the Commission with a view to a political agreement in June this year.

The European Parliament voted on its position at first reading on the CAP reform package on 13 March 2013.


International Organisation of Vine and Wine (OIV)

The Council could not secure a qualified majority in favour of a decision establishing the position to be adopted on behalf of the EU with regard to certain resolutions to be voted in the framework of the International Organisation of Vine and Wine (OIV).

Without agreement on this decision, at the OIV general assembly on 7 June (Bucharest, Romania), the member states who are also members of the OIV will have to request the postponement of the vote on all of the draft resolutions annexed to the draft decision until a EU position is established.

This is the third time that the Commission submits to the Council a proposal for a EU position to be established on draft resolutions which, if adopted by the OIV, would affect the acquis. While in June 2011 the Council could not adopt a decision, on 18 June 2012 the Council was able to reach a qualified majority in favour. However, on 28 August 2012, Germany filed an action for annulment of the decision of 18 June 2012 arguing that it was wrongly based on Article 218(9) of the Lisbon Treaty and that OIV resolutions were not acts having legal effects within the meaning of this Article. No decision from the Court of Justice on this case is expected to be taken before mid 2014.
In its proposal the Commission suggests formalising the coordination of the EU position on OIV draft resolutions falling within the EU's field of competence. This proposal is based on Article 218(9) of the Lisbon Treaty concerning international agreements.

The OIV is an intergovernmental scientific and technical organisation made up of members, observers and international organisations with a particular status active in the vines, wine, wine-based drinks, table grapes, raisins and other vine products sectors. The OIV has 43 members but only 21 EU member states are also OIV members. The EU is not a member of the OIV. At present, the Commission is authorised to attend and take part in expert groups and technical commissions meetings of the OIV.
FISHERIES


Reform of the common fisheries policy (CFP)

The Council held a public debate on the outcome of the ongoing trilogue discussions with the European Parliament and the Commission on two proposals within the reform of the common fisheries policy (CFP).

•    Proposal for a regulation on the CFP (12514/11) replacing the basic provisions of the CFP (basic regulation);

•    Proposal for a regulation on the common organisation of the markets (CMO) in fishery and aquaculture products (12516/11), focusing on market policy issues (market regulation);

Market regulation

Three trilogues discussions on market regulation took place since the end of February. At the last of these trilogues, held on 8 May 2013, an overall agreement between the European Parliament and the Council was reached (while the Commission still maintains a reserve on some issues, including the use of delegated acts for marketing standards).

The first main outstanding issue was on mandatory consumer information on product marking and labelling (Articles 42 to 45). A tentative agreement was reached to enlarge the scope of mandatory information towards the gear type used in wild capture fisheries and to require a more detailed indication of the catch area. A list of gear types has still to be established at technical level. Concerning the designation of the catch area, a wider description will be allowed for long-distance fleets operating for instance in the Pacific and the Indian Ocean. The Commission could not support the overall compromise in the sense that the compromise did not maintain the mandatory "catch date" and the more detailed information on preserved products from the Commission's proposal.

The other main outstanding issue concerned delegated and implementing acts (Articles 18a (new), 24/25, 33/34, 41, 46). An agreement was reached, based on work by the legal services of the Parliament and the Council. The compromise retains a number of empowerments to the Commission for implementing acts, but not for delegated acts. Instead, it is foreseen to provide more detail in the regulation with regard to acknowledging producer organisations and with regard to production and marketing plans. The compromise would maintain existing marketing standards until they are replaced by successor standards using the legislative procedure. The Commission maintained its position in that it requests an empowerment for delegated acts on the content of production and marketing plans.

After further technical and legal review, the compromise will be submitted to the Coreper for endorsement.
ANY OTHER BUSINESS


Directive on tobacco products - Consequences on agriculture

Greece told the Council about the potential consequences on the agricultural sector of the proposal for a directive on tobacco and related products (9387/1/13).

Together with the Greek delegation, several member states had concerns raised by of the effects on tobacco producers of the measures provided for in the Commission proposal, in particular the ban on certain category of products and the standardization of the packaging of tobacco products The measures envisaged could trigger job losses in the tobacco production chain and increase fraud in this sector.

The Commission highlighted that this directive is under the responsibility of the Council on Health. It pointed out that provisions proposed do not discriminate some specific tobaccos and that measures against fraud have also been included.


North East Atlantic mackerel and changes in stock distribution

United Kingdom asked the Commission to envisage trade sanctions against Iceland and the Faroe Islands concerning the management of the North East Atlantic mackerel stock and the Atlanto-Scandian herring

Many member states supported the activation of these trade sanctions. However, some delegations suggested to continue to explore possibilities to continue negotiations with Iceland and the Faroe Islands.

As regards the mackerel stock, before proposing trade sanctions to the Council, the Commission proposes to discuss first with the new Icelandic government which came to power following the recent elections. But concerning the Faroe Islands setting an unilateral quota for the Atlanto-Scandian herring Commission is ready to initiate trade measures.

Since 2008, there is a recurring dispute on the management of the North-East Atlantic mackerel stock between the EU on one hand and Iceland and the Faroe Islands on the other. Iceland and the Faroe Islands have set unilateral fishing quotas, refusing previous sharing arrangements negotiated between Coastal States (EU, Norway, Iceland, Faroe islands). In March 2013, in addition, the Faroe Islands have also set for this year a unilateral quota of Atlanto-Scandian herring. Both fish stocks are important for a number of member states, including United Kindom, Ireland and France.

A legal instrument on trade sanctions to tackle this kind of situation has been adopted by the Council and the European Parliament in September 2012.
Global Oceans Action Summit

Ministers were briefed by the Dutch delegation on a Global Oceans Action Summit for food security and blue growth, which will take place from 9 - 13 September 2013 in The Hague (8916/13).

The main objectives of this summit are:

•    Review action priorities to sustainably generate increased productivity for food security and for growth in the context of healthy oceans in a changing climate;

•    Showcase innovative project solutions and action partnerships amongst a wide range of stakeholders on replicable blue growth models for scaling-up action in: sustainable fisheries and aquaculture; watershed, pollution and coastal habitat management; and coastal and maritime industries including tourism;

•    Mobilize investments from all sources for scaled-up action and transformational change including through the launch of a new Financial Mechanism;

•    Present a prototype Oceans Knowledge Portal to build partnerships and knowledge on solutions for blue growth;

•    Mobilize broad support for the optimal positioning of Oceans in the Post-2015 Sustainable Development Agenda.
AGRICULTURE
Transit of animal by-products from Bosnia and Herzegovina

The Council decided not to oppose the adoption of an amendment to regulation 142/2011 as regards the transit of certain animal by-products from Bosnia and Herzegovina (8487/13).

Commission regulation 142/2011 lays down health rules as regards animal by-products and derived products not intended for human consumption. This amendment lays down specific conditions for transit via the EU of consignments of animal by-products and derived products to third countries from Bosnia and Herzegovina due to the geographical situation and the necessity to maintain access to the Croatian port of Ploce after the accession of Croatia to the EU.

The regulatory procedure with scrutiny applies to this text where, the Council, acting by qualified majority, may oppose the Commission's adoption of a draft Commission regulation. In this case, as the Council decided not to oppose the adoption, unless the European Parliament opposes the regulation within 3 months from its submission, the Commission may adopt it.


Legally binding agreement on forests in Europe - Negotiating mandate

The Council reached agreement on a position of the EU and its member states as regards the preferred United Nations (UN) organisation to adopt, host and service the legally binding agreement (LBA) on forests in Europe.

Forest Europe is an intergovernmental policy process based on common strategies, which started in

1990, and whose objective is to ensure the sustainable management of Europe's forests. At the Ministerial Conference held in Oslo on 14-16 June 2011, ministers responsible for forests decided to take further international action consisting of the elaboration of a LBA on forests in Europe, signed a ministerial mandate for opening negotiations to that end, and established an intergovernmental negotiating committee (INC) entrusted with the task of negotiating and drafting
the LBA.

On the basis of the INC recommendation, the LBA should be brought under the UN umbrella. Ahead of the next LBA negotiating session on 9 June 2013 involving all members, the agreement in Council establishes the EU mandate for negotiating the UN organisation which will adopt, host and service the LBA on forests in Europe. Negotiations on the LBA are expected to be concluded by 30
June 2013.
Council conclusions - Organic farming

The Council adopted Conclusions on organic farming. It pointed out in particular the importance of an appropriate regulatory framework for the development of this sector.

Organic production and the organic foodstuffs sector in the European Union is established as a sustainable farming and production system which fulfils a dual societal role by responding to an increasing consumer demand for organic products while also delivering public goods which contribute to the protection of the environment, animal welfare and rural development.

For further details, see Council conclusions.

FISHERIES


Negotiation of amendments to the ICCAT convention

The Council decided to authorise the Commission to open negotiations on behalf of the EU on amendments to the International Commission for the Conservation of Atlantic Tunas (the ICCAT convention).

The ICCAT convention is an intergovernmental organisation responsible for the management and conservation of tuna and tuna-like species in the Atlantic Ocean and adjacent seas.
ECONOMIC AND FINANCIAL AFFAIRS Over-reliance on credit ratings

The Council adopted a directive aimed at reducing the over-reliance by three types of investors on credit ratings when making their investments.

The directive amends in this respect directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision; directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities; and directive 2011/61/EU on alternative investment funds managers in respect of over-reliance on credit ratings.


Economic governance

The Council today1 adopted the so-called "two-pack" of regulations aimed at further improving economic governance in the euro area, namely:
-    a regulation on enhanced monitoring and assessment of draft budgetary plans of euro area member states, with closer monitoring for those in an excessive deficit procedure (6/13 + ADD 1);
-    a regulation on enhanced surveillance of euro area member states that are experiencing or threatened with serious financial difficulties, or that request financial assistance (5/13 + ADD 1).
For full details see press release 9430/13 Credit rating agencies

The Council today adopted a directive and a regulation amending the EU's rules on credit rating agencies (CRAs) (69/12 and 70/12).

Adoption of the legislation follows agreement reached with the European Parliament at first reading on 27 November 2012, and subsequent approval by the Permanent Representatives Committee on 5 December 2012.

For full details see press release 9465/13

The decision was taken without discussion at a meeting of the Agricultural and Fisheries Council. 2        The decision was taken without discussion at a meeting of the Agricultural and Fisheries Council.

Guidelines for EU restrictive measures

The Council approved new elements to be included in the guidelines on implementation and evaluation of restrictive measures in the framework of the EU Common Foreign and Security Policy.

Technical Centre for Agricultural and Rural Cooperation

The Council approved a draft decision of the ACP-EU Committee of Ambassadors with a view to extending the term of office of members of the Executive Board of the Technical Centre for Agricultural and Rural Cooperation for a period of three months.


TRADE

ACP Group of states

The Council approved the European Parliament's amendments on a Proposal for a Regulation of the European Parliament and of the Council amending Annex I to Council Regulation (EC) No 1528/2007 as regards the exclusion of a number of countries from the list of regions or states which have concluded negotiations (8848/13).


FOOD LAW


Food additives

The Council decided not to oppose the adoption of a Commission regulation correcting, clarifying and completing a list of authorised food additives (6961/13).

The Commission regulation is subject to the so called regulatory procedure with scrutiny. This means that now that the Council has given its consent, the Commission may adopt the regulation/decision/directive, unless the European Parliament objects.
TRANSPORT


EU position on new IMO codes and amendments to other IMO instruments *

The Council decided that the EU will agree to the adoption by the International Maritime Organisation (IMO) of an IMO Instruments Implementation Code (III Code), an IMO Code on Recognised Organisations (RO Code) and related amendments to international conventions (8763/13).

The III Code is designed to assist states in the implementation of several relevant conventions, such as the Convention on Safety of Life at Sea (SOLAS) and the Convention for the Prevention of Pollution from Ships (MARPOL), with the goal of enhancing maritime safety and the protection of the marine environment.

The RO Code aims to provide flag states with a standard for the assessment and authorisation of recognised organisations as well as mechanisms for the oversight of recognised organisations, and to clarify the responsibilities of recognised organisations.

The adoption of these codes also requires certain amendments to the conventions concerned.

The Council also agreed to the adoption by the IMO of amendments to some other IMO instruments, updating references in the Condition Assessment Scheme for older ships, providing for clarifications to the International Safety Management Code and introducing a new training requirement into SOLAS chapter III, the 1994 and 2000 High Speed Craft Codes and the Dynamically Supported Craft Code (8759/13; statements to both decisions: 9182/13 + ADD 1 + ADD 2).