Brussels, 04/05/2007 (Agence Europe) - On Friday 4 May, the European Commission adopted a formal decision on the size of the penalties imposed on nine member states for building up abnormal stocks of various agricultural products prior to accession to the EU in 2004. These countries (all ten, apart from Hungary) will have to pay a total of €39.1 million, after a reduction (of only €2 million) in the penalties originally imposed on Slovenia and Slovakia, one month ago (see EUROPE 9419).
Under the terms of the treaty of accession, new member sates are required to ensure that no stock of agricultural products is built up during the period preceding accession. However, excessive stocks of meat (beef and veal, pig meat, sheep meat and goat meat, and poultry) dairy products (cheese, powdered milk and butter) and fruit and vegetables (tomatoes, mushrooms, garlic, pineapples, mandarins, and orange, apple and grape juice) were built up in nine of the ten new member states. After two years of negotiations with the countries involved, the Commission has gradually reduced the size of the penalties.
The total amount of €39.1 million decided by the Commission breaks down thus: - Poland, €12.4 million (€7.7 million for meat stocks, €752,000 for dairy products, €2.2 million for fruit and vegetables, €1.2 million for rice and €472,000 for wine); - Czech Republic, €12.2 million (€6.2 million for meat, €4.9 million for fruit and vegetables and €1.1 million for rice); - Estonia, €6.6 million (€6.5 million for meat, €4,000 for rice and €42,000 for wine); - Slovakia, €3.6 million (€3 million for fruit and vegetables and €585,000 for rice); - Lithuania, €3.18 million (€2.9 million for milk, €180,000 for fruit and vegetables and €30,000 for rice); - Slovenia, €393,000 (€375,000 for fruit and vegetables and €18,000 for rice); - Malta, €288,000 for dairy products; - Latvia, €203,000 for wine; and Cyprus, €115,000 for rice.
The nine countries have two months to pay the first of four equal instalments (the other three payments will be made by 31 May 2008, then by 31 May 2009 and finally by 31 May 2010). In November 2006, the Commission imposed a fine of €57 million on five countries (Estonia, Latvia, Slovakia, Cyprus and Malta) for excessive sugar stocks. (lc)