Brussels, 03/02/2009 (Agence Europe) - On Monday 2 February, the European Commission adopted a proposal to amend regulation 637/2008 establishing national restructuring programmes for the cotton sector.
Council regulation 637/2008 provides for 4-year restructuring programmes. However, given the significant difficulties being faced by the sector, the proposal allows member states to submit an 8-year programme instead. An 8-year period, the Commission says, will allow a larger number of measures to be launched without increasing the annual budgetary envelopes.
Ginning factories not operated by their owners in the reference marketing year are excluded as beneficiaries for restructuring aid. The proposed technical amendment ensures all ginning factories that were in operation during the reference period can apply for aid.
After annulment of the 2004 cotton reform by the Court of Justice on 7 September 2006, the Commission, on 9 November 2007, proposed a new support scheme for cotton. On 23 June 2008, the Council adopted regulation 637/2008 amending the 2003 regulation and establishing national restructuring programmes for the cotton sector. The new support scheme provides for area payments, for a maximum guaranteed area of cotton per member state. (L.C./transl.rt)