The European Parliament,

-   having regard to the report from the Commission to the Council and the European Parliament on the simplification of the common market organisation (CMO) in fruit and vegetables (COM(2004)0549),

-   having regard to the Commission working document analysing the CMO in fruit and vegetables (SEC(2004)1120),

-   having regard to Council Regulations (EC) Nos 2200/96(1), 2201/96(2), 2202/96(3) and 2699/2000(4), which form the basis of the CMO in fruit and vegetables,

-   having regard to the Commission document 'The enlargement of the EU: implications for the fruit and vegetable sector',

-   having regard to Commission Regulations (EC) No 1432/2003(5) on the recognition of producer organisationsand (EC) No 1433/2003(6) on operational funds and programmes in that sector,

-   having regard to Council Regulation (EC) No 1782/2003(7) and Commission Regulation (EC) No 1973/2004(8) on specific measures in support of nuts,

-   having regard to Commission Regulations (EC) Nos 1535/2003(9), 2111/2003(10) and 103/2004(11) on simplifying the regulations in force in the sector,

-   having regard to its resolution of 5 July 2001 on the report from the Commission to the Council on the CMO in fruit and vegetables (COM(2001)0036)(12),

-   having regard to Rule 45 of its Rules of Procedure,

-   having regard to the report of the Committee on Agriculture and Rural Development (A6-0121/2005),

A.   whereas European producers and a majority of Member States are in favour of preserving the core elements of the 1996 reform, as demonstrated in the conclusions adopted by the Netherlands Presidency of the EU in November 2004 and at the public hearing held at the European Parliament on 2 February 2005,

B.   whereas it is nevertheless necessary to boost progress towards the objectives pursued under the support system for the fruit and vegetable sector, since the level of production concentration is still no higher than 40%, a percentage that must be substantially increased to enable the markets to be managed more effectively and to increase producers' competitive capability,

C.   whereas the degree of concentration of supply and of Community resources varies significantly between the Member States and between producer organisations; whereas 5% of the organisations take up 50% of the resources, which calls for measures to achieve a more balanced situation which takes account of the particular characteristics of the Member States,

D.   whereas special attention must be devoted to the situation of the new Member States, in which the degree of concentration of supply remains very insufficient,

E.   whereas the accession to the EU of 10 new Member States has changed the structure of fruit and vegetable cultivation in the EU-25, making the EU a major producer of many fresh and processed fruits and vegetables such as sour cherries, currants, strawberries, gooseberries and apple juice,

F.   whereas these fruits and vegetables, unlike many fruits and vegetables grown in the EU-15, are not covered by support schemes, play a significant role in both economic and social terms in the EU-10 and are subject to severe competition from third countries,

G.   whereas under the Community budget for fruit and vegetables there has been constant and marked under-utilisation of the budget resources committed per year and whereas a margin is available with which to increase the financing of producer organisations, particularly in those regions which are significantly lagging behind in terms of organisation, in the light of the fact that in recent years the under-utilisation of funds has reached as much as 25% of the overall budget earmarked for the sector,

H.   whereas the fruit and vegetable sector is characterised by market instability, and in the event of price collapses the current system of market withdrawals is of limited effectiveness as a safety net for farmers' incomes, owing to insufficient payments, excessive bureaucracy, shortcomings in organisation in the production regions, failure to recognise the production potential in order to ensure correct market management, the effect of imports from third countries and the lack of genuine outlets for the products withdrawn,

I.   whereas it is necessary to introduce an alternative crisis management system in the fruit and vegetable sector in order to tackle price collapses more effectively and hence help to improve the participation of farmers in producer organisations,

J.   whereas the processed fruit and vegetables scheme plays a major role in concentrating supply and has facilitated the development in the European Union of a constantly-evolving industry which generates employment,

K.   whereas the present support schemes of CMO for processed fruit and vegetables do not take into consideration many species which are important for the new Member States,

L.   whereas there is a need to introduce support schemes for such species as sour cherries, currants, strawberries and apples (for juice) on account of their economic and social importance and their beneficial effects on consumer health,

M.   whereas, however, certain improvements need to be made, especially in the processed tomato sector, the stabilisers for which have not factored in the needs of the sector created by expansion arising from increased demand, and whereas because of its particular characteristics within the system for processed products (because it is the only annual crop and is cultivated expressly for the industry), it is going through a serious crisis, which is jeopardising the future of the crop in certain Member States,

N.   whereas it would be useful to promote the marketing of new kinds of quality pasteurised citrus fruit juices in order to make the range of Community products on offer more complete and varied, whilst helping to create new jobs,

O.   whereas there is a need to enhance generic promotion campaigns for fruit and vegetables given that their beneficial affects on health are supported by numerous scientific opinions and by the recommendations made by the World Health Organization (WHO) in its Global Strategy on Diet, Physical Activity and Health, adopted in May 2004,

P.   whereas there is a need to address very specific problems relating to products that repeatedly come under pressure from imports from third countries, threatening their continued production, and whereas it would be advisable to simplify the customs regime in order to prevent irregularities,

Q.   whereas the fruit and vegetable sector will have to confront new commercial challenges, arising primarily from World Trade Organization (WTO) negotiations,

R.   whereas fruit and vegetable producers have limited access to rural development funds and the proposal on the establishment of the European Agricultural Fund for Rural Development exacerbates this situation,

S.   whereas there is a need to reduce as far as possible the risks of distortion of the market in fruit and vegetables following the reform of the common agricultural policy (CAP) adopted in September 2003, bearing in mind that this sector could become a 'refuge sector' for producers of other agricultural crops in receipt of the 'single payment',

T.   whereas there are also a series of weaknesses in the functioning and structural situation of the sector that should be mentioned and that a future reform of the CMO would help to correct, such as:

Producer organisations

1.  Expresses its firm opposition to the Commission's decision to postpone presentation of a proposal to reform the fruit and vegetable sector; considers the postponement of this proposal for one or two years unacceptable and excessive in view of the urgent need to find a solution to the market crises, which cannot be resolved with the available management instruments; urges the Commission not to ignore a sector that occupies a very important place (17 %) in the European Union's final agricultural output and which risks being marginalised in the negotiations on the new financial perspective; also stresses the importance of finding new market management mechanisms to deal with the liberalisation of trade during the WTO negotiations;

2.  Urges the Commission to submit a proposal by July 2005 to strengthen the role of producer organisations in the management of the markets, and to introduce, in the context of the conditions governing recognition and operation, greater flexibility and subsidiarity for the Member States; calls on the Commission and the Member States to eliminate the barriers caused by misinterpretation in a number of Member States, where the minimum period of membership of a producer organisation is three years;

3.  Calls for the exemptions from the notification requirement for products not traded by the producer organisation concerned to be extended and made more flexible;

4.  Considers that the current ceiling for the Community contribution to the operational funds should be maintained in general terms, but should be increased from 4.1% to 6% in the case of transnational partnerships, mergers, associations and cooperation between organisations, since the current limit is incompatible with the cofinancing percentage for transnational partnerships and with the need to promote the other three actions;

5.  Considers it necessary, in order to improve the income situation particularly of small holdings, for holdings marketing more than 20% or 25% of their production directly to end-users also to be allowed to join a recognised producer organisation; considers that it is not, therefore, rational to restrict the proportion of direct marketing;

6.  Believes 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;

7.  Advocates that the current ceiling for Community participation in the operational funds for organisations which meet high recognition criteria be raised through the granting, for a period of at least five years, of a bonus weighted according to the number of members and the volume of marketed production;

8.  Considers that, in order to foster the setting-up of producer organisations in areas with limited numbers of associations, national aid for the setting-up of organisations should be refunded in regions where the existing producer groups market less than 15% of the fruit and vegetables produced and where fruit and vegetable production accounts for at least 15% of the regional agricultural output;

9.  To this end, also requests that the new regulation governing operational funds should establish that Community funding not used one year can be used the following year; in any event, it should be ensured that any budgetary saving resulting from the reform of the CMO (as a result of elimination of prior recognition procedures, withdrawals, savings on refunds, etc.) should revert to the sector;

10.  Takes the view that the new Member States should for a transitional period be granted more aid for the setting up and administration of preliminarily recognised producer groups (aid rates – 10%, 10%, 8%, 6% and 4% respectively in each of the first five years of a group's operation, instead of the 5%, 5%, 4%, 3% and 2% currently applying, with the current aid ceilings of EUR 100 000, 100 000, 80 000, 60 000 and 40 000 continuing to apply);

11.  Considers that, with a view to enhancing the flexibility of some procedures relating to the categories for the recognition of producer organisations, two further categories should be added to the product categories in respect of which producer organisations may be recognised, namely:

12.  Suggests that producer organisations in the new Member States that meet high setting-up criteria receive a bonus weighted according to the number of members and the volume of marketed production and that, during a transitional period, these criteria should be less exacting than the ones applied, with the same aim, to the fifteen established Member States;

13.  Considers it essential for producer organisations to be assured legal certainty and their control procedures to be simplified, with the establishment of uniform criteria for the implementation of the checks conducted on the operational programmes by the various national and Community authorities; considers that, in order to guarantee legal certainty for these organisations, the Commission should adopt arrangements to enable them to obtain the human and technical resources necessary to meet their own objectives and those of the operational programmes;

14.  Takes the view that greater flexibility needs to be injected into the mechanisms for the financial contribution of member-producers to their operational funds and that the new legislation should enable the contribution to the operational fund to be made by the producer organisation; stresses also that greater flexibility requires a revision of the positive list of actions eligible for financing in order to tailor operational programmes more closely to the needs of producer organisations, and to grant greater autonomy to producer groups in the management of these actions;

15.  Requests that the producer organisations be urged to make provision in the operational programmes for measures regarding quality certification, food safety guarantees and environment-related measures;

16.  Considers that producer organisations and their members should be given full access to regional development funds in the future, since operational funds are not sufficient for major infrastructure investments;

17.  Considers it essential that EU-wide directives be introduced for controlled, integrated cultivation;

18.  Calls for the exemptions from the notification requirement for products not traded by the producer organisation concerned to be extended and made more flexible; calls for a more flexible limit on direct sales by producers to consumers and for the relevant percentage to be established in agreement with the producer organisation on an individual basis;

19.  Calls for the introduction of marketing standards for the following products: broccoli, Chinese cabbage, pot-herbs, spring onions, parsley, radicchio, rhubarb, turnip greens, chives and swede; calls for the extension of the scope of the organisation of the market to include sweet corn and its adjustment to incorporate all fresh pot-herbs, particularly basil;

Crisis management

20.  Calls 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; considers, nevertheless, that provision should be made for crisis management systems both in a horizontal regulation and in the organisation of the market in fruit and vegetables;

21.  Calls on the Commission to conduct an in-depth study into the various crisis management systems that could be applied in the fruit and vegetable sector and calls for the introduction of a fruit and vegetable production forecasting system by means of market observatories, at both Community and national level, to track potential market crises and thereby enable a swifter response;

22.  Supports the idea put forward in the Commission's recent document on managing crises in agriculture, which highlights the contribution of vertical bodies such as sectoral organisations; stresses, more generally, the role of these sectoral organisations in regulating markets and maintaining their transparency;

23.  Calls for the current withdrawals system to supplement a 'safety fund', managed by the producer organisations and financed by the European Union, Member States and farmers; this fund should be used to compensate producers for the withdrawals made in the event of crises, make payments for the reduction of production and the establishment - on a voluntary basis for farmers - of an income and adverse weather insurance scheme, subject to a feasibility study; proposes that producers not belonging to a producer organisation should be able to contribute to this safety fund, but should receive lower levels of payment in times of crisis provided that the individual producer participates in the measures and rules adopted by the producer organisation for crisis management; considers that this fund should be financed separately from the operational fund and that collective insurance should be eligible for funding under this scheme;

24.  Believes it appropriate, within the framework of that new crisis management system, for there to be an increase in aid for withdrawals distributed free of charge to welfare organisations, since at present this does not compensate for the high transport and packaging costs involved, and for the promotion of fruit and vegetable consumption in schools;

Dealing with structural problems

25.  Calls for the introduction of a plantation clearing project package (mainly for non-modern apple and sour cherry orchards), to avoid the emergence of extensive structural crises relating to the whole of the Community; is convinced that such a regulation is indispensable in the interests of efficient operation;

Processed fruit and vegetables scheme

26.  Takes the view that the production thresholds for processed tomatoes should be raised in a manner consistent with the reforms adopted in 1996 and 2000, in the light of the fact that the current quotas remain out of step in terms of the increase in demand and of competitiveness vis-à-vis third countries;

27.  Declares itself in favour of introducing support schemes for the processing of soft fruits (such as sour cherries, currants, raspberries, strawberries and gooseberries) and apples in order to adjust to the present production and market conditions; notes that these products are strategically important in the new Member States where they constitute not only an economic but also a social asset;

28.  Also considers that it would be appropriate to raise the citrus processing thresholds, whilst making it possible for farmers not belonging to producer organisations to deliver citrus fruits for processing;

29.  Declares itself in favour of allowing Member States which consider it appropriate to apply a region-specific approach to the thresholds for processed tomatoes;

30.  Advocates that the penalising of aid in the peach and pear sectors should only take effect once the sum of the thresholds for both these products has been exceeded, which would prevent losses for farmers without necessitating an increase in the Community budget;

31.  Considers that it would also be appropriate to make better use of the EU's citrus processing thresholds, making them transferable between products when one of the thresholds is not being fully used;

32.  Considers that the penalising of aid in the event of thresholds for citrus fruits being exceeded should only take effect once the sum of the thresholds for all the different citrus varieties has been exceeded at a Community level, so as to prevent, insofar as possible, penalties that erode producers' incomes, while at the same time maintaining budget neutrality;

33.  Notes that the decoupling of aid, which is another option being discussed for this sector, would legitimise the use of the tomato processing industry as a 'refuge sector' for farmers moving out of other crops affected by the CAP reform of September 2003, and this would complicate relations between producer organisations and the industry;

34.  Maintains that there is no justification for decoupling aid for processed products within the purview of the WTO negotiations, since multilateral rules do not prohibit maintaining that part of agricultural aid linked to production;

35.  Is in favour of an increase in the processing thresholds for clementines and small fruit, to take account of the trend in production and consumption of the fresh product, since this measure is the least expensive and most environment-friendly, whilst allowing a new superior-quality product - clementine juice - to be introduced to the market, which will help to increase the Community consumption of citrus juices; notes that quality foodstuffs and fragrances - deficit products in the Union - could also be obtained;

36.  Considers that maintaining aid to producer organisations per quantity delivered for processing is a mechanism that should be maintained; hence suggests that contracts be drawn up between producers and processing industries prior to harvesting;

Promotion of fruit and vegetables

37.  Deplores the lack of a Community strategy and research to revive consumption, and the mediocre financing allocated to the generic promotion of fruit and vegetables, which runs contrary to the European Union's growing concern to ensure nutritional balance for its citizens and food safety;

38.  Calls for the creation, in connection with the regulations aimed at promoting Community agricultural products inside and outside the EU, of a specific item amounting to EUR 15 million each year for increasing fruit and vegetable consumption, and for a periodic review of that item on the basis of the uptake of funds for generic campaigns which must be conditional upon the highlighting of the 'EU origin' and must draw attention to quality and not merely to quantity;

39.  Recalls that on 14 December 2001 the Council adopted a resolution stating that the consumption of fruit and vegetables is an effective way of promoting public health, as demonstrated by the Commission's DG SANCO in a document dating from 2002; notes that this position was officially bolstered by the Global Plan of Action for Nutrition presented by the WHO; therefore suggests that general campaigns be financed by the Commission to encourage the consumption of fruit and vegetables produced in the EU (e.g. school projects), in view of the decrease in the consumption of fruit and vegetable products, which is worrying from the point of view of health factors; in addition calls for the introduction of a specific promotion mechanism that may be used to promote the consumption of products in connection with which production forecasts indicate the likelihood of a crisis arising as a result of a production surplus; also calls for advertising campaigns to take account of the latest scientific findings in the field of nutrition and, accordingly, to promote the consumption of unprocessed or lightly processed fruit and vegetables, with particular emphasis on organically grown products and on regional and local varieties of fruit and vegetables in order to strengthen biodiversity;

The principle of Community preference and competition from imports from third countries

40.  Urges that the complex customs clearance system applied to imports from third countries be simplified, since operators can currently avail themselves of any one of three different methods for the calculation of customs duties and this is a system conducive to irregularities;

41.  Requests that the Commission consider the introduction of specific aid for products in a critical situation owing to imports from third countries, such as soft fruits, garlic and cultivated mushrooms, as well as sour cherries, sweet cherries, apple juice, processed apricots, asparagus, tomatoes, citrus segments and juices and other fruit and vegetables likely to be in a critical market situation;

42.  Calls on the Commission to carry out impact studies on the new agreements with third countries in order to assess the repercussions on the European fruit and vegetable sector;

43.  Since the outermost regions are particularly affected by the fact that products from certain third countries geographically closer to their markets have easier access to the market than they do, requests that calculation of the value of production marketed by the producer organisations be modified and serve as a basis for calculating maximum financial aid to the operational fund, so that it is calculated free at the destination, including the cost of transport to the Community markets;

44.  Calls on the Commission to promote and facilitate the establishment of mechanisms for the exchange of information and coordination with third-country producers targeting the same markets as Community producers, in order to avoid seasonal saturation of the market at the destination;

45.  Calls on the Commission and the Member States to carry out an analysis with a view to establishing European Inspectors to check products in the country of origin;

46.  Calls, in connection with bilateral trade agreements, for the European Union to negotiate reciprocity in opening up markets for agricultural products, including plant health aspects;

47.  Draws the attention of the Commission to the fact that imports from third countries do not always provide the levels of safety and quality that the European consumer has grown accustomed to, and hence it is necessary to ensure that the proper controls are put into place to guarantee that third-country products meet the same safety and quality requirements as European Union products, and also that they are obtained through observance of other crucial standards, such as for example fair employment;

Raising the profile of Community products

48.  Expresses its support for the introduction of a labelling system indicating the country of origin of the agricultural products used in processed products, which would increase the added value of Community products in relation to imports from third countries, while at the same time guaranteeing the appropriate levels of food safety and quality that imports from third countries may be unable to provide;

49.  Considers it vital to preserve species biodiversity and the culinary heritage and to inform consumers clearly, verifying the genuineness of the specific characteristics of fruit and vegetables for which there are not yet any precise standards recognised by the United Nations Economic Commission or principles recognised and detailed by the International Union for the Protection of New Varieties of Plants (UPOV); calls, therefore, for Community rules to be adjusted;

50.  Calls on the Commission to take due account during international trade negotiations of the fact that, following the enlargement, the soft fruit sector has become a sensitive sector for the EU, and calls for support to be provided in the form of measures affording protection against excessive imports of fruit and vegetables from third countries;

51.  In view of the need to consider integrated production specifically as a production system that respects the environment and quality, takes the view, moreover, that added value should be reinforced through the creation of a distinguishing label for fruit and vegetables produced under an integrated agricultural system; calls therefore for the prior establishment of harmonised rules for the creation of a system of quality certification for Community produce from integrated production;

Impact of the mid-term reform of the CAP and the forthcoming rural development rules

52.  Calls for implementation of the measures necessary to enforce the ban on the cultivation of fruit and vegetables on eligible land receiving decoupling support, as, failing this, the CAP reform of September 2003 could wrongfully give rise to unfair competition and discrimination between farmers who receive a single payment and traditional fruit and vegetable producers who do not, thereby exacerbating the imbalance that already exists on some markets for fruit and vegetables;

53.  Expresses its support for eliminating the current incompatibility between rural development funding and operational funds since this places the fruit and vegetable sector in a discriminatory situation in relation to other agricultural sectors;

54.  Considers that it should be established as a rule that producer organisations may freely choose how to finance investments, but the ban on dual public financing should be maintained, by means of the issue of certificates endorsing compliance with these provisions;

55.  Opposes the Commission's proposal to limit to small and micro-enterprises the granting of aid for investment, marketing and processing in the forthcoming financial programming of the Rural Development policy;

World Trade Organization

56.  Calls on the Commission to uphold the retention and effective application of the principle of Community preference for fruit and vegetables and the status of fruit and vegetables as 'sensitive' products in the chapter on access to markets in the WTO negotiations on the liberalisation of international trade, and to ensure that the resources saved from the expected phasing-out of export subsidies are made available, inter alia, for measures to achieve a balance on the Community market, which will be exposed to more intensive competition from similar products of third countries;

57.  Considers that, similarly, reciprocity in the opening up of markets, both quantitatively and qualitatively, should be guaranteed and that it is therefore necessary to step up controls and monitoring of the repercussions of trade concessions both as regards effects on the countries benefiting from concessions (proof of compliance with the objective of "convergence", on which the agreements are based) and as regards the impact of imports on the producer Member States;

58.  Requests that in the negotiations referred to in the previous paragraph, particular account be taken of the delicate situation of pasteurised citrus juices, because of imports from third countries;

59.  Stresses, as called for by development aid organisations, that the opening-up of markets in fruit and vegetables must not weaken the agricultural production models of developing countries;

The full use of the budget for fruit and vegetables

60.  Requests that full use of the budget devoted to the Community fruit and vegetable sector be guaranteed and that any saving made as a consequence of the reform should revert to it, making optimum use of the various support measures for producers;

o
o   o

61.  Instructs its President to forward this resolution to the Council and the Commission.

(1) OJ L 297, 21.11.1996, p. 1. Regulation as last amended by Commission Regulation (EC) No 47/2003 (OJ L 7, 11.1.2003, p. 64). (2) OJ L 297, 21.11.1996, p. 29. Regulation as last amended by Commission Regulation (EC) No 386/2004 (OJ L 64, 2.3.2004, p. 25). (3) OJ L 297, 21.11.1996, p. 49. Regulation as last amended by the Act of Accession 2003. (4) OJ L 311, 12.12.2000, p. 9. (5) OJ L 203, 12.8.2003, p. 18. (6) OJ L 203, 12.8.2003, p. 25. Regulation as last amended by Commission Regulation (EC) No 1813/2004 (OJ L 319, 20.10.2004, p. 5). (7) OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Commission Regulation (EC) No 118/2005 (OJ L 24, 27.1.2005, p. 15). (8) OJ L 345, 20.11.2004, p. 1. (9) OJ L 218, 30.8.2003, p. 14. Regulation as last amended by Commission Regulation (EC) No 180/2005 (OJ L 30, 3.2.2005, p. 7). (10) OJ L 317, 2.12.2003, p. 5. (11) OJ L 16, 23.1.2004, p. 3. (12) OJ C 65 E, 14.3.2002, p. 334.