The proposal was amended as follows:

Text proposed by the Commission1(1)   Amendments by Parliament Amendment 24 FIRST CITATION Having regard to the Treaty establishing the European Community, and in particular Article 37 thereof, Having regard to the Treaty establishing the European Community, and in particular Articles 37 and 299(2) thereof, Amendment 25 RECITAL 1 a (new) (1a) Article 299(2) of the Treaty states that the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, shall adopt specific measures aimed at laying down the conditions of application of the Treaty to the outermost regions of the EU for the purposes, among other things, of access to the Structural Funds. Amendment 27 RECITAL 3    (3) Council Regulation (EEC) No 1601/92 seeks to remedy the handicaps due to the remote and insular nature of these regions.    (3) Council Regulation (EEC) No 1601/92 seeks to remedy the handicaps due to the remote and insular nature of these regions, and to other difficulties and limiting factors, and to improve the conditions under which their agricultural products are produced and marketed. Amendment 28 RECITAL 4    (4) The structures of certain agricultural holdings or processing and marketing enterprises located in these islands show serious shortcomings and are beset with specific difficulties. Provision should accordingly be made for derogations for certain types of investments from the provisions limiting or preventing the grant of some structural aid provided for in Regulation (EC) No 1257/1999.    (4) The structures of the agricultural holdings or processing and marketing enterprises located in these islands show serious shortcomings and are beset with permanent limitations and specific difficulties requiring specific action to deal with them . Provision should accordingly be made for derogations for investments by these holdings or enterprises from the provisions limiting or preventing the grant of some structural aid provided for in Regulation (EC) No 1257/1999. Amendment 29 RECITAL 4 a (new) (4a) Article 29(3) of Regulation (EC) No 1257/1999 restricts the grant of forestry support to forests and wooded areas belonging to private owners and municipalities and associations thereof. The great majority of forests and wooded areas located in these islands belong to public authorities other than municipalities. Under the circumstances, the conditions laid down Article 29 of that Regulation should be made more flexible. Amendment 30 ARTICLE 1 Article 27, paragraph 1 (Regulation (EEC) No 1601/92)    1. Notwithstanding Article 7 of Regulation (EC) No 1257/1999, the total value of the aid, expressed as a percentage of the volume of eligible investments, shall not exceed 75% for investments intended in particular to encourage diversification, restructuring or a shift towards sustainable agriculture on agricultural holdings of very small economic size to be defined in the programme complement referred to in Article 18(3) of Council Regulation (EC) No 1260/1999.    1. Notwithstanding Article 7 of Regulation (EC) No 1257/1999, the total value of the aid, expressed as a percentage of the volume of eligible investments, shall not exceed 75% for investments intended to encourage diversification, restructuring or a shift towards sustainable agriculture on all agricultural holdings, particularly those of small economic size to be defined in the programme complement referred to in Article 18(3) of Council Regulation (EC) No 1260/1999. Amendment 31 ARTICLE 1 Article 27, paragraph 2 (Regulation (EEC) No 1601/92)    2. Notwithstanding Article 28(2) of Regulation (EC) No 1257/1999, the total value of the aid, expressed as a percentage of the volume of eligible investments, shall not exceed 65% for investments in small and medium-sized enterprises engaged in processing and marketing agricultural products consisting mainly of local produce in sectors to be defined in the programme complement referred to in Article 18(3) of Regulation (EC) No 1260/1999 .    2. Notwithstanding Article 28(2) of Regulation (EC) No 1257/1999, the total value of the aid, expressed as a percentage of the volume of eligible investments, shall not exceed 75% for investments in small and medium-sized enterprises engaged in processing and marketing agricultural products consisting mainly of local produce in all sectors . Amendment 32 ARTICLE 1 Article 27, paragraph 2 a (new) (Regulation (EEC) No 1601/92) 2a. Notwithstanding the provisions of the third indent of the second subparagraph of Article 47(2) of Regulation (EC) No 1257/1999, the Community's financial contribution to the agri-environmental measures laid down in Articles 22 to 24 of that Regulation shall be 85%. Amendment 34 ARTICLE 1 Article 27, paragraph 3 a (new) (Regulation (EEC) No 1601/92) 3a. The restriction on support for forestry laid down in Article 29(3) of Regulation (EC) No 1257/1999 shall not apply to forests or wooded areas located in the Canary Islands. Amendment 35 ARTICLE 2, PARAGRAPH 1 This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Communities. This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities. It shall apply from 1 January 2000.

(1) 1 OJ C 96 E, 27.3.2001, p. 276.

(Consultation procedure)

The European Parliament,

-  having regard to the Commission proposal to the Council (COM(2000) 774 )(1) ,

-  having been consulted by the Council pursuant to Article 37 of the EC Treaty (C5-0750/2000 ),

-  having regard to Rule 67 of its Rules of Procedure,

-  having regard to the opinion of the Committee on Legal Affairs and the Internal Market on the proposed legal basis,

-  having regard to the report of the Committee on Agriculture and Rural Development and the opinion of the Committee on Regional Policy, Transport and Tourism (A5-0195/2001 ),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3.  Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

4.  Asks to be consulted again if the Council intends to amend the Commission proposal substantially;

5.  Instructs its President to forward its position to the Council and Commission.

(1) OJ C 96 E, 27.3.2001, p. 276.