The proposal was amended as follows:

Text proposed by the Commission(1)   Amendments by Parliament Amendment 42 Recital 1    (1) By Decision 91/315/EEC of 26 June 1991 the Council adopted a programme of options specific to the remote and insular nature of Madeira and the Azores (POSEIMA) in accordance with the Community's policy of assistance for the most remote regions. The purpose of the programme is to facilitate the economic and social development of those regions and enable them to benefit from the advantages of the single market of which they are an integral part despite the objective factors leaving them geographically and economically isolated. The programme calls for the CAP to be applied in those regions and provides for special measures to be adopted, in particular to improve the conditions in which agricultural products are produced and marketed there and to mitigate the effects of their exceptional geographical situation and constraints as since recognised in Article 299(2) of the Treaty.    (1) By Decision 91/315/EEC of 26 June 1991 the Council adopted a programme of options specific to the remote and insular nature of Madeira and the Azores (POSEIMA) in accordance with the Community's policy of assistance for the most remote regions. The purpose of the programme is to facilitate the economic and social development of those regions and enable them to benefit from the advantages of the single market of which they are an integral part despite the objective factors leaving them geographically and economically isolated. The programme calls for the CAP to be applied in those regions and provides for special measures to be adopted, in particular to improve the conditions in which agricultural products are produced and marketed there and to mitigate the effects of their exceptional geographical situation and constraints as since recognised in Article 299(2) of the Treaty, when determining the conditions for the application of Community measures in Madeira and the Azores . Amendment 43 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, in particular, at laying down the conditions of application of the Treaty to the outermost regions of the European Union, in the context of, inter alia, access to the Structural Funds. Amendment 44 Recital 2    (2) The particular geographical situation of Madeira and the Azores imposes additional transport costs in supplying essential products for human consumption, for processing and as agricultural inputs . In addition, objective factors arising as a result of insularity impose further constraints on economic operators and producers in these islands that severely handicap their activities. These handicaps can be alleviated by lowering the price of these essential products. It is therefore appropriate to introduce specific supply arrangements to guarantee supply to these islands and compensate for the additional costs arising from their insularity and remoteness .    (2) The particular geographical situation and the remoteness of Madeira and the Azores impose additional transport costs in relation to the markets for their agricultural products and in supplying essential agricultural inputs and products for human consumption and processing. In addition, objective factors arising as a result of their great distance, dispersion and small size impose further constraints on economic operators and producers in these islands that severely handicap their activities, as do other factors such as the impossibility of economies of scale, limited water and energy resources and particularly high production costs . These handicaps can be alleviated by supporting market access and lowering the price of these essential products. It is therefore justified to continue and to improve the specific arrangements to support agriculture and supply to these regions in order to reduce the additional costs arising from their geographical situation and guarantee supply to these islands . Amendment 45 Recital 6    (6) The economic advantages of the specific supply arrangements must be passed on so as to reduce production costs and bring down prices throughout the production and distribution chain to the end user, culminating in lower consumer prices. They should therefore be granted only on condition that they actually are passed on, and monitoring must be carried out to that end.    (6) The economic advantages of the specific agricultural support and supply arrangements must be passed on so as to increase farmers" income, reduce production costs and bring down prices throughout the production and distribution chain to the end user, culminating in lower consumer prices. They should therefore be granted only on condition that they actually are passed on, and monitoring must be carried out to that end. Amendment 46 Recital 7    (7) The area aid scheme for fruit and edible vegetables, roots and tubers, flowers and live plants has proved unsuitable, especially because of the slowness and complexity of procedures and the way the proposed aid was structured. Lessons should be learned from the encouraging results of the POSEIDOM reform in that sector, and marketing and processing aid should be envisaged with a view to supplying the market in Madeira and the Azores. Such aid must help local produce compete with products from elsewhere on high-growth markets, better satisfy the requirements of consumers and new distribution channels, improve the productivity of farms and upgrade the quality of products. The marketing of these products, both fresh and processed, should be continued and they should be promoted on the Community market. An economic study will help to refine the structure of the sector in these two regions.    (7) The area aid scheme for fruit and edible vegetables, roots and tubers, flowers and live plants has proved unsuitable, especially because of the slowness and complexity of procedures and the way the proposed aid was structured. Lessons should be learned from the encouraging results of the POSEIDOM reform in those sectors. In this connection, firstly, marketing and processing aid should be envisaged with a view to supplying the market in Madeira and the Azores. Such aid must help local produce compete with products from elsewhere on high-growth markets, better satisfy the requirements of consumers and new distribution channels, improve the productivity of farms and upgrade the quality of products. Secondly, the marketing of these products should be continued and they should be promoted in the other parts of the Community, for which purpose aid should be granted for the placing of these products on the Community market. An economic study, financed by the Commission, will help to refine the structure of these sectors in these two regions. Amendment 47 Recital 9 a (new) (9a) The Azores and Madeira have extensive vineyard areas in which the vine varieties cannot be included in the wine-making variety classification. Given their particular social and environmental importance, an exception must be made for these areas from the rules laid down in Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine which restrict the eligibility of these vineyards for certain types of restructuring aid. ___________ (1 ) OJ L 179, 14.7.1999, p. 1. Amendment 48 Recital 11 a (new) (11a) The opportunity provided by the reform of the COM in beef and veal should be seized to protect the local livestock sectors of Madeira and the Azores and the other outermost regions of the European Union, as well as the consumer, from the risks arising from BSE and its social and economic impact. Amendment 49 Recital 15    (15) Liqueur wines should continue to be prepared using traditional methods in the islands by facilitating the purchase of concentrated musts and wine alcohol produced in the rest of the Community and by granting aid for the ageing of such wines. To assist the efforts made to maintain the quality and authenticity of these products, aid should be granted for marketing them.    (15) Liqueur wines should continue to be prepared using traditional methods in the islands of Madeira and the Azores by facilitating the purchase of concentrated musts and wine alcohol produced in the rest of the Community and by granting aid for the ageing of such wines. To assist the efforts made to maintain the quality and authenticity of these products, aid should be granted for marketing them. Sufficient time should be allowed, and Community support granted, to enable unauthorised varieties to be uprooted. Amendment 50 Recital 16 a (new) (16a) The nine islands of the Azores are themselves widely scattered, and attention should therefore be paid to this situation of dual insularity by adapting support to the specific situation of the various islands and rural communities. Amendment 51 Recital 17    (17) Milk production and cattle farming are the mainstay of the agricultural economy of the Azores, and support for the sector must take account of the crucial importance of these activities in both social and economic terms, especially for small farmers. To ensure the survival of traditional activity in this sector, the suckler cow premium and the aid for dairy cows should continue to be supplemented, within the limit of the available local quota. A supplement to the slaughter premium should be introduced and aid granted for the disposal of surplus male bovines for which no normal outlets can be found in the islands and which must be shipped to the rest of the Community at considerable additional cost, given the particular geographical situation of the region. To ensure that Community support can be mobilised effectively, an annual financial allocation must enable the sectors concerned to define and implement strategies tailored to the local context for economic development, spatial organisation of production and increasing the professionalism of producers.    (17) Milk production and cattle farming are the mainstay of the agricultural economy of the Azores, and support for the sector must take account of the crucial importance of these activities in both social and economic terms, especially for small farmers. To ensure the survival of traditional activity in this sector, the suckler cow premium and the aid for dairy cows should continue to be supplemented, within the limit of the available local quota. A supplement to the slaughter premium should be introduced and aid granted for the disposal of surplus male bovines for which no normal outlets can be found in the islands and which must be shipped to the rest of the Community at considerable additional cost, given the particular geographical situation of the region. To ensure that Community support can be mobilised effectively, an annual financial allocation must enable the sectors concerned to define and implement strategies tailored to the local context for economic development, spatial organisation of production, the preservation of the environmental heritage, agricultural diversification and increasing the professionalism of producers. Amendment 52 Recital 17 a (17a) Agricultural activity in the Azores is highly dependent on milk production. This dependence, combined with other handicaps linked to their extreme remoteness and the absence of viable alternative production, is detrimental to their economic development. The needs of local consumption in those islands covered by local production should be taken into account and some of the provisions of the common market organisation for milk and milk products on limiting output should be derogated from for a period of four marketing years beginning in 1999/2000 in order to take account of the level of development of and the conditions for local production. Although this measure derogates from the second subparagraph of Article 34(2) of the EC Treaty, it is restricted to milk producers in the Azores and is of marginal economic impact when compared with the total quota for Portugal. It should enable the sector in the Azores to continue being restructured over the period of application of this measure without interfering with the milk market and without appreciably affecting the sound working of the levy scheme at Portuguese or Community level . (17a) Agricultural activity in the Azores is highly dependent on milk production. This dependence, combined with other handicaps linked to their extreme remoteness and the absence of viable alternative production, is detrimental to their economic development. The needs of local consumption in those islands covered by local production should be taken into account and some of the provisions of the common market organisation for milk and milk products on limiting output should be derogated from for a period of four marketing years beginning in 1999/2000 in order to take account of the level of development of and the conditions for local production. Amendment 53 Recital 17 b (new) (17b) The traditional way in which cattle farming is practised, particularly in the small islands in the region, means that some adjustments are necessary to Council Regulation (EC) No 1254/1999 of 17 May 1999 on the common organisation of the market in beef and veal(1 ) in line with the actual situation in the Azores. _____________ ( 1 ) OJ L 160, 26.6.1999, p. 21. Amendment 54 Recital 18 a (new) (18a) The Treaty of accession of Portugal to the European Communities recognised the traditional sugar export flows generated by the industrial unit in the Azores by granting a refining entitlement equivalent to the difference between 20 000 tonnes and the A and B beet sugar production quotas. This refining is vital to ensure the profitability of the industrial plant needed to refine beet and hence the survival of the sector, which is of crucial importance for the diversification of agriculture in the Azores. Amendment 55 Recital 19    (19) The plant health of agricultural crops in Madeira is subject to particular problems associated with the climate and the inadequacy of the control measures hitherto applied there. Programmes should be implemented to combat harmful organisms. The Community's financial contribution towards such programmes should be specified.    (19) The plant health of agricultural crops in the Azores and Madeira is subject to particular problems associated with the climate and the inadequacy of the control measures hitherto applied there. Programmes should be implemented to combat harmful organisms. The Community's financial contribution towards such programmes should be specified. Amendment 56 Recital 19 a (new) (19a) The Commission should apply enterprise development policy in an effective fashion to the SMEs in the agri-food sector in the outermost regions of the European Union. Amendment 57 Recital 20    (20) The structures of certain farms or processing and marketing firms in these regions are seriously defective and face specific difficulties. It should therefore be possible to derogate for some types of investment from the provisions restricting or prohibiting the grant of some of the structural aid provided for in Council Regulation (EC) No 1257/1999.    (20) The structures of certain farms or processing and marketing firms in these regions are seriously defective and face specific difficulties. It should therefore be possible to derogate for some types of investment from the provisions restricting or prohibiting the grant of some of the structural aid provided for in Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations(1 ). _______________ ( 1 ) OJ L 160, 26.6.1999, p. 80. Amendment 58 Recital 22 a (new) (22a) Provision should be made to adopt the transitional rules required to ease the change from the arrangements laid down in Council Regulation (EEC) No 1600/92(1 ) to the new arrangements laid down by this Regulation so as to avoid breaks in continuity should existing measures be extended. _______________ ( 1 ) OJ L 173, 27.6.1992, p. 1. Amendment 59 Article 1 This Regulation lays down specific measures to remedy the difficulties caused by the remote and insular nature of the Azores and Madeira in respect of certain agricultural products. This Regulation lays down specific measures to remedy the difficulties caused by the remote and insular nature and other specific limitations of the Azores and Madeira in respect of certain agricultural products. Amendment 60 Article 2, paragraph 1 Specific supply arrangements are hereby introduced for the agricultural products listed in Annexes I and II to this Regulation, which are essential for human consumption, for processing and as agricultural inputs in the Azores and Madeira. Specific supply arrangements are hereby introduced for the agricultural and livestock products listed in Annexes I and II to this Regulation, which are essential for human consumption, for processing and as agricultural inputs in the Azores and Madeira. Amendment 61 Article 3, paragraph 5, subparagraph 2 Where the products concerned are processed in the Azores and Madeira, the aforesaid prohibition shall not apply to traditional exports or shipments of the processed products to the rest of the Community. In the case of traditional exports, no refund shall be granted. Where the products concerned are processed in the Azores and Madeira, the aforesaid prohibition shall not apply to traditional exports or shipments of the processed products to the rest of the Community. It shall likewise not apply to trade between the autonomous regions of the Azores and Madeira. In the case of traditional exports, export refunds may be granted for products manufactured in Madeira and the Azores using raw materials imported under the specific supply arrangements and processed to a sufficient degree there . Amendment 62 Article 3, paragraph 6, subparagraph 2 The Commission shall draw up supply balances in accordance with the procedure referred to in the first subparagraph. It may revise those balances, and the list of products in Annexes I and II, in accordance with the same procedure, in the light of changes in the Azores" and Madeira's requirements. The Commission shall draw up supply balances in accordance with the procedure referred to in the first subparagraph. It may revise those balances, and the list of products in Annexes I and II and the aids granted, in accordance with the same procedure, in the light of changes in the Azores" and Madeira's requirements. Amendment 63 Article 4, paragraph 5    5. The list of products covered, the level of the aid referred to in paragraph 1 and the detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 29(2).    5. The list of products covered, the level of the aid referred to in paragraph 1 and the detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 29(2). The importation of breeding cattle into the Azores shall be excluded from this list of products. Amendment 64 Article 5, paragraph 1, subparagraphs 3 to 5 Grant of the aid shall be subject to the conclusion of supply contracts lasting one or more years between individual producers or producer organisations as referred to in Articles 11, 13 and 14 of Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables and the food industry or distributors, restaurants and the like or local authorities. Grant of the aid shall be subject to the conclusion of supply contracts lasting one or more years between individual producers, groups thereof, or producer organisations as referred to in Articles 11, 13 and 14 of Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables and the food industry or distributors, restaurants and the like or local authorities. The aid shall be paid out to the above-mentioned producers or producer organisations within the limits of annual quantities established for each product category. The aid shall be paid out to the above-mentioned producers or producer organisations within the limits of annual quantities established for each product category. The amount of the aid shall be fixed on a flat-rate basis for each of the product categories to be determined, based on the average value of the products covered. The amount of aid shall be differentiated according to whether the beneficiary is a producer or one of the producer organisations referred to in Articles 11, 13 and 14 of Regulation (EC) No 2200/96. The amount of the aid shall be fixed on a flat-rate basis for each of the product categories to be determined, based on the average value of the products covered. The amount of aid shall be differentiated according to whether the beneficiary is a producer, a group thereof, or one of the producer organisations referred to in Articles 11, 13 and 14 of Regulation (EC) No 2200/96. Amendment 65 Article 6, paragraph 1    1. Aid shall be granted for the conclusion of annual contracts concerning the marketing of fresh and processed products as specified in Article 5(1).    1. Aid shall be granted for the conclusion of annual contracts concerning the marketing of fresh and processed products as specified in Article 5(1). Notwithstanding the preceding subparagraph, aid may be granted for the marketing of flowers and live plants where no annual contracts have been concluded. The aid shall be paid up to a limit of a volume of 3 000 tonnes per product per year for each of the two regions. The aid shall be paid up to a limit of a volume of 3 000 tonnes per product per year for each of the two regions. The contracts shall be concluded between individual producers or producer organisations or their associations within the meaning of Council Regulation (EC) No 2200/96 established in the islands and natural or legal persons established in the rest of the Community. The contracts shall be concluded between individual producers, groups thereof or producer organisations or their associations within the meaning of Council Regulation (EC) No 2200/96 established in the islands and natural or legal persons established in the rest of the Community. Amendment 66 Article 6 a (new) Article 6a Aid shall be granted for the conclusion of annual contracts concerning the marketing of potatoes for human consumption within CN codes 0701 90 51, 0701 90 59, and 0701 90 90, for a volume not exceeding 10 000 tonnes per year. The amount of the aid shall be correspond to 20% of the value of the goods marketed at destination. Amendment 67 Article 7, paragraph 1, subparagraph 1    1. The Community shall contribute up to a maximum of EUR 100 000 towards the financing of an economic analysis and forward study of the fresh and processed fruit and vegetable sector in the two regions, paying particular attention to tropical produce.    1. The Community shall contribute up to a maximum of EUR 100 000 towards the financing of two economic analyses and forward studies of the fresh and processed fruit and vegetable sector in the two regions, paying particular attention to tropical produce. Amendment 68 Article 8 Chapter II of Title II of Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine and Chapter III of Commission Regulation (EC) No 1227/2000 of 31 May 2000 laying down detailed rules for the application of Council Regulation (EC) No 1493/1999 on the common organisation of the market in wine, as regards production potential shall not apply to the Azores and Madeira. Chapter II of Title II and Chapters I and II of Title III of Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine and Chapter III of Commission Regulation (EC) No 1227/2000 of 31 May 2000 laying down detailed rules for the application of Council Regulation (EC) No 1493/1999 on the common organisation of the market in wine, as regards production potential shall not apply to the Azores and Madeira. Amendment 69 Article 9, paragraph 2    2. The amount of the aid shall be EUR 476,76 per hectare per year. The aid shall be paid to producer groups or their associations. However, the aid shall also be granted to individual producers during a transitional period. During that period all the aid shall be paid through the Wine Institute of Madeira and the Wine-growing Commission of the Azores, in accordance with rules to be laid down in accordance with the procedure referred to in paragraph 3.    2. The amount of the aid shall be EUR 650 per hectare per year. The aid shall be paid to producer groups or their associations. However, the aid shall also be granted to individual producers during a transitional period. During that period all the aid shall be paid through the Wine Institute of Madeira and the Wine-growing Commission of the Azores, in accordance with rules to be laid down in accordance with the procedure referred to in paragraph 3. Amendment 70 Article 9, paragraph 2 a (new) 2a. Notwithstanding Article 19 of Regulation (EC) No 1493/1999, the following varieties found in the Azores and Madeira may be included in the classification of varieties intended for wine-making: Isabell, Jacqué, and Herbemont. Amendment 71 Article 9, paragraph 2b (new) 2b. Notwithstanding Article 19(5) of Regulation (EC) No 1493/1999, the national authorities may submit plans to the Commission for the substitution in the regions in question of varieties not conforming to the provisions of Article 19(1) of that Regulation, to be co-financed under this programme. The plans must lay down an implementation period which must end no later than seven years after the date of adoption of this Regulation. Amendment 72 Article 9, paragraph 2 c (new) 2c. Aid shall be granted for the marketing of quality wines p.s.r. produced in the Azores and Madeira and intended to supply the local market, subject to the conclusion of supply contracts between producers of wines in this category belonging to one of the boards which regulate the designation of origin in the Azores and Madeira and distributors, undertakings in the catering sector, or local authorities. The aid shall be paid on the basis of the quantities covered by the contracts between the above parties and shall be fixed annually on a flat-rate basis in accordance with the criteria to be agreed with the regulatory boards concerned. Amendment 73 Article 10, paragraph 1 a (new) 1a. Within the framework of Council Regulation (EC) No 2826/2000 of 19 December 2000 on information and promotion actions for agricultural products on the internal market(1 ), priority shall be accorded to promotion campaigns for the use of this graphic symbol. Additional funding may be granted up to 25% over the limit set by Article 9(2) of that Regulation. _____________ ( 1 ) OJ L 328, 23.12.2000, p. 2. Amendment 74 Article 12, paragraph 1    1. The aid provided for in paragraph 2 and 3 below shall be granted to assist traditional activities connected with beef and veal production and measures to improve product quality, within the limits of the consumption needs of Madeira as assessed in the context of a periodic supply balance. The balance shall also take account of breeding animals supplied under Article 4 and animals covered by the supply arrangements provided for in Article 11.    1. The aid provided for in paragraphs 2, 3, and 3a below shall be granted to assist traditional activities connected with beef and veal production and measures to improve product quality, within the limits of the consumption needs of Madeira as assessed in the context of a periodic supply balance. The balance shall also take account of breeding animals supplied under Article 4 and animals covered by the supply arrangements provided for in Article 11. Amendment 75 Article 12, paragraph 2    2. A supplement to the slaughter premium shall be paid to beef and veal producers for each animal slaughtered under Article 11 of Regulation (EC) No 1254/1999. The amount of the supplement shall be EUR 25 per head.    2. A supplement to the slaughter premium shall be paid to beef and veal producers for each animal slaughtered under Article 11 of Regulation (EC) No 1254/1999. The amount of the supplement shall be EUR 100 per head. Amendment 76 Article 12, paragraph 3    3. A supplement to the premium for maintaining suckler cows provided for in Article 6 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers. The amount of this supplement shall be EUR 50 per suckler cow held by the producer on the day on which the application is submitted.    3. A supplement to the premium for maintaining suckler cows provided for in Article 6 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers. The amount of this supplement shall be EUR 100 per suckler cow held by the producer on the day on which the application is submitted. Amendment 77 Article 12, paragraph 3 a (new) 3a. A supplement to the special premium for fattening male bovine animals provided for in Article 4 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers for each animal reaching a minimum weight to be determined by the Commission. The amount of the supplement shall be EUR 40 per head. Amendment 78 Article 15, paragraph 1, subparagraph 2 The annual amount of the aid shall be EUR 596 per hectare per year. The annual amount of the aid shall be EUR 596 per hectare cultivated and harvested per year. Amendment 79 Article 20, paragraph 2    2. The amount of the aid shall be EUR 250 per hectare of area planted and harvested, up to a limit of 200 hectares.    2. The amount of the aid shall be EUR 600 per hectare of area planted and harvested, up to a limit of 200 hectares. Amendment 80 Article 21, paragraph 1    1. The aid provided for in this Article shall be granted to support essential traditional economic activities in the beef and veal and milk sectors in the Azores.    1. The aid and regulatory adjustments provided for in this Article shall be granted to support essential traditional economic activities in the beef and veal and milk sectors in the Azores. Amendment 81 Article 21, paragraph 2    2. A supplement to the slaughter premium shall be paid to beef and veal producers for each animal slaughtered under Article 11 of Regulation (EC) No 1254/1999. The amount of the supplement shall be EUR 25 per head.    2. A supplement to the slaughter premium shall be paid to beef and veal producers for each animal slaughtered under Article 11 of Regulation (EC) No 1254/1999. The amount of the supplement shall be EUR 100 per head. Amendment 82 Article 21, paragraph 3    3. A supplement to the premium for maintaining suckler cows provided for in Article 6 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers. The amount of this supplement shall be EUR 50 per suckler cow held by the producer on the day on which the application is submitted.    3. A supplement to the premium for maintaining suckler cows provided for in Article 6 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers. The amount of this supplement shall be EUR 100 per suckler cow held by the producer on the day on which the application is submitted. Amendment 83 Article 21, paragraph 3 a (new) 3a. A supplement to the special premium provided for in Article 4 of Regulation (EC) 1254/1999 shall be paid to beef and veal producers. The amount of the supplement shall be EUR 50 per head. Amendment 84 Article 21, paragraph 4 The provisions relating to: The provisions relating to:    (a) the regional ceiling laid down by Article 4 of Regulation (EC) No 1254/1999 as regards the basic special premium;    (a) the regional ceiling laid down by Article 4 of Regulation (EC) No 1254/1999 as regards the basic special premium;    (b) the national ceiling referred to in Article 11 of that Regulation as regards the basic slaughter premium;    (b) the national ceiling referred to in Article 11 of that Regulation as regards the slaughter premium; shall not apply in the Azores in the case of the basic special premium, the slaughter premium or the supplementary premium referred to in paragraph 2. shall not apply in the Azores in the case of the special premium, the slaughter premium or the supplementary premiums referred to in paragraphs 2 and 3a . Amendment 85 Article 21, paragraph 5    5. The basic and supplementary premiums referred to in paragraphs 2 and 3 shall be granted each year for a maximum of 40 000 male bovine animals and 33 000 slaughtered animals, respectively.    5. The basic and supplementary premiums referred to in paragraphs 2, 3, and 3a shall be granted each year for a maximum of 40 000 male bovine animals, 15 000 suckler cows, and 33 000 slaughtered animals, respectively. The number of animals for which the suckler cow premium was granted in the Azores for the year 2000 shall be "frozen" within the regional ceiling set in Article 6 of Regulation (EC) No 1254/1999. Amendment 86 Article 21, paragraph 6 a (new) 6a. At the request of farmers practising traditional extensive livestock farming in the Azores, the rules laid down for the application of Article 4 of Regulation (EC) No 1254/1999 to the animal designated by 'steer' in accordance with Article 3 may be applied to the animal designated as 'bull' in that Article 3. Amendment 87 Article 21, paragraph 6 b (new) 6b. At the farmer's request and where a holding is not devoted itself to milk production, a derogation may be made from the application to the Azores of the provision laid down in Article 6(6) of Regulation (EC) No 1254/1999. Amendment 88 Article 21, paragraph 7    7. A specific premium shall be granted to maintain the dairy herd, up to a maximum of 78 000 head.    7. A specific premium shall be granted to maintain the dairy herd, up to a maximum of 88 000 head. The premium shall be paid to producers. The amount of this premium shall be EUR 80 per cow held by the producer on the day on which the application is submitted. The premium shall be paid to producers. The amount of this premium shall be EUR 97 per cow held by the producer on the day on which the application is submitted, provided that the producer keeps, for at least six consecutive months from the day on which the application is lodged, a number of suckler cows at least equal to 80%, and of heifers at most equal to 20%, of the number for which the premium was requested. On a proposal from the regional authorities, and with the approval of the Commission, that premium may be converted into a premium held by each producer and linked to his milk quota. Amendment 89 Article 21, paragraph 9, subparagraph 2 The aid shall amount to EUR 40 per head shipped, and shall be granted for up to 20 000 animals to producers who have kept those animals for at least three months before shipment. The aid shall amount to EUR 50 per head shipped, and shall be granted for up to 20 000 animals to producers who have kept those animals for at least three months before shipment. Amendment 90 Article 21 a, paragraph 1, subparagraph 1    1. For a transitional period covering the 1999/2000, 2000/01, 2001/02 and 2002/03 marketing years, for the purposes of sharing the additional levy between the producers referred to in the second sentence of Article 2(1) of Regulation (EEC) No 3950/92, only producers as defined in Article 9(c) of that Regulation established and producing in the Azores, who market quantities exceeding their reference quantity increased by the percentage referred to in subparagraph 3 shall be deemed to have contributed to the overrun.    1. For the purposes of sharing the additional levy between the producers referred to in the second sentence of Article 2(1) of Regulation (EEC) No 3950/92, only producers as defined in Article 9(c) of that Regulation established and producing in the Azores, who market quantities exceeding their reference quantity increased by the percentage referred to in subparagraph 3 shall be deemed to have contributed to the overrun. Amendment 91 Article 22 a (new) Article 22 a During the period 2001-2005, the competent authorities designated by the Member State may submit to the Commission, for approval, a livestock restructuring, environmental protection and rural development programme, to be financed on the basis of this Regulation. As a supplementary source of funding for this programme, the premiums allocated in Article 21 may be converted into direct premiums for agricultural producers in line with environmental protection and rural development objectives. The Portuguese authorities shall present an annual report on implementation of the programme. Detailed rules for applying this Article shall be adopted, as appropriate, in accordance with the procedure referred to in Article 29(2). Amendment 92 Article 24, paragraph 1, subparagraph 2 The amount of the aid shall be EUR 600 per hectare sown and harvested. The amount of the aid shall be EUR 800 per hectare sown and harvested. Amendment 93 Article 24, paragraph 2, subparagraph 2 The aid shall amount to EUR 27 per 100 kg of refined sugar. It may be adapted in accordance with the procedure referred to in paragraph 3. The aid shall amount to EUR 35 per 100 kg of refined sugar. It may be adapted in accordance with the procedure referred to in paragraph 3. Amendment 94 Article 25, paragraph 1, subparagraph 1    1. A supplementary premium shall be granted, in addition to the premium introduced by Title I of Regulation (EEC) No 2075/92 of 30 June 1992 on the common organisation of the market in raw tobacco, for the collection of leaf tobacco of the variety Burley P., up to a limit of 250 tonnes. The amount of the supplementary premium shall be EUR 0,20 per kg of leaf tobacco.    1. A supplementary premium shall be granted, in addition to the premium introduced by Title I of Regulation (EEC) No 2075/92 of 30 June 1992 on the common organisation of the market in raw tobacco, for the collection of leaf tobacco of the variety Burley P., up to a limit of 250 tonnes. The amount of the supplementary premium shall be EUR 0.35 per kg of leaf tobacco. Amendment 95 Section 5, title Seed potatoes, chicory and tea Potatoes, alcohol, vinho verdelho, chicory and tea Amendment 96 Article 26, paragraph 1, subparagraph 2 The amount of the aid shall be EUR 500 per hectare. The amount of the aid shall be EUR 600 per hectare. Amendment 97 Article 26, paragraph 2, subparagraph 2 The amount of the aid shall be EUR 500 per hectare. The amount of the aid shall be EUR 600 per hectare. Amendment 98 Article 26, paragraph 4, subparagraph 2 The amount of the aid shall be EUR 500 per hectare of harvested area per year. The amount of the aid shall be EUR 1 000 per hectare of area under crop or to be planted. Amendment 99 Article 26, paragraph 4 a (new) 4a. An exemption from excise duty shall be granted to alcohol produced and rectified in the Azores and for raw spirits rectified in the Azores up to a maximum of 500 000 litres of alcohol. Amendment 100 Article 26, paragraph 4 b (new) 4b. Aid shall be granted for the ageing of vinho verdelho up to a maximum of 4 000 hectolitres per year. The aid shall be granted for wine being aged for at least three years. The amount of the aid shall be EUR 0,08 per hectolitre per day. Amendment 102 Article 28, paragraph 1    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 in particular to encourage diversification, restructuring or a shift towards sustainable agriculture on all agricultural holdings, particularly those 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. Amendment 103 Article 28, paragraph 2 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 104 Article 28, paragraph 3    3. The restriction provided for in Article 29(3) of Regulation (EC) No 1257/1999 shall not apply to forests and wooded areas situated in the territory of the Azores and Madeira.    3. The restriction provided for in Article 29(3) of Regulation (EC) No 1257/1999 shall not apply to subtropical forests and wooded areas situated in the territory of the Azores and Madeira. Amendment 105 Article 28, paragraph 3 a (new) 3a. 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 106 Article 28, paragraph 3 b (new) 3b. Notwithstanding the provisions of Article 24(2) of Regulation (EC) No 1257/1999, the annual quantities laid down in the Annex to this Regulation may be increased by up to 100% in order to allow for the specific environmental situation of certain particularly sensitive parts of Madeira and the Azores. Amendment 107 Article 29, paragraph 1, subparagraph 5 For the purposes of implementing Title IV, the Commission shall be assisted by the Committee on Agricultural Structures and Rural Development established by Article 50 of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds. For the purposes of implementing Title IV, the Commission shall be assisted by the Committee on the Development and Conversion of Regions and by the Committee on Agricultural Structures and Rural Development established by Articles 48 and 50 respectively of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds. Amendment 109 Article 34 a (new) Article 34 a The Commission may adopt the transitional measures required to bring about a smooth change from the arrangements in force in the year 2000 or the 2000/01 marketing year and the arrangements resulting from the provisions laid down in this Regulation. It shall ensure in particular that there are no breaks in continuity should existing measures be extended. Amendment 110 Annex I, new indent    - Corn gluten feed CN 2309 90 20

(1) OJ C 96 E, 27.3.2001, p. 301.

(Consultation procedure)

The European Parliament,

-  having regard to the Commission proposal and amended proposal to the Council (COM(2000)791 )(1) , and (COM(2001) 156 )

-  having been consulted by the Council pursuant to Articles 36, 37, and 299(2) of the EC Treaty (C5-0745/2000 ),

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

-  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 (A5-0197/2001 ),

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. 301.