Article 1
Chapter 6, A. "Agricultural Legislation" of Annex II to the Act of Accession shall be adapted as follows: 1) Point 13 shall be replaced by the following: "13. 32003 R 1788: Council Regulation (EC) No 1788/2003 of 29 September 2003 establishing a levy in the milk and milk products sector (OJ L 270, 21.10.2003, p. 123)" (a) in Article 1, the following paragraphs are added: "4. For the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia a special restructuring reserve shall be established as set out in table (g) of Annex I. This reserve shall be released as from 1 April 2006 to the extent that the onfarm consumption of milk and milk products in each of these countries has decreased since 1998 for Estonia and Latvia and 2000 for the Czech Republic, Lithuania, Hungary, Poland, Slovenia and Slovakia. The decision on releasing the reserve and of its distribution to the deliveries and direct sales quota shall be taken by the Commission in accordance with the procedure referred to in Article 23(2) of Regulation (EC) No 1788/2003 on the basis of an assessment of a report to be submitted by the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia to the Commission by 31 December 2005. This report shall detail the results and trends of the actual restructuring process in the country's dairy sector and, in particular the shift from production for on-farm consumption to production for the market. 5. For the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia the national reference quantities shall include all cow's milk or milk equivalent delivered to a purchaser or sold directly for consumption irrespective of whether it is produced or marketed under a transitional measure applicable in these countries." (b) in Article 6(1) the following subparagraphs are added:"For the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia the basis for the individual reference quantities referred to are set out in table (f) of Annex I. In the case of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia the twelve month period for the establishment of the individual reference quantities shall commence on: 1 April 2001 for Hungary, 1 April 2002 for Malta and Lithuania, 1 April 2003 for the Czech Republic, Cyprus, Estonia, Latvia and Slovakia and 1 April 2004 for Poland and Slovenia. However, in order to apply Article 95 of Regulation (EC) No 1782/2003(9), where the case may be, Poland and Slovenia may establish provisional individual reference quantities based on the twelve month period which commences on 1 April 2003 and they shall establish definitive individual reference quantities by 1 April 2005. Until 1 April 2005 Articles 3 and 4 of this Regulation are not applicable in Poland and Slovenia. For Poland the distribution of the total quantity between deliveries and direct sales shall be reviewed on the basis of its actual 2003 figures on deliveries and direct sales and, if necessary, adjusted by the Commission in accordance with the procedure referred to in Article 23(2) of Regulation (EC) No 1788/2003." (c) in Article 9(2) the following subparagraph is added:"For the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia, the reference fat content referred to in paragraph 1 shall be the same as the reference fat content of the quantities allocated to producers on the following dates: 31 March 2002 for Hungary, 31 March 2003 for Lithuania, 31 March 2004 for the Czech Republic, Cyprus, Estonia, Latvia and Slovakia and 31 March 2005 for Poland and Slovenia." (d) in Annex I, the tables are replaced by the following: "(a) Period 2004/2005 For the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia the national reference quantities referred to in Article 1(1) are applicable from 1 May 2004 to 31 March 2005. >TABLE> (b) Period 2005/2006 >TABLE> (c) Period 2006/2007 >TABLE> (d) Period 2007/2008 >TABLE> (e) Period 2008/2009 to 2014/2015 >TABLE> (f) Reference quantities for deliveries and direct sales referred to in the second subparagraph of Article 6(1) >TABLE> (g) Special restructuring reserve quantities referred to in Article 1(4) >TABLE>" (e) in Annex II the table is replaced by the following: "REFERENCE FAT CONTENT >TABLE>" 2) point 15(c) shall be replaced by the following: "(c) Article 5 is replaced by the following: 'Article 5 A premium of EUR 22,25 per tonne of starch produced shall be paid to undertakings producing potato starch for the quantity of potato starch up to the quota limit referred to in Article 2(2) or 2(4), provided that they have paid to potato producers the minimum price, referred to in Article 4a, for all the potatoes necessary to produce starch up to that quota limit.'" 3) point 25 shall be replaced by the following: "25. 32003 R 1782: Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) No 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/2001 (OJ L 270, 21.10.2003, p. 1)" (a) in Article 95(2) the following subparagraph is added:"For Poland and Slovenia, the amount per tonne for the dairy premium for 2004 shall be multiplied by the provisional individual reference quantity available on the holding on 1 May 2004." (b) in Article 95(4) the following subparagraphs are added:"For the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia the total quantities referred to in the first subparagraph are set out in table (f) of Annex I of Council Regulation (EC) No 1788/2003(10). For the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia the 12 month period referred to in the first subparagraph shall be that of 2004/2005." (c) in Article 96(2) the table is replaced by the following: "2. Additional payments: global amounts expressed in EUR million: >TABLE> In the new Member States the global amounts shall be applied in accordance with the schedule of increments as set out in Article 143a." 4) point 26 shall be adapted as follows: (a) the title is replaced by the following: "26. 31999 R 1257: 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 (OJ L 160, 26.6.1999, p. 80), as amended by - 32003 R 1783: Council Regulation (EC) No 1783/2003 of 29.9.2003 (OJ L 270, 21.10.2003, p. 70);" (b) point 1 inserting Chapter IXa of Title II is amended as follows: (i) Article 33c is deleted; (ii) Article 33f(2) is replaced by the following: "2. Support may be granted for the adoption of integrated territorial rural development strategies, of a pilot nature, prepared by local action groups in accordance with the principles laid down in items 12, 14 and 36 of the Commission notice to the Member States of 14 April 2000 laying down guidelines for the Community initiative for rural development (Leader+)(11). This support shall be limited to regions where there is already sufficient administrative capacity and experience of local rural development type approaches." (iii) Article 33h is replaced by the following: "Article 33h Complements to direct payments 1. As a temporary and sui generis provision support may be granted to farmers eligible for complementary national direct payments or aids under Article 143c of Council Regulation (EC) No 1782/2003(12) during the 2004-2006 period only. 2. The support granted to a farmer in respect of the years 2004, 2005, 2006 shall not exceed the difference between: (a) the level of direct payments applicable in the new Member States for the year concerned in accordance with Article 143a of Regulation (EC) No 1782/2003, and (b) 40 % of the level of direct payments applicable in the Community as constituted on 30 April 2004 in the relevant year. 3. The Community contribution to support granted under this Article in a new Member State in respect of each of the years 2004, 2005 and 2006 shall not exceed 20 % of its respective annual allocation. However, a new Member State may replace this 20 % annual rate with the following rates: 25 % for 2004, 20 % for 2005 and 15 % for 2006. 4. Support granted to a farmer under this Article shall be counted: (a) in the case of Cyprus, as complementary national direct aid for the purposes of applying the total amounts referred to in Article 143c(3) of Regulation (EC) No 1782/2003; (b) in the case of any other new Member State, as complementary national direct payments or aids, as applicable, for the purposes of applying the maximum levels set out in Article 143c(2) of Regulation (EC) No 1782/2003." (iv) in Article 33l, the following paragraph is inserted after paragraph 2: "2a. By way of derogation from Article 21b, for agricultural Community standards for which a transitional period is provided for under the Annexes referred to in Article 24 of the Act of Accession(13) the temporary support may be granted, from the date of eligibility of expenditures under the rural development programming document, to farmers who comply with these standards, for a period not exceeding five years." (c) in point 6 inserting Chapter IVa of Title III, Article 47a(1)(c) is deleted; (d) in point 10 adding Annex II, the row relating to Article 33c is deleted; 5) point 27 shall be replaced by the following: "27. 32003 R 1782: Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) No 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/2001 (OJ L 270, 21.10.2003, p. 1)" (a) in Article 1, after the second indent the following indent is inserted: "- a transitional simplified income support for farmers in the new Member States (hereinafter referred to as the 'single area payment scheme')" (b) in Article 2 the following point (g) is added: "(g) 'new Member States' means the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia." (c) after Title IV, the following Title IVa is inserted: "TITLE IVA IMPLEMENTATION OF SUPPORT SCHEMES IN THE NEW MEMBER STATES