7. 4. 89 Official Journal of the European Communities No L 94/43 COMMISSION DECISION- of 21 December 1988 on a national scheme to encourage the use of milk for feeding calves (Only the French text is authentic) (89/229/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular the first subparagraph of Article 93(2) thereof, Having regard to the Council Regulation (EEC) No 805/68-0f 27 June 1968 on the common organization of the market in beef and veal (!), as last amended by Regulation (EEC) No 571/89 (3, and in particular Article 24 :thereof, After . giving notice to the parties concerned, in accordance - with Article 93 (2) of the EEC Treaty, to submit their comments (%), Whereas : I By letter of 15 January 1988, the French Government notified the Commission of a draft aid scheme to encourage the use of milk for feeding calves. Details of the scheme are as follows: According to the information received from the French Government, aid of FF 500 would be paid for each calf fed for three months on milk produced on the holding on which it was kept. The calves would have to have been born on that holding, or acquired between 1 December 1987 and 1 March 1988: The maximum number of calves for which the aid could be claimed would be equal to the number of cows present on 1 January 1988. A ceiling of FF 10000 .per holding is planned. The aid would be- granted on condition that the stock farmer reduced his milk deliveries by at least 600 litres per calf for which the subsidy was claimed. Information from a number of sources seems to indicate that aid payments have already begun. According to the French authorities, the aim of :the scheme is to reduce milk deliveries in the final quarter of 1987/88. The aid was initially expected to cost a total of FF 100 million (ECU 14,5 million). II 1. The Commission notified the French Government by letter of 19 February 1988 of its decision to initiate the OJ No L 148, 28. 6. 1968, p. 24. % OJ No L 61, 4. 3. 1989, p. 43. OJ No C 57, 1. 3. 1988, p. 4. procedure provided for in Article 93 (2) of the EEC Treaty in respect of the proposed scheme. 2. In this letter, the Commission informed the French authorities that it took the view that the draft aid scheme was an operating aid which could not have any lasting effect on the sector, since its effects would disappear when the scheme lapsed. The: Commission considers such schemes to be. incompatible in principle with the common market. In addition, Community-rules and regulations concerning cattle farming constitute a full and comprehensive system which includes no provision for Member States to take additional income support measures for beef and veal producers. Moreover, the scheme planned by the French Government is in addition to schemes already established at Community level : Council Regulation (EEC) No 1357/80 (), as last amended by.Regulation (EEC) No 573/89 (), has already introduced a system of premiums for maintaining.suckler cows. The aid planned is thus a contravention of Community rules and regulations. 3. Under this procedure, the Commission has given notice to the French Government to submit its comments. The Commission has also given notice to the other Member States and to parties concerned other than the Member States to submit. their comments. III 1. The French Government replied to. the Commission’s letter of notice by letter of 11 March 1988. According to the. French authorities : — the scheme concerned is intended to address- the situation of the most vulnerable agricultural holdings, which have been thrown into severe disequilibrium by the limits on milk production, — the scheme would subsequently -allow a process of conversion, changing the method of farming or even definitive cessation of production to be embarked on, — the scheme is partly inspired by the Community premium for the non-marketing of milk, () OJ No L 140, 5. 6. 1980, p. 1. () OJ No L 63, 7. 3. 1989, p. 3.