8.5.86 Official Journal of the European Communities NoL 119/21 COUNCIL REGULATION (EEC) No 1336/86 of 6 May 1986 fixing compensation for the definitive discontinuation of milk production THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation (EEC) No 804/68 of 27 June 1968 on the common organization of the market in milk and milk products (*), as last amended by Regulation (EEC) No 1335/86 (*), and in particular Article 5¢ (6) thereof, Having regard to the proposal from the Commission, Whereas the European Parliament stated its opinion on this proposal in a resolution on 21 February 1986; Whereas developments on the milk market have made necessary a 3 % reduction in the global quantities referred to in Article 5¢ of Regulation (EEC) No 804/68 and the Annex to Council Regulation (EEC) No 857/84 of 31 March 1984 adopting general rules for the application of the levy referred to in Article 5¢ of Regu- lation (EEC) No 804/68 in the milk and milk products sector (*), as last amended by the Act of Accession of Spain and Portugal; whereas the said reduction is being implemented in two stages i.e. 2 % with effect from 1 April 1987 and 1 % with effect from 1 April 1988; Whereas, in order to facilitate the reduction of deliveries and direct sales involved in reducing guaranteed global quantities, a Community system should be established to finance the discontinuation of milk production by granting any producer, at the latter’s request and provided that he fulfils certain eligibility requirements, compensation in return for his undertaking to discontinue definitively all milk production; Whereas, in the light of experience, the compensation may be fixed at 4 ECU per 100 kilograms of milk or milk equivalent, payable for seven years; whereas, however, it may be necessary to increase the level of compensation in order to achieve the reduction target; whereas, therefore, Member States should be authorized to put up additional financing, the amount of which may be adjusted to take account of specific regional features; whereas the quantities thus repurchased by Community and, possibly, national financing may neither be earmarked for the national reserve nor re-allocated to producers or purchasers; (*) OJ No L 148, 28. 6. 1968, p. 13. (®) See page 19 of this Official Journal. ) OJ No L 90, 1. 4. 1984, p. 13. Whereas the compensation is, in principle, granted for the whole of the reference quantity; whereas, however, this right should in certain cases be limited since producers having benefited prior to the entry into force of this Regulation from Article 4 (1) (a) of Regulation (EEC) No 857/84 are excluded from it; Whereas, should part of the sums provided for Community financing and fixed in the Annex to this Regulation not be used by the Member States, the latter should, in the interests of restructuring, be authorized to earmark the amounts still available for the financing of national programmes for repurchasing the reference quantities referred to in Article 4 (1) (a) of Regulation (EEC) No 857/84, for the benefit of producers permitted to participate in them after the entry into force of this Regulation; Whereas, account should be taken of cases where the holding is the subject of leases; Whereas the aim of the Community compensation is to restore market balance for the products concerned and may, therefore, be considered as an intervention within the meaning of Article 3 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (*), as last modified by Regu- lation (EEC) No 870/85 (), HAS ADOPTED THIS REGULATION: Article 1 1. At the request of the party concerned and subject to the conditions defined in this Regulation, and within the limits of the quantities laid down in Annex I, compensation shall be granted to any producer, as defined in the first subparagraph of Article 12 (c) of Regulation (EEC) No 857/84, who undertakes to discontinue milk production definitively. Where the second subparagraph of Article 12 (c) of the aforesaid Regulation is applicable, compensation is granted to each associated producer, subject to the same conditions. Milk production must be actually discontinued not later than: — 31 March 1987 for the first year of application; — 31 March 1988 for the second year of application. (‘) OJ No L 94, 28. 4. 1970, p. 13. () O] No L 95, 2. 4. 1985, p. 1.