Explanatory Memorandum to COM(2003)372-2 - Amendment of Regulation (EC) No 2596/97 extending the period provided for in Article 149(1) of the Act of Accession of Austria, Finland and Sweden

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To take account of the difficulties posed by the application of the Community rules on drinking milk, Finland and Sweden have since their accession benefited from a derogation relating to the fat content requirements for that milk.

Originally this derogation was based on the Act of Accession and on the assumption that the Council would be re-examining the fat categories of drinking milk. However, the process of re-examination of the fat categories as well as the consolidation of the relevant rules resulted in the adoption of Regulation (EC) No 2597/97, which did not permit the integration of all the drinking milk marketed in Finland and Sweden. An initial period of derogation has therefore been extended twice. In December 2001, Finland and Sweden submitted reports on progress in applying those rules indicating that adaptation was causing persistent problems.

In view of the persistence of the difficulties which made the derogation necessary, the attached proposal for a Regulation provides for a derogation of five years on the understanding that the new period will expire at the same date as the similar transitional arrangements granted for new Member States, and that two years before the expiry of all current derogations the Commission will make a report on the market of drinking milk, possibly accompanied by proposals to harmonise the rules covered by Regulation (EC) No 2597/97.