The European Commission fixed definitive charges against Malta for failing to prevent the build-up of surplus stocks of sugar prior to its accession to the European Union in May 2004. Along with Estonia, Cyprus, Latvia and Slovakia, Malta is to pay charges totaling around Lm24 million (€57 million, US$73million) over the next four years. Malta’s share of the charge stands at Lm525,991 (€1,224,774, US$1,569,388,) the lowest out of those imposed on the five states.
The charges imposed on Monday followed an intensive debate with the countries concerned, during which the Commission took into account well-founded arguments and granted extra time to dispose of the surpluses.
On accession, new Member States were required to ensure that there was no speculative stockpiling of agricultural products, which would upset the balance of the entire EU market. Surplus stocks of sugar were found in these five countries.
Last year, the Commission granted the said states additional time to eliminate the surplus sugar from the EU market. The charges imposed on Monday follow an intensive debate with the countries concerned, during which the Commission took into account well-founded arguments and granted extra time to dispose of the surpluses.
“Measures to prevent the build-up of surplus stocks are a normal feature of every EU enlargement,” said Mariann Fischer Boel, Commissioner for Agriculture and Rural Development. “It is our legal duty to enforce these rules, which prevent economic operators across the Union being harmed by speculative stockpiling. But I am aware of concerns in the affected countries and have done everything possible to ensure a fair outcome.”
The amounts to be paid by the five Member States will be taken into account for the calculation of the production levies for the marketing year 2005/2006. Consequently the levies to be paid by sugar and beet producers all over the EU will be reduced accordingly, thus partly compensating them for the difficulties caused by the market disturbance.
The Commission granted the affected Member States extra time to eliminate from the EU market the surplus stocks which had been discovered. By the deadline of 31 March 2006, Cyprus provided proof of the elimination of 190 tonnes, Latvia 1,743 tonnes, and Slovakia 1,797 tonnes of sugar. The charges for these countries were thus reduced to take account of this.
For the remaining quantities, the Member States will be charged an amount equal to the quantity not eliminated multiplied by the highest export refund for white sugar during the period 1 May 2004 to 30 November 2005 at Lm214.95c (€499.50c, US$640) per tonne.
Estonia will be required to pay the highest fee at Lm19,660,159 (€45,686,268, US$58,548,951) followed by Cyprus at Lm8,586,117 (€19,991,489, US$25,619,967), Latvia at Lm1,896,939 (€4,418,577, US$5,662,798) and Slovakia at Lm4,209,786 (€4,209,786, US$12,539,782). Malta is to pay the lowest charge at €1,224,774.
Since these amounts are regarded as ‘own resources’ of the EU budget, the Member States concerned will be permitted to retain 25 percent of these charges. The payments will have to be made in four instalments, the first being payable when Monday’s decision is notified to the Member States, and the others being payable on 15th October 2007, 2008 and 2009.
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