– What is Article 222?

Article 222 is contained under the Common Organisation of the Markets Regulation, a cornerstone of the Common Agricultural Policy. In recent weeks, the French Government has argued that Article 222 should be invoked to help reduce supply and hence balance global production of milk. ICOS strongly believes that this is a deeply flawed conclusion. However, it is worth analysing the legal scope of Article 222 ahead of Monday’s Council Meeting.

• What organisations fall under Article 222?

Article 222 states that “during periods of severe imbalance in markets”, EU completion law will not apply to agreements and decisions between recognised producer organisations or interbranch organisations. ICOS understands that this provision also applies to dairy co-operatives as per the interpretation of the 2012 milk package.

• What measures can be adopted under Article 222?

There are seven specific measures which can be implemented under Article 222, including the withdrawal of product from the market.

• Is this a temporary or permanent measure?

The implementation of Article 222 can be applied for 6 months, but can be extended for a further 6 months.

• Will this be a voluntary or mandatory measure imposed on Member States?

Discussions to date have focused on the voluntary implementation of Article 222. The mandatory implementation of market withdrawal measures are unlikely to gain any consensus within the Council of Ag Ministers with countries such as Ireland, Denmark and the Netherlands firmly opposed to mandatory implementation.

• How will Article 222 measures be funded?

Funding is the key question. Discussions thus far have suggested that in particular member states, farmers may receive payments of the order of 10c per litre of reduction in milk supply, with a complete lack of clarity as to the origin of the money. The Regulation seems to suggest that the producer organisation or Co-op that the farmer belongs to would pay the money. There have been calls, however, for the money to come from national or EU budgets. Current State Aid rules would seem to preclude the possibility of national funding, and the EU has no budget for such measures. It would be completely unacceptable for the EU crisis reserve fund to be used, as that would result in beef, sheep and tillage farmers’ payments being raided to fund milk supply measures.

• Position of Commissioner Phil Hogan?

The EU Commissioner for Agriculture, Phil Hogan when addressing the European Parliament’s Committee on Agriculture on 7^th March stated that “I can confirm that we are looking at a voluntary arrangement that will help to regulate supply under Article 222.”

By Eamonn Farrell

ICOS Agri & Food Policy Executive