Press Release: Olive oil regime: Commission proposes two-year prolongation and a new quality strategy

On 21.12.00, the European Commission adopted a proposal to extend the existing aid scheme for the olive oil sector by two marketing years. The Commission opted for a prolongation of a production-based aid regime because some fundamental pre-conditions for a reform have not yet been met by Member States. Proper control based on reliable figures on the production of olive oil and the number of olive trees must be ensured. This can only be obtained by the Geographic Information System (GIS), showing olive groves declared by producers on aerial photographs. Following a proposal from the Commission in 2002, the Council would decide on the shape of the market organisation from 1 November 2003. Any aid granted under the future scheme would be made conditional on the existence of a GIS. The proposal foresees a strategy to add value to and improve the quality of olive oil production a vital feature in the olive-oil market. This includes the establishment of operators' organisations eligible for EU-support.

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