THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to the Act of Accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden, and in particular Article 142 thereof,

Whereas in order to authorize Sweden to grant long-term national aid intended to ensure that agricultural activity is maintained in northern regions, those regions must be determined by the Commission;

Whereas, in order to facilitate the administration of the scheme when determining those regions, it is appropriate to keep the communes and the four sub-regions defined in the Swedish system of aid to agriculture in northern areas in force before accession as the administrative units relevant for checking compliance with the determination criteria;

Whereas the regions selected are to cover the agricultural areas situated to the north of the 62nd parallel and some adjacent areas south of that parallel affected by comparable climatic conditions rendering agricultural activity particularly difficult; whereas, when determining those regions, account must be taken in particular of low population density, the agricultural area as a proportion of the overall surface area, and the agricultural area devoted to arable crops intended for human consumption as a proportion of the utilized agricultural area (UAA);

Whereas the foregoing elements lead, in the case of Sweden, to the list of administrative units in sub-regions 1, 2A, 2B and 3 provided for in this Decision, which units are either north of the 62nd parallel or adjacent to that parallel and affected by comparable climatic conditions rendering agricultural activity particularly difficult and have population densities of 10 inhabitants or fewer per square km, UAA considered to constitute 10% or less of the overall surface area and a proportion 20% or less of that UAA devoted to arable crops intended for human consumption; whereas it is appropriate that communes entirely surrounded by such areas be included in the list up to a maximum of two communes per enclave, even if they do not have the same characteristics;

Whereas the northern area thus determined represents a UAA of 509 442 ha, which is 14% of the total UAA in Sweden;

Whereas on the basis of available national statistics, the reference period both for quantities and for the amount of support should be fixed as 1994 for the production of cows milk and of soft fruit and vegetables and as 1993 for other products;

Whereas, for reasons of transparency, it is appropriate to indicate the volume of production per product in the abovementioned years;

Whereas on 11 May 1995 Sweden submitted to the Commission details of the system of aid planned; whereas it subsequently forwarded additional information; whereas this system provides for aid for cow's milk, goats, pigs, laying hens and soft fruit and vegetables; whereas the level of aid planned means that the level of overall support applied during the selected reference period is not exceeded;

Whereas the planned measures may be authorized since they satisfy the conditions referred to in Article 142 (3) of the Act of Accession; whereas the measures take account of the level of compensatory allowance within the meaning of Council Regulation (EEC) No 2328/91 ( 1 ), as last amended by Regulation (EC) No 2387/95 ( 2 ), and the agri-environmental aid provided for in Council Regulation (EEC) No 2078/92 ( 3 ), as last amended by Commission Regulation (EC) No 2772/95 ( 4 ) for the northern areas, levels which it is appropriate to note for the sake of transparency; whereas, if accompanied by the necessary measures, they will not lead either to an increase in overall support or to an increase in production in comparison with the abovementioned reference periods; whereas, in the latter connection, it is appropriate to reduce aid in the following year in proportion to the extent by which production exceeds that of the reference period;

Whereas, with respect to the last point, apart from cow's milk, for which production is governed by the quota system laid down by the common organization of the market, and in particular by Council Regulation (EEC) No 3950/92 ( 5 ), as amended by Regulation (EC) No 1552/95 ( 6 ), aid is not granted on the basis of quantities produced but on the basis of production factors (head of livestock or hectares) within regional limits; whereas for the sake of clarity it is appropriate to set out those limits in Annex IV;

Whereas the aid for the transport of cow's milk provided for in the scheme may be authorized by virtue of the third subparagraph of Article 142 (3) of the Act of Accession; whereas, in any cases where transport aid is granted as part of a national aid scheme for regional support, it is necessary to ensure that the various aid schemes do not result in the duplication of compensation for the same activity;

Whereas the aid corresponds to the objectives set out in the third subparagraph of Article 142 (3) since they are designed to maintain traditional primary production suited to the climatic conditions of the regions concerned, to improve production for agricultural products and facilitate their disposal and to ensure that the environment is protected and the countryside preserved; whereas, in particular, the aid for the transport of cow's mill corresponds to the objective set out in the third subparagraph of Article 142 (3) and may be permitted since it does not duplicate any aid authorized as part of the national aid scheme for regional support;

Whereas, in the light of the foregoing, the aid in question may be authorized, on condition that it complies with the limits set for certain products by the common organization of the markets,

HAS ADOPTED THIS DECISION: