5.7.2008 Official Journal of the European Union L 1781 | (Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory) REGULATIONS COUNCIL REGULATION (EC) of 23 June 2008 No 637/2008 amending Regulation (EC) No 1782/2003 and establishing national restructuring programmes for the cotton sector THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular the third subparagraph of Article 37(2) thereof, 2 Having regard to the Act of Accession of 1979, and in particular paragraph 6 of Protocol 4 on cotton (!) annexed thereto, hereinafter ‘Protocol 4, Having regard to the proposal from the Commission, Having regard to the Opinion of the European Parliament (3), Having regard to the Opinion of the European Economic and Social Committee (%), Whereas: (1) Chapter 10a of Title IV of Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common 3) rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers (¥ as inserted by Article 1(20) of Council Regulation (EC) No 864/2004 (°) sets out rules for the specific crop payment for cotton. By judgment of the Court of Justice of the European Communities of 7 September 2006 in case C-310/04 (°) Chapter 10a of Title IV of Regulation (EC) No 1782/2003 was annulled for breach of the principle of proportionality, in particular with reference to the circumstance that ‘the Council, the author of Regulation (EC) No 864/2004, [had] not shown before the Court that in adopting the new cotton support scheme estab- lished by that Regulation it actually exercised its discretion, involving the taking into consideration of all the relevant factors and circumstances of the case, including all the labour costs linked to cotton growing and the viability of the ginning undertakings, which it was necessary to take into account for assessing the profitability of that crop’ and that the Court had not been enabled ‘to ascertain whether the Community legis- lature [had been] able, without exceeding the bounds of the broad discretion it enjoys in the matter, to reach the conclusion that fixing the amount of the specific aid for cotton at 35% of the total existing aid under the previous support scheme would suffice to guarantee the objective set out in recital 5 in the preamble to Regu- lation (EC) No 864/2004, namely to ensure the profit- ability and hence the continuation of that crop, an objective reflecting that laid down in paragraph 2 of Protocol 4. The Court also ordered that the effects of the annulment be suspended until the adoption, within a reasonable time, of a new Regulation. A new scheme of specific payment for cotton needs to be adopted in conformity with the Court’s judgement in case C-310/04. () OJ L 291, 19.11.1979, p. 174. Protocol as last amended by Regu- () OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Regu- lation (EC) No 1050/2001 (O] L 148, 1.6.2001, p. 1). lation (EC) No 479/2008 (O] L 148, 6.6.2008, p. 1). (3) Opinion of 14 February 2008 (not yet published in the Official (®) OJ L 161, 30.4.2004, p. 48, as corrected by O] L 206, 9.6.2004, Journal). p. 20. (}) Opinion of 8 May 2008 (not yet published in the Official Journal). (°) 2006 ECR [-7285.