No L 142/30 Official Journal of the Furopean Communities 2.6.97 COUNCIL REGULATION (EC) No 952/97 of 20 May 1997 on producer groups and associations thereof THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 42 and 43 thereof, Having regard to the proposal from the Commission (), Having regard to the opinion of the European Parliament (?), Having regard to the opinion of the Economic and Social Committee (3), (1 Whereas Council Regulation (EEC) No 1360/78 of 19 June 1978 on producer groups and associations thereof (*) has been substantially amended several times; whereas in the event of new amendments being made to the said Regulation, in order to clarify and rationalize matters, the provisions in question should be recast; Whereas a feature of the Community is the variation in the situation regarding the supply and marketing of agricultural products in the different regions; Whereas the persistence of the above deficiencies is an obstacle to the fulfilment of the objectives of Article 39 (1) of the Treaty; where this persisting situation makes it difficult to increase agricultural productivity, to promote technical progress, to ensure rational development of agricuitural production and optimum use of the factors of production, to ensure a fair standard of living for the agricultural community and to stabilize markets; whereas, furthermore, this situation is likely to affect the level of prices to consumers; Whereas this situation can be remedied by grouping farmers so that the economic process can be influenced by common measures designed to centralize supply and adapt production to market requirements; whereas such grouping should therefore be encouraged henceforth in the regions OJ No C 115, 19.4.199%¢, p. 60. Opinion delivered on 13 May 1997 (not yet published in the Official Journal). O] No C 204, 15.7.1996, p. 38. O] No L 166, 23.6.1978, p.1. Regulation as last amended by the 1994 Act of Accession. concerned without, however, preventing the arrangements envisaged being extended to other regions which could give proof of similar requirements; Whereas, however, steps should be taken to ensure, by means of a system of recognition, that the grouping of holdings takes place within bodies with the appropriate production and marketing discipline, which offer sufficient guarantees as to the stability and effectiveness of their action and do not, by virtue of their position and their economic activity, conflict with the operation of the common market and the general objectives of the Treaty; Whereas, in order to promote greater centralization of supply than can be achieved by one group, encouragement should be given not only to the grouping of farmers within producer groups but also to the formation of associations of such groups; Whereas the granting of aid to cover part of the formation and administrative operating expenses would be an appropriate incentive for the creation of groups and associations thereof and for the adaptation of existing producer organizations to the conditions laid down; Whereas the aid granted to the associations should, however, be limited to an overall maximum sum so as to take account of the fact that each of the groups which belongs to such associations has already received or is still receiving aid for formation and administrative operation; Whereas in order to guarantee that the proposed system is implemented in all those regions of the Community where it appears necessary, the granting of aid to groups and associations thereof should be made obligatory; whereas maximum amounts should be laid down for such aid although it should be made possible to exceed these limits in the case of certain aid for regions or sectors encountering special difficulties;