2.8.97 Official Journal of the European Communities No L 208/1 (Acts whose publication is obligatory) COUNCIL REGULATION (EC) No 1554/97 of 22 July 1997 amending Regulation (EEC) No 1696/71 on the common organization of the market in hops 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 Par- liament (2), Having regard to the opinion of the Economic and Social Committee (), (1) Whereas aid to producers should be used principally to ensure higher and more stable incomes; whereas any amount withheld with a view to attaining the aims of producer groups as laid down in Article 7 (1) (a) to (d) of Regulation (EEC) No 1696/71 () must accordingly be subject to a fair ceiling; whereas Article 7 (1a) of that Regulation must be amended accordingly; (2) Whereas increasing aid for other varieties is likely to result in a considerable rise in the areas under those varietes to the detriment of the quality produced; whereas, given overplentiful supply and weak demand, prices for such varieties could plummet, forcing producer groups to exercise their right of veto and to buy back the hops; whereas such hops may not find purchasers on the market and major stocks of varieties of poorer quality are liable to build up within producer groups; whereas this could destabilize the market; whereas, to prevent such a situation from arising, producer groups should decide what varieties can be grown by their (') OJ No C 127, 24. 4. 1997, p. 11. ) ) (8 Opinion delivered on 18 July 1997 (not yet published in the Official Journal). ) (*) Opinion delivered on 29 May 1997 (not yet published in the Official Journal). () OJ No L 175, 4. 8. 1971, p. 1. Regulation as last amended by Regulation (EC) No 3290/94 (O] No L 349, 31. 12. 1994, p. 105). 4 members; whereas, to that end, Article 7 (1) (d) and the first subparagraph of Article 7 (3) (b) should be amended; Whereas Article 7 (3) (b) of Regulation (EEC) No 1696/71 provides for an obligation in principle on producers who are members of groups and on recognized producer groups which are members of unions to sell all their produce through the group or union; whereas the application of that principle has proved highly problematic for Community produ- cers, a majority of whom are members of one and the same group; whereas the transitional period laid down in the last subparagraph of the abovemen- tioned provision, during which the members of a recognized group may, on condition they are so au- thorized by the latter, market all or part of their produce themselves in accordance with the rules laid down and under the group’s supervision, expires on 31 December 1996; whereas, as a consequence, a decision should be taken on the arrangements to apply from 1 January 1997 and Article 7 (3) (b) should be amended accordingly; Whereas it would be detrimental to withdraw recog- nition from producer groups, which, moreover, dili- gently perform all their other tasks, such as the administration of aid to producers and the attain- ment of their aims as referred to above; whereas members of recognized producer groups should accordingly be granted the option of marketing all or part of their produce themselves, without suffering any reduction in the aid by way of a penalty, where they are so authorized by the group and on condition that the latter enjoys the right to monitor prices negotiated between producers and traders and can - veto them; whereas in the same connection produ- cers so desiring should be allowed to sell part of their produce through another producer group designated by their own group where products with special characteristics not necessarily covered by the commercial activities of the latter are concerned;