No L 296/50 Official Journal of the European Communities 21. 11. 96 COUNCIL REGULATION (EC) No 2222/96 of 18 November 1996 amending Regulation (EEC) No 805/68 on the common organization of the market in beef and veal THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parlia- ment (3, Whereas the market in beef and veal has been seriously disturbed, mainly as a result of consumer fears concerning bovine spongiform encephalopathy (BSE); whereas this situation has led to a sudden, continuing deterioration on the market, entailing a sharp fall in consumption, a collapse in prices paid to producers and public interven- tion buying in; whereas forecasts show that, despite the battery of measures adopted by the Community in this area, consumption is unlikely to return to previous levels in the near future; whereas measures should therefore be taken to restore balance on the market while safeguarding the operational practicability of the support arrangements for the beef industry; whereas, to that end, production must be brought more closely into line with consump- tion; Whereas, in adopting Regulation (EC) No 1997/96 (%), the Council has already taken certain urgent measures re- lating in particular to increasing the maximum quantity to be bought into intervention until mid November 1996; whereas, since this Regulation only partially exhausts the Commission proposal, the Council has stated that it will act at a later date on the other parts of the said proposal, including possible further increases in the maximum quantity; Whereas the special premium for male bovine animals referred to in  Article 4b of Regulation (EEC) No 805/68 (‘) may currently be granted twice, by age bracket, in the life of each animal;, whereas the granting of a second premium for bulls over 22 months old is an incentive to the rearing of particularly heavy animals; whereas, in order to remedy that situation, the second (') OJ No C 300, 10. 10. 1996, p. 16. () OJ No C 320, 28. 10. 1996. (®) Council Regulation: (EC) No 1997/96 of 14 October 1996 amending Re§ulation (EEC) No 805/68 on the common organization of the market in beef and veal (OJ No L 267, 19. 10. 1996, p. 1). () OJ No L 148, 28. 6. 1968, p. 24. Regulation as last amended by Regulation (EC) No 1997/96 (O] No L 267, 19. 10. 1996, p- 1) payment should be discontinued; whereas this measure must be accompanied by an increase in the premium paid once only to avoid penalizing producers eco- nomically; Whereas in some Member States there are herds of bulls bred in regions where traditional extensive production is practised; whereas, in order to enable this type of produc- tion to adapt to the new situation, the Member States concerned must be authorized to continue on a trans- itional basis to grant the second premium during 1997 and 1998, while limiting the number of animals thus eligible and setting the amount of the second premium so that the sum of the two premiums received is equivalent to the sum of the two premiums which may be granted for castrated animals; Whereas the total number of animals qualifying for the special premium each calendar year depends on the re- gional ceilings fixed in Article 4b (3) and (3a) of Regu- lation (EEC) No 805/68; whereas, in line with past experi- ence, the number of animals covered by premium appli- cations in certain Member States is substantially below those ceilings while in others it is significantly above them; whereas, in order to adjust the ceilings to actual production, they should be redefined on the basis of actual applications; whereas, with a view to reducing the total quantity produced, the adjusted ceiling should be further reduced by 5 %, except in those Member States where applications exceeded the ceiling by more than 5 %; whereas the regional ceiling set for Spain should also be adjusted in terms of the specific develoments noted there; Whereas temporary withdrawal of rights to the suckler cow premium may help to control production; whereas, to that end, the Commission should be authorized to take the necessary measures relating to rights unused by producers which revert to the national reserve; Whereas, in order to encourage extensive production, Article 4h of Regulation (EEC) No 805/68 provides for the granting of an additional amount on top of the special premium and the suckler cow premium where the stocking density observed on the holding is less than 1,4 LU per hectare of forage area; whereas, in order to enhance the effectiveness of this measure from the view- point of both extensification and production control, provision should be made for a higher amount to be paid where the stocking density observed is below 1 LU per hectare;