30. 6. 95 Official Journal of the European Communities No L 148/45 COUNCIL REGULATION (EC) No 1553/95 of 29 June 1995 adjusting, for the fifth time, the system of aid for cotton introduced by Protocol 4 annexed to the Act of Accession of Greece THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to the Act of Accession of Greece, and in particular paragraph 11 of Protocol 4 on cotton, as last amended by Regulation (EC) No 2760/94 ('), Having regard to Council Regulation (EEC) No 2052/92 of 30 June 1992 adjusting, for the second time, the system of aid for cotton introduced by Protocol 4 annexed to the Act of Accession of Greece (), and in particular Article 5 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 (°), Whereas a review of the operation of the system established by Protocol 4 as referred to in Article 5 of Regulation (EEC) No 2052/92 has shown that the system needs to be adjusted; Whereas a study on the impact of cotton growing in the regions where it is practised points to a potential for increasing production in those areas of the Community most suitable for this crop, taking into account the Community’s demand for cotton fibre; whereas the guaranteed maximum quantity should accordingly be increased; Whereas, on the other hand, to ensure that production of this crop does not expand in those regions less suited to it and to avoid an increase in expenditure, the guide price should be reduced in proportion to the increase in the guaranteed maximum quantity and no limit should be placed on the reduction in aid should the guaranteed maximum quantity be exceeded; whereas, in fixing the guide price, account must be taken of the adjustment to the price in ecus laid down in Council Regulation (EC) No 150/95 of 23 January 1995 amending Regulation (EEC) No 3813/92 on the unit of account and the conversion rates to be applied for the purposes of the common agricultural policy (¢); Whereas, with a view to facilitating budgetary arithmetic and fairness among operators, any deferral of the reduction in aid should be disallowed; Whereas the diverging production trends in the producer Member States have produced inequitable effects in the operation of the system of stabilizers; whereas, with a view to establishing a fairer system, provision should be made so that, where the guaranteed maximum quantity is exceeded, the aid should be reduced proportionately in the Member States responsible for the excess; whereas, however, the effect of such reduction may be moderated, to the extent that, taking into account the average price level on the world market, the budget forecasts are not overrun; whereas, moreover, provision should be made whereby Member States which are potential cotton producers can start to grow cotton by setting production at a level at which the system of stabilizers does not apply; Whereas, to enable operators to run longer production and processing programmes, the guide price and the minimum price payable to the producer to ensure the benefits from the aid should no longer be fixed annually; Whereas the system of aid for small cotton producers set up by Regulation (EEC) No 1152/90 (7) has had the effect of changing production structures to the extent that it has vitiated the desired objective; whereas, therefore, the said system should be abolished by repealing Regulation (EEC) No 1152/90; Whereas, taking into account the drought problem suffered by one producer Member State and the serious consequences for its operators, it is particularly urgent to set up a fairer management system and whereas the pursuit of the other objectives resulting from the analysis of the abovementioned system also necessitates adaptations as soon as possible; whereas, in particular, the system of aid to small producers should be abolished (¢) OJ No L 22, 31. 1. 1995, p. 1. (7) O] No L 116, 8. 5. 1990, p. 3. Regulation as amended by Regulation (EEC) No 2054/92 (O] No L 215, 30. 7. 1992, p- 13).