L 291/4 Official Journal of the European Communities 30.10.98 COUNCIL REGULATION (EC) No 2330/98 of 22 October 1998 providing for an offer of compensation to certain producers of milk and milk products temporarily restricted in carrying out their trade 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 (%), Having regard to the opinion of the Economic and Social Committee (%), Whereas, when the additional levy scheme was intro- duced in 1984 in the milk and milk products sector, Community legislation, in establishing rules for the allo- cation of individual reference quantities, did not take account of the situation of producers who, as a result of an undertaking pursuant to Council Regulation (EEC) No 1078/77 of 17 May 1977 introducing a system of premiums for the non-marketing of milk and milk prod- ucts and for the conversion of dairy herds (), had not delivered or sold milk during the reference year adopted by the Member State or were restricted in the level of deliveries or sales during that year; Whereas, following the judgment of the Court of Justice of 19 May 1992 in joined cases C-104/89 and C-37/90, the Community institutions undertook to give full effect to that ruling in respect of all concerned producers whose circumstances satisfied the conditions laid down in the judgment with regard to the liability of the Community to make good the damage the said producers had suffered insofar as the original Community legislation did not provide for the allocation of an individual reference quantity to them; whereas the producers concerned were essentially those who were entitled to apply for a special reference quantity pursuant to the provisions added to Council Regulation (EEC) No 857/84 of 31 March 1984 adopting general rules for the application of the levy referred to in Article 5c of Regulation (EEC) No 804/68 in the milk and milk products sector (°) by Regulation (EEC) No 764/89 (°) or Regulation (EEC) No 1639/91 ("), whereas Council Regulation (EEC) No 2187/93 of 22 July 1993 providing for an offer of compensation to certain producers of milk and milk products temporarily () OJ C 273, 2. 9. 1998, p. 3. () OJ C 328, 26. 10. 1998. () Opinion delivered on 15 October 1998 (not yet published in the Official Journal). (") OJ L 131, 26. 5. 1997, p. 1. Regulation as last amended by Regulation (EEC) No 1300/84 (OJ L 125, 12. 5. 1984, p. 23). () OJ L 90, 1. 4. 1984, p. 13. Regulation repealed by Regulation (EEC) No 3950/92 (OJ L 405, 31. 12. 92, p. 1 ). () OJ L 84, 29. 3. 1989, p. 2. () OJ L 150, 15. 6. 1991, p. 35. prevented from carrying on their trade (}) introduced compensation arrangements for these producers under which an offer calculated on a flat-rate basis was made to all eligible producers who submitted applications, which could be accepted in full and final settlement or else rejected; Whereas, on the application of two producers, the Court of First Instance, in its judgment of 9 December 1997 in joined cases T-195/94 and T-202/94, ordered the Community to make good the damage the said producers had suffered insofar as the original Community legislation establishing the additional levy scheme did not provide for the allocation of an individual reference quantity in respect of holdings subject to an undertaking pursuant to Regulation (EEC) No 1078/77 and insofar as subsequent amendments to the legislation excluded the allocation of special reference quantities to transferees of a premium granted pursuant to Regulation (EEC) No 1078/77 who had received a reference quantity by virtue of Article 2 and/or Article 6 of Regulation (EEC) No 857/84; Whereas there is a significant number of other producers whose circumstances satisfy the conditions laid down in the judgment with regard to the liability of the Community and who have either already initiated proceedings against the Council and the Commission or addressed claims for compensation to the Community institutions; whereas the producers concerned are essen- tially those who were entitled to apply for a special refer- ence quantity pursuant to Regulation (EEC) No 2055/ 93 (°); whereas it is therefore appropriate to adopt arrange- ments with a view to the settlement of these claims; Whereas, in view of the number of potentially eligible producers it would not be possible to evaluate the claim of each producer on an individual basis; whereas it is therefore necessary to use a flat-rate approach; whereas it is appropriate to follow as far as possible the arrange- ments set out in Regulation (EEC) No 2187/93; Whereas a direct link should be drawn between the acceptance of the right to a special reference quantity pursuant to Regulation (EEC) No 2055/93 and the exist- ence of an injury consisting in the restriction in milk production contrary to the wishes of the producer () OJ L 196, 5. 8. 1993, p. 6. () OJ L 187, 29. 7. 1993, p. 8.