La usurpación de funciones legislativas: el activismo judicial del

The competitive strengthening of the sector through modernisation and restructuring of agriculture in line with the EU standards continue to be the main objectives of agricultural policy. Therefore, the Government of the Republic of Croatia continues with the implementation of agricultural policy measures aimed at changing the structure of agricultural farms, ensuring a smooth operation of the market and improving the efficiency of public services.

Improvement of the Land Market

The main activities related to the agricultural land management are focused on the implementation of measures for the utilization of state-owned agricultural land, measures for the enlargement of agricultural land and on the preparation and implementation of optimum measures to use agricultural land as a natural resource under the current agricultural and environmental conditions.

The management of state-owned agricultural land is organised at the local or regional (county) level and includes the sale and lease of agricultural land in state ownership.

The Croatian government is responsible for granting concessions for (long term lease of) state-owned agricultural land. With a view of changing the structure of agricultural farms, support has been provided to the purchase of agricultural land based on the capital investment model. Activities on the project "Enlargement of Agricultural Land", defining models for the enlargement of agricultural land, have been continued. A pilot project on the enlargement of agricultural land at approved locations is being implemented, with the purpose of formulating agricultural land enlargement policy.

Privatisation of State-owned Companies

The privatisation of a large agricultural and food-processing company VUPIK, which is in majority state ownership, should be finalised to the end of 2006.

Regulation of the Agricultural and Foodstuffs Market

Activities on the harmonization of market mechanisms for particular agricultural products with the market organisation in the EU have been continued. Wheat has been among the first products to which some of the EU market regulation standards have been applied. In contrast to the previous practice of state-subsidized purchase of wheat, the wheat trading is fully determined by the market. Only the minimum (guaranteed) price was prescribed in 2006, in case the market price should fall below a determined level. A gradual harmonisation of this area with the EU market standards is expected during 2007 and 2008.

The establishment of a Wine Cadastre is a prerequisite for the organisation of the wine market. In the previous period, the necessary aerial photographing was completed and digital ortophoto maps were entered into a database. In addition, a fully digitalised vineyard cadastre is currently being established, which will comprise the data on vineyards (varieties, breeding forms, the number of grape-vines, slope, etc.).

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In the cattle production area, activities aimed at harmonising market mechanisms have been continued, with a view of combating black market and increasing the safety of foodstuffs. A single system of obligatory animal identification has been introduced and fully applied on beef cattle, and the establishment of an identification system for other kinds of domestic animals is under way. In addition, conditions and criteria for the classification of beef and pork bodies and half-bodies on the slaughtering line, and other conditions relating to cattle and pig slaughtering have been laid down, and mechanism for the system implementation have been set in motion.

An Agricultural Market Information System operating within the Ministry is used for the regular collection, processing and distribution of data on the prices of agricultural and food products. The idea is to adjust the methodology over the coming period, in order to create the prerequisites for the harmonisation of individual agricultural product markets with those in the EU.

State Aid in Agriculture

The bulk of the state aid to agriculture is administered pursuant to the Act on State Aid to

Agriculture, Fisheries and Forestry31. The Act was amended in 2006, with the main changes

relating to further restructuring of agricultural aid by strengthening the role of cattle breeding and gradual harmonisation with the common agricultural policy of the EU. A legal framework for the introduction of good agricultural and environmental practices has been created which is in line with the new common agricultural policy guidelines of the EU.

In 2006, a total of slightly more than HRK 2bn from the state budget was earmarked for aid covered by the previously mentioned Act. The largest portion of these funds (almost 90%) is still intended for a direct support to production. Around 6% was allocated for rural development, mainly for investments. Income support to non-commercial farms participated with about 4%. The goal of the agricultural policy is to gradually increase the share of aid to rural development.

In addition to this, the Government of the Republic of Croatia has developed some special programmes (relating to beef cattle and pig breeding and multi-year plantations), which are financed by loans at interest rates that are lower than market rates, granted by the Croatian Bank for Reconstruction and Development and the Croatian Agency for Small Businesses. These programmes are aimed at boosting the competitiveness of domestic production, particularly by increasing the production of profitable products that are in high-demand. The Ministry of Finance is responsible for aid to agriculture in the case of natural disasters. Moreover, fuels used in agriculture and fisheries are exempt from excise tax.

Concerning the implementation of state aid to agriculture, activities have been continued on the establishment of an Integral Administrative and Control System (IACS), and improvement of the efficiency of agricultural inspection, as well as the establishment of a control and supervision system in line with EU standards.

Rural Development

In February 2006, the EC adopted a Rural Development Plan for the period 2005-2006, as a framework for the financing of rural development measures under the SAPARD programme. Two measures for improving the competitiveness of the sector were accredited: Investment in

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Agricultural Farms and Investment in the Processing of and Trading in Agricultural and Fishery Products. An information campaign (promotion) of the SAPARD programme was conducted during 2006, and the Directorate for Market and Structural Support in Agriculture (future Payment Agency) carried out intensive activities necessary to receive accreditation for the implementation of the SAPARD measures.

Over the coming period, the main activities will be focused on the preparation and adoption of the Agriculture and Rural Development Plan 2007-2013, within the Instrument for Pre- accession Assistance (IPA), component V - Rural Development, as the basis for the use of the pre-accession IPA-RD funds. These activities are paralleled with the implementation of the national rural development measures financed from the state budget. Besides the most significant support to capital investments in agricultural farms, support to the marketing of agricultural products is also important.

Phytosanitary Area

The general goal is to improve the quality of monitoring harmful organisms and to adopt a new system of registration of plant protection products in order to achieve the standards required by the EU. To achieve the said goals, it is planned to increase the number of persons employed in plant protection, as well as to provide professional training for them. A remarkable progress has been achieved in harmonizing and implementing the legislation.

Food Quality and Safety

The harmonisation of regulations in the area of basic quality requirements for individual groups of products (vertical regulations) with EU legislation continued into 2006, providing the basis for further market liberalisation and stimulation of free movement of goods.

In the forthcoming period, horizontal and vertical regulations will continue to be adopted and harmonised with the legislation on food, with a view to increasing the compliance rate. This will contribute to the free movement of goods and safety of food products, thus improving consumer protection and human health in general. Furthermore, the implementation of the afore-mentioned systems of co-financing is planned to continue into the next period, which will provide the basis for the creation of an efficient system.

The implementation of the CARDS 2002 Project "Capacity Building in the Area of Agriculture, Living Animals and Foodstuffs", jointly carried out by the Ministry of Agriculture, Forestry and Water Management and Ministry of Health and Social Welfare has entered the final stage. The implementation of the Project is expected to continue in 2007, within the framework of CARDS 2004.

Veterinary Area

The harmonisation of the Croatian veterinary legislation with that of the EU continued in 2006. In the past period, 2 veterinary border crossings were built, one of which still does not fully comply with the relevant EU standards. Numerous activities have been undertaken regarding the accreditation of the Croatian Veterinary Institute and monitoring of classical swine and wild boar plague.

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In the period to come, activities will be focused on further harmonisation of the legislation, re- organisation of the veterinary service and inspection, the improvement of the animal health control system and the system of veterinary-public health, accreditation of the Croatian Veterinary Institute, continuation of the process of identification and registration of animals, and on the preparation for the building of the remaining veterinary border crossings.

Fisheries

The harmonisation of the Croatian legislation in the fisheries sector with the EU acquis

continued during 2006. For the purpose of establishing a market of fish and fishery products in line with the EU requirements, the necessary implementation regulations are being drawn

up32. The implementation of the CARDS programme aimed at strengthening the institutional

capacity of the Fishery Directorate reached its final stage. In addition, the PHARE Project "Support to the Republic of Croatia in the Preparation and Implementation of the Strategy of

Fishery Development for the Purpose of Adjustment and Implementation of acquis

communautaire in the Segment of Common Fishery Policy" is being implemented and bidding documentation for the Project is being prepared.

The plans for the period 2007-2009 involve further harmonization of the legislation and the establishment of fish and fishery product market in accordance with the EU requirements, primarily as concerns the introduction of a fish trading system (construction of ports of discharge and wholesale markets, establishment of producer organisations and enactment of the relevant regulations).

Wood Industry

As a result of the need to implement and operationalise the Strategy of Development of Industrial Processing of Wood and Paper, a document “Republic of Croatia's Operational Schedule for the Development of Industrial Processing of Wood, 2006-2010” has been drawn up. The document was adopted by the Croatian Government in 2006. The Operational Schedule includes measures to improve and upgrade the industrial processing of wood. The said measures are aimed at integrating forestry and industrial wood processing, optimising primary processing capacities, increasing the manufacture of final products and boosting employment. For these purposes, it is necessary to raise the value of raw wood by manufacturing highly finalised recognisable products of high quality and creative design.

32 _{Ordinance on standards for putting into circulation fish and other water organisms, and Ordinance on the manner of putting}

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