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Article 238

1 . If the application of the provisions of Article 236 in Portugal results in a price level different from that of the common prices , the prices in respect of which , in Section IV , reference is made to this Article shall , subject to paragraph 4 , be aligned on the common prices each year at the beginning of the marketing year in accordance with paragraphs 2 and 3 .

2 . Where the price of a product in Portugal is lower than the common price , the move towards alignment shall be made in seven stages , the price in Portugal , at the time of the first six moves towards alignment , being increased successively , by a seventh , a sixth , a fifth , a quarter , a third and a half of the difference between the price level in that Member State and the common price level which is applicable before each move towards alignment ; the price resulting from that calculation shall be increased or reduced proportionately to any rise or fall in the common price for the next marketing year ; the common price shall be applied in Portugal at the time of the seventh move towards alignment .

3 . ( a ) Where the price of a product in Portugal is higher than the common price , the price in that Member State shall be maintained at the level resulting from the application of Article 236 , the moves towards alignment resulting from the development of common prices during the seven years following accession .

However , the price in Portugal shall be adjusted to the extent necessary to avoid an increase in the variation between that price and the common price .

Furthermore , if the Portuguese prices , expressed in ECU , fixed under the previous national arrangements for the 1985/86 marketing year , lead to the variation existing for the 1984/85 marketing year between the Portuguese prices and the common prices being exceeded , the price in Portugal resulting from the application of the two preceding subparagraphs shall be reduced by an amount to be determined which is equivalent to a part of the excess , in such a way that the excess is absorbed in full at the latest at the beginning of the fifth marketing year following accession .

Without prejudice to point ( b ) , the common price shall be applied in Portugal at the time of the seventh move towards alignment .

( b ) At the end of the fifth year from the date of accession , the Council shall carry out an analysis of the development of moves towards price alignment . To that end , the Commission shall forward to the Council , within the framework of the reports referred to in Article 264 ( 2 ) ( c ) , an opinion together with , where appropriate , adequate proposals .

If this analysis shows :

- that the variation between Portuguese prices and common prices , while being too great to be absorbed over the period still to run for price alignment under paragraph 2 , can , nevertheless , seemingly be made up within a limited timespan , the period for price alignment initially laid down may be extended ; in that case , prices shall be maintained at their previous level in accordance with the rule set out in ( a ) above ,

- that the variation between Portuguese prices and common prices is too great to be made up solely by extending the period for price alignment initially laid down , it may be decided that , in addition to that extension , alignment shall be made by a progressive reduction in Portuguese prices , expressed in real terms , accompanied , if necessary , by indirect , temporary and degressive aid in order to alleviate the degressive effect of those prices . The burden of financing such aid shall fall upon the Portuguese budget .

The Council , acting by a qualified majority and on a proposal from the Commission after consulting the Assembly , shall adopt the measures referred to in the subparagraph .

4 . In the interests of the smooth functioning of the process of integration , it may be decided that , notwithstanding paragraph 2 , the price of one or more products in Portugal shall for one marketing year vary from the prices resulting from the application of that paragraph .

The variation may not exceed 10 % of the amount of the price move to be made .

In that event , the price level for the following marketing year shall be that which would have resulted from applying paragraph 2 if the variation had not been decided upon . A further variation from that price level may , however , be decided upon for that marketing year in accordance with the conditions in the first and second subparagraphs .

The derogation laid down in the first subparagraph shall not apply to the last move towards alignment referred to in paragraph 2 .