NoL291/12 OfficialJournaloftheEuropeanCommunities 17.10.78
II
(Actswhosepublicationisnotobligatory)
COUNCIL
COUNCIL DECISION
of10October1978
adaptingDecision77/3S9/EECfixingtheeconomicpolicyconditionstobe
observedbytheItalianRepublic
(78/840/EEC)
forthispurposeitisappropriatetofixtheeconomic
policyconditionstobeobservedduringtheremainder
of1978;whereastheeconomicpolicyconditionsto
beobservedin1979willbefixedbeforetheendof
1978;
WhereastheItalianauthoritieshavedeclaredthatthey
willnot,unilaterally,takeanymeasureofacommer­
cialorfinancialnaturetorestrictimportsorsubsidize
exports,
HASADOPTEDTHISDECISION :THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,
HavingregardtoCouncilRegulation (EEC)No
397/75of17February1975concerningCommunity
loans('),andinparticularArticle3thereof,
HavingregardtoCouncilDecision77/359/EECof17
May1977adaptingDecision76/324/EECfixingthe
economicpolicyconditionstobeobservedbythe
ItalianRepublic(2),andinparticularArticle3thereof,
Havingregardtotheproposalsubmittedbythe
Commissionwhichhasforthispurposeconsultedthe
MonetaryCommittee ,
WhereasbyDecision77/359/EECtheCouncilfixed
theeconomicpolicyconditionstobeobservedbythe
ItalianRepublicduring1977,
Whereasitisappropriatetofixtheconditionstobe
observedforsubsequentyearsduringwhichtheloans
aregrantedtotheItalianRepublicbyDecisions
76/322/EEC(3)and77/361/EEC(4);
Whereasthedevelopment oftheeconomicsituation
inItalymustpermittheattainmentin1978ofa
currentbalanceofpaymentssurplusofatleastLit
3000000millionandanincreaseinconsumerprices
oflessthan14%forthefourthquarterof1978
comparedwiththefourthquarterof1977;whereasArticle1
Theeconomicpolicyconditionstobeobservedbythe
ItalianRepublicduringthe1978calendaryearin
connectionwiththeCommunityloansgrantedtothis
MemberStatebyDecisions76/322/EECand
77/361/EECshallbeasfollows:
(a)currentcashexpenditureofpublicadministration
mustbelimitedtoLit90500000million;
(b)theoveralldeficitofthepublicsector(treasury,
localauthorities,sicknessinsurance,ENEL),taking
intoaccountthefinancialassistancegivendirectly
toentitiesoutsidethepublicsector,mustnot
exceedLit31500000million,i.e.about15-5%
ofgrossdomesticproduct,includingLit
28000000millionforthetransactions ofthetrea­
suryandlocalauthoritiesasawhole;(!)OJNoL46,20.2.1975,p.1.
(2)OJNoL132,27.5.1977,p.34.
(3)OJNoL77,24.3.1976,p.12.
(4)OJNoL132,27.5.1977,p.37.

17.10.78 OfficialJournaloftheEuropeanCommunities NoL291/13
(c)thegrowthintotallending,asdefinedinArticle6
(1)ofCouncilDirective74/637/EECof17
December1974grantingmedium-term financial
assistancetotheItalianRepublic('),mustnot
exceedLit46000000million;
(d)totalmonetary-base creation(excludingpostal
deposits)mustnotexceedLit7500000million;
(e)theslidingsalaryscalesystemshouldbemodified
soastoreduceitseffectonlabourcostsandon
theoveralldeficitofthepublicsector.
Article2
BeforetheendofOctober1978,intermediatequar­
terlyobjectivesshallbeestablishedbyagreement
betweentheItalianauthoritiesandtheCommission
inrelationtotheconditionsindicatedinArticle1,
exceptforthatsetoutin(e).Beforetheendof1978,theCouncil,ontherecom­
mendationoftheCommission ,shalladapt,for1979,
theconditionscontainedinArticle1.
Article3
ThisDecisionshalladaptDecision77/359/EEC.
Article4
ThisDecisionisaddressedtotheItalianRepublic.
DoneatLuxembourg ,10October1978.
FortheCouncil
ThePresident
R.OFFERGELD
(1)OJNoL341,20.12.1974,p.51.