NoL132/34 OfficialJournaloftheEuropeanCommunities 27.5.77
II
(Actswhosepublicationisnotobligatory)
COUNCIL
COUNCILDECISION
of17May1977
adaptingCouncilDecision76/324/EECfixingtheeconomicpolicyconditionsto
beobservedbytheItalianRepublic
(77/359/EEC)
THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,December1977;whereasforthispurposeitisappro­
priatetofixtheeconomicpolicyconditionstobe
observedin1977;
Whereasitispossible,subjecttoanychangesmadein
accordancewiththedevelopment oftheItalian
economicsituation,tofixatthisstagethegeneral
economicpolicyconditionstobeobservedin1978
whichpermittheattainmentduringthesaidyearofa
currentbalanceofpaymentssurplusofaboutLit
1000000millionandareductionintherateof
consumerpriceincreasesbringingthesetoaratenot
exceeding8%attheendof1978;
WhereastheItalianauthoritieshavedeclaredthatthey
willnot,unilaterally,takeanymeasureofacommer­
cialorfinancialnaturetorestrictimportsorsubsidize
exports;
Whereastheconditionsthusfixedwillalsoapplyto
thegranting,totheItalianRepublic,oftheCommu­
nityloanwhichtheCouncilauthorizedtheCommis­
siontonegotiateon18April1977,HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,
HavingregardtoCouncilRegulation (EEC)No
397/75of17February1975concerningCommunity
loans('),andinparticularArticle3thereof,
HavingregardtoCouncilDecision76/324/EECof15
March1976fixingtheeconomicpolicyconditionsto
beobservedbytheItalianRepublic(2),andinparti­
cularArticle2(2)thereof,
Havingregardtotheproposalsubmittedbythe
Commissionwhichhasforthispurposeconsultedthe
MonetaryCommittee ,
WhereasDecision76/324/EECfixedtheeconomic
policyconditionstobeobservedbytheItalianRepu­
blicduring1976;
Whereasitisappropriatetofixtheconditionstobe
observedforthesubsequentyearsofdurationofthe
loangrantedtotheItalianRepublicbyDecision
76/322/EEC(3);
Whereasthedevelopment oftheeconomicsituation
inItalymustpermittheattainment,during1977,of
theobjectiveofeliminatingthecurrentbalanceof
paymentsdeficitandofmoderatingtheincreasein
consumerpricestoayearonyearrateof16%inHASADOPTEDTHISDECISION :
Article1
Thefollowingeconomicpolicyconditionsshallbe
observedbytheItalianRepublicduringthe1977
calendaryear:(>)OJNoL46,20.2.1975,p.1.
(2)OJNoL77,24.3.1976,p.16.b)OJNoL77,24.3.1976,p.12.

27.5.77 OfficialJournaloftheEuropeanCommunities NoL132/35
Article3
1.Thefollowingeconomicpolicyconditionsshall
beobservedbytheItalianRepublicduringthe1978
calendaryear,subjecttoanychangesmadeinaccor­
dancewiththedevelopmentoftheItalianeconomic
situation :
(a)thegrowthintotalgovernmentexpenditureonan
appropriations basisover1977mustbelimitedto
7%,whileavoiding,asfaraspossible,areduction
inpublicinvestment ;
(b)theoveralldeficitofthepublicsector(treasury,
localauthorities,socialsecurity,ENEL)mustnot
exceedLit14450000million,thatis7-6%of
grossdomesticproductatcurrentprices.
2.Theotherconditionsshallbefixedonaprop­
osalbytheCommissionbeforetheendof1977.(a)totalcentralgovernmentcashexpendituremustbe
limitedtoLit55350000million;
(b)theoveralldeficitofthepublicsector(treasury,
localauthorities,socialsecurity,ENEL)mustnot
exceedLit16450000million,thatis9-7%of
grossdomesticproductatcurrentprices,according
tothepresentforecast,Lit13100000millionof
whichforthetransactionsoftreasuryandlocal
authoritiesasawholeandLit9800000million
forthetransactionsofthetreasuryalone(as
definedinArticle6(3)ofDirective
74/637/EEC0));
(c)thefinancingofthedeficitontreasurytransactions
bythemonetaryauthoritiesmustbelimitedtoLit
4000000million;
(d)thegrowthintotallending,asdefinedinArticle6
(1)ofDirective74/637/EEC,mustnotexceedLit
30600000million;
(e)publicservicechargesandadministered prices
mustbeorganizedwithouteffectsonthesliding
salaryscale,insuchawayastoensurethatthe
publicsectordeficitdoesnotexceedtheamount
setoutinparagraph(b).Article4
ThisDecisionshalladaptDecision76/324/EEC.
Article5
ThisDecisionisaddressedtotheItalianRepublic.
Article2
Before30June1977,intermediateobjectivesfor1977
shallbeestablishedbyagreementbetweentheItalian
authoritiesandtheCommission inrelationtothe
measureslaiddowninArticle1,exceptforthatset
outinArticle1(e).DoneatBrussels,17May1977.
FortheCouncil
ThePresident
J.SILKIN
(!)OJNoL341,20.12.1974,p.51.