COUNCIL REGULATION (EEC) No 1890/87 of 2 July 1987 amending in particular Regulation (EEC) No 1678/85 fixing the conversion rates to be applied in agriculture

THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Articles 42 and 43 thereof, Having regard to the Act of Accession of Spain and Portugal, and in particular Articles 80, 91, 247 and 258 thereof, Having regard to Council Regulation (EEC) No 1676/85 of 11 June 1985 on the value of the unit of account and the conversion rates to be applied for the purposes of the common agricultural policy (1), and in particular Article 2 (3) thereof, Having regard to the proposal from the Commission (2), Having regard to the opinion of the European Parliament (3), Having regard to the opinion of the Monetary Committee, Whereas the conversion rates currently applicable were fixed by Regulation (EEC) No 1678/85 (4), as last amended by Regulation (EEC) No 409/87 (5); Whereas it seems advisable, in addition, to fix new agricultural conversion rates:- for the 1987/88 marketing year, with regard to the Belgian/Luxembourg franc, the Danish krone, the French franc, the Irish pound, the pound Sterling, the Spanish peseta, the Portuguese escudo, the Italian lira, the Greek drachma and the Dutch florin,-for the 1988/89 marketing year, with regard to the German mark and the Dutch florin,so as to bring them closer into line with economic reality, on the one hand, and to eliminate, for the currencies mentioned in the first indent, the effect of the adjustment of the correction factor referred to in Article 1 (3) of Regulation (EEC) No 1677/87 (6), as last amended by Regulation (EEC) No 1889/87 (7), on the other hand;Whereas, in order to avoid differing treatment of interdependent products, provision should be made for the new agricultural conversion rates to apply in the cereals, eggs and poultry, ovalbumin and lactalbumin sectors with effect from the same date; Whereas the adjustment of agricultural conversion rates in Germany entails, for the 1988/89 marketing year a drop in prices in terms of the national currency and, in consequence, a drop in agricultural income; whereas, by way of compensation, provision should be made for the possibility of granting national aid under a procedure to be laid down; Whereas, in addition, it should be specified on this occasion that the agricultural conversion rate is also to apply for the conversion of the amounts fixed under Regulations (EEC) No 3773/85 (8) and (EEC) No 3774/85 (9) concerning certain national aids which are incompatible with the common market but which the Kingdom of Spain and the Portuguese Republic are authorized to maintain on a transitional basis in the agricultural sector, HAS ADOPTED THIS REGULATION:

Article 1

1. The Annexes to Regulation (EEC) No 1678/85 are hereby replaced by the Annexes to this Regulation. 2. With effect from the start of the 1988/89 marketing year, the agricultural conversion rates appearing in Annex IX shall be replaced by those appearing in Annex IXa.

Article 2

The following Article shall be inserted in Regulation (EEC) No 1678/85: 'Article 2a1. A special aid granted to German farmers under the following conditions shall be considered as being compatible with the common market. 2. The Federal Republic of Germany shall be authorized to grant as from 1 January 1989 a national aid equivalent to that granted in the form of relief on value added tax, for the 2 % which expires on 31 December 1988. 3. The Council, acting by a qualified majority on a proposal from the Commission, shall lay down the detailed rules for the aid; however the latter may not be production-linked.'

Article 3

The following Article is hereby inserted in Regulations (EEC) No 3773/85 and (EEC) No 3774/85:'Article 2aThe rate to be used to convert the amounts fixed under this Regulation into national currency shall be the agricultural conversion rate.'

Article 4

This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 2 July 1987. For the Council The President K. E. TYGESEN

(1) OJ No L 164, 24. 6. 1985, p. 1.

(2) OJ No C 89, 3. 4. 1987, p. 97.

(3) OJ No C 150, 9. 6. 1987, p. 8.

(4) OJ No L 164, 24. 6. 1985, p. 11.

(5) OJ No L 44, 13. 2. 1987, p. 1.

(6) OJ No L 164, 24. 6. 1985, p. 6.

(7) See page 1 of this journal.

(8) OJ No L 362, 31. 12. 1985, p. 32.

(9) OJ No L 362, 31. 12. 1985, p. 37.