ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)118
Vol.1977/0048

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)118 final.
Brussels.7April1977
Proposalfora
COUNCILREGULATION (EEC)
amendingRegulation (EEC)No2727/75onthecommonorganization of
themarketincereals
(submittedtotheCouncilbytheCommission )
C0M(77)118final

EXPLANATORY MEMORANDUM
The French overseas departments are subject tocertain provisions ofthe
Treaty ofRome ,Thefirst subparagraph ofArticle 227(2 )oftheTreaty lays down
that theprovisions relating toagriculture ,with theexception ofthose concer­
ning theEuropean Agricultural Guidance andGuarantee Fund ,areapplicable to
the French overseas departments .
Thesecond subparagraph ofthesaid paragraph however ,lays down that the con­
ditions fortheapplication oftheprovisions oftheTreaty which arenot yet
applicable inaccordance with thefirst subparagraph aretobedetermined by
decisions oftheCouncil ,acting unanimously onaproposal from theCommission .
This also applies therefore totheprovisions concerning theEAGGF .
Inthepast ,theCouncil ,onthebasis ofthis same second subparagraph ,has
provided forthefinancing bythe EAGGF Guarantee Section ofexpenditure in­
curred intheoverseas departments inthe sugar and rawtobacco sectors .
In1975 ,theCouncil also adopted aRegulation providing forthefinancing of
asystem ofaid forpineapples produced inthese departments .
Since thecommon organization ofthemarket incereals wasestablished in1967 ,
theCommunity relating thereto have been applied totheoverseas departments .
Asregards finance ,theresulting expenditure iscurrently charged tothe
French budget while import charges areconsidered asownresources entered in
theCommunity budget .
This system presented nomajor disadvantages asthings stood in1967 .Since
then ,however ,thesituation haschanged ,with thedevelopment ,albeit modest ,
ofthemilling capacity inthese departments .This activity isofsome impor­
tance totheeconomy ofthedepartments inquestion .Itistherefore proposed
that theprovisions concerning theEAGGF Guarantee Section should apply tot"->r
said departments also inrespect ofcereals .

Proposaifor
COUNCILREGULATJ.ON (EEC) __
/
amendingRegulation (EEC)N°2727/75onthecommonorganization
ofthemarketincereals
THECOUNCILOFTHEEUROPEAN COMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity/and
inparticularArticles 143and227thereof,
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropeanParliament,
Whereastheexpenditure incurredbytheMemberStatesasaresultoftheobli­
gationsarisingoutoftheapplication ofCouncilRegulation (EEC)N°2727/75
of29October1975onthecommonorganization ofthemarketincereals(1),as
lastamendedbyRegulation (EEC)N°3138/76(2),isbornebytheGuarantee Sec­
tionoftheEuropeanAgricultural GuidanceandGuarantee Fundinaccordance with
Articles 2and3ofCouncilRegulation (EEC)N°729/70of21April1970pnthe
financingofthecommonagricultural policy(3),aslastamendedbyRegulation
(EEC)N°2788/72(3);
Whereas,however,pursuanttoArticle227(2)oftheTreatyandintheabsenceof
provisionstothecontrarytobeadoptedbytheCouncil,thisCommunityfinan­
cingdoesnotapplytoexpenditure arisingfromtheapplication ofRegulation
(EEC)N°2727/75intheFrenchoverseasdepartments;
Whereas,onceactivities developinthecerealssectorinthesedepartments and
theseactivitiesacquireacertainimportanceforthelocaleconomy,itisno
longerjustifiable toexcludefromCommunityfinancingtheexpenditure
incurred ■fchei'e undertheCommunityrulesapplicabletothesector
concerned .
(1)0JN°L281,1.13.1975,p,.1
(2)0JN°L354,24.12.1976,*p.1
(3)0JN°L94,28.4.1970,p.13
(4)0JN°L295,30.12.1972/P.1

HASADOPTEDTHISREGULATION :
Article 1
ThefollowingArticle23ashall"beaddedtoRegulation(EEC)No2727/75s
"Article23a
Article40(4)oftheTreatyandtherelevantimprementingprovisionsshall,
insofarastheyrelatetotheGuaranteeSectionoftheEuropeanAgricultural
GuidanceandGuaranteeFund,applytotheFrenchoverseasdepartmentsin
respectoftheproductsreferredtoinArticle1w.
Article2
ThisRegulationshallenterintoforceon1August1977*
ThisRegulationshallbe"bindinginitsentiretyanddirectlyapplicable
inallMemberStates.
Doneat
FortheCounoil
ThePresident

| |VI/1066/77-E I
j: I* f| f!^ ,"V ^[jV] G*-RR–•'.V.'ITR-FRRRRYR - ;■■-■.-r.VOJT ;--. REA-CR -s«
IÎ»ATÎÎ « I
iu."-i r i.?■ ••-•»'xsr--–rr .-nr*."- lroirrv .r-?Wv£r -r"r.-.':r :*■>.»c-y.fj^jL-ag^am^iwu w^iMllHIi''T)iwirafcT^vjrTrg^ac^:.. -:-:.rtLa. -r><<::..rrrr^x.zjraiacmBfr' -<»-iw .WWINT -"nl
i.BUDOET UK3 CO?'CER?IB.O fChapter 6C I
– ^ΜΒΕΡΚΓΒΡΙΕΒΤΓ ΝΑΤ"*· *»' Ν*Η·Τ? ΑΙΓΙΙΡΊΜΙΙΙ .**4*^-Ι ΙΟΊ»{ΜΙΛΟ/ΚΑΒΊ
2»ACTION jProposal for aCouncil Regulation amending Regulation (EEC)
N°2727 /75orthecommon organization ofthemarket incereals
3-LEGAL BASIS «Articles 43and 227 oftheTreaty
4.OBJECTIVES sApplication oftheprovisions concerning theEAGGF Guarantee Section
totheoverseas departments inrespect ofcereals
5.FINANCIAL CONSEQUENCE
5.0EXPENDITURE 1
-CHARGED TOTHE ECBUDGET
(REKUNUS /XBajEKWJCXDOJOO
-OHXJCO XTBXXXDOXTFX XDHXKXSBI
-0HWK*»xr»XKtfSfiXllMXMW SKcXjfë
ciwof->S<i^X
-m x$W£xse^wxs/ckxi»«î <VM%m)
-NATIONALFOR THE MARKETING YEAR CURRENT FINANCIAL YEAR
LzzJ ■FOLLOWING FINANCIAL YEAR I
L7& ) I
2.4 M.u.a . 0.6 m.u.a . 2.6 m.u.a .
!IJ£AR •••!&••••••*•• TEAR •«••• JO4••«»••• •YEAR •
5.0.1 PLURI ANNUAL PATTERN OFEXPENDITURE 2.6m.u.a . 2.6m.u.a . 2.6m.u.a .
5.1.1 PLURI ANNUAL PATTERN OFRECEIPTS
5.2METHOD OFCALCULATION
See below
6.0FINANCING POSSIBLE WITH CREDITS INSCRIBED INRELEVANT CHAPTER OFCURRENT BUDGET ? YES/MB
Η
6.1FINANCING POSSIBLE BYTRANSFER BSTA'SEN CHAPTERS OFCURRENT BUDGKT ?_ ■ji i. i. (
YJO/S» i
|6.2NECESSITY FORASUPPLEi.j&'TARY BUDGET? nT2S/XJ®
Η
6«3CREDITS TOBEWRITTEN INTO FUTUR5 BUDGETS ? YES /W»
ICOMMENTS J1Notcounting theeffect ofthedouble rate ;this effect isat
only slight forthecurrency concerned .présent 1
2Calculated onthebasis ofentry into force on1August 1977 anda
2-month term ofpayment .Inpractice ,this period could belonger ,which
would reduce expenditure forthe1977 financial year .

Financial Statement continued
5.2.METHODOFCALCULATION '
Thefinancial consequencewillbeconfinedto
a)therefundstobegrantedonexportsof(commonwheat)flourandby-products
ofcereals(bran)
b)carry-over paymentswhereapplicable >
a)Flourquantities :30.000t BranQuantities :10000t
Rateofrefund:80U.a/t Rateofrefund:20u.a./t*
(currentlevel)
Expenditure/12months2.4m.u.a.Expenditure/12months:0.2m.u.a.
*Note:For1976/77:refundgranted
onbran:0
Estimated maximumrefundinanor­
malyear:20u.a./tbran
b)Carry-over payments
Quantities :_+15.000t
Payment :+3u.a./t(estimate)
Expenditure :+50.000u.a.i.e.0.05m.u.a.BranQuantities :10000t
Rateofrefund:20u.a./t*