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COM (83) 039 
 
 
 
Vol. 1983/00 15 
  
 
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COMMISSION  OF THE EUROPEAN  COMMUNITIES 
COM(83)  39 final 
Brussels,  21st January 1983 
PROPOSAL  FOR A  COUNCIL  REGULATION  (EEC) 
amending Regulation (EEC) No 878/77 on the exchange 
rates to be applied in agriculture in Greece 
(presented by the Commission to the Council) 
COM(83)  39 final 

EXPLANATORY  MEMORANDUM 
I„ The Greek Government announced on 9 January 1983  that  is was devaluing 
the drachma by  15-5?;  against the US dollar. As a result of this 
devaluation, which  took  effect on 10 January, monetary compensatory 
amounts at -23.3 were introduced  with  effect  from  13 January; the MCA 
applying in  Greece  had previously been -1.7· 
II. In a telex sent on 1A- January,, the Greek Government requested the 
Commission  to forward a proposal to the Council designed to align 
the "green" representative rate of the drachma on the spot market 
rates. The telex specified  that  the new rate should be phased in as 
follows: 
- immediately  with  respect to fresh  fruit  and vegetables, wine, milk 
and milk products, beef and  veal,  pigmeat, sheepmeat and fishery 
products; 
- at the  start  of the 1983/8^· marketing year in sectors  with  a defined 
marketing year, except for : 
—* for the tobacco sector, where the new rate should take effect on 
'· 1 January 1984; 
- from  4 April 1983 in all other  cases. 
III. In view of the considerable impact on price levels for agricultural 
products which would result  from  a complete devaluation of the 
representative rate of  th*>  drachma (an increase of 2^.8?'·)» the 
Commission  has been unable to accept the Greek Government's request. 
Instead, it proposes a devaluation of the "green" drachma by 7.0 %. 
As to when the new rate should come  into  effect, the Commission would 
like to remind the Council of its proposals in connection  with  the 
devaluation of the "green" rates of the French and Belgian francs 
(COK(82)591 of 1^ September 1982); in the explanatory memorandum, it 
set out the guidelines it intended to follow in such  cases.  On the 
basis  of the principles enunciated there, the Commission proposes in 
the present  case  that  the new representative rate for the drachma 
take effect in all sectors immediately, except olive oiL  ("from  start  of 
1983/84 marketfng year, to avoid differential  treatment  of producers). 
IV. The financial implications of this proposal are set out in an annex 
to this memorandum. 

- 2 -
Member  State Market  rate 
19.1.1983 
(1 ECU =) Re 
former 
(1 ECU  =) preservative  vt 
new 
(I ECU  =) ite 
devaluation 
( % ) Moneta 
(without  neu 
before 
devaluation ry gap (*) 
trai margin) 
after 
devaluation MCA 
to be 
applied Effect  on 
prices 
( % ) 
Greece 80.8016 66.5526 71:5619 7.000 - 21.419 - 12.9 - 11.4 + 7.527 
(*) The  MCAs  of - 22.1  valid  from  24.1.1983  are  based  on the  reference  period  from  12 to 18.1.1983. 

Proposal  for a 
COUNCIL  REGULAnON  (EEC) 
amending  Regulation  (EEC)  No 878/77  on the exchange  rates to he applied  in 
agriculture  in Greece 
THE COUNCU.  OF THE EUROPEAN 
COMMUNITIES, 
Having  regard  to the Treaty  establishing  the European 
Economic  Community,  -
Having  regard  to Council  Regulation  No 129 on the 
value of the unit of account  and the exchange  rates to 
be applied  for the  purposes  of the common  agricul­
tural policy ('), as last amended  by Regulation  (EEC) 
No 2543/73f)s  and in particular Article 3  thereof, 
Having  regard  to the proposal  from the Commission, 
Whereas  the representative  rates currently applicable 
were fixed  by Regulation  (EEC)  No 878/77  (·), as iast 
amended  by Regulauon  (EEC)  No3^37  /82 (4); 
whereasanew representative  rate closer  to present 
economic  circumstances  should  be fixed for the 
Greek  drachma; 
Whereas  the rate must be adjusted  with proper  regard 
to i t s effect,  in particular  on prices,  and to the situ­
ation in the Member  State concerned; 
Whereas  Council  Regulation  (EEC)  No 337/79 of 5 
February  1979 on the common  organization  of the 
market  in wineO. as last amended  by Regulation 
(EEC) No 2144/82  0. provides  for certain  distillation 
operations  and aid; whereas  the date of application  of these new rates applying  in this context n.ay differ 
from the other  date of application  of the new rates in 
the wine sectoi;; 
Whereas,  in order to avoid  differing  treatment  of inter­
dependent  products,  provision  should  be made  for the 
new rates to apply  in thy cereals  (with the exception  of 
durum  wheat)  and the eggs and poultrymeat,  oval­
bumin  and lactalbumin  sectors  with effect from the 
same date; 
Whereas  the Monetary  Committee  will be consulted; 
whereas,  as this is an urgent  mé-ter,  the measures  envi­
saged should  be adopted  in accordance  with the condi­
tions laid down  in Article  3 (2) of Regulauon  No 129, 
HAS ADOPTED  THIS  REGULATION  : 
Article  1 
Annex  V to  Regulation (EEC) No  878/77 
shall be replaced  by Annex  V  hereto. 
Article  2 
This Regulation  shall enter into force on 
31 January  1983. 
This Regulauon  shall be binding  in its entirety  and directly  applicable  in all  Member 
States. 
Done at 1983. 
For the  Council 
(') OJ No 106, 30. 10.  1962, p. 2553/62. 0 OJ No L 263, 19. 9. 1973. p. I. . (J) OJ No L 106, 29 4. 1977. p. 27. 
(·) OJ No L362,  23.i2.i982, p.1. 
O OJ No L 54/5. 2. 1979.  p. 1. 
(•) OJ No L 227, 3. 8. 1982,  p. 1. 

ANNEX  V 
Greece 
1. 1 ECU = 71.5619 Greek drachmas. 
This rate shall apply from: z 
- 1 November 1983 in the olive oil sector; 
- 31 January 1983 in all other sectors; other dates may, however, be 
fixed for the amounts specified' in Articles 10, 11, 12a, 1^+, 14a, 
15, 39, ^0 and ^1 of Regulation (EEC) No 337/79· 
2. The following rate shall apply  until  the dates specified in 1 above: 
1 ECU = 66.5526 Greek drachmas. 

FINANCIAL  STATEMENT 
Date : 20 January 19&3 
1. BUDGET HEADING  : Titles  1 and 2 APPROPRIATIONS  : I983 1^ O87  mill.ECU 
2. TITLE  : council Regulation amending Rep;.  878/77  with  regard to the 
exchange  rates applying in agriculture in Greece 
3. LEGAL BASIS  : Council Reg.  129 
i.. AIMS OF PROJECT  : Devaluation of the representative rate for the Greek drachma 
by 7  % with  effect  from  1 November 1983 in the olive oil sector and 
31 January 1983 in all other sectors 
million  ECU 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) PERIOD OF  12 MONTHS CURRENT  FINANCIAL YEAR 
< 1983? FOLLOWING FINANCIAL YEAR 
( ) 5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) - . 78 
- irceKX 
5.1 RECEIPTS 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) _ 14 
5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED RECEIPTS 
5.2 METHOD OF CALCULATION 
see Annex attached 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED  IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET  ? 
YES, 
6.1 
6.2 
6.3 
OBSERVATIONS  : 

ANNEX 
Adjustment to the Greek drachma: current position and levels of  
revenue and expenditure in the agrimonetary field 
1. The 1983 budget makes no -.provision for  MCAs  in connection  with 
the drachma, the differential between market and representative 
rates being put at parity. 
2. An MCA of -1.7 was introduced for the drachma on 3 January 1983? 
following: the devaluation of the Greek currency on 9 January, 
MCAs  went  to -23-3 as  from  13 January. 
The result in terms of agrimonetary expenditure in 1983 is set out 
below (Table I). 
Table  I 
million ECU 
1983 
Expenditure 
MCAs 
MCAs  deductible  from  refunds 
Dual rate effect on 
common organisations of market + 63 
- 20 
-157 
TOTAL -114 
Revenue 
Dual rate and  MCAs:  effect on levies 
Dual  rate effect on sugar levies - 20 
- 3 
TOTAL - 23 
3· The proposed Regulation devalues the representative rate for 
. the drachma by 7  % with  effect  from  1 November 1983 in the olive sector 
and 31 January 1983 in all other sectors, changing the figures for 
agrimonetary revenue and expenditure given under 2 above to the figures 
given in Table II. 

- 2 -
Table  II 
million ECU 
1983 
Expenditure 
MCA s 
MCAs  deductible from refunds 
Dual rate effect on 
common organisations of market + 35 
- 12 
_101 
TOTAL - 78 
Revenue 
Dual rate and  MCAs:  effect on 
levies 
Dual  rate effect on sugar 
levies - 12 
- 2 
TOTAL - 14 
II- Conclusions 
1. As against the budget drawn up.for 1983i which did not make 
provision for agrimonetary revenue or expenditure in connection 
with  the drachma, the result of recent changes in  that  currency 
and the proposed devaluation of its representative rate will be: 
- a reduction of 73 million ECU in expenditure; 
- a reduction of 14 million ECU in own resources revenue. 
2. The cost of the proposed devaluation of the representative rate 
for the drachma can thus be estimated as below (Table III). 
Table  III (Table II minus Table I) 
million ECU 
19ü3 
Expenditure 
MCAs 
MCAs  deductible from refunds 
Dual rate effect on 
common organisations of market _ 28 
+ 8 
+ 5.6 
TOTAL + 36 
Dual  rate and  MCAs:  effect on 
levies 
Dual rate effect on sugar levies + 8 
+ 1 
TOTAL + 9