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COM (83) 379 
 
 
 
Vol. 1983/01 45 
  
 
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
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file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
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COMMISSION  OF  THE EUROPEAN  COMMUNITIES 
COM(85)  579 final 
Brussels,  13 June 1983 
Proposal  for a 
REGULATION  (EEC) OF THE  COUNCIL 
amending  Regulation  (EEC) No  1223/83  on the exchange  rates 
to be applied  in agriculture 
(submitted  to the Council  by the Commission) 
COM (83)  379 final 

EXPLANATORY  MEMORANDUM 
When the decisions  were being adopted  on the  prices  package,  the 
representative rate  for the  Belgian  and Luxembourg  francs  and for the  Irish 
pound were altered  in such a way that the monetary compensatory  amount 
applicable  in those Member  States disappeared.  However, the  representative 
rates were not  aligned with  the central rates  for the two  currencies  in 
question, with  the result that there  is a slight  difference  at the  moment 
which means  that the duty-free entry  must be  observed  when calculating  the 
monetary compensatory  amount. The  purpose  of the  attached proposal  is to 
align the representative rates with  the central rates  for the  currencies 
concerned. 
Following  the adjustment  of the  central rate  ("pound  effect")  and the 
abolition  of the  monetary compensatory  amount for  wine in Italy which took 
effect on 23 May 1983, the  monetary compensatory  amount  applicable  to wine in 
France was increased  by 2,5  points  to 6,4  points without  any monetary  or 
economic event  having affected  the trend of the  market.  In these exceptional 
circumstances,  it is  appropriate  to align the representative rate  system 
applicable  to wine with that decided  upon on 23 May 1983 for the  pigmeat 
sector in France.  The effect  of this is an immediate  fall in the  monetary 
compensatory  amounts to a  level of - 2,2  points  and their  abolition  on 16 
December  1983· 
The effects  of the  proposed changes  are shown in the  attached Table. 

- 2 -
Representative rate : Monetary  <j Llfference  : 
Member 
State Central rate  : 
(1 ECU =»> old 
(1 ECU =) new 
(1 ECU «) : revaluat  ion/: 
devaluation  : 
(in %> before : 
revaluation/  : 
devaluation  : after : 
revaluation/  : 
devaluation  : KCA.S : 
to be applied  : Effect on 
prices 
(in X) 
Belgium/ 
Luxembourg 44,9008 44,3662 44,9008 - 1,191 - 1,205 0 0 + 1,205 
France : 
Wine (1) 
(2) 6,87456 6,37174 
6,62985 6,62985 
6,77297 - 3,893 
- 2% 113 - 7,891 
: - 3,691 - 3,691 
- 1,50 : - 2,2 
0 + 4,051 
: + 2,159 
Ireland 0,725690 0,716950 0,725690 - 1,204 : - 1,219 : 0 0 : + 1,219 
(1> Valid from 
(2) Valid from 16.12.1983 

Proposal  for a 
COUNCIL REGULATION (EEC) 
amending  Regulation  (EEC) No 1223/83 on the exchange  rates to be applied 
in agriculture 
THE COUNCIL  OP 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  agricultural 
policy  (l), as last amended  by Regulation  (EEC) Ho 2543/?3 (2),  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 1223/83 (3), 
Whereas new representative rates closer  to present  economic  circumstances 
should be fixed for the  Irish pound and the Belgian  franc/Luxembourg  franc, 
Whereas,  the French MCA. applied  in the  wine sector  have sharply increased 
following  the monetary  measures  taken in the  context of the price fixing  for 
the I982/83  marketing year*,  whereas  this consequence  was not  justified  by 
real economic  circumstances;  whereas  in order to reduce the increase  the 
representative  rate to be used in France should  be adjusted  for the  wine 
sector; 
Whereas  the Monetary  Committee  will be consulted;  whereas,  as this is an 
urgent matter,  the measures  envisaged should  be adopted  in accordance  with 
the conditions  laid down in  Article  3 (2) of Regulation  No 129, 
HAS ADOPTED  THIS REGULATION: 
./. 
(1) OJ N0 106,  3°·10.1962,  p.  2=353/62. 
(2) OJ No L 263,  I9.9.I973,  p. 1. 
(3) OJ No L 132, 21.5.1983, p. 33. 

- 2 -
Article ; 
Annexes I, IV and VI to  Regulation  (EEC) No  1223/83  shall be replaced  by 
the Annexes  hereto. 
Article  2 
This Regulation  shall enter  into force on the day of 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 
For the  Council 
President 

ANNEX I 
BELGIUM/LUXEMBOURG 
1. 1 ECU =  44,9008  Belgian  francs/Luxembourg  francs. 
This rate shall apply from  : 
- 1 January  1984 for the  fishery  products  sector, 
in all other cases. 
2. Until the date gii/en in point 1, the  following rate  shall apply 
1 ECU = 44,3662  §e>rgjan  francs/Luxembourg  francs,  except for the 
fishery  products  sector where the following rate  shall apply 
1 ECU = 44,9704  {jaigian  francs/Luxembourg  francs. 

ANNEX IV 
FRANCE 
1. 1 ECU = 6,49211  French  francs. 
This rate  shall apply from : 
- 23 May 1983 for the  beef and veal sector, 
- 23 May 1983 for the sheepmeat and  goatmeat  sector, 
- 1 July 1983 for the  sugar and isoglucose sector,  and for durum wheat 
and durum wheat  groats and meal, 
- 1 August 1983 for the  cereals sector, with  the exception  of durum wheat 
and durum wheat  groats and meal, and for the eggs and  poultrymeat,  oval­
bumin and lactalbumin sectors, 
- 1 January  1984 for the  fishery  products  sector, 
- 1 July 1984 for the  seeds sector, 
- the beginning  of the  1983/84  marketing  year for other products  for 
which there is a marketing  year, which has not yet  started  by 23 May 1983, 
- 23 May 1983 in all other cases. 
2. However, 
(a) with regard  to the  milk and milk products  sector  : 
- the applicable rate  from 23 May 1983 shall be 1 ECU = 6,5540  French 
francs, 
(b) with regard  to the  pigmeat  sector  : 
- the applicable rate  from 23 May 1983 until 31 October  1983 shall be 
1 ECU = 6,62985  French  francs, 
- the applicable rate  from 1 November  1983 shall be 1 ECU = 6,77297  French 
francs 
(c) with regard  to the  wine sector  : 
- the applicable rate  from ' 1983  until 15 December  1983 shall be 
1 ECU = 6,62985  French  francs, 
- the applicable rate  from 16 December  1983 shall be 
1 ECU = 6,77297  French  francs 
3. Until the dates given in points 1 and 2, the following rate  shall apply : 
1 ECU = 6,19564  French  francs,  except  for the  pigmeat,  olive  oil, wine, 
fishery  products,  milk and milk products,  beef and veal and sheepmeat and 
goatmeat  sectors  for which the following rate  shall apply : 
1 ECU = 6,37174  French  francs. 

ANNEX VI 
IRELAND 
1. 1 ECU = 0,72569  Irish pound. 
This rate  shall apply from 
- 1 January  1984 for the  fishery  products sector 
1983 in all other cases 
2. Until the date given  in point 1, the  following  rate shall apply 
1 ECU = 0,71655  Jlrish pound. 

FINANCIAL  STATEMENT 
Date 
1. BUDGET HEADING  : Titles  1 and 2 
1983 ECU APPROPRIATIONS  ; 14.087  million 
2. TITLE : council Regulation  amending  Regulation  (EEC) No 1223/83 on the 
exchange  rates to be applied in agriculture 
3. LEGAL BASIS  : Council Regulation  No 129 
AIMS OF PROJECT.- To  devalue  the representative rate  for the  Belgian franc,  the 
Luxembourg  franc and the-  Irish pound against  the new central rate  from 
• 20 June 1983 and to  devalue  the representative rate.for  the 'French franc  in order| 
to Limit  the MCAs to 2>2;points  from 20 June .1983 and to.abolish  them from , 
16 December 1983.  · ·  »,iinnn"cni 
mi 111 on ECU 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED  TO THE EC BUDGET 
. . (REFUNDS/INTERVENTIONS) 
•XX)X*8ftXXX  ,. 
5.1 RECEIPTS  . = 
. - OWN RESOURCES  OF THE EC 
(LEVIES/CUSTOMS  DUTIES) PERIOD OF 12 MONTHS CURRENT FINANCIAL TEAR 
) 
+ . 4 
+ 4 FOLLOWING FINANCIAL YEAR 
< M > _ 
+ 23 •'• 
. ,+ 4 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED RECEIPTS 
5.2 METHOD  OF CALCULATION ,$ ee Annex 
6.0 CAN THE PROJECT  8E FINANCED  FROM APPROPRIATIONS ENTERED  IN THE RELEVANT CHAPTER  OF THE  CURRENT BUDGET  ? 
6.1 CAN THE PROJECT  BE FINANCED  BY TRANSFER BETWEEN CHAPTERS  OF THE  CURRENT BUDGET  ? 
6.2 WILL A SUPPLEMENTARY BUDGET  BE NECESSARY  ? ··;::<-:'.·'  res/*«. 
6.3 WILL'FUTURE BUDGET APPROPRIATIONS  BE NECESSARY  ? 
.YES/W 
OBSERVATION  : . 1 .' , '.  ;·.·".•'  ';..·' '•' 
The increase  in expenditure  of + 4 million  ECU and the  increase  in ow'rV  resources 
of + 4 million  ECU. refer to the 1983  budget . ·.. .'. ,'•.· 

ANNEX 
I. INITIAL  SITUATION  AND LEVEL OF AGRI-MONETARY EXPENDITURE AND  RECEIPTS  
BASED ON THE TREND OF THE MONETARY  SITUATION  FOR THE  BELGIAN  FRANC, THE  
LUXEMBOURG FRANC, THE  IRISH POUND AND THE FRENCH FRANC AS REGARDS WINE 
1. For the  Belgian franc  and the  Luxembourg  franc the 1983  budget  provided 
for a monetary compensatory  amount of - 2,5 and a  double  rate 
coefficient  of 0,962; for  the Irish pound and the  French  franc, in the 
case of wine, the 1983  budget  provided  for a monetary compensatory 
amount of 0 and a  double  rate coefficient  of 1. 
For those  currencies  the portion  of the  appropriations  entered  in the 
1983 budget was therefore: 
Table I 
Million ECU 
1983 
: Expenditure  : 
: Monetary compensatory  amounts : 
: Double rate on common  market : 
: organization  : 
: Monetary compensatory  amounts 
: to be  deducted from refunds - 3 
- 26 
- 14 
: TOTAL - 43 
: Receipts 
: Double rate and monetary com-
: pensatory  amounts on levies 
: Double rate on sugar levies : - 19 
: - 3 
: TOTAL : - 22 

- 2 -
2. The monetary  trend since  the adoption  of the 1983  budget has entailed 
the following  agri-monetary  expenditure: 
Table II 
Million ECU 
: 1983 : 1984 : 
: Expenditure 
: Monetary compensatory  amounts 
: Double  rate on common  market 
: organization 
: Monetary compensatory  amount to 
: be deducted from refunds : - 4 
: - 37 
: - 7 : - 3 : 
: - 25 
: 0 : 
: TOTAL - 48 - 28 : 
: Receipts 
: Double  rate and monetary  com- : 
: pensatory  amounts on levies : 
: Double  rate on sugar levies : - 17 : 
- 2 : - 3 : 
- 1 
TOTAL , : - 19 : - 4 : 
3. The proposed  Regulation,  which  aligns  the representative rate  for the 
Belgian franc,  the Luxembourg  franc and the  Irish pound  with the new 
central  rate with  effect  from 20 June 1983 and  which devalues,  for 
wine, the representative rate  for the  French  franc in order to limit 
the monetary compensatory  amounts  to 2,2  points  from 20 June 1983 and 
to abolish  them from 16 December  1983» reduces  the agri-monetary 
expenditure  and receipts  shown in point 2 to the  following  level: 
Table III 
1983 : 1984 
: Expenditure 
: Monetary compensatory  amounts 
: Double  rate on common  market 
: organization 
: Monetary compensatory  amount to 
: be deducted from refunds : - 3 
: - 29 
! - 7 - 0 
: - 5 
! 0 
: TOTAL - 39 - 5 
: Receipts 
: Double  rate and monetary  com- : 
: pensatory  amounts on levies : 
: Double  rate on sugar levies : - 16 : 
- 2 : taken entry : 
taken entry : 
TOTAL : - 18 : taken entry : 

- 3 -
II. CONCLUSION. 
1. In relation  to the  budget adopted  for 1983, the trend of the  Belgian 
franc, the Luxembourg  franee,  the Irish pound and the  French  franc in 
the case of wine, and the  proposed  measure  produce  the following costs: 
- Table III  - Table I 
Million ECU 
1983 
: Expenditure 
: Monetary compensatory  amounts s 
: Double rate on common  market 
: organization  : 
: Monetary compensatory  amounts 
: to be  deducted from refunds  ; - 0 
- 3 
+ 7 
: TOTAL : + 4 
: Receipts 
: Double rate and monetary  com-
: pensatory  amounts on levies 
: Double rate on sugar levies + 3 
+ 1 
: TOTAL : + 4 
2. The cost of the  proposed  measure  as such can be  estimated  at: 
Table V = Table III  - Table II 
Million ECU 
: 1983 : 1984 : 
: Expenditure 
: Monetary compensatory acounts 
: Double  rate on common  market 
: organization 
: Monetary compensatory  amount to 
: be deducted from  refund : + 1 
+ 8 
0 : + 3 : 
: +20 : 
: 0 : 
: TOTAL + 9 : +23 : 
: Receipts 
: Double  rate and monetary  com-
: pensatory  amounts on levies 
: Double  rate on sugar levies : + 1 
taken entry + 3 : 
+ 1 : 
: TOTAL + 1 + 4 : Table IV