ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (83) 380 
 
 
 
Vol. 1983/01 45 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
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 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
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. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION  OF THE  EUROPEAN  COMMUNITIES 
COM(83)  380  final 
Brussels,  20  June  1983 
FURTHER  GUIDELINES  FOR THE  DEVELOPMENT  OF 
THE COMMON AGRICULTURAL POLICY 
(Communication  from the  Commission  to the  European Council, 
Stuttgart,  17-19  June  1983) 
COM(83)380  final 

1. The Commission  suggests  that  the European Council endorses 
the following guidelines for  further  development of the common 
agricultural policy: 
- The principles of the common agricultural policy must be 
safeguarded. 
- A prudent  pricing policy should be applied. 
- Guarantees should be modulated in such a way as to discourage 
formation  of surpluses beyond the production thresholds. 
This  could be achieved by application of the production 
thresholds and associated mechanisms already introduced for a 
number of products and by measures analogous to those proposed 
by the Commission for various sectors in its memorandum on 
guidelines for the common agricultural policy. To alleviate 
the possible consequences for certain small producers or for 
producers in certain less-favoured regions, these measures 
could be supplemented by Community and/or national 
* 
intervention  . 
*These  ideas are discussed in the Commission's 1981 memorandum 
on "Guidelines for European Agriculture". 

- 2 -
- In addition, the Commission will undertake a systematic examination 
of agricultrual expenditure to determine whether  further  management 
savings  are possible. 
- Given the harmful effects of the present agri-monetary system 
on agricultural production and trade, the Commission will make 
appropriate proposals for the gradual phasing-out of monetary 
compensatory amounts. 
- In the context of implementing the guidelines set out above, the 
external protection system for agriculture will have to be reviewed, 
bearing the Community's international commitments in mind. 
- The Commission considers  that,  if these principles are applied, 
agricultural expenditure will on average increase  less  rapidly 
than the Community's Qvin resources. 
It will present the necessary proposals as soon as possible so 
that  their consequences can be taken  into  account in the preparation 
of the 1984 Budget and to enable the Council to adopt them in time 
for implementation as from the 1984/85 marketing year. 
* * 

- 3 -
2. In  1931,  following its report on the mandate of  30  May  1930,  the 
Commission  analysed structural changes for various agricultural products 
(for example milk products) and presented its conclusions to the 
Mandate  of 30  May  1980:  Guidelines for European Agriculture. C0M(81)608 
final. Council  in a memorandum entitled "Guidelines for European Agriculture" . 
It found  that  in recent years the trend had been towards a steady 
increase  in these areas of production and  that  productivity reserves 
were such  that  this trend was bound to continue for the foreseeable 
future. At the same time consumption in the Community was stagnating. 
The result is a constant increase in surpluses to be exported, disposed 
of by means of subsidies on the Community market or stored at high 
cost  and hence a long-term burden on the budget quite independent of 
the short-term market situation. Following relative stabilization of 
expenditure over two years, during which considerably  less  was spent 
on agriculture than the amounts provided for in the budgets, this 
permanent feature, combined  with  fluctuations on the world market, led 
to an abrupt change in the level and growth rate of agricultural 
expenditure in 1983. It is to be expected  that  agricultural expenditure 
in the current year will be approximately 30% higher than in 1982, 
forcing the Commission to present an unusually large supplementary 
budget in the near future. 
3. These recent developments have confirmed the soundness of the 
Commission's  analysis. The Commission is still determined to adapt 
the common agricultural policy - while adhering to the  basic  principles 
of the policy - to ensure  that  agricultural expenditure will increase 
less  rapidly in  future  than the Community's own resources. 
4. As to the functioning of the market organizations, the Commission 
considers  that  for a number of products the granting of an unlimited 
guarantee, irrespective of the quantities produced, must be abolished. 
This  will be done by modulating guarantees once a production 

- 4 -
threshold is exceeded. The modulation must be large enough to 
discourage  production and contain expenditure. 
The proposals made by the Commission in connection  with  the farm price 
review for  1982  and  1983  were based on these principles. The Council 
has accepted them. Production thresholds and associated mechanisms 
have  been introduced for milk products, cereals and  colza.  This policy 
is beginning to have an effect on prices for these products but it 
has had no marked effect as yet on agricultural expenditure. 
The Commission intends to submit to the Council proposals which will 
reinforce and supplement the decisions already taken by the latter in 
sufficient time for their consequences to be taken  into  account in the 
preparation of the  1984  Budget and for them to be adopted before the 
1984/85  marketing year. In particular, the Commission proposes to 
employ again some of the formulas which it had set out in the above-mentioned 
memorandum on guidelines for European agriculture. 
In the milk and milk products sector, for example, the Commission has 
suggested  that  agricultural producers whose  output  has increased should 
be required to pay a levy on their  excess  production ("additional levy"). 
It has also suggested  that  the guarantee system in respect of milk 
and milk products should be amended to ensure  that  it no longer 
constitutes an incentive to highly intensive production, which is 
largely industrial in character ("intensive levy"). 
5. Furthermore, the Commission will undertake a systematic examination 
of various items in the chapters of the budget devoted to agriculture 
to establish whether  further  management savings are possible. It would 
point out, however,  that  much of current agricultural expenditure is 
the result of political compromises in the  Council. 
6. The retention over very long periods of monetary compensatory 
amounts introduced following currency fluctuations has gradually 
led to serious distortions of the conditions of production and 
the development of agricultural trade. This situation is now having 
a significant influence on the unity of the price system and the 
functioning of the single market. The "gentlemen's agreement" 

- 5 -
which attempted to define conditions for the gradual phasing out 
of monetary compensatory amounts has proved unsatisfactory. 
The Commission therefore intends to submit proposals which, 
whilst complying  with  the principles of the Common Agricultural 
Policy,  are designed to achieve the gradual phasing-out of 
monetary compensatory amounts. 
7. The development of agricultural trade, an area in which the 
Community has commitments  within  GATT  to apply low or zero rates 
of duty  to a number of key products, has direct effects on 
agriculture in the Community, as regards  both  surpluses and 
deficits. These elements  will  have to be borne in mind in 
implementing the guidelines which have  just  been presented. 
In the  light  of these two considerations, the Commission proposes 
to examine the external protection system for agriculture and 
to present its conclusions to the  Council,  bearing the 
Community's  international commitments in mind. 
8. Implementation of the policy described above could have a 
negative effect on the level of agricultural support and on 
farm incomes. Certain categories of small producers and 
producers  in certain less-favoured regions could be particularly 
affected. 
If necessary, the Commission  will  submit proposals to remedy 
this situation,  both  by the use of existing instruments and, 
where appropriate, by supplementary Community and/or national 
intervention.