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DOCUMENTS "COM"
COM(74)1747
Vol.1974/0278

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COMMI5SEON OFTHEBUROE3AN COMMDMUES
COM(74)1747final
Brussels ,18October1974
PROPOSAL FORA
REGULATION (EEC)OFTHECOUNCIL
amending :Regulation (EEC)No295V73ontheexchangerate
appliedinapiculture fortheItalianlira
(subritted totheCouroilbytheCommission )
C0MC74)1747final

Explanatory Note
Asaresultofdevelopments inthesituation oftheItalianLiraonthe
foreignExchange Marketitappearsdesirable tofixanewrepresentative
rateforthiscurrency from28October1974whichwillavoidthe
reintroduction ofmonetary compensatory amountsintradewiththisMember
States
Therateinquestionisequivalent toadevaluation ofthe"greenlira"of
approximately 4%whichwillthuscorrespond morecloselywitheconomicreality.
Themonetary committee willbeconsulted .
Time-table .Decision oftheCouncil 21October.

PROPOSAL FORA
REGULATION (EEC)OFTHEyCOUîTCIL
amendingRegulation (EEC)No2958/73ontheexchangerate
appliedinagriculture fortheItalianlira
THECOUNCIL OFTHEEUROPEAN CŒMJNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomic Gorouiiity.»
HavingregardtoCouncilRegulation No129(l).°n "thevalueoftheunit
ofaccountandtheexchangeratestoheappliedforthepurposes ofthe
commonagricultural policy,aelastamendedbyRegulation (EEC)
No2543/73(2),andinparticular Article3thereof;
Havingregardtotheproposal fromtherCommission ;,
WhereasArticle1ofCouncilRegulation (EEC)NO2958/73(3)of31October
1973ontheexchangeratesappliedinagriculture fortheItalianlira,
aslastamendedbyRegulation (EEC)No1847/74(4-)»providedforthe
application ofarepresentative ratesfortheItalianlira,
Whereastheeconomicsituation inItalynecessitates takinganotherstep
towardsuniformity ofagricultural pricesintheCommunity byfixinganother
morerealistic representative rate;
•»••
(1)OJNo106,30.10.1962 ,p.2553/62.
(2)OJNoL263,19.9.1973 ,p.1-
(3)OJNoL303,1.11.1973 ,P.1.
(4)OJNoL195,18.7.1974 ,P.1.

2-
WhereastheMonetary Committeewillibeconsulted andwhereas,inviewof
theurgencyofthenatter,themeasures envisaged shouldbeadoptedunder
theconditions laiddowninArticle3(2)ofRegulation No129;
Whereasthefixingofsucharepresentative ratewouldleadtoanadjust­
mentinthelevelofpricesforagricultural productsinItaly;whereas
thisresultisconsistent withthe"basicprinciple ofuniformity ofprices
intheCommunity ;whereasitwasonthe"basisofthisprinciple andits
consequences thatspecific provisions werelaiddown,inparticular in
CouncilRegulation (EEC)No1134/68(5)of30July1968ladingdownrules
fortheimplementation ofRegulation (EEC)No653/68onconditions for
alterations tothevalueoftheunitofaccount usedfortheoommon
agricultural policy;whereastheseprovisions coveronlythecaseofa
changeintheparityofacurrency ;whereastheyshouldalsobeapplied
inthiscase;xvhereasthenewrepresentative rateshouldtherefore be
included £nRegulation (EEC)No2958/73»theotherprovisions ofwhich
remainunchanged ; ,
HASADOPTED THISREGULATION :
;Article1
ThefollowingisaddedtoArticle1(2)ofRegulation (EEC)No2958/73i
"(©J)witheffectfrom28October1974100Italianlira=sGO20CEJL8 >unitofaccount 11....
Article 2
ThisRegulation shallenterintoforceonthedayofitspublication in
theOfficialJournaloftheEuropean Communities .
ThisRegulation shallbebindinginitsentirety anddirectlyapplicable
inallMemberStates.
DoneatBrussels , 4 •FortheCouncil
ThePrésident
(5)OJNçL188,1.8.1968,p.1.

Financial implications
1.Theobject ,ofalteringtherepresentative rateofthelirais
toavoidreintroduction ofmonetary compensatory amountsfrom
21October1974.Themovement oftheliraexchangerateissuch
thatMCAonthebasisof4»0>wouldhavetobeappliedfromthat
date.Toworkoutthefinancial implications ofthisproposal t
itistherefore necessary tocomparethefinancial impactof
(a)reintroduction ofMCAonthebasisof4.6$from21October
1974(statusquoasconcernsRegulations );-.
(b)alteration oftherepresentative ratefromthesamedate
(proposedalteration ofRegulations ).
2.Reintroduction ofMCAonthebasisof4.6$wouldhavethefollowing
financial implications :
('000,000u.a..12months)
–!
.■I.Outgoings
MCAinintratrade
(granted-colleot ed) +63(intervention outgoings )
1ICAinextratrade
(a)grantedonimportation
(b)collected onexportation
(deducted from,refunds).|+23(refundoutgoings)
-5(refundoutgoings )
"' 1 --I–
Totalvariation inEAGGFoutgoings +81
II.Incomings
MCAgrantedonimportation
(deductedfromlevies) j
MCAcollected onexportation-17
+3
Totalvariation inincomings 1
(ovinresources ) -14

Financially ohangingtherepresentative rateby4%willmeanwidening
thegapbetweentheunitofaccountconversion rateforagricultural
instruments andfortheBudget.Thefinancial implications ofthis
maybeestimated at:
(*000,000u.a.,12months)
Interventions +20
Refunds +3
IncreaseinEAGGPGuarantee outgoings -f23
Incomings inlevies +8
Comparison betweenthefinancial implications ofreintroducing MCA
andofaltering therepresentative rateindicates thatasregards
outgoings inparticular thelattercoursewouldbeverymuchless
costly.
'-In-theoaseofthefinancial year1974»givenapplication for.a
periodof2.l/2monthsallowingforthetermofpayment,the
additional outgoings couldbecoveredfromtheoverall EAGGP
Guarantee appropriations .
Inthecaseofthefinancial year1975»havingregardtothedata
adoptedindrawingupthe1975DraftBudget,thecomparatively
.limitedincreaseinoutgoings shouldnotbesuchastocallfor
revisionoftheoverall EAGGPGuarantee appropriations plannedfor.
financial 1975•