ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)506
Vol.1981/0152

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)506 final
Brussels/22ndSeptember 1981
TENTHFINANCIAL REPORT ONTHEEAGGF
YEAR1980
GUARANTEE SECTION AND
FOODAIDFINANCING

Average rates ofconversion used for the 1980 financial year (seeAnnex 14)
Belgium Denmark Germany France Ireland Italy Luxembourg Netherlands U.K. :
:Average rates
:inECU40,4335 7,76066 2,51225 5,84970 0,673477 1177,71 40,4548 2,75439 0,605540 :

-I-
INTRODUCTORY NOTE
Article 10ofRegulation (EEC)No.729/70onthefinancing ofthecommon
agricultural policyrequires theCommission tosubmittotheCouncilandto
theEuropean Parliament before 1Julyeachyear,"afinancial reportonthe
administration oftheFundduringthepreceding financial yearand,in
particular ,onthestateofitsresources andthenatureofitsexpenditure
andtheconditions underwhichCommunity financing hasbeeneffected".
Thisreportcoverstheactivities oftheGuarantee SectionoftheEA6GFand
thefinancing ofcommunity foodaidforthe1980financial year.The
activities oftheGuidance Sectionaredealtwithinaseparate report.
TheGuarantee Sectionfinances expenditure resulting fromthecommonpolicy
onagricultural marketsandprices.UnderArticles 2and3ofRegulation
(EEC)No.729/70,thisisdividedintorefunds onexportstonon-member
countries tocoverthedifference between Community pricesandworldprices,
andvariousintervention measures designed tostabilize agricultural markets
(storage,withdrawal fromthemarket,pricecompensation ,guidance premiums).
N.B.ThisdraftoftheReportwascompleted on17July1981.

SUMMARY OFTHE TENTH FINANCIAL REPORT
EAGGF GUARANTEE SECTION
Trends inCommunity financing ofmarkets
1.Original appropriations for 1980 totalled 11507.5 million ECU ;
spending came to11315.2 million ECU ,and thus fell short of
total appropriations ,the savings mainly being made inthemilk
sector .Asaresult ,190million ECU inappropriations were
cancelled .Expenditure was8.4% higher than in1979 ,anappre­
ciably lower growth rate than intheprevious year (20.4% ).
Most ofthe increase inexpenditure was inthebeef andveal
sector (+615million ECU )following anincrease inproduction at
atime ofsluggish demand ,inthe fruit andvegetable sector
(+244million ECU )following anincrease inprocessing ofthese
products ,and inthewine sector (+238million EUC )following a
particularly good harvest in1979 .Spending wasmarkedly down in
thesugar sector (-365million ECU)because rising world market
prices enabled refunds tobeheld down andbecause favourable
developments inthe currency situation meant less expenditure on
monetary compensatory amounts (-410million ECU).
2.Expenditure onrefunds rose faster than intervention spending ,
going upfrom 47.7% oftotal expenditure in1979 to50.3% .The
increase wasmainly accounted forbymilk products ,beef andveal ,
pigmeat andwine .
Thevalue ofpublic intervention stocks rose from 2100million
ECU atthe end of1979 to2600million ECU atthe end of1980 ,
most oftheincrease being due totheamount ofcereals ,olive oil
and colza instore .Asameasure ofthe overall cost ofEAGGF
guarantee operations gross spending asaproportion ofCommunity
GDP went down from 0.60 in1979 to0.57 in1980 .The net cost
after deduction ofagricultural levies showed nochange at0.48 .

-III -
B.Cash position and financial management
3.One ofthe keyelements infinancing the common agricultural
policy isthesystem ofmonthly advances .Itisdesigned to
combine centralized decision-making oncash movements at
Commission level with decentralized management bytheMember
States .
The Commission was more rigorous inits systematic examination of
drawings from funds made available andendeavoured toensure the
highest possible rate ofutilization .The level ofEAGGF guaran­
teeexpenditure bytheMember States thus came to98.6% ofthe
funds placed attheir disposal ,arecord figure .
C.Investigations and irregularities
4.TheCommission carried outseveral specific investigations andone
selective check ,thelatter involving theapplication ofthe
co-responsibility levy andmeasures intended toincrease demand
for milk .
Altogether ,theMember States reported 246 cases ofirregularities
in1980 .These involved asum of21.5 million ECU ,ofwhich 1.6
million ECUhave been recovered .These figures represent asharp
increase over 1979 (116cases ,involving 2.1million ECU).The
main areas concerned were milk products (116cases ),MCAs (50
cases ),olive oil (19cases ),fruit andvegetables (15cases )and
cereals (14cases ).
D.Clearance ofaccounts
5.Theprincipal problem inclearing accounts remains thebacklog of
work and theneed toaccelerate clearance procedures .
Since on-the-spot checks covering thebudget years 1974 and1975
were completed in1979 ,there wasanopportunity in1980 todiscuss
theCommission 'sfindings with theMember States andtogather
further evidence onmatters indispute .

-IV-
This work took longer than expected andcould notbeterminated in
1980 ,sothat final clearance decisions will notbeissued until
1981 .
On-the-spot checks concerning 1976 and 1977 were also completed ,
and itwill bepossible todiscuss findings with theMember States
in1981 .
E.Financial implementation ofCommunity food aid
6.Theprocedures forfinancing food aidaresimilar tothose employed
inguarantee financing .TheCommission made monthly advances
totalling 320.8 million ECU ,anincrease of17.3% over 1979 .
Ofthis amount ,276.7 million ECUwasspent mainly onaidpro­
grammes involving milk products (176.8 million ECU )andcereals
andrice (92.2 million ECU).Afurther 37.2 million ECUwere paid
directly torecipient countries and toagencies carrying out
food-aid operations .

-ν-
SUMMARY
Page
INTRODUCTION
TITLE I:COMMUNITY FINANCING OFMARKETS
1.Agricultural prices andadjustments tomarket mechanisms
with financial consequences
1.1 .Agricultural prices
1.2 .Adjustments incertain sectors having financial
consequences
2.Analysis ofthefinancing ofmarkets
2.1 .Comparison ofinitial appropriations andexpenditure
2.2 .Breakdown ofexpenditure bytype
2.3 .Public stocks
2.4 .Corrections tobemade tothebreakdown ofexpenditure
2.5 .Assessment ofthe total cost ofthe Guarantee Section
3.Changes inrules governing the EAGGF Guarantee Section
3.1 .Council legislation
3.2 .Commission legislation
TITLE II :CASH POSITION AND FINANCIAL ADMINISTRATION
4.Thefunctioning ofthesystem ofadvances 20
5.Advances toMember States
5.1 .Decisions inadvances taken in1980 22
5.2 .Funds available during thefinancial year 22
5.3 .Rate ofutilization ofthe funds available 24
5.4 .Direct payments 241
2
7
13
14
15
16
17
18

-VI-
Page
6.Administration ofappropriations
6.1 .Available appropriations 24
6.2 .Transfers ofappropriations 24
6.3 .Expenditure 26
6.4 .Carryovers ofappropriations 28
6.5 .Summary oftheimplementation ofthe 1980 budget 28
TITLE III :ENQUIRIES AND IRREGULARITIES
7.1 .Enquiries 30
7.2 .Irregularities 31
TITLE IV :AUDIT AND CLEARANCE OFACCOUNTS
8.1 .Accounts forfinancial years 1974 and 1975 39
8.2 .Accounts forfinancial years 1976 and 1977 40
8.3 .Accounts forfinancial years 1978 and1979 40
8.4 .Consequences ofthejudgments delivered bythe
Court ofJustice 42
TITLE V:FINANCING OFCOMMUNITY FOOD AID
9.1 .Main features ofCommunity food aidprogrammes 43
9.2 .Cash position 46
9.3 .Administration ofappropriations 47
9.4 .Appropriations carried forward to1981 50
9.5 .Closure ofaccounts 51

-VII -
SUMMARY LIST OFTABLES
Page
Guarantee Section
1.Receipts andexpenditure under themilk co-responsibility
schemes 3
2.Comparison between initial appropriations andexpenditure 8
3.MCA levels applied intrade 12
4.Corrected expenditure byMember State 15
5.General development ofGuarantee Section expenditure 16
6.Levies under thecommon agricultural policy 16
7.Funds available toandexpenditure bytheMember States 23
8.Average rate ofuse ofCommunity funds for1980 25
9.Transfers ofappropriations 27
10.Expenditure byMember State andbytype offinancing 29
11.Dates ofsubmission ofthedeclarations ofexpenditure
(1978 and 1979 ) 41
Food Aid
12.Food aidsupplied in1980 45
13.Breakdown andutilization ofmonthly advances 46
14.Breakdown ofdirect payments byrecipient 48
15.Transfers ofappropriations 50

-1-
TITLE 1
COMMUNITY FINANCING OFMARKETS
Expenditure bytheEAGGFGuaranteeSectionin1980totalled11,315.2 mECU1,an
increaseof8.4%over1979.In1979theincrease over1978was20%.Expen­
diturein1980included anamountof203.5mECUrepresenting expenditure in­
curredbytheMemberStatesin1979.
Sincetheinitialappropriations amounted to11,507.5 mECU,itwasnotneces­
sarytorequest asupplementary budgetand190mECUofavailable appropriations
weresaved.
Although expenditure bytheGuarantee Section depends onalargenumberof
factors,mostofwhicharestillnotknownwhenthebudgetestimates arepro­
duced,thisresultisduenotonlytothefavourable economic situation but
alsotoimproved monitoring oftheuseofappropriations during1980andto
closercooperation betweenthedepartments responsible formanaging themarkets
andtheEAGGFGuarantee Section .
1.Agricultural pricesandadjustments tomarketmechanisms withfinancial
consequences
Expenditure wasinfluenced bytheadjustments totheagricultural prices
forthe1980/81marketing yearandthevarious changes madeinthecommon
marketorganizations .Theseweredecided oneitheratthesametimeas
pricesinconnection withtherelated measures orinthecourseof1980.
1.1.Agricultural prices
Asregardstheadjustment ofprices,itwasagreedtoincrease thembyan
averageof4.8%for1980/81.Theincrease waslimitedto4%inthecase
ofproducts ofwhichthereisasurplus,i.e.milk,beefandvealand
sugar.Thecompromise workedout,whichtakesaccountnotonlyofthis
adjustment butalsooftheadjustment ofmonetary compensatory amounts
1Including fisheries
O
Asexplained inTitleIIoftheNinthFinancial Report,thisamountof203.5
mECUhadtobechargedtothe1980financial yearalthough thepayments were
madebyMemberStatesattheendof1979.Ifthisamountisassigned to1979,
inordertoobtainapictureofthetrendinexpenditure ,theincreasein1980
over1979isonly4.4%insteadof8.4%.
^SeeNinthFinancial Report,page1.

-2-
(MCAs)andoftherelatedmeasures adopted,isbasedonthreenecessi­
ties:tosafeguard farmincomeswithoutencouraging inflation,toim­
provethebalance onsomeagricultural markets,inparticular themilk
market,andtoremainwithinthelimitssetbybudgetary constraints .
Therelatedmeasures mainlyconcernthedairysector (co-responsibility
Levyincreased from0.5to2%oftheguidepriceformilk,andinvest­
mentaidlimited),beefandveal(premiumforsuckler cowsintroduced )
andwine(rulesonthepriceguarantee extended).
Intheagri-monetary sectortheCouncildecided on5June1980torevalue
therepresentative ratefortheGermanmarkby1percentage pointandfor
theBeneluxcurrencies by0.2point.Thisreducedthemonetary gaps.
However,becauseofmovements inthemarketrateforthelira,MCAswere
reintroduced forItalyfrom11June1980.
TheCouncildecisions involvedadditional expenditure onagricultural
prices ofapproximately 120mECUfor1980.However,therelatedmeasures
connected withthedecision onpricesresulted inasavingof124mECU
forthesameperiod.
1.2.Adjustments incertainsectorshavingfinancial consequences
Theseincludeadjustments agreedwhenthepriceswerefixedaswellas
thoseadoptedduringtheyear.
1.2.1.DairySector
a)Co-resgonsi biIi_t^_l.ev^_and relatedmeasures
Thismeasure,whichrepresents thefinancial contribution ofmilkpro­
ducerstowardsachieving anequilibrium onthemarket,wasintroduced
byRegulation (EEC)No1079/77andapplied fromJune1978toJune1980
attherateof0.5%ofthetargetpriceformilk.Theratewas
raisedto2%for1980/81andwillnotbelessthan1.5%forthe
following twomarketing years.
Thereceipts fromthislevy,whichisregarded asanintervention
measure,amounted to223mECUfor1980.Since1980/81theyhavebeen
usedpartlytofinancemeasures toassistthedisposal ofmilkand
milkproducts,asshowninthetablebelow.Thisiswhythepercen­
tagefor1980isonly49.1%,theremainder ofthereceipts having
beenusedtofinance thewholeofthemilksector.

-3-
Table 1-Receipts fromtheco-responsibility levyonmilkand
allocation ofproceeds amongvarious schemes
million ECU
Measure1977
(from16.9)1978 1979 198016.9.77 to
31.12.1980
A.Receipts fromco-res-
ponsibility levy(1)24,0 156,1 94,2222,9 497,2
B.Totalexpenditure
ofwhich :7,5 53,3 110,3 109,4 280,5
a)Schoolmilk
(Reg.1080/77)- 10,3 30,-45,7 86,-
b)Butterforthemanu­
facture ofice-cream
(Reg.262/79)7,5 28,2 25,9 24,- 85,6
c)Concentrated butter
fordirectconsumption
(Reg.649/78)4,7 1,5 5,1 .11,3
d)Promotion ,advertising
andmarketresearch in
theCommunity
(Reg.723/78))
)
)
))
)
)
)
)37,4 26,7 74,2
e)Marketresearch out­
sidetheCommunity
(Reg.1993/78))
)
)
ì)
10,1)
)
f)Improvement ofthe
qualityofmiIk
(Reg.1271/78and
723/78))
)
)
)15,5 7,9 23,4
Expenditure/revenue (%) 31% 34%117,2 %49,1%56,4%
(1)Excluding appropriations carriedoverfromoneyeartothenext.
b)Mostofthemeasures toassistthemarketing ofmilkproducts andtoencourage
theirconsumption werecontinued during1980.Theycanbesummarized as
follows :
-butter
.saletothefoodindustry
.Christmas butter(notrepeated attheendof1980)
.armedforcesandwelfareinstitutions
.concentrated butterforcooking
.socialmeasures (welfarerecipients )
.consumption subsidy

-4-
-skimmed milk powder
.for feeding calves
-Liquid skimmed milk
.for feeding calves
.forfeeding pigs
.forprocessing into casein andcaseinates
1.2.2 .Beef and veal
Since themarket situation made itdifficult toensure afair income for
producers specializing inhigh-quality meat ,under Regulation (EEC)No
11357 /80of5June 1980 producers were granted apremium intended to
ensure anadequate income forkeeping suckler cows ,soastoprevent them
converting tomilk production .This premium ,which applied from 2June
1980 ,involved expenditure of42mECU for1980 .
The level ofstocks continued togrow .Expressed interms ofcarcases ,
stocks rose from 310,000 tonnes attheend of1979 to350,000 tonnes at
the end of1980 .TheCommission therefore suspended intervention buying
ofbeef forequarters from 10November 1980 to1March 1981 bymeans of
Regulation (EEC)No2890/802.
Asaresult oftheconcern among consumers attheuseofhormones in
feeding veal calves andtheensuing market disturbance ,aidforthe
private storage ofveal carcases andhalf-carcases wasgranted under
Regulation (EEC)No2880/80of6November 19803,withthepossibility of
exporting theproducts during thestorage period .
1.2.3 .Pigmeat
Since pigmeat production increased more than consumption ,producers some­
times hadtosell ataloss .Falling prices caused theCommission to
adopt aseries ofmeasures ,inparticular :
a)thegrant ofprivate storage aidfrom 5Mayto3October 1980 ;
b)stricter application oftheadditional amounts charged onimports from
non-member countries incases where theoffer prices (sluice-gate pri­
ces)have notbeen observed ;
c)increased export refunds .
0JNoL140of5.6.1980 ,p. 1
20JNoL299of8.11.1980 ,p.7
30JNoL298of7.11.1980 ,p.22

-5-
1.2.4 .Sheepmeat andgoatmeat
Acommon organization ofthemarket inthis sector was setupon27June
andtook effect on20October 1980 .Inorder tooffset any Loss in
income resulting from theintroduction ofthis organization ,apremium
will begranted toproducers according totheir production .Intervention
will normally take theform ofprivate storage aid .Intheevent of
market difficulties public storage maybedecided onoravariable slaughter
premium maybefixed inregions where there isnopublic buying-in .Pre­
miums inthis sector accounted for53.5 mECUofexpenditure in1980 ;an
appropriation of201 mECU isproposed for 1981 .
1.2.5 .Cereal-based spirituous beverages
On2December theCommission forwarded totheCouncil aproposal intended
tofacilitate theuse ofCommunity cereals inthemanufacture ofspirituous
beverages ,including whisky .Intheabsence ofacommon organization of
themarket inalcohol ,theproposed measures form part ofthe rules
concerning cereals and consist ofthegrant ofexport refunds oncereals
used inthe .manufacture ofspirituous beverages .This system ,introduced
on28April 1980byCouncil Regulation (EEC)No1188/81^,provides fora
retroactive effect inaccordance with thetreaty ofaccession of1972 .
Theannual cost ,excluding theretroactive effect ,would beapproximately
30mECU .
1.2.6 .Sugar
TheCouncil wasunable toreach agreement ontheimplementation ofanew
sugar policy for1980-85 andRegulation (EEC)No3330 /74therefore remains
2inforce .Under theCommission proposal ,producers would bear thecost
ofdisposing ofthequantities ofsugar produced over andabove the
quantities necessary tocover Community requirements .Theproposal also
involves revision ofthequotas fortheFrench overseas departments and
themeasures toassist the latter (differential amount andrefining
subsidy ),soastomitigate thedifficulties they experience inexporting
their sugar toEurope .
O.J. NoL121of5.5.1981 ,p.3
Adopted on30.6.1981 byRegulation (EEC)No1785/81-O.J. NoL177of1.7.1981 ,

-6-
1-2.7 .Olive oil
Aset ofmeasures topromote consumption ofthis product wasadopted on
122July inRegulation (EEC )No1970 /80,i.e. information campaigns ,
measures toexpand consumption ,special sales atreduced prices tocer­
tain categories ofconsumer .These measures arefinanced bydiverting a
percentage (4,5 %in1980 )oftheconsumption aid (cost for1980 :
0.2 mECU).
1.2.8 .Wine
Inview ofthe large quantities oftable wine ofall types covered by
2storage contracts ,Regulation (EEC)No2335 /80of8September 1980 made
itpossible tocarry outpreventive disti.llation forthe1980 /81wine-
growing year from 1October 1980 to31July 1981 .
Thebadweather atthebeginning ofthewine-growing year made itneces­
sary toenable thealcoholic strength ofthewine tobeincreased .For
thispurpose ,Regulation (EEC)No2726/80adopted on24October 19803
granted aid for theuse ofconcentrated must and rectified concentrated
must inwine-making .
1.2.9 .Flax and hemp
Since sales offlax products were threatened bydifficulties caused by
thetechnical progress ofthetextile industry and increased competition
from other fibres theCouncil on30September 1980 adopted Regulation
4
(EEC )No2511 /80introducing measures toencourage theuseofflax
fibres for the1980 /81and 1981 /82marketing years ,consisting ofin­
formation campaigns and thesearch fornewoutlets andimproved products .
These measures are tobefinanced bydiverting part oftheproduction
aid .There was noexpenditure in1980 .
0JNoL192 of
20JNoL236of
30JNoL281of
40JNoL256of26.7.1980 ,p. 5
9.9.1980 ,p. 5
25.10.1980 ,p.18
1.10.1980 ,p. 1

-7-
2. Analysis ofthefinancing ofmarkets
2.1 .Comparison ofinitial appropriations andexpenditure
Table 2compares initial budget appropriations (11,507.5 mECU)with
expenditure effected bytheendofthefinancial year ,after adjustment
ofthefunds available byatransfer of2.3mECUtoChapter 83.
12.1.1 .The_agri cuUura^sectors
The following observations can bemade after detailed examination ofthe
individual sectors :
a)Cereals
Because ofahard winter ,the 1979 harvest wasdown on1978 .The 1980
harvest ,ontheother hand ,was arecord ,with increases inthepro­
duction ofcommon wheat andbarley inparticular .Theeffect ofthis
harvest ,together with thecompetition ofsubstitute products ,meant
that iswasnecessary toincrease exports .This was reflected inan
increase inexpenditure onrefunds in1980 .However ,thefavourable
trend ofprices ontheworld market made itpossible tolimit the rise
inexpenditure ,which remained at1,174.7 mECU (estimates :1,099 mECU),
i.e. the same level asin1979 .
The size oftheharvest ,ontheother hand ,ledtobuying-in ona
large scale .Atthe end of1980 intervention stocks ofcereals amoun­
ted to6,686,000 t,against 2,676,000 tattheend of1979 .Forthis
reason ,theresulting expenditure (201.7 mECU )was inexcess both of
theestimates (177 mECU )andofexpenditure recorded in1979 (88.9 m
ECU).Expenditure ondisposing ofthese quantities will mostly be
incurred in1981 .
b)Milk and milk products sector
Inthis sector ,which in1980 accounted for 42%ofEAGGF Guarantee
Section expenditure ,for thefirst time forseveral years expenditure
(4,752.0 mECU )was less than theestimates (4,929.6 mECU).
For acomparison ofexpenditure with previous years ,seeAnnex 3.

TABLE2
COMPARISON BETWEEN THEINITIALAPPROPRIATIONS INTHE1980BUDGETANOEXPENDITURE
SECTORINITIAL
APPROPRIATIONS
1980
(1)mECU
EXPENDITURE IN1980
Total
REFUNDSOFWHICH
FWTATr
INTERV.(2)T2ndCa1E6.–
iINTERV.(3)DIFFERENCES flEMENINITIAL
APPROPS ANDEXPENDITURE 1980
nECU
CEREALS
excluding durumwheat
durunwheat
RICE
MILKANDMILKPRODUCTS
OILSANDFATS
-oliveolls
-ollseeds
SUGAR
HEEFANDVEAL
PIOMEAT
SHEEPMEAT
EGGSANDPOULTRYMEAT
FRUITANDVEGETABLES
WINE
TOBACCO
FISHERY PRODUCTS
FLAX/HEMP
SEEDS
HOPS
SILKWORMS
ORIEDFOOOER
PEASANDFIELDBEANS
NON-ANNEX IIPRODUCTS
MONETARY COMPENSATORY AMOUNTSi-h/b
1.616,4
1.488,4
128,0
50,0
4.929,6
787,0
467,0
320,0
696,5
1.178,0
100,0
50,0
94,0
659,0
350,0
282,0
22,0
19,0
33,0
6,0
1,0
56,0
26,0
275,0
276,0
TOTAL
X11.507,51.669,3
1.540,4
128,9
58.7
!4.752,0
I687,3
317,9
369,4
|5'5,2
1.36ï,3
115,6
53,5
«5,5
687,3
299,5
309,3
23,0
16,8
32,0
6,2
0,3
33,5
27,0
221,3
298,514,8
0,5
42,0
6,1
5,1
12,0
1.0
0,5
0,8
6.1
2.6
2.7
0,2
0.1
0,3
0,1
0,3
0,2
2,0
2,6
11.315,2
100100
1001.174,7
13,6
1,2
2,»
3,31.174,7
44,4
2.745,9
3,7
286,2
715,5
91,6
«5,5
41.3
26.4
*,5
11,43,7
221,3
242,6292,9
164,0
128,9
1*,3
1.599,4
654,1
297,4
356,7
289,0
182,4
24,0
53.5
646.0
273.1
275,3
11.6
16.8
32,0
*,2
0,3
33,5
27,0
55.9201,7
201,7
406,7
29,5
465,420,5
9/0
29,5♦52,9
♦52,0
♦0,9
♦8,7
-177,6
-99,7
-149,1
♦49.4
-121,3
♦185,3
♦15,6
♦3,5
"8,5
♦28,3
-50,5
♦27,3
♦1,0
-2,2
-1,0
♦0,2
-0,7
"22,5
♦1,0
-53,7
♦22,53,3
17,4
3,6
12,7
17,4
15,7
15,6
7,0
9,0
4.3
14,4
9.7
4,5
11,6
3,0
3,3
70,0
*0,2
3.8
19,5
8,2
5.695,0
50,34.487,3
39,71.132,8
10,0-192,3 1,7
(1)Appropriations enteredinOJNoL2«of15September1980
(2)Intervention forwhichunitamountsofexpenditure arefixedbyCommunityrules
(3)Intervention ,consistingofbuying-in,storageanddisposal,forwhichEAGGF-financed expenditureisdetermined onthebasisofannualaccounts
containing standardelements.

-9-
Inaddition ,inspite ofincreased production ,thesharp rise in
expenditure recorded inprevious years slackened in1980 (1977 :
2,924 mECU;1978 :4,015 mECU;1979 :4,528 mECU;1980 :4,752 m
ECU).
This isexplained bythefact that theincrease inproduction wasnot
used tomanufacture products likely togointo public intervention ,
because ofarise intheconsumption ofdrinking milk ,cheese and
butter ontheinternal market (butter inparticular ,asaresult of
thesales atreduced prices )and thegrowth indemand forsome milk
products ontheworld market .
This produced animprovement inthemarket situation which was reflec­
ted inexpenditure .
Since exports are the least expensive means ofdisposing ofsurpluses
inthis sector theCommunity took advantage ofthe rise indemand on
theworld market toexport additional quantities atlower refund le­
vels .This explains whyexpenditure oncommercial refunds (2,587.8 m
ECU )exceeds theestimates (2,418 mECU).Ofthis expenditure ,45%
was onbutter ,12%onskimmed milk powder and 43%onother products .
The increase inthequantities exported reduced thepressure onthe
internal market ,which was reflected inareduction ofintervention
expenditure compared with theestimates andeven ,incertain cases ,
compared with expenditure in1979 .
Asregards skimmed miIk,intervention expenditure was1,302.2 mECU
(estimates 1,867 mECU;1979 expenditure 1,671.3 mECU).The fall in
expenditure compared with theestimates isaccounted formainly bythe
reduction insome aid fordisposal .Theabolition oftheaid forthe
disposal ofskimmed milk powder foruse aspig feed and thesharp
reduction inpublic stocks arethemain reasons forthedrop inex­
penditure compared with 1979 .

-10-
Forbutter ,intervention expenditure (647.1 mECU)wasalso below the
estimates (707mECU)but itwasinexcess of1979 expenditure (630.5 m
ECU).Themain reason was areduction inexpenditure onspecial
measures toabsorb surpluses ofbutterfat .
c)Intheoils andfats sector ,particularly inthecase ofolive oil,
expenditure onproduction aidandconsumption aid (237.9 and52.3 m
ECUrespectively )was less than theestimates (323 and 118 mECU
respectively )and even below expenditure in1979 .Inthis sector the
effects ofthespeed-up inpayments caused bytheintroduction ofa
system ofadvances appear tohave diminished .Also ,thequantities
eligible forconsumption aidwere lower than expected and farbelow
those forwhich production aid wasgranted .Foroilseeds ,expenditure
onproduction aid (340 mECU)exceeded theestimates (287mECU)asa
result ofincreased production ,and inparticular the 1980 harvest .
The latter ledtobuying-in onalarge scale (82,000 tinpublic
stocks on31December 1980 ),resulting inhigh expenditure onpublic
storage (9mECUinstead ofthe 1mECUforecast ).
d)Sugar sector
Inthis sector ,because ofrising prices ontheworld market ,the
exports needed asaresult ofthesurplus production (which included
imports of1.3mtonnes from theACPcountries )could becarried out
atlittle cost .
Expenditure onrefunds (286.2 mECU)wasthus less than theestimates
(394mECU),which explains thereduction inexpenditure inthis
sector compared with theestimates .
e)Beef and veal
Expenditure inthis sector for1980 (1,363.3 mECU)farexceeded both
theestimates (1,178 mECU)and1979 expenditure (748mECU).

-11-
Thissituation wastheresult,firstly,ofanincrease inpro­
ductionafterthetemporary fallin1976-78and,secondly,of
stagnating consumption causedbythepricerelationship between
beefandvealandothertypesofmeatbeingunfavourable tothe
consumer .Asurplusresulted,whichledtopressure onthe
internal market.Inordertoreducethisandtoavoidexcessive
intervention buyingtheemphasis wasplacedonexports,which
resulted inanincrease inthequantities exported .Thiswas
reflected inasharpriseinexpenditure onrefunds,whichin­
creased from270mECUin1979to715.5 mECUin1980(estimates
460mECU).Theefforts madeintheexportfieldmeantthat,in
spiteofsomeincrease inbuying-in (330,000tin1979and410,000t
in1980),expenditure for1980(465.4 mECU)remained withinthe
estimates (477mECU).
f)Inthefreshfruitandvegetables sector,expenditure matchedthe
estimates .Ontheotherhand,forprocessed fruitandvegetables ,
expenditure onprocessing premiums (484.1mECU)wasmorethan
estimated (443mECU).
Expenditure onthesepremiums in1979was282mECU.
g)Inthewinesector,theexceptional harvestin1979meantthat
storageanddistillation measures hadtobeemployed onalarge
scaleinordertosupportthemarket.Asinotheryearswitha
bigharvest,expenditure (299.5mECU),whilelessthanthe
estimates (350mECU),waswellupontheprevious years.
h)Fortheothersectors,expenditure wasapproximately equivalent
totheappropriations .However,inthedriedfoddersector,
becausepricesontheworldmarketwerefairlyhigh,theadditio­
nalaidforCommunity production provided forintheruleswas
lessthanestimated .

-12-
Theresult was areduction inexpenditure (33.5 mECU)compared with the
estimates (56.0 mECU). Fornon-Annex IIproducts ,thereduction of
certain rates ofrefund onthebasic products incorporated inthem in
1980 resulted inareduction inexpenditure onrefunds (221.3 mECU)
compared with theestimates (275 mECU)andeven incomparison with 1979
(252.1 mECU).
2.1.2 .Monetary compensatory amounts (MCAs )
Table 3shows thedifference between thehypotheses used inpreparing the
budget and the range ofMCAs actually applied .
1
TABLE 3-MCA levels applied intrade
CURRENCYRates referred tointhebudget
(17.12.1979 )Rates recorded in1980 [
Minimum Maximum '
:DM +9,8 +8,8 +10,8 :
:BFR/LFR/HFL +1,9 +1,7 +2,4 :
:FF -3,7 -3,7 0 :
:LIT -2,3 -11,1 0
:UKL -3,5 -6,6 +12,1 :
:IRL 0 0 0 :
:DKR 0 0 0 :
In1980 currencies were fairly stable within theEuropean monetary sys­
tem .There was nochange incentral rates .However ,the lira was sub­
ject todownward fluctuations which were sometimes marked ,while the
pound sterling tended upwards with theresult that positive MCAs were
introduced fortheUnited Kingdom from theendofMarch 1980 .
With effect from 12May therepresentative rates fortheFrench franc
and the lira were reduced tothe level ofthe central rates :atthe same
time MCAs forFrance andItaly disappeared .However ,asaresult of
movements inthemarket rate forthe lira ,MCAs were reintroduced for
Italy on11June 1980 (-1.0attheendofOctober 1980 ).
Thefavourable currency situation wasresponsible foraconsiderable
reduction inEAG6F Guarantee Section expenditure onMCAs ,from 702.4 m
ECU in1979 to298.5 mECU in1980 .
1Forthedairy sector therates areslightly different from those shown inthetae._

2.2.Breakdown ofexpenditure bytype
Thefollowing conclusions canbedrawnfromthetableinAnnex4:
a)refunds
TheCommunity continued itseffortstopromoteexports,principally ofthe
mainsurplusproducts (milkproducts,sugar,cereals,beef)butalsoof
products whichareatpresentinabundant supply (pigmeat,eggsandpoul-
trymeat).Themilksectoraccounted forthelargestshareofexpenditure
(48.2%)asaresultofeffortstorestorestocksofskimmedmilkpowder
andbuttertonormallevels.
Inordertoimprovethemonitoring ofexportsinthissector,theperiodof
validity ofexportlicences formilkpowderwasreduced fromninetosix
monthsinOctober 1979andaperiodforreflection wasintroduced in1980
inthecaseofadvancefixingfortheexportofbutterandmilkpowder.
Inthesugarsector,highpricesontheworldmarketledtoexportlevies
beingcharged fromMay1980.Therefore,inspiteofthehighlevelof
exports,expenditure onrefundsfellfrom685mECUin1979to286mECUin
1980.
Expenditure onrefundsasapercentage ofagricultural expenditure remained
high(49.5%against48.6%in1979).Itshouldfallin1981sincethe
worldmarketsituation inmanysectorsenabled someratesofrefundtobe
reducedsubstantially in1980.Betweenthebeginning andendof1980the
following reductions weremade:wheat-15%;barley-50%;flour-20%;
malt-75%;butter-33%;skimmedmilkpowder-36%;sugar:therefund
1
wasabolished andreplaced byanexportlevyprotecting theconsumer
againstpriceincreases andbringinginsubstantial receiptsforthebudget
eggs-29%;poultrymeat -40%.
b)intervention measures
Themajorcomponent ofexpenditure ,i.e.thepricesupportmeasuresfor
theinternal market,fellfrom34%in1979to31%in1980.Thereason
forthissharpdropwasthelowexpenditure onMCAsinrespectofintra-
Community trade(55.9mECUagainst458.8in1979)inspiteoftheincrease
inaidforoilseeds (202.3mECUin1979;340.3mECUin1980).
1Ithadtobereintroduced fromApril1981.

-14-
Theprice support measures constitute anincome supplement forthepro­
ducer ifthey arepaid tohimdirectly and aguarantee forthedisposal
ofthis produce ifthey encourage theprocessing ofbasic products .An­
nex 7gives abreakdown ofthese measures andshows that most ofthem
benefit producers directly .
Asregards expenditure onsecond category intervention ,related tothe
purchase ,storage anddisposal ofproducts bytheintervention agencies .
Annex 5divides this into thetechnical costs ofstorage ,interest
charges andexpenditure resulting from thedifference between thebuying -
inprice and the receipts from sales .The last type ofexpenditure
1represents thebiggest percentage .
c)Expenditure onmonetary compensatory amounts continued tofall sharply
(see2.1.2 .). Itamounted to298.5 mECU (708.4 in1979 ),representing
2.6 %ofallexpenditure bytheGuarantee Section (10.2 %in1978 ;6.8 %
in1979 ). Itwas incurred mainly inrespect ofsales tonon-member
countries bysome Member States with positive MCAs ,including Germany
(179.3 mECU)and theNetherlands (41.6 mECU).Most oftheremaining
expenditure (55.9 mECU)was inrespect ofintra-Communi tytrade .
2.3 .Public stocks
Theexceptional cereal harvest in1980 meant that themajor producing
countries ,i.e. France andGermany ,placed large quantities instore .
Stocks ofwheat andbarley (seeAnnex 6),which amounted to2million
tonnes attheend of1979 ,had risen tonearly 6million tonnes bytheend
of1980 .Attheyear 'sendthese products accounted forthe largest pro­
portion ofthequantities inpublic storage ,since stocks ofskimmed milk
and butter fell from around 500,000 tattheend of1979 to370,000 tat
the end of1980 .
Thetotal value ofstocks ,calculated onthebasis ofthecapital immobi­
lized ,increased (2,583 mECUagainst 2,143 mECU).
1SeeNinth Financial Report ,point 2.2.,p.17.

-15-
2.4 .Corrections tobemade tothebreakdown ofexpenditure byMember State
onthebasis ofmonetary compensatory amounts (MCAs )
The council agreed inApril 1976 ,onthebasis ofArticle 2aofRegulation
(EEC)No974/71concerning theapplication ofmonetary compensatory amounts ,
that theMCAs payable intrade with theUnited Kingdom and Italy would be
paid bytheexporting country ,asopposed totheimporting country .This
agreement hassince been renewed .
Article 3ofRegulation (EEC)No1172 /76of17May 1976 which set upa
financing facility stipulates that ,forthepurposes ofestablishing net
balances forMember States ,themonetary compensatory amounts are tobe
attributed tothecountry which hasmade them necessary through changes in
theexchange rates for itscurrency .
The following table shows the corrections ,which result .
TABLE 4
Corrections tobemade tothebreakdown ofexpenditure byMember State
mECU
Member StateExpendi tureCorrectionsCorrected expenditure j
not correctedAmount %1980 %1979 ;
:Belgium 581,2_10,1 571,1 5,1 7,2 !
:Denmark 636,2-20,5 615,8 5,4 6,0 :
:Germany 2.482,8-29,8 2.452,9 21,7 22,5 :
:France 2.888,7-59,0 2.829,7 25,0 21,8 :
:Ireland 584,7-20,1 564,6 5,0 4,4 :
:ItalyO ) 1.709,8 +118,2 1.828,0 16,2 15,9 :
:Luxembourg 11,6- 11,6 0,1 0,1 :
:Netherlands 1.573,3-29,9 1.543,3 13,6 13,2 :
:United Kingdomd ) 833,9 +51,3 885,2 7,8 8,9 :
:Community (2) 13,0 13,0 0,1
:Total EEC 11.315,2 0 11.315,2 100,0 100,0 :
(1)Thedecrease inthese corrections ascompared with 1979 results from the
reduction inthelevels ofMCAs applied .FortheUnited Kingdom ,following
theintroduction ofpositive MCAs ,this system became inoperative during
1980 .
(2)Direct payments tobeneficiaries intheolive oilsector andasaresult of
theCourt 'sjudgments of4October 1979 (production refunds forcereals ).
See annex 2.

-16-
2.5.Assessment ofthetotalcostoftheGuarantee Section
2.5.1.General development ofexpenditure
TABLE 5
:YEARTotalexpenditure
mECU%increase fromoneyear'
tothenext "
:1975 4.522,5
:1976 5.587,1 23,5 :
:1977 6.830,4 22,3 :
:1978 8.672,7 27,0 :
:1979 10.440,7 20,4 :
:1980 11.315,2 8,4 :
Whereasfrom1975to1979theannualincrease inexpenditure was23%on
average,itfellto20%fortheperiod1975to1980becauseofthesharp
reduction inthegrowthofexpenditure (8.4%)from1979to1980.This
development ,whichwasinlinewiththewishesofthebudgetary authorities ,
wastheresultofthefavourable economicsituation,thestepping-up of
co-responsibility inthemilksector,strictmanagement ofthemarkets
andclosercoordination withthoseresponsible forfinancial management .
2.5.2.Agricultural levies
Thecommonagricultural policy,aswellasgenerating expenditure ,also
constitutes asourceofrevenuefortheCommunity budgetintheformof
agricultural leviesandsugarproduction levies,whichin1980broughtin
2,002.3 mECU.
TABLE6
Leviesunderthecommonagricultural policy
mECU
"Typeoflevy 1975 1976 1977 1978 1979 1980;
:Importlevies
:Sugarproduction levies534,0
86,01.040,1
133,21.816,9
320,81.872,7
410,61.678,6
464,91.535,4 :
466,9:
:TOTAL 620,01.173,3 2.137,7 2.283,3 2.143,5 2.002,3 :

-17-
Since1978theincrease intheseresources hasLostmomentum becauseofthe
relatively highlevelofworldprices,thestabilization ofimportsandthe
importconcessions madeinfavourofcertain non-member countries .
Asregardsthesugarlevies,Annex9showstherelationship betweenthe
levieschargedandtherefundsgrantedforstoragecostsforeachsugar
marketing yearsince1968/69.Itshouldbeemphasized thatthecommon
organization ofthemarketinsugaraimstoestablish abalance,onamulti-
annualbasis,betweenproduction leviesandthereimbursement ofstorage
costs.
2.5.3.Costinrelation toGDP
Acomparison oftotalEAGGFGuarantee Sectionexpenditure in1980withthe
mostsignificant indicator ofthegeneralperformance oftheeconomy,the
Community grossdomestic productatmarketprices (GDP),showsthatthere
hasbeenaslackening ofthegrowthinexpenditure .Expenditure represented
lessthan0.5%ofGDP,whichisarelatively smallpercentage .
3.Changesintherulesgoverning theEAGGFGuarantee Section
3.1.Councillegislation
a)InNovember 1980theCommission presented aproposal foraRegulation to
theCouncilwithaviewtogathering inasingleRegulation andconsoli­
datingallthedetailed provisions onthefinancing ofpublicstorageof
agricultural products bytheEAGGFGuarantee Section.Theseprovisions
areatpresentcontained innineCouncilRegulations datingfrom1969to
1972whichhavebeenamended onseveraloccasions .Suchconsolidation
1is,moreover,providedforinRegulation (EEC)No1883/78layingdown
generalrulesforthefinancing ofintervention .
Experience gainedinrecentyearshadsuggested someadjustments tothe
existinglegislation ,especially asregardsresponsibility forgood
storage .
0JNoL216of5.8.1978,p.1

-18-
b)Thosemeasuresconsidered asintervention measures aimedatregulating
themarketandwhichthusqualifyforfinancing bytheGuarantee Section
arelistedintheAnnextoRegulation (EEC)No1883/78.ThisRegulation
wasupdatedbyRegulation (EEC)No249/80of5February19801inorder
totakeaccountofnewmeasures andtodeletethosewhichnolonger
apply.
3.2.Commission legislation
a)Inconnection withthecostoffinancing intervention consisting ofthe
buying-in,storageanddisposal ofproducts storedbytheintervention
agencies,theEAG6FGuarantee Sectionfinancesatastandard ratethe
interest chargesincurred bytheagencies inrespectofthefundsthey
havetoobtainforbuyingingoods.
2Regulation (EEC)No467/77of7March1977laysdownthemethodof
calculating thesecharges.Twoamendments weremadewitheffectfrom1
January1981^:
-Soastoharmonize thebuying-in conditions applied bytheinterven­
tionagencies andatthesametimetakeaccountofcommercial prac­
tice,undertherulesgoverning commonmarketorganizations provision
maybemade'forpaymentforaproductboughtinbyanintervention
agencytobeeffected onlyafteracertainperiod.
InsuchcasestheEAGGFGuarantee Sectionbearstheinterest charges
notfromthedateonwhichthegoodsenteredintostorebutfromthe
endoftheperiodinquestion .Forbutterandskimmedmilkpowder,
thisperiodwasfixedattwomonthson5November 1980byRegulation
(EEC)No2863/80^.Thiswillresultinasavingofaround13mECU
for1981.
-Thestandardrateofinterest tobeappliedincalculating thecharges
hadbeen8%since1974.Inthelightofthegeneraltrendofinteresl
ratesintheCommunityitwasraisedto9%for1981.
J0JNoL28of5.2.1980,p.1
,OJNoL62of8.3.1977,p.9IReg.(EEC)No175/81of22.1.1981 (0JNoL20of23.1.1981,p.14)
OJNoL297of6.11.1980

-19-
b)TheCommission updated thestandard amounts which hadapplied since 31
October 1977 inrespect ofthephysical operations resulting from the
storage andprocessing ofagricultural products bought into interven­
tion .This adjustment ,which took effect from 1January 1980 ,wasmade
bydecision oftheCommission dated 14July 1980 .Itwill mean an
increase inexpenditure ofaround 1.9mECUperyear .
c)Article 8ofRegulation (EEC )No1883 /78,inparticular thefirst sub­
paragraph ,stipulates that intervention stocks at31December are tobe
valued attheaverage purchase price .Therefore ,on19January 1981 ,
1theCommission adopted Regulation (EEC )No145/81fixing theprice to
beapplied incalculating thevalue ofagricultural products which were
inintervention storage on31December 1980 andwhich would becarried
forward tothe 1981 financial year .
The same Regulation provided forpart oftheexpenditure resulting from
theCouncil decision attheend of1980 that substantial quantities of
products inintervention should besupplied atreduced prices toPoland
tobeborne bytheGuarantee Section .This resulted inexpenditure of
around 62mECU in1980 .
0JNoL17of20.1.1981 ,p.7

-20-
TITLEII
CASHPOSITION ANDFINANCIAL ADMINISTRATION
4.Thesystemofadvances
4.1.Article5(2)ofCouncilRegulation (EEC)No729/70onthefinancing ofthe
1commonagricultural policyprovided fortheCommunity fundsintended for
makingthepayments financed bytheEAGGFGuarantee Sectiontobemade
available toMemberStates.
24.2.Commission Regulation (EEC)No380/78laiddowntherulesforoperating
theadvance system.
Bythe20thdayofeachmonththeMemberStatessubmittotheCommission an
application foranadvanceaccompanied by:
.astatement ofthecashposition attheendofthepreceding month;
.astatement ofexpenditure inthemonthpreceding thatinwhichthe
application ismadeandtheexpenditure estimate forthecurrent month
andthetwofollowing months.
Onthebasisoftheapplications received,theCommission decides,within
onemonthandafterconsulting theEAGGFCommittee ,ontheadvances tobe
paidtoMemberStates,calculated insuchawayastocoverexpenditure
untiltheendofthequartertowhichtheestimates accompanying theappli­
cationsrelate.
Advances arepaid,intotheaccounts openedforthepurpose byeachM-mber
StatewiththeTreasury orsomeotherfinancial institution ,inprinciple
oneweekbeforethebeginning ofthelastmonthcovered bytheestimates .
Whereappropriate ,theMemberStatesdistribute theCommunity fundsthus
received amongtheauthorities theyhaveempowered tomakepayments .
10JNoL94of28.4.1970,p.13
0JNoL56of27.2.1978 ;replacesRegulation (EEC)No2697/70,
asamended byRegulation (EEC)No1823/73.

-21-
Ifthefundsmadeavailable toaMemberStatearelikelytobeexhausted
beforethedateonwhichthenextpaymentisdue,adecision maybetaken
onaspecial advance .
Inpractice thissystemenables :
-thepayingagencies todeclaretheirexpenditure duringtheprevious
monthandtoupdatetheirexpenditure estimates bymeansofasliding
mechanism ;
-theCommission todetermine theadvances andtochargetheexpenditure to
theCommunity budget.
4.3.Expenditure istakenintoaccountinaccordance withTitleVIIIofthe
Financial Regulation applicable tothegeneralbudgetoftheEuropean
..2Commumties .
Globalcommitments corresponding totheadvances decided onbytheCommis­
sionareenteredintoimmediately .Afterexamination andinprinciple
withintwomonthsfollowing receiptofthestatements ofpayment forwarded ,
monthly expenditure isthesubjectof:
-commitments itemized according tothebudgetnomenclature and,atthe
sametimeandinrespectofthesametotal,aglobalrelease,
-achargeforpaymenttotheitemsconcerned .
Beforethecloseofthefinancial yearthoseappropriations whichremain
committed globally,i.e.thosewhichcorrespond totheadvances grantedfor
makingpayments inthefinancial yearandnotusedforthatpurpose,are
released andthenrecommitted globally forthefollowing financial year.
Asaresult,theadvanceisalsotransferred tothefollowing year.
Thankstothismechanism duringthefinancial year,advances canbeused
regardless ofthemonthforwhichtheyweregrantedandattheendofthe
yeartransfers offundsintheformofrepayments bythepayingagencies to
theMemberStatesandbythelattertotheCommission areavoided.
1Afinalupdatingisprovidedfor,insimplified form,beforetheEA6GFCom­
mitteeisconsulted,whichavoidstheproliferation ofspecialadvances .
OJNoL356of31.12.1977

-22-
4.4 .Inorder tomonitor global useofappropriations more effectively ,separate
advances aredecided ontocover thepayment ofexpenditure which ischar­
geable partly totheGuarantee Section andpartly totheGuidance Section
oftheEAGGF (atpresent thepremiums forthenon-marketing ofmilk and
milk products and fortheconversion ofdairy herds resulting from the
application ofRegulation (EEC )No1078 /77).
15. Advances toMember States
5.1 .TheCommission decided on15advances ,including 3special ones ,for1980 .
Two ofthese special advances were foroneMember state while theother was
for twoMember States and was required because expenditure forDecember had
been underestimated .
Inrespect oftheexpenditure referred toinpoint 4.4.,which isfinanced
byboth theGuarantee Section (60%)andtheGuidance Section (40%),the
Commission adopted 14decisions onadvances ,including 2special ones ,each
ofwhich was foroneMember State andwhich were required because expendi­
ture forSeptember and December hadbeen underestimated .
Inthis report this expenditure isshown infull with regard tothe cash
position andonly at60%with regard tothebudgetary aspects .
5.2 .Funds_a vaiIable_in_the_Membe r_States_du ring_the_f inanc iaI_^ear
Total funds available tothe Member States for disbursements in1980 amoun -
2ted to11,341.7 mECU ,ofwhich 11,256.8 was for theGuarantee Section and
84.9 fortheGuidance Section ^.Ofthisamount 11,181 mECUwasspent ,
leaving abalance of160.7 mECU,including 158.1 for theGuarantee Section ,
on31December 1980 .
1See Annexes 9and 10
2Notincluding 203.5 mECUpaid in1979 anddirect payments of13mECU
'Thisexpenditure represents theGuidance Section 'sshare (40%)ofpremiums
forthenon-marketing ofmilk andmilk products and forconversion tobeef
production .

TABLE7
FUNDSAVAILABLE TOANDEXPENDITURE BYTHEMEMBERSTATES FORTHE1980FINANCIAL YEAR
(Guarantee +milkpremiums 100%)
; mECU
MemberStateBalance on
31.12.79Advances for
1980financial
year(including
pyrhsnnpTotalavailable
for1980finan-
cialyearExpenditure frorr
1.1.80
to31.12.80Funds
available
on31.12.80Useof
advances
(a) "(D) (c)=(a)+(b) (d) (e)=(c)-(d )(f)=(d)/(c).100
BELGIUM -10,7 603,- 592,3 566,9 25,4 95,7
DENMARK -13,6
•651,8 638,2 621,6 16,6 97,4
GERMANY -43,4 2.571,9 2.528,5 2.495,7 32,8 98,7
FRANCE -59,1 2.936,- 2.876,9 2.860,5 16,4 99,4
IRELAND -17,8 599,5 581,7 569,3 12,4 97,9
ITALY -15,5 1.758,8 1.743,3 1.708,7 34,6 98,-
Luxembourg -0,2 11,9 11,7 11,7 P.M. 100,-
NETHERLANDS -28,8 1.552,4 1.523,6 1.501,5 22,1 98,5
UNITED KINGDOM -10,2 855,7 845,5 845,1 0,4 100,-
TOTAL -199,3 11.541,- 11.341,7 <1>11.181,- 160,7 98,6
ofwhich :
Guarantee-203,5 11.460,3 11.256,8 11.098,7 158,1 98,6
Guidance +4,2 80,7 84,9 82,3 2/6 96,9
'DNotincluding 203.5mECUchargedto1980anddirectpaymentsof13mECU.

-24-
5.3.Rate_of_utiLi^zation_of_the_funds_avaliable
Theratiobetweenpayments madein1980andthefundsavailable tothe
MemberStatesforthispurpose showsthat98.6%ofthesefundswereused
(Table7,columnf).
Inaddition,acomparison betweentheaverageofthefundsavailable to
coverexpenditure ineachmonthandtheaverageofthebalances available
afterpaymentindicates anaveragerateofutilization of90.2%(Table8,
column c).
Thisisaverydefinite improvement onthethreeprevious financial years:
64%in1977and77%in1978and1979.Itisduetoanimprovement inthe
implementation oftheadvancesystembytheCommission andtheMember
Statescombined .
5.4.Directpayments
During1980thesumof3,965,497.14 ECUwaspaiddirectly bytheCommission
tobeneficiaries ,including 3,779,443.72 asaresultofthejudgements of
theEuropean CourtofJusticeof4October 1979(production refundsfor
maizegrits)and186,053.42 forexpenditure connected withtheamount
diverted fromtheconsumption aidforoliveoil.
Inaddition,thesumof9mECUwascommitted in1980andpaidin1981.
6.Administration ofappropriations
Itshouldberemembered thatasaresultofthelateadoption ofthebudget
(9July1980)financing duringtheearlymonthsoftheyearwasbasedonthe
systemofprovisional twelfths (article 8oftheFinancial Regulation ).
Thissystem,whichisessentially aninterimmethodoffinancing untilthe
adoption ofthebudget,ledtocertaindifficulties incontinuity forthe
financing oftheCommonAgricultural Policyasaresult,ontheonehand,
ofbeingappliesforanextendedperiodof'time',andintheotherhand,
oftheincreases inexpenditure .
However,theadoption ofthebudgeton9July1980avoidedthenecessity for
supplementary provisional twelfths .

-25-
TABLE8
AVERAGE RATEOFUSEOFCOMMUNITY FUNDS
FOR1980
(Guarantee +milkpremiums 100%)
MECU
MemberStateAverage Community
fundsavailablein
theMemberStates
foronemonth's ex-
penditure (Annexes
11and12,lineC)Average balance
available afterone
month'sexpenditure
(Annexes 11and12,
lineE)Averagerateof
utilization
(a) (b),.(a)-(b).100(C)= 7–Γ(a)
BELGIUM 58,2 10,9 81,3%
DENMARK 58,7 6,9 88,2%
GERMANY 235,4 27,5 88,3%
FRANCE 266,1 27,8 89,6%
IRELAND 54,2 6,7 87,6%
ITALY 150,6 8,2 94,6%
LUXEMBOURG 1,4 0,3 78,6%
NETHERLANDS 144,8 19,8 86,3%
UNITED KINGDOM 63,3 -7,2 111,4 %
CEE 1.032,7 100,9 90,2%
11,507.5 mECU
2.3mECU
11,505.2 mECU
6.2.Transfer^ofjjggrogr nations
Thewayinwhichexpenditure wasdeveloping duringtheyearLedtheCommis­
siontopropose,intwostages,transfers ofappropriations betweenchapters
withintheEAGGF.6.1.AvaiLabLe_aggrogr iat2ons
Initial budget
Transfer toChapter 83

-26-
TheCouncilapproved thetwoCommission proposals on17December 1980and
23March1981.Theappropriatons transferred betweenchapters (371mECU)
represent about3%ofallappropriations .
Thesectorswhichhadtoreceivemoreappropriations wereasfollows,in
order:beefandveal,cereals,fruitandvegetables,tobacco,monetary
compensatory amounts,pigmeat,riceandfisheries .
Lastly,atransfer of2.3mECUtoChapter 83(Guidance Section)was
approved (seeTable9).
6.3.Expenchture
6.3.1.Expenditure enteredintheaccounts for1980amountsto11,315,172,456.63
ECU.Thisincludes,inaddition toexpenditure declared bytheMember
Statesashavingbeenpaidin1980,203.5mECUwhichcouldnotbecharged
to1979forlackofappropriations and13mECUofdirectpayments bythe
Commission .
Adetailed analysis ofexpenditure bysectorisgiveninthefirstpart
ofthisreportinTable2andatAnnex 1.Table10belowgivesthe
breakdown ofexpenditure byMemberState.
Thisbreakdown shouldbetreated withcaution because thetimetakento
makepayments canvaryconsiderably fromoneMemberStatetoanother and
theexpenditure madebythepayingagencies inagivenMemberState
cannotbeconsidered asnational expenditure sincetheCommunity isa
unified economic areaforagricultural products .
6.3.2.§y29et_ogerations
6.3.2.1 .Commitments
(3)

27
TABLE9
TRANSFERS OFAPPROPRIATIONS 1000Ecu
SectorChap.Initial
appropriation :Transfers of
appropswithin
Guarantee
SectionAppropria­
tions
availableIExpenditure
in1980
Cereals 60 1.616.398 +66.950 1.683.348 1.669.281
Rice 61 49.995 +15.000 64.995 58.737
MiLkProducts 62 4.929.646 -19.750 4.909.896 4.751.976
OilsandFats 63 787.000 -99.000 688.000 687.288
Sugar64 696.471 -119.700 576.771 575.202
Beefandveal65 1.178.000 +192.950 L370.950 1.363.311
Pigmeat66 100.000 +15.700 115.700 115.638
Eggs,poultrymeat67 94.000 -8.450 85.550 85.494
Fruit,vegetables68 659.000 +28.550 687.550 687.318
Wine69 350.000 -50.350 299.650 299.490
Tobacco 70 282.000 +27.900 309.900 309.321
Othersectors 73 191.000 -21.450 169.550 169.334
Non-Annex II 74 275.000 -53.700 221.300 221.256
Accession CAs 75 1.000 -950 50 44
MCAs78 276.000 +23.000 299.000 298.523
Fisheries88 22.000 +1.000 23.000 22.959
TOTAL 11.507.510 (*>-2.300 11.505.210 11.315.172
Thisamount wastransferred toItem8312:non-marketing premiums,
Guidance Sectionpart.

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ECU
-Globalprovisional commitments corresponding
totheadvances paidtoMemberStatesin
respectof1980 11,460,306,915.98
-Commitments fordirectpayments 12,965,497.14
11,473,272,413.12
-Commitments itemized inaccordance with
budgetnomenclature 11,315,172,456.63
-Balanceofglobalcommitments cancelled in
respectof1980andrecommitted for1981 158,099,956.49
6.3.2.2.Chargesforpayments
Withtheexception ofasumof9mECUcommitted fordirectpayments by
theCommission following thejudgments oftheCourtofJustice,the
amounts chargedforpayment,whichtotalled 11,306,172,456.63 ,corres­
pondedtothespecific commitments bybudgetitem.
6.4.Carryovers ofappropriations
6.4.1.Therewasnocarryover ofappropriations from1979to1980.
6.4.2.Theappropriation of9,000,000 ECUcommitted in1980fordirectpayments
bytheCommission wascarriedoverautomatically to1981.
6.5.Summar^_of_the_i_mglementation_of _the_1980_bud2et
Implementation oftheEAGGFGuarantee Sectionpartofthe1980budget
canbesummarized asfollows :
Initial budget
Transfer toChap.83
Chargesforpayments
Appropriations committed and
carried overto1981
LapsedunusedappropriationsECU11,507,510,000.00
ECU 2,300,000.00
ECU11,505,210,000.00
ECU11,306,172,456.63
ECU199,037,543.37
ECU 9,000,000.00
ECU190,037,543.37

-29-
TABLE10
Breakdown of1980expenditure byMemberState
1
andbytypeoffinancing
\MemberStateRefunds InterventionTotaIs19801979
mECU mECU
mECU %% :
:BELGIUM 450.5 130.7 581.2 5.14 7.53 :
:DENMARK 453.3 182.9 636.2 5.63 7.25 :
:GERMANY 1,091.4 1,391.42,482.8 21.97 23.85 :
:FRANCE 1,559.0 1,329.7 2,888.7 25.56 23.74 :
:IRELAND 357.2 227.5 584.7 5.17 5.49 :
:ITALY 250.0 1,459.8 1,709.8 15.13 12.64 :
:LUXEMBOURG 8.1 3.5 11.6 0.10 0.13 :
:NETHERLANDS 1,187.9 385.4 1,573.3 13.92 14.31 :
:UNITED KINGDOM 338.9 495.0 833.9 7.38 5.06 :
:TOTAL2 5,696.3 5,605.9 11,302.2 100% 100%:
1Thistakesnoaccountofcorrections tothebreakdown ofexpenditure by
MemberStatewhentheexporting MemberStatepaystheMCAsinsteadof
theimporting MemberState(seeTable4)orofthetransfers ofreceipts
betweenintervention agencies whenagricultural products aretransferred
at"ni1"prices.
2Notincluding 13mECUfordirectpayments (see5.4.).

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TITLE III
7. INVESTIGATIONS -IRREGULARITIES AND RELATED ACTIVITIES
7.1 .Investigations
7.1.1 .Powers
Theadministrations intheMember States areresponsible forgiving
effect toCommunity rules andthus have theprimary responsibility for
ensuring thefactual andprocedural correctness oftheoperations fi­
nanced bythe Fund .
Additional national checks ,inthe form ofinspection visits orinves -
1tigations ,are sometimes initiated bytheCommission when itconsiders
them necessary .Wherever possible ,Commission officials take part .
1TheCommission staff also carry out awide range ofchecks ,which are
coordinated byaninterdepartmental working group .
Intheverification ofexpenditure financed bytheGuarantee Section ,
leaving aside thechecks made inconnection with theclearance ofthe
accounts ,adistinction ismade between investigations into suspicious
cases and "selective "checks .Thechecks generally cover all theMember
States andare intended toexamine problems encountered inaparticular
sector orsphere .
7.1.2 .Selective checks untertaken
In1980 aselective check was made inall theMember States with regard
totheco-responsibility levy andthemeasures toexpand outlets formilk
andmilk products .Member States have received acopy oftheparts of
thereport which concern them .Certain matters under dispute will be
settled inconnection with the clearance ofthe accounts .
Legal basis :Reg .729/70andReg .283/72.

-31-
7.1.3.Investigations undertaken
In1980theCommission madeuseofitspowertoinitiateinvestigations
bytheMemberStatesin14cases,7ofwhichrelatedtodairyproducts,a
sectorwhichremainssensitive becauseofitsfinancial significance and
complexity .Theotherinvestigations relatedtocereals,fruitand
vegetables ,beefandveal,oilsandfats,pigmeat,sheepmeat andsugar.
Theseinvestigations relatedtooneormoreMemberStates,asfollows :
:Β DK D FIRL IT LUX NL UKTOTAL :
:1 03 1 1 3 0 2 314:
In3casesthesuspicion ofirregularity provedtobeunfounded .Three
investigations uncovered irregularities withinthemeaningofArticle 3
ofRegulation 283/72.Threeunfinished investigations willhavefinan­
cialconsequences stilltobedetermined .Fiveinvestigations werestill
inprogressattheendof1980.
Inaddition,15investigations commenced earlierwerestillpending;5
investigations willhavefinancial consequences tobedealtwithin
connection withtheclearance oftheaccounts .
7.2.Irregularities
Itistheresponsibility oftheMemberStatestotakethenecessary
actiontopreventanddealwithirregularities andtorecoversumslost.
However,whererecoveryprovesimpossible,theCommunity bearsthefinan­
cialconsequences ,providedthatthelossisnotattributable tothe
MemberState'sadministration .Thisjointresponsibility required a
systemofnotification andcoordination ,whichwasintroduced byRegu­
lation (EEC)No283/72.
7.2.1.Cooperation andpromptnotification
TheMemberStatesandtheCommission haveestablished asystemofactive
cooperation whichtakestheformof:

-32-
-theprompt exchange ofinformation concerning irregularities Liable to
have rapid effects beyond theMember State concerned andirregularities
involving anewfraudulent practice ;
-meetings ofthe EAGGF Irregularities Group atwhich experts from the
national authorities and the Commission review all the information
exchanged .
Notifications under the rapid information system were asfollows :
Β DK D F IRL IT LUX NL UK COM TOTAL Ï
:TOTAL 1972-1979 10 0 9 11 11 1 0 2 49 10 103 :
:TOTAL 1980 3 0 1 1 0 0 0 0 1 1 7 :
annual average :12
The information exchanged related mainly tomilk products .Some inves­
tigations are inprogress (seeabove ).Thetotal of7notifications for
1980 seems lowcompared with theaverage but this figure should not
necessarily beinterpreted asimplying ageneral slackening ofvigilance
orcooperation since 8notifications have already been made during the
first quarter of1981 .
7.2.2 .Irregularities detected
The1979 financial report mentioned theimbalance between Member States
asregards thenumber ofcases ofirregularity notified .TheEAGGF began
aninquiry into this situation in1979 which wasstill notcompleted in
1980 .Leaving aside Germany ,in1980 this imbalance wasslightly reduced :
; Β IDK D FR ;IRL ; IT ;LUX ; NL IUK ;
: 4 : 11 93 37 : 1 : 21 : - : 25 :54 :

-33-
Germany,Denmark andtheUnitedKingdom makethemostsystematic checksof
thecommercial documents ofbeneficiaries (see7.2.5.).
TheMemberStatesarerequired tonotifytheCommission quarterly ofthe
irregularities detected andtheprogress madeintherecovery ofover-
payments .DetailscanbefoundinAnnex16.Itisapparent fromthis
tablethatthenumberofcasesofirregularity reported in1980wasmuch
greaterthaninprevious years:
1973 1974 197519761977 197819791980;
:mECU 1.34.33.05.69.02.92.021.51:
:Ofwhichrecovered 0.7 1.0 1.32.42.2 1.01.3 1.6:
:Numberofcases -annualaverage :120- 246:
a)Thesurprising increase inthenumberofcases,246in1980compared
withanannualaverageof120,callsforsomecomment.Itisaccounted
forby:
-59casesinvolving thepremiumforthenon-marketing ofmilk(60%
chargeable totheGuarantee Sectionand40%chargeable totheGui­
danceSection).
Financing ofthismeasurebytheGuarantee Sectionisafairlyrecent
innovation anditshouldbepointedoutthatthefinancial significance
ofthesecaSesisveryslight.Inmostcasesthesumshavealready
beenrecovered .
Itshouldbenotedthattherulesprovideforpaymentininstalments
andthatbeforethepaymentofeachinstalment thenationalauthori­
tiesmustensurethatthefarmersarecontinuing toabidebytheir
obligations .Inanumberofcasesthebeneficiaries themselves have
informedthecompetent authority oftheirintention toleavethe
schemeandhaverepaidpremiumsreceived.TheEAGGFisexamining
whethersuchcasesshouldinfuturebeleftoutofthestatistics on
irregularities inthisreport.
Following arecentlegaldecisioninaspecificcasethissumwillprobablybe
reducedto17.0mECU(see7.1.2.b,firstindent).

-34-
-41cases involving aidforskimmed milk foruseincompound feeding -
stuffs ,ofwhich 30were duemainly toanimportant case discovered
inoneMember State where anumber ofundertakings and inone case
theintervention agency itself bought a"skimmed milk powder "which
wasessentially anartificial product resembling natural milk powder
asregards its content ofproteins andother constituents .This
product wasmanufactured andmarketed bytwodairies andpartly sold
byasingle importer .
Regulation 1725 /79considerably reinforced theprovisions concerning
checks ontheincorporation ofskimmed milk into compound feeding -
stuffs and newmethods ofanalysis were introduced asaresult of
detailed scientific research carried out byanumber oflaboratories
throughout theCommunity .These methods will beamalgamated after a
running inperiod .
TheCommission hopes that these measures will help toprevent irre­
gular operations inthis sphere .
-19cases ,with minimal financial impact ,involving olive oil .In
addition ,since theadvances paid toproducer groups hadappeared
high incertain cases ,atthe instigation oftheCommission the
Italian authorities carried out additional checks in1981 before
continuing payments .
-11recent cases involving apples withdrawn from themarket for
animal feed andsold toprocessing factories .
TheEAG6F Irregularities Group iscurrently studying theinformation
available .This may result intherules onintervention being
submitted totheManagement Committee forFruit andVegetables for
amendment .

-35-
b)Thefinancial impact ofirregularities
In1980 thesumofundue expenditure asaresult ofirregularities -
which diverged considerably from theannual average -included certain
1
cases with ahigh financial impact :
-The "ships' supplies "case (1972 to1978 )
National investigations involved asumof5mECUbut inall fair­
ness itmust beadded that this wasrecently reduced to480,000 ECU .
The EAGGF isexamining thesituation .
This case wasmade possible byweaknesses intheadministration of
expenditure bythepaying agency oftheMember State concerned .
Moreover ,this fraud closely resembles another perpetrated atthe
expense ofthesame paying agency .TheMember State concerned has
nowadopted stricter control measures and theCommission will moni­
tor their effectiveness .
-The "milk powder ".case (1978 to1979 )
The 30individual cases involved atotal of7.4 mECU .The nature
ofthis irregularity isexplained above inthesection onthenumber
ofirregularities .Theextent ofitsfinancial impact isexplained
bythe fact that about 30undertakings used theproduct ,adding it,
sometimes insmall quantities ,totheir production ofcompound fee-
dingstuffs .Thus theminimum skimmed milk powder content was less
than the 60%laid down inthe rules .The Member State therefore
requested reimbursement ofall theaid,including theaid for the
natural powder used intheproducts .Thefirms involved continue to
assert their good faith andalmost allhave started legal procee­
dings .
1
These cases ,although discovered andnotified in1980 ,infact relate to
earlier years .

-36-
-Exportsofmaizemeal(1978to1979)
Theseinvolved atotalof1.7mECU.Therateofrefunddepends
onthemeal'sfatcontent,soinordertoobtain abetterratea
lowerfatcontent wasdeclared .Thistypeofirregularity should
beeasilydetectedifDirective 77/435isscrupulously applied
(see7.2.5.).
-Aidforprocessing citrusfruit(1974to1978)
Thisirregularity involved 1mECU.Thepossibility ofamending
theruleswasconsidered butrejected sincenewmeasures would
disturb thenormalmarkets andthiswouldprobably entailaddi­
tionalexpenditure fortheEA6GF.MemberStateswilltherefore
havetostepuptheircontrols inrespectofthesemeasures .
7.2.3.Recovery ofamountsundulypaid
Thegeneralsituation asregards amounts recovered isshownin
Annex17.
7.2.4.Training ofEAGGFmonitoring officials
Becauseoftheadvantage totheCommunity ofseminars toimprovethe
training ofnationalofficials responsible forsurveillance of
operations financed bytheEAGGF,in1980theCommission :
-helpedtoorganize atraining seminarinBerlinforGermaninsper-
torsinthewinesector;
-organized in-service training coursesfornationalofficials with
therelevantauthority inanother MemberState,toenlargetheir
experience ofoperations connected withtheGuarantee Section
financing system.TherewasafinalseminarinBrusselsforthe
officials whotookpartintheseexchanges,sothattheycould
discuss whattheyhadlearned.

-37-
7.2.5 .Audit ofcommercial documents
Article 11ofCouncil Directive 77/435/EECstipulates that "Member States
shall bring into force theprovisions needed inorder tocomply with this
Directive not later than 1July 1979 ,and shall forthwith inform the
Commission thereof ".Since five Member States hadnotmettheir obligations
inspite oftworeminders ,theCommission sent aletter tothegovernments
concerned .Twogovernments then notified theCommission ofthenational
rules they hadadopted .The three other Member States have committed an
infringement :areasoned opinion wasaddressed tothem inApril 1981 .
Tofacilitate the implementation oftheDirective theCommission staff
clarified thefollowing points inworking documents :
-field ofapplication oftheDirective ,andspecial cases ;
-special chapter ontheapplication oftheDirective tobeincluded in
theannual report provided for inArticle 4(3)ofRegulation (EEC)
No729/70;
-distinction between theCommunity 'sown resources and theGuarantee
Section financing system .
Ameeting between national experts responsible for theapplication ofthe
Directive andCommission officials gave rise toanexchange ofviews on
thepossibility ofincluding thechecks provided for inspecific Community
regulations (e.g. Regulation (EEC)No1725 /79onskimmed milk powder )in
the checks under the Directive .

-38-
TITLEIV
8.CLEARANCE OFACCOUNTS
Themainproblemwiththeclearance ofaccounts remainstheneedtoreduce
thebacklog andspeedupclearance procedures .Bystreamlining thework
process andreorganizing auditmethods,itishopedtoreducethedelay
betweentheyearinwhichexpenditure isincurred andthedateofthe
Commission 'sdecision clearing theaccounts inquestion,andsoimprovethe
presentunsatisfactory situation .
Ifdelayscontinue thereisadangerthatMemberStateswhicharedisre­
gardingtheruleswillcontinue todosoforseveralyearsbeforetheyare
refused payment,thusmagnifying theeffectoftheiraction.Soundfinan­
cialmanagement isanywayallthemorenecessary todaybecausethebudget
fundsallotted totheEA6GFGuarantee Sectionaregettinglargerevery
year.
Budgetconstraints andlimitsonstaffing havemadeitimpossible forthe
Commission sofartodevoteadequate resources totheoperation .

-39-
8.1 .1974 and 1975 accounts
The results ofthechecks were communicated totheMember States inoffi­
cial letters sent out inOctober 1979 .Most ofthereplies with Member
States' comments were not received attheCommission until theend ofthe
first quarter andduring thesecond quarter of1980 ,considerably slowing
down thedialogue procedure ,which continued with bilateral meetings with
each ofthenational delegations inthecourse ofthethird quarter .The
EAGGF was ledtochange itsinitial position inanumber ofcases after
close re-examination ofmatters indispute ,asaresult ofadditional
information andsupporting documents provided byMember States .Conclu­
sions incorporating theresults ofthedialogue procedure were included in
asummary report dated 23December 1980 ,although onanumber ofmatters
theEAGGF still didnothave enough information bytheendof1980/in
spite ofseveral reminders ,tobeable todetermine theamount ofeligible
expenditure .Bythis date ,too,theCourt ofJustice hadstill notgiven a
judgment inCases 819/79and 1251 /79concerning twodisputes from 1973 (see
8.4.). The final conclusions and consultation ofthe EAGGF Committee
cannot therefore follow until mid-1981 .
While theclearance ofaccounts operation maytherefore appear particularly
long ,itwill nonetheless have had themerit ofmaking itapparent that two
distinct phases are involved :
(a)Documentary verifications and inspection visits ,ending with letters to
theMember States informing them ofthe EAGGF 'sfindings ;
(b)Adialogue between the EAGGF and theMember States ,giving the latter
«
anopportunity tocomment onthefindings and tofurther justify and
elucidate their expenditure ;thefinancial implications arealso worked
out .Thesecond phase attempts toresolve disputes asfaraspossible ,
andends with theproduction ofasummary report inwhich theEAGGF
draws theconclusions from itschecking operation andindicates the
financial impact ;this document isthen thebasis forclearance deci­
sions .

-40-
While thetime taken forthefirst phase isentirely theCommission 's
responsibility ,this isnottrue oftheconsultation phase .Inres­
pect ofthe length ofthedialogue procedure ,theEAGGF isdependent
onthetime taken bytheMember States toprovide theadditional
supporting evidence anddata needed for the final corrections .The
time required istherefore determined bythecomplexity and size of
the difficulties encountered .
8.2 . 1976 and 1977 accounts
The checks ontheaccounts for 1976 and 1977 were completed attheend of
1980 and thedialogue stage istocommence during the first half of1981 .
Since most oftheproblems encountered hadalready arisen inthe course
oftheclearance operation for 1974 and 1975 ,itshould bepossible to
shorten thedialogue procedures considerably inview ofthefact that the
Commission will beadopting itsdecisions on1974 and 1975 around the
middle of1981 .
The clearance operation for1976 and 1977 should therefore becompleted
during thefirst half of1982 .
8.3 . 1978 and 1979 accounts
8.3.1 .Receigt_of_decIarations
Declarations relating to1978 were tohave been received by 1October
1979 ofthefollowing year asisnormal practice .Thetable below shows
that only three Member States were able tomeet this deadline .

-41-
TABLE11
MemberStateDatedeclarations weresent
(dateofmaindeclaration )
1978 1979
Belgium 22.10.1979 12.08.1980
Denmark 29.08.1979 27.06.1980
Germany 12.09.1979 14.07.1980
France 06.02.1980 31.07.1980
Ireland 12.02.1980 21.11.1980
Italy 26.10.1979 01.09.1980
Luxembourg 28.09.1979 18.08.1980
Netherlands 30.01.1980 22.08.1980
UnitedKingdom 29.04.1980 15.09.1980
InNovember 1979,theCommission proposed adifferent timetable forthe
communication ofdeclarations forthe1979andsubsequent financial
years,soastoensurethatcontinuing delaysinsendingdelcarations did
notbecomeaserioushandicap toauditing workandholdupclearance
operations from1980onwards.ItwasagreedattheEAGGFCommittee
meeting on11January 1980,onthebasisofthisproposed timetable,that
asfromthe1979financial yearclearance declarations wouldbesubmitted
byJulyofthefollowing yearatthelatestsothattheycouldbeexamined
afterfilinganddistribution ,fromSeptember onwards.Ifthedocuments
couldnotbesentinfinalofficial formbythatdate,theywouldbe
submitted unofficially andtheofficialdeclaration madeby1September .
Although onlythreeMemberStatesmanagedtokeepthefirstdeadline,
mostofthemmetthesecond;thisrepresented amarkedimprovement (see
Table11).

8.3.2 .Verification
Documentary verifications andinspection visits began attheend
of1980 forthe twoyears together and,inview ofthework still
tobedone onclearances forprevious years ,will continue through­
out 1981 .
8.4 .Consequences ofjudgments given bytheCourt ofJustice
Injudgments delivered on25November 1980 ,14January 1981 and
17January 1981 inCases 820/79,819/79and1251/79^,theCourt
endorsed theCommission 'sposition inthe 1973 clearance operation
that "freight prepaid "bills oflading could not beaccepted as
proof ofarrival inthecase ofdifferentiated refunds ,that
control agencies should have prior notice ofskimmed milk powder
denaturing ,and that storage contracts must conform toCommunity
rules inorder toconfer entitlement toaid for the long-term
storage and relocation oftable wine .Since these issues were
similar toseveral raised inconnection with the 1974 and 1975
clearances ,theCommission will apply tothese thesame princip­
les asin1973 .
1SeeNinth Financial Report ,point 8.1.4 .

-43-
TITLE V
FINANCING OFCOMMUNITY FOODAIDFORPRODUCTS
FALLING UNDER COMMON ORGANIZATIONS
9.1.Mainfeatures ofCommunity foodaidprogrammes
9.1.1.Introduction
TheCommunity 's1980foodaidprogrammes ,adoptedattheendofMay1980,
madeavailable torecipient countries andorganizations atotalof150,000
tonnesofskimmedmilkpowder,45,000tofbutteroil,720,500tofcereals
and7,200tofsugar.
Torelievespecific emergencies inanumberofnon-member countriesit
wasdecidedtoprovidefurther foodaidintheformof2,498.28tof
pigmeat,6,131.196 tofredkidneybeansand2,835tofcolzaoil.
On31December 1980,therewerestillsome300,000tofcereals,127,000t
ofskimmedmilkpowder,33,961tofbutteroil and7,200tofsugarremai­
ningfromthe1980andearlier programmes .
ApartfromCommunity foodaidproper,mentionshouldbemadeofthe
MemberState'sannualcontributions for1980underthe1971FoodAid
Convention ,amounting tosome568,500tofcereals (national aidcommit­
ments),towhichshouldbeaddedvarious amountsofnon-Convention aid.
Allafthisaidwasfinanced inwholeorinpartbytheCommunity .
Amounts,equaltotheexportrefunds,werechargedtotheEAGGFGuarantee
budget,theequivalent oftheaidintermsofworldpricesbeingcharged
eithertoChapter 92(Community aid)ortonational budgets (national aid
bothunderandoutside theConvention ).
Thissectiononlydealswithexpenditure underChapter 92ofthebudget
oftheEuropean Communities ,withtheexception ofItems9250(expendi­
tureundertheConvention betweentheCommunity andUNRWA),9260(excep­
tionalimplementing measures )and9261(qualitycontrolofproducts
provided asfoodaid),thesebeingitemsadministered byanotherdepart­
ment(theDirectorate-General forDevelopment ).

-44-
Thefinancial dataalsodonottakeaccountof15directpayments
totalling 22,285,000 ECUprovisionally madefromChapter 92(Food
Aid)byCouncilDecision ofMay1980inordertomeetanimmediate
financial aidrequirement forKampuchea andZimbabwe .
Chapter 92'sinitialallocation wasmadeupagainon17September
1980byatransfer fromChapter 95,whichthusbecametheultimate
sourceofthepayments inquestion .
9.1.2.Mobilization procedure
Products tobesupplied underfoodaidprogrammes arenormally
obtained fromcommonorganization resources .
Asarule,mobilization takestheformofatendering procedure ,
whethertheproducts comefrompublicintervention stocksorare
boughtontheCommunity market.Intheformercasethecallfor
tendersappliestotransportation andanyprocessing required,in
thelattertothevalueofthegoodsplustheothercostsmentioned .
Inveryrarecases,mobilization consists ofpurchasing the
products ontheCommunity orworldmarketbyprivatecontract
(emergencies ,non-availability ontheCommunity market,etc.).
ThestagetowhichCommunity financing extendsiseitherf.o.b.,
c.i.f.orfreeatdestination withintherecipient country,
depending onthetermslaiddownbytheCouncil whenadopting
annualprogrammes orindividual schemes.

-45-
9.1.3 .Food aid supplied
Thetable below gives approximate figures for thefood aidsupplied
in1980 .
TABLE 12
: Products1980
ProgrammeEarlier
ProgrammesVarious TOTAL :
:Cereals (wheat
:equivalent )402,750 254,900- 657,650 :
:Butteroil 17,800 26,600- 44,400 :
:Skimmed milk
:powder54,200 89,800- 144,000 :
:Sugar- 6,086- 6,086 :
:Pigmeat- - 2,498 2,498 :
:Red kidney beans- - 6,131 6,131 :
:Colza oiI- - 2,835 2,835 :
9.1.4 .Payments
Payments forfood aidaremade bytheintervention agencies on
presentation oftherequired documents bythesuccessful tenderer .
Inthecase ofproducts bought ontheworld market ,however ,
payments were made direct bytheCommission .Thenecessary funds
under Chapter 92aremade available toMember States onthe •
monthly advance system ,following aprocedure similar toused for
Guarantee Section funds .

-46-
9.2.Cashposition
9.2.1.Advances
Themonthly advances requested byMemberStatesandapproved bytheCom­
missiontotalled 288,698,949.11 ECUinthe1980financial year(seeAn­
nex19,column(b)).
Thetablebelowgivesabreakdown amongtheMemberStatesoftheadvances
approved,theexpenditure incurred andtherateofutilization ofthe
advances .
TABLE13
Breakdown andutilization ofmonthly advances in1980
Member State1Advances inECUExpenditure to
31.12.80 (2)Utilization rate
(%)
Belgium 44,207,094.41 45,813,273.30 104
Denmark -5,057,827.57 -5,274,361.91 104
Germany 126,333,826.80 93,976,570.36 74
France 78,544,559.81 78,928,853.84 101
Ireland 5,378,664.36 3,321,112.57 62
Italy 29,433,659.59 28,362,266.05 96
Luxembourg 5,924,609.71 5,037,716.75 85
Netherlands 10,607,002.56 12,672,100.21 120
UnitedKingdom 25,451,044.98 13,830,303.06 54
EECTOTAL 320,822,634.65 276,667,834.23 86
1Incl.balance remaining on31December 1979asgiveninNinthFinancial
Report(year1979,p.82,TableAII,col.(e)),totalling 32,123,685.54
ECU(ECUconversion rateson20November 1979)
2Expenditure declared bytheMemberStates
Acomparison ofthesefigureswiththosefortheprevious yearshowsa
roughly14.5%increase infoodaidexpenditure .Therateofutilization
onlydiffers bytwopointsfromthe1979figure(88%).
9.2.2.Changesinthecashposition
Annex19showsthecashposition at31December 1980.Thesumavailable
comesto44,154,800.42 ECUfortheCommunity asawhole(non-adjusted and
giveninabreakdown byMemberState).Theseadvancesthathadnotbeen
usedbytheMemberStatesby31December 1980havebeenadjustedtoreflect
theECUconversion ratesapplicable toadvancesinJanuary 1981(Annex19,
column (e)).

-47-
This book-keeping operation has noeffect onthebalance ofthe food aid
accounts which are kept innational currencies bytheMember States .
9.3 .Administration ofappropriations
9.3.1 .Total appropriations available in1980
Theappropriations available (seeAnnex 21)were ,inECU :
-carried forward from 1979 because of
deferred implementation ofsome food
aidschemes 137,099,239.40
-newappropriations in1980 budget 389,844,000.00
TOTAL appropriations available andcommitted 526,943,239.40
9.3.2 .Payments
(a)Expenditure declared bytheMember States
Table 13andAnnexes 19,20and 21give expenditure asdeclared by
theMember States ,totalling 276,667,834.23 ECU^.
Theamounts charged tothebudget in1980 will notnecessarily bethe
same asthose inthe final accounts tobeshown subsequently inthe
Commission 'sclearance decisions .
Thedifferences between theadvances approved and actual expenditure
represent thebalances remaining on31December 1980 .
These balances are considered asadvances for 1981 and Member States
mayaccordingly usethem tomeet expenditure incurred in1981 .
(b)Direct payments
Apart from theadvances paid tointervention agencies intheMember
States ,theCommission has -asinthepast -made anumber ofdirect
payments tocertain recipient countries andagencies ascontributions
towards thecost oftransporting anddistributing food aidsupplies .
Anumber ofcontracts were also concluded through theCommission for
purchases offood ontheworld market andtheEAGGF Guarantee Section
made the relevant payments .
The 0.01 ECUdifference between thetotals inthetables isdue torounding .

-48-
Totaldirectpayments in1980cameto37,151,343.22 ECU(seeAnnex
21).
Thetablebelowgivesthebreakdown amongrecipients .
TABLE14
RecipientsDirectpayments
inECU
India 2,697,423.14
Chad 24,666.98
Ethiopia 523,696.47
Nicaragua 7,596,110.11
Somalia 536,209.97
Jamaica 684.56
UNHCR(various ) 314,183.82
Bangladesh 3,544,355.87
WFP(various ) 17,247,402.04
Sudan 124,377.53
Catholic Committee
(Kampuchea )354,384.47
Zambia 775,027.68
Tanzania 48,799.08
ElSalvador 18,230.48
CICR(Kampuchea ) 55,240.00
NGO(various ) 2,438,828.51
LICROSS (various ) 39,340.00
UNRWA(various ) 812,382.51
TOTAL 37,151,343.22

-49-
9.3.3.Charging tothebudget
Theamountsofexpenditure declared bytheMemberStatesare,in
principle,chargedasaglobalsumtothebudgeteverymonth,
whiledirectexpenditure bytheCommission ischargedonacase-
by-casebasis.
The1980budgetcontained aseparate heading (Items9240and
9241)fortransport costsbeyondthef.o.b.stage(thisbeingan
innovation compared withprevious budgets).
TheCommission staffseparated coststothef.o.b.stagefrom
maritime freightcharges onthebasisofinformation intheir
possession .
Asfromthe1981financial year,theMemberStateswilldistin­
guishbetweenthetwoamountsthemselves intheirmonthlyexpen­
dituredeclarations .
9.3.4.Transfers
Duringthe1980financial year,itwasnecessary totransfer
fundswithinChapter 92toadjusttheamountsavailable under
eachitemtorequirements astheyemerged fromtheMemberStates'
monthlyexpenditure declarations ,frompayments inrespectofaid
forwhichtherelevant itemonlycontained atokenentry,orfrom
estimates oftheimplementation of1980andearlierprogrammes in
1981.

The table below summarizes the transfers effected :
TABLE 15 :TRANSFERS
ECU
:ItemBudget
appropriationTransferred
amountsReason :
:9200 4,997,000 +10,993,833.74 Expenditure byMember
(1980 )States :
:9201 81,282,000 +7,006,166.26 Estimated expenditure 1981 :
:9202 149,000 +3,918,066.35 Expenditure byMember States :
(October ,November ,December :
1980 ) :
:9212 9,700,000 + 293,237.62 Expenditure byMember
(December 1980 )States :
:9213 67,835,000 +6,006,762.38 Estimated expenditure 1981 :
:9220 p.m .+2,250,000.00 Expenditure byMember
(1980 )States :
:9221 1,779,000 + 350,000.00 Extra shipment ofsugar :
(1,000 tonnes ) :
:9230 p.m .+
+
+
+400,000.00
230,000.00
3,900,000.00
130,059.83Algeria -chickpeas
Malta -pigmeat
Nicaragua -beans
Expenditure byMember
(December 1980 )States :
:9203 29,780,000-3,918,066.35
:9210 24,718,000- 350,000.00
:9211 109,955,000- 910,059.83
:9241 52,164,000-30,300,000.00
-0-
9.4 .Appropriations carried forward to1981
Under the1977 Financial Regulation ,the1980 budget appropriations
were committed assoon astheprogrammes were adopted bytheCouncil .
Accordingly ,appropriations committed in1980 which didnotlead to
payments were automatically carried over to"1981 .Theamount
involved was213,077,505.86 ECU .

-51-
9.5.Closure ofaccounts
9.5.1.Vérification
Adetailed statement ofexpenditure isdrawnupforeachfoodaid
measure bytheintervention agencyconcerned intheformprescribed
bytheFinancial Regulations .
Thesedocuments arethoroughly checked onreceiptagainstinform­
ationinthepossession oftheCommission ,,inparticular in
respectofintervention prices,tenderpricesandtheamountsof
refunds .
Thisscrutiny isfollowed byvisitstothepayingagencies .
9.5.2.Clearance ofaccounts
TheCommission staffcontinued inthecourseofthe1980finan­
cialyearwiththeireffortstocompleteearlierclearance opera­
tions.EAGGFofficials spent66daysverifying expenditure on
thespotattheLuxembourg ,Belgian,French,Netherlands and
Italianintervention agencies inrespectof1976and1977andat
theIrish,UnitedKingdom andDanishagencies inrespectof1977,
1978and1979.
Bytakingtwofinancial yearsatatimeitishopedtomakegood
thepresentdelay(aboutfiveyears)inclearing accounts over
thenextfewyears(seepage38).

ANNEXES

-52bis -
LIST OFANNEXES
Page
Guarantee Section
1.Summary ofimplementation for the1980 financial year 53
2.Expenditure charged tothe1980 financial year 54-64
3.EAGGF expenditure bysector (1975-1979 ) 65-66
4.Breakdown ofexpenditure bysector andeconomic category 67-68
5.Breakdown ofintervention inrespect ofstorage costs 69
6.Quantity andvalue ofproducts inpublic storage 70
7.Breakdown ofexpenditure onprice compensation aids 71
8.Overall cost ofthe Guarantee Section inrelation toGDP '72
9.Equalization ofstorage costs forsugar 73
10.Guarantee Section advances and funds available inMember States 74
11.Advances and funds available formilk premiums 75
12.Guarantee Section funds available toMember States bymonth 76
13.Milk premiums funds available toMember States bymonth 77
14.Exchange rates 1980 78
15.Exchange differences 1980 79
16.Cases ofirregularity (1980 )andamounts recovered 80
17.Cases ofirregularity (1971-80 )andamounts recovered * 81
Food Aid
18.Summary ofimplementation forthe1980 financial year 82
19.Cash position at31.12.1980 83
20.Expenditure declared bytheMember States 84
21.Budget appropriations 1980 85
22.1979 appropriations carried over to1980 86
23.Summary table ofappropriations 87

ANNEXI
SUMMARY OFIMPLEMENTATION FORTHE1980FINANCIAL YEAR
Appropriations mECU Implementation mECU
A.1980appropriations
1.Initialappropriations
12.Transfer
3.Appropriations available11,507.5
-2.3C.Commitments
1.Appropriations available
2.Sumnotcommitted
3.Totalcommitments
4.Remainder fromtotalcommit-
ments (released )
5.Commitments allocated11,505.2
31.9
11,505.2 11,473.3
158.1
11,315.2
B.1979appropriations 0 D.Payments
1.Totalsumallocated
2.Payments
3.Automatic carryover
4.Appropriations lapsed11,315.2
11,306.2
9.0
190.0
TOTAL 11,505.2 TOTAL 11,505.2
1Transferred toItem8312

ANNEX 2
Expenditure chargedforthe1980financial year mECU
ITEM Belgium Denmark Germany France Ireland Italy Luxem-Netherlands United Comrau-EECTotal
.. toUTfl .Kijipdom
CEREALS 119,3*7 56,U»328,998 .737,396 1,563 18*.3830,355 91,477 136,865 12.779 1.669.282
REFUNDS in7,0<>7 51,763 158,556 632,135 1.17264,479 0,054 53,989 105,45« 1.174,697
Generalrefunds 105,698 51,^63 158,556 612,299 1.172 60.086 0,054 53,435 105,454 1.148,515
Refundsonfoodaid,1980 ! 15,313 1,33« 0,006 16,655
Refundsonfoodaidunderpreceding
programmes1,399 4,522 3,059 0,549 9,529
INTERVENTION ,VARIOUS 7,9*7 3,777 27,224 39,962 0.133 135,061 35,484 20,411 12.779 281,77·
Premiumsforincorporation ofcereals
inanimalfeed-0,011 -0,003 -0.01J
Production refundsforpotatostarch 2,575 6.743 7,090 21,887 38.296
Otherproduction refunds7,839 0,201 20,128 25,334 0,040 11.197 13,597 18,767 12.779 110,082
Production aidfordurumwheat5,4in 123.536 128,9*6
Otherintervention 0,108 0,164 2,1280.093 0.328 1,647 4,467
STORAGE INTERVENTION4,304 1,57«143,21*6S,3oO 0,258 -15.1570,301 2.Ü04 11,001 212,807
Carryover payments 2.4*6 0,33«7,139 -0,01)1 0.255 0.113 0,789 0,005 11.121
Costsoffinancingpublicstorage 0,452 1,«25 25,14«13,619 0,001 3.748 0,110 0,220 1,872 46,594
Technicalcostsofpublicstorage 0.6P9 1,®27 41,49921,440 0,002 16.393 0,09b 0,394 4,295 86.55*
Othercostsofpublicstorage U,758-2.fi>«69,439 30,242 0,001 -35,298 -0,017 0,601 4,828 68,5*6
Specialintervention measures
Otherintervention measures-0,008 -0,008
RICE U.»Oil n,p,q 0,*38 n.1ST 56,909 υ,1flu0,040 58,737

ANNEX 2
Expenditure chargedforthe1980financial yearmECU
ITEM
REFUNDS
Generalrefunds
Refundsonfoodald,1980
Refundsonfoodaidunterpre*
cedingprogrammes
INTERVENTION/RICE
HILKAKOMILKPRODUCTS
Refunfls
Generalrefunds
Refunds onfoodaidforskimmed
mi1kpowder,1980
Refunds onfoodaidforbutter
oil.1980
Refunds onfoodaidforskimmed
mi1kpowderunderpreceding programmes
Refunds onfoodaidforbutteroil
underpreceding programmes
INTERVENTION/SKIMMEDMILK
Aidforskimmedmilkpowderforcalves
Aidforskimmedmilkpowderforani­
malsotherthancalves
Aidforliquidskimmedmilkfor
calves
Aidforliquidskimmedmilkfeedfor
animalsotherthancalves
Aidforprocessing intocaseinBelgium Denmark Germany France Ireland Italy Luxem-Netherlands United Commu-EECTotal
_ bourg Kingdomnity•
0,051 0,019 0,396 -n,Ol« «3,809 0,097 0,0#0 44,194
0,0510,0ΐ9 0,396·0,018 34,714 0#097 0,040 35,300
0,803 0.90s
β,292 8,292
0,041 0,405 13,100 0,043 14,342
305,667 365,564 1299,238 992,355 304,288 -1,123 "l0,9701079,792 395,225 4.751,975
206,020 254,278 429,470 555,833 212,612 19,053 7,846878,332 142,497 2.745,942
217.008 244,9^0351,530 534,170211,779 19,0533,15«872,726 133,4b2 21587^832
2.Ï73 6,167 0,288 0,073 0,450 0,077 9,427
2,870 2,857 0,294 6,021
9,160 0,035 36,297 2,485 0,896 0,317 1,822 1,709 52,721
17,479 9,293 32,605 16,033-0,135 3,632 3,708 7,326 89,9«|
45*028 84,«α3507,832 399,807 68,918-51,513 0,820169,083 77,827 1.302,2*5
19,«05«,2312<ί6,156 309,837 12,030 1,5050,930112,572 14,376 725,052
0,070 0,698 0,046 2/9091,147 4,869
9,507 37,*«951,434 2,969 0,376 0#2390,052 1,395 0,994 104,815
15,727211,421 87,181 2,71621,828 3*9830,034 3,97152,503 216,665
9,950 46,717 81,402 35,194 46,289 *,642 230,194

ANNEX Z
Expenditure chargedforthe1980financialyear „eq(j
ITEM Belgium Denmark Germany France Ireland Italy Luxem-Netherlands United Commu-EECTotal
bourg Kingdom ntty
PrivateStorage 0.583 15,59*0,403 0,061 0,051 0,170 16,«63
Costsoffinancing publicstorage 0,211 a,722o.irs 0.026 0,7210,017 n,06S 5,938
Technicalcostsofpublicstorage -o.aob-o,oo9 55,658 1,603-0,642-57,962-0,274 -0,052-0,068 -2,152
Othercostsofpublicstorageandspecial
disposalmeasures
Otherintervention ....... ... .............. .........
INTERVENTION /BUTTERANDCREAM 15.214 21,188 316,690 54,959 26,599 15,4»4 2,653 48,205146,053 647,056
Privatestorage 4,4750,55"14,35913,296 5,173 0,1500,23312,2092,952 53,397
Costsoffinancingpublicstorage o.zsa0*0020*ii9 i,9576,311 52,730
Technicalcostsofpublicstorage 1,2290,09426,413 1,3290,183 0,0010,092 1,4444,472 35,257
Othercostsofpublicstorageandspecial
measures 2,326 1,799224,691 0,457-1,149 0,6401,34730,78729,208 298,107
Absorption ofbutterfat surplus
Othefintervention 5,47418,622 10,927 29,92822,134 14,7020,861 1,807103,110 207,S65
INTERVENTION /OTHERMILKPRODUCTS 0,620 0,842 6,929 8,528 0,162 17,981 0,009 U,99710,731 46,798
Storageofcheese
Distribution ofschoolmilk
Otherintervention0,620 0,842 6,9296,225
2,303 0,16217,721
0.261 0,009 0,997 10,73123,946
22,853
Othermeasuresinthemilkandmilk
productssector1,135 13,3eO 52,027 16,163 4,990 0,190 7,004 28,538 123,427
Non-marketing premiums (Guarantee
SectionShare)
Othermeasures1,135 13,3βΟ52,027 16,1634,990 0,190 7,004 28,538 123,427
Financialparticipation bymilk
producers-7,985-11,548 -58,170-53,377 -12,168-11,499 -0,565 -29,234 -38,34β -222,895
Expenditure topromotetheexpansion" 5,635 2.9ai44,459 10,143 3,175 9,3590,018 5,40527,927 109,402
ofthemarketinmilkandmilkproducts
Marketdevelopment
Distribution ofschoolmilk1,013 l.*l*S.977 5,735 0,970 4,977 0,9a3 5,830
1,240 t,*M 13,858 4,605 0,324 0,521 0,018 1,996 21*46226,658
45,707

ANNEX 2
Expenditure chargedforthe1980financial year ■ECU
ITEM Belgium Denmark Germany France Ireland Italy Luxes-Netherlands United Commu-EECTotal
bourg Kingdot nity
Disposalofbutterfat 3,174 0,095 21,132 0.045 2,456 0,156 29,097
Improvement ofmilkquality
Othermeasures 0,209 1,493 0,102 1,7873,861 0,0090,479 7,9J9
OILSANDFATS 4,039 5,066 139,397 135,737 333,866 8,83»60,160 0,186 687,289
Refunds/01Weoil
Interventi on/01WeOH
Production aid
Consumption aid
Specialconsumerschemes(aidsetaside)
Specialconsumer schemes(spending)
Storage
Otherintervention0,011 OtüO¿ ncnat>
-0,001 2,056 315,433 0,202 0,186 317,87k
0,731 237,123 237,85«
-0,002 0,721 51,400 0,212 52,332
1-0,03« •3,526 •0,010 -3,570
0,186 0,18»
20,512 20,512
0,001 0,637 9,923 10,561
REFUNDS/COLZA;RAPEANDSUNFLOWER -o,oo«3.434 0,313 J,7««
SEEDS
INTERVENTION/COLZA;RAPEANDSUNFLOWER 2,602 5,o<,i 139,«ooii6,50» 18,221 7,65259,952 3*9,39*
SEEDS
Production aid 2.6Π4 l,5n2 139,356 111,440 18,221 7,524 59,794 340,440
Storage-0.002 3,559 n,0«5 5.068 0,129 0,158 8,955
Otherintervention
Intervention/otherseeds(CCT12.01)1.118 0,005 13.728 0,211 0,873 16,255
Aidforcottonseed 0,179 0,179
Aidforsoyaseed
Aidforflaxseed6.259 0,008 6,261
1.438 0.005 7,469 0,873 9,785

ANNEX 2
Expenditure chargedforthe1980financial year «ECU
ITEM Belgium Denmark Germany France Ireland Italy Luxem­
bourgNetherlands United
KingdomCommu-
nityEECTotal
Aidforotheroilseeds 0,024 0,02«
Aidfordegentingmaize
SUGAR63,418 16,630 132,838 244,824 6,770 35,604 au,73234,385 575,202
REFUNDS/SUGAR,ISOGLUCOSE «^7ιQIÍL*^7ftI V«2 is-αKa 3.li*ι 286.226
Generalrefunds
Refundsonfoodaid,1980
Refundsonfoodaidunterpreceding
programmes«5,717 6,071 59,719 148,7873,222 19,468 3,161 286,226
INTERVENTION /SUGAR 17,621 10,55 «»73,119 96,037 3,547 35,604 21,264 31,224 288,976
Denaturing premiums
Refundsforuseinchemicalindustry
Reimbursement ofstoragecosts
Publicstorage
MeasuresforsugarproducedinFrench
overseasdepartments
Sugarimportsubsidy0,014 0,121
17,607 10,43*1,665
0,635
70,8191,158
0,462
84,501
9,9170,018
3,5290,072
35,5330,221 0,061
0,644 0,682
20,399 29,764
0,717-3,12«
2,629
272,589
10,634
Otherintervention
BEEFANDVEAL 16,542 59,0,7 319,616 290,676252,624 202,725 127,895 113,816 1.363,311
REFUNDS13,774 44,C;n 211,938 134,553 121,815 46,902 103,967 39,52« 715,548
Generalrefunds 13,77«44,074 211,93 « 154,553 121,ai5 «6,902 103,967 3<>,524 715,548

ANNEX 2
ECU
ITEM
Refundsonfoodaid,1980
Intervention/Storage
Privatestorage
Costsoffinancing publicstorage
Technical costsofpublicstorage
Othercostsofpublicstorage
Otherintervention
Aidforsocialsecurityrecipients
PremiumsfororderlyMarketing and
slaughterofadultcattle
Calvingpremiums
Sucklercowpreaiuas
OtherinterventionBelgium Denmark Germany France Ireland Italy Luxem-Netherlands
bourgUnited
KingdomCommu-EECTotal
nity
2.7*8 15,05«,107,63h 133,349 110.soe78,120 23,900 32.432 SO«,069
2.777 0.925
1,9b«10,9*6
11,3468,691
10.8132,549
13,0006,377
6,2701,151
2,1615,163
3,32«38,580
«β.922
ï,807 1*,260 20,086 26,531 10,120 «,09J 6,931 89,829
-0,009 8,359 67,08«93,759 68,687 55,352 16,495 17,010 326,738
0,287 0,042 22,773 77,70«. 0,029 42,860 1«3,69«
•0,07«
77,70«23,696 23,622
77.70«
0,287 0,116 22.773 0,029 19,16« 42,368
PIGHEAT 5.751 63,337 10,772 5,892 0,536 11,213 16,050 2,057 115,638
REFUNDS 1.895 61,3(0 6,988 3,867 0,511 2,589 12,681 1,730 91,570
INTERVENTION 3,856 2,027 3,78«2,"26 0,025 8,653 3,370 0,327 24,068
EGGS/POULTRYMEAT2,«»J 8,1<|7 1?,909 40,*960,U«1 0,16U 17,2h8 3,601 85,494
REFUNDS0NEGGS o.6?6o,3<>9 4,87*i.ob« o,i«j 9,7*20,679 17,507

AHNEX 2
Expenditure chargedforthe1980financial year mECU
TEH
REFUNDS ONPOULTRYMEAT
FRUIT/VEGETABLES
REFUNOS
Refundsonfreshfruitandveg.
Refundsonproductsprocessed from
fruitandvegetables
Î
I
INTERVENTION/Freshfruitandvege-
tables
Withdrawal andbuying-in
Processing anddistribution
Promotion ofcitrusfruits
Processing ofcitrusfruits
Otherintervention
INTERVENTION/PROCESSED PRODUCTS
Aidfortinnedpineapple
Premiumsfortheprocessing offruit
andvegetables
Otherintervention
WINE
REFUNOSBelgium Oeninark Germany France IreiandItaly Luxem­
bourgNetherlands United
KingdonCommu-
nityEECTotal
1,857 7,*1»«,030 3"»,7<»b 0,041 o,ois 7,506 2,922 67,988
β,755 0,7IO26,77«97,097 0,105539,367 12,680 1,831 687,31«
0,091 0,522 0,402 9,832 0.010 2d,773 1,070 0,576 41,276
0,070 Ojies 0,370 9,514 27,964 0,961 39,344
0.02t 0,057 0,032 0,31β0,010 ο,βιο 0,109 0,576 1,932
6,530 13,302 16,512 0,095 IOS,703 9.280 1,255 155,676
6,530
ι
J9,357
3,94416,204
ο,οοβ
0,3000.095 40,614
10,407
49,6829,280 1,255 91,335
3,952
10,707
49,682
2,13«η,le*13,070 70,753 401,891 2,330
-490,366
2,134 η.ΐββ 13,0706,250
64,501 401,891 2,3306,250
484,116
0,003 0,2«S 163,025 146.218 299,490
Ü,003 0,0β3 4,bol 21,b29 26,376OnO

ITEM
INTERVENTION
Privatestorageaid
Aidforre-storage oftablewines
Distillation
Aidforwinenusts
Otherintervention
OtherexpenditureANNEX.2
Expenditure chargedforthe1980financial year ■ECU
BelgiunDenmark Germany France Ireland Italy Luxem­
bourgNetherlands United
KingdoBCOBHU-EECTotal
nity
0,162 15%311 114,589 273.062
0,10453,386 17,917 71,40*
0,005 4,217 0,725 4,94®
0,053 100,720 93,693 194,466
-0,064 1,757 1,693
0,052 0,497 0,549
0,053 0,053
TOBACCO
REFUjlDS
INTERVENTION4,1590.014 21,62791,642 191,868 0,011 309,321
0,«14 0,294 4,141 0,011 4,460
4,159 21,334 91,642 187,727 304,861
Premiums 21,334 91,642 157,737 274,671
Storage
Otherintervention29,4*7 29,487Storage. 0,504 0,504
ALCOOL
REFUNDS
INTERVENTION
OTHERCOMMONORGANIZATIONS 7,i«9i2,"*o i*,oeA 43,o«i7 0,207to,25ao,o?4 20,303 63.399 169,33«
1,530 O,005 399 0,676 1,074 0,149 16,634
1,567 *,OCS11,517 0,655 1,103 0,1«9 14,995INTERVENTION FIBREFLAXANDHEMP
Production aid/Fibreflax

ANNEX 2
Aidsetasideforpublicity
Production aidforhemp
StorageoffibreflaxandhempExpenditure chargedforthe1980financial year mECU
Belgium Denmark Germany France Ireland Italy Luxem-Netherlands United Cemniu-EECTotal
bourg Kingdom nity
-0.036
1,882 0,022-0.029 -0,065
1,90«
SEEOS
HOPS
SILKWORMS
DRIEOFOOOER
POTAGES
SHEEPKEAT
PEASANDFIELDBEANS
OTHER
REFUNDS ONGOODSOBTAINED FROMPROCESSING
AGRICULTURAL PRODUCTS0,769 7,9^0 1,90?7,456 0,006 2,647 0,022 5,076 5,961
0,1*6 4,437 0,179 0,014 1,364
0,164 4,1A4 2,452 17,935 0,106 4,264 2,634 1,314
4,499 0,740 2,093 4,06553,470
2,149 0,002 11,510 1*14332,040
6,100
0,333
33,453
53,470
27,016
15,154 26,6i5 30,060 24,79917,522 10,300 0,050 53,b77 35,062 221,256
ALLSECTORS 553»271H*»496 2335,007 2**7,76 ?563,655 1719,770 11,407l««6d,663 *«*,4«212,96510.993,647
MCAspaidonintra-community trade u,on7 -0,r»j5 0,U23 0,021 0,044

ANNEX Z
Expenditure chargedforthe1980financial year
ITEMBelgium Denmark Germany France Ireland Italy Luxem­
bourgNetherlands United
KingdonCommu-EECTotal
nity
MCAsonagrlc.trade ¿7.323 20,466 144,687 18,811 20,007 -14,063 0.237 98,204 -17,150 298,523
Intra-community MCAs 9,987 20,466 -34,575 18,808 20,007 -14,226 0,097 56,61«-21,225 55,955
MCAsonimportspaidorleviedbyimporting
MemberStates
MCAsonimportspaidbyexporting Member
StatesforImporting MemberStates
MCAsonexportspaidorleviedbyexporting
MemberStates-18,073
i
10,HI
17,92020,466-286,029
29,803
221,65121,983
59,00«
-62,1790,02b
20,12«
-0,1«20,373
-1·,598-0,347
.0,033
0,411-22,58«
29,910
«9.288-32,948
1,412
10,312-337,601
170,893
222,663
MCAsonEXTRA-COMMUNITY TRADE 17,33b 179,262 0,002 0,1630,140 41.59U 4,075 242,567
PORTION OFMCASPAIOONIMPORTS OVERAND
ABOVELEVY
MCAsPAIDONEXPORTS 17,336 179,2620,002 0,163
0,140 41.5904,075 4,240
238,328
SUB-TOTAL MCAS 27,330 20,4b6144,687 18,805 20,030 -14,042 0,237 98.204 -17,150 298,567
-
ALLSECTORS PLUSMCAS580.601 634,9^2247"»,6932886,5b7583.6*5 1705,736 11,64«1567,U67829,292 12,96511.292,213
FISHERIES 0,602 1.255 3,062 2.120 1,'JJO 4,li57 b,17d4,656 22,959

ITEM
REFUNOS
INTERVENTION
Withdrawals andbuying-in
Privatestorageaid
Otherintervention
GRANDTOTAL
CORiECTEO GRANDTOTAL1ANNEX 2
Expenditure chargedforthe1980financial year riECU
Belgium Denmark Germany France Ireland Italy Luxem­
bourgNetherlands United
KingdomCommu-
nityEECTotal
0.10b 0,««7 1,213 0,085 0,220 5,««13,885 11,3*7
0,«·»5 0,806 1,*«<> 2,03«0,810 «,057 0,737 0,771 11,561
0,495 ο,'ο*1,849 2,034 υ,βίο 4,057 0,737 0,771 11,561
581,203 636,2172<>82,755 2888,687 584,714 1709,793 11,6441573,245 833,948 12,96511.315,172
571,1 615/82452,9 2829,7 564,6 1828,0 11,61543,3 885,2 13,011-315,2
!
Undertheprovisions ofarticle2bisofRegulation (EEC)N°974/71(see§2,4)

ANNEX3;EAGGFGUARANTEE EXPENDITURE BYSECTOR (1)
TYPEOFEXPENDITURE 1975 1976 1977 1978 1979 1980
CEREALS 589,3 655,9 629,9 1.112,5 1.563,7 1.δΒ5,3 ■'
Refunds 329,9 403,3 365,6 831,9 1.184,7 1.174,7
Intervention ,ofwhich: 259,4 252,6 264,3 280,6 379,1 494,6
-production refunds 90,6 51,2 76,6 117,0 143,3 148,4
-aidforduruawheat103,1 82,8 134,8 89,0 115,4 129,0
-storage 65,0 118,2 52,4 72,3 88,9 -212,8
RICE3,4 18,4 13,5 17,9 42,9 58,7
Refunds2,8 18,2 13,3 16,8 41,7 44,4
Intervention0,6 0,2 0,2 1.1 1.2 14,3
NILKANDNILKPRODUCTS 1.193,7 2.277,7 2.924,1 4.014,6 4.527,5 4.752,0
Refunds 331,4 765,6 1.417,4 1.565,0 2.087,9 2.745,9
Intervention ofwhich: 862,3 1.512,1 1.506,7 2.449,6 2.439,6 2.006,1
-aidforskiaaed»ilk 606,8 755,5 853,1 1.131,7 1.310,2 1.281,6
-storageofskiaaedaiIk 55,9 520,4 310,0 682,1 361,1 20,6
-storageofbutter 151,2 215,1 274,3 506,1 475,6 439,5
-disposalofbutter 38,6 31,0 81,5 112,8 154,9 207,6
-financialparticipation
bya)Ikproducers . - -24,1 -156,1 -94,2 -222,9
-expansion oftheaarkets - - - 49,9 110,3 109,4
OILSANDFATS 187,8 247,1 268,5 324,8 606,0 687,3
Refunds 0,5 10,3 1,0 0,1 1,2 3,7
Intervention ,ofwhich: 187,3 236,8 267,5 324,7 604,8 683,4
-aidforoliveoil 157,7 128,7 161,4 143,6 357,8 ....290,2
-aidforcolza,rapeand
202,3 sunflower seeds 28,3 92,8 84,9 131,0 340,4
SUGAR 271,2 229,3 598,4 878,0 939,8 575,2
Refunds 27,8 62,0 409,1 640,4 685,1 286,2
Intervention ,ofwhich: 243,4 167,3 189,3 237,6 254,7 289,0
-reiaburseaent ofstorage240,0 costs 94,7 147,7 177,8 227,9 272,6
BEEFANDVEAL 923,3 615,9 467,7 638,7 748,2 1.363,3
Refunds 145,9 133,6 132,1 145,4 270,2 715,5
Intervention ,ofwhich: 777,4 482,3 335,6 493,3 478,0 647,8
-publicandprivatestorage 407,4 347,7 290,5 413,0 417,2 504,1
-re-stocking preaiua 88,1 46,6 41,1 76,9 60,3 77,7
SHEEPNEAT- - - - 53,5
Intervention53,5
I
σ\

PIGHEAT
Refunds
Intervention
EGGSANDPOULTRYMEAT
(Refunds)
FRUITANDVEGETABLES
Refunds
Intervention ,ofwhich:
-freshfruitandvegetables
-processedfruitandvege-
tables
MINE
Refunds
Intervention ,ofwhich:
-privatestorageaid
-distillation
Obligatorydistillation ofby-
productsofwine-making
TOBACCO
Refunds
Intervention
FISHERIES56,9
40,7
16,2
9.4
72,6
28,6
44,0
44,0
141,3
0,2
140,9
36,5
104,4
0,2
200,5
1.3
199,2
10,029.0
26.7
4,3
15.1
185,1
43.8
141,3
141,3
133,8
1.5
129,7
38,7
88,6
2.6
185,4
1.7
183,7
11,037,3
29,3
8.0
25,6
178,2
50,0
128,2
124,6
3,6
89,9
1.1
81,3
35,6
44,5
7.5
205,2
4.3
200,9
8,845.0
32.2
12,8
38.1
100,7
47.8
52.9
49,1
3,8
63,7
1.6
52.3
35,3
10,9
9,8
216,1
2.7
213,4
15,4104,9
78.4
26.5
79,5
442,9
34,5
408,4
123,4
284,£
61,9
4.6
57,3
22,E
14,5
8,9
225,4
3.7
221,7
17,0115,6
91,6
24,0
85,5
687,3
41.3
646.0
155,7
490,3
299,5
26.4
273.1
71.4
194,5
0,1
309,3
4.5
304,8
23,0
OTHERPRODUCTS (Intervention )1
58.8
14,4
24,6
7,8
11.4
23.976,2
20.3
24,1
16,0
15.4
67,056,6
14,5
18,1
9,9
13,8
136,391,2
15,4
20,3
11,1
42,6
208,5120,2
17,6
30,1
10,1
15,3
46,6
252,1115,8
16,8
32,0
6.2
27,0
33,5
221,3Intervention ,ofwhich:
-flaxandheup
-seeds
-hops
-peasandfieldbeans
-driedfodder
-refundsfornon-annex 11
processed products
TOTALAGRICULTURAL EXPENDITURE 3.742,1 4.746,9 5.640,0 7.765,2 9.732,0 11.016,7
Accession coapensatory
anounts
Monetarycoapensatory
amounts444,8
335,6402,0
433,2201,1
989,327,2
880,31.1
708,4 298,5
TOTALEXPENDITURE EAGGFGUA-
RANTEESECTION4.522,5 5.587,1 6.830,4 8.672,7 10.440,7 11.315,2
(1)Theexpenditureistakenfro«thestateaentsbytheHeaberStatesunderthesystemofadvancesandchargedtoeachfinancialyearInaccordancewithArticle109oftheFinancialRegulation, ^
ι

BREAKDOWN OFEXPENDITURE BYSECTORANDECONOMICCATEGORY-1980FINANCIAL YEAR(a)
ANNEX4 ~~ ~
■ECU
TOTALBREAKDOWN ACCORDING TOECONOMIC CATEGORY OFOPERATIONS
EXPORTINTERVENTION
SECTOR EXPENDITURE
REFUNDSCTfiPAßF /IΝWITHDRAWAL AND PRICECOMPENSATORY GUIDANCETOTALoJUKAUC V1}SIMILAR OPERATIONS MEASURES PREMIUMS
a b c d e f g h=d+e+f+g
Cereals 1.669,3 1.174,7 201,7 292,9(2) 494,6
Rice 58,7 44,4- - 14,3- 14,3
Milkproducts,ofwhich: 4.752,0 2.745,9 484,0–1.398,7 (3)123,4(4)2.006,1
-skinnedmilk 1.612,7 •(10)310,5 20,6- 1.281,6- 1.302,2
-butter 1.811,6 1.164,5 439,5– 207,6- 647,1
Oilsandfats,ofwhich: 687,3 3,7 29,5- 654,1- 683,6
-oliveoil 317,9- 20,5- 297,4- 317,9
-colza,rapeandsunflower seeds 353,0 3,7 9,0 340,3- 349,3
Sugar 575,2 286,2 272,6(5)- 16,4- 289,0
Beefandveal 1.363,3 715,5 504,1- 66,0 77,7(6)647,8
Pigneat 115,6 91,6 24,1- - - 24,0
Sheepneat 53,5- - - 53,5- 53,5
Eggsandpoultryneat 85,5 85,5- - - - -
Fruitandvegetables 687,3 41,3- 91,3 554,7(7)- 646,0
Wine 299,5 26,4 71,4 195,1 (8)6,6(9)- 273,1
Tobacco 309,3 4,5 29,5- 275,3- 304,8
Fisheries 23,0 11,4- 11,6- - 11,6
Flaxandheup 16,8- - - 16,8- 16,8
Seeds 32,0- - - 32,0 32,0
Hops 6,2- - - 6,2- 6,2
Silkworms 0,3- - - 0,3- 0,3
Driedfodder 33,5- - - 33,5- 33,5
Peasandfieldbeans 27,0- - - 27,0- 27,0
Non-Annex 11products 221,3 221,3– – – – •
TOTALA 11.016,7 5.452,4 1.616,9 298,0 3.448,3 201,1 5.564,3
1 100 49,5 14,7 2,7 31β 1,8 50,5
MONETARY COMPENSATORY AMOUNTS 298,5 242,6- - 55,9 55,9
GRANDTOTAL% 11.315,2 5.695,0 1.616,9 298,0 3.504,2 201,1 5.620,2
100 50.3 14.3 Ϊ1,Π1.8 LQ7
(a)Forfootnotes seenextpage

Footnotes toAnnex4
(1)Privateandpublicstorage.Detailsofexpenditure onstoragearegiveninAnnex5.
(2)Including production refunds (148.4mECU)&aidfordurumwheat(128.9mECU).
(3)Thisamounttakesaccountoftheco-responsibility levycharged (222.9mECU).
(4)Premiumsforthenon-marketing ofmilkandfortheconversion ofdairyherdstobeef
andvealproduction .
(5)Reimbursement ofprivatestoragecosts.
(6)Calvingpremiums topromotetherestocking ofherds.
(7)Promotion ofCommunity citrusfruit(10.7mECU)+processing ofCommunity citrusfruit
(49.7mECU)+intervention inrespectofprocessed products (490.4mECU).
(8)Including obligatory distillation oftheby-products ofwine-making (0.1mECU)+
distillation (194.5 mECU).
(9)Aidforthere-storage oftablewines(4.9mECU)andaidforconcentrated winemusts
(1.7mECU).
(10)Skimmedmilkpowder.

-69-
ANNEX 5-
BREAKDOWN OFINTERVENTION INRESPECT OFSTORAGE COSTSINTHE1980FINANCIAL YEAR
mECU
ofwhich
Private PublicTechnicalFinancial Difference
Sector costs costs between buy-storage storageing-inand
sellinq Drice
CereaIs 201,7 86,6 46,6 68,5
MiIkandmiIkprod.(1)77,3 406,7 41,2 69,6(2)295,9
OiIsandfats- 29,5 14,0 9,1 6,4
Sugar 272,6- - - -
Beefandveal 38,6 465,5 89,8 48,9 326,8
Pigmeat 24,1- · - - -
Wine 71,4- - - -
Tobaccomm 29,5 3,6 5,9 20,0
TOTAL 484,0 1.132,9 235,2 180,1 717,6
<>)ofwhichstorageofcheese:23.9mECU.
(2)Mainlyspecialmeasuresforthemarketing ofmilkproducts ontheinternal market
underArticles 6and12ofRegulation No.804/68(welfarebeneficiaries ,armed
forces,non-profit organizations ,Christmas butter)andoutsidetheCommunity .

-70-
ANNEX 6
(1)Quantity andvalueofproducts inpublicstorage
Situation at31.12.1979 Situation at31.12.1980
Product QuantityValue Quantity Value
(tonnes) (mECU)(tonnes)(2)(mECU)
Common wheat 1.877.919 322,653 4.930.290 830,070
Barley 73.567 12,224 1.081.885 181,275
Rye 581.956 108,748 516.657 93,602
Durumwheat 142.727 27,783 157.473 29,838
Skimmed-miIkpowder 214.859 230,774 230.609 253,633
Butter 293.285 723,325 147.289 331,817
OliveoiI 53.401 62,468 73.808 95,926
Colza 10.236 3,526 81.631 22,734
Beef(carcases ) 203.415 383,084 208.537 414,595
Bonedbeef 84.469 206,232 105.267 267,546
Preserved beef2.770 5,714- -
Tobacco ' 28.092 55,980 28.783 62,312
TOTAL 2142,511 2583,348
ThefiguresinECUwerecalculated byapplying totheamountsgiveninnational
currency thebudgetary rateswhichappliedforthepurposes ofconverting into
ECUtheexpenditure forDecember .
(2)Incl.quantities offeredtoPoland.

-71-
ANNEX7
Breakdown ofintervention expenditure intheformof
pricecompensation aids
mECU
Sector1
Production |Processingaid iaidI
•Total
I
Cereals 292,9I I
I292,9
Rice 14,3I
I ¡14,3
Milkproducts,ofwhich: 438,6 I960,1 I1.398,7
-skimmed miIk(1)321,5¡(2)960,1I
I960,1
-butter207,6 I I 207,6
-co-resp.,expend,onen-
largingmarket-113,5I
II
I113,5
Oilsandfats,ofwhich: 654,11
1654,1
-oliveoiI297,4¡I
I297,4
-colza,rapeandsunflower
seeds
Sugar 13,8340,3 1
I2,6(3)I
¡16,4340,3
Beefandveal 66,0(4) 1 I66,0
Pigmeat 24,01
1 \24,0
Sheepmeat 53,5 I53,5
Eggsandpoultrymeat -1
1I
I
Fruitandvegetables 10,7 1544,0(5) I554,7
Wine 6,61
1¡6,6
Tobacco 275,4 I275,4
Otherproducts,ofwhich: 55,3 ¡60,5 115,8
-flaxandhemp 16,8 I I 16,8
-seeds 32,0II
I32,0
-driedfodderI 33,5I 33,5
-peasandfieldbeans¡27,0I
I27,0
-hops 6,2I I 6,2
-siIkworms 0,3¡I
I0,3
SUB-TOTAL1.881,1I1.567,2
1I3.448,3
I
MCAsonintra-Community trade 55,9 I55,9
1
Grandtotal
* ■1.937,0 11.567,2
I13.504,2
(1)AidinrespectofLiquidskimmedmilkforanimalfeed(calvesandotheranimals).
(2)Aidinrespectofskimmedmilkpowderforanimalfeed(calvesandotheranimals)and
aidinrespectofskimmedmilkprocessed intocasein.
(3)Refundfortheuseofsugarinthechemical industry .
(4)Premiumsfororderlymarketing andslaughtering ofadultcattleandforsucklercows.
(5)Processing anddistribution offruitandvegetables withdrawn fromthemarket,finan­
cialcompensation fortheprocessing ofcitrusfruit,aidfortinnedpineappLe and
premiums fortheprocessing offruitandvegetables .

ANNEX 8
OverallcostoftheGuarantee Sectioninrelationtogrossdomestic product (GDP)
YearEAGGFGuarantee expenditure
('000mECU)Community grossdomestic
product asmarketprices
('000mECU)EAGGFGuarantee expenditure
as%ofCommunity GDP
GrossMinusagricultural
levies Gross Net
a b c d e=100b/df=100c/d
1975 4,523 3,903 1.107,6 0,41 0,35
1976 5,587 4,414 1.265,6 0,44 0,35
1977 6,830 4,692 1.405,0 0,49 0,33
1978 8,673 6,390 1.553,2 0,56 0,41
1979 10,440 8,297 1.742,0 0,60 0,48
1980 11,315 9,313 1.990,0 0,57 0,47"Ni
PJ

ANNEX9-EQUALIZATION OFSTORAGE COSTSFORSUGAR
A.COMMUNITY SUGAR
Situation at15.4.1981
Sugar
yearTotallevies
(ECU)Totalreimburse- Annualbalance Cumulative balance Duration
ofstorage
(months)ment
(ECU) absolute (ECU) %(a)absolute (ECU) X(a)
1968/69 64.844.437,00 63.916.054,19 +928.382,81 +1,43 ♦928.382,81 +1,43 5,63
1969/70 65.226.052,11 69.848.500,70 -4.622.448,59 7,09 -3.694.065,78-2,84 6,13
1970/71 69.029.052,44 65.111.106,99 +3.917.945,45 +5,68 +223.879,67 +0,11 5,38
1971/72 97.151.231,54 92.680.188,23 +4.471.043,31 +4,60 +4.694.922,98+1,58 5,94
1972/73 91.067.000,23 90.747.372.33 +319-627,90 +0,35 +5.014.550,88+1,2* 5/OI
1973/74 101.755.638,48 92.645.695,20 +9.109.943,28 +8,95 ♦14.124.494,16 +2,89 4,80
1974/75 104.267.686,01 97.932.192,29 +6.335.493,72 +6,08 +20.459.987,88+3,45 4,64
1975/76 109.434.955,76 160.507.251,46 -51.072.295,70 -46,67 -30.612.307,82-4,36 6,23
1976/77 201.167.701,35 184.993.625,49 +16.174.075,86 +8,04 -14.438.231,96-1,60 5,99
1977/78 233.020.516,42 230.585.451,16 +2.435.065,26 +1,05 -12.003.166,70-1,06 5,84
1978/79 248.916.337,29 239.254.119,29 +9.662.218,00 +3,88 -2.340.948,70-0,17 6,34
1979/80 239.151.961,34 251.017.773,55 -11.865.812,21 4,96 -14.206.760,91 0,87 6,17
B.PREFERENTIAL SUGAR
1977/78 10.160.109,06 9.681.379,28 +478.729,78 +4,71 +478.729,78 +4,71 2,26
1978/79 10.010.546,90 7.425.328,27 +2.585.218,63 +25,82 +3.063.948,41 +15,19 1,61
1979/80 7.165.060,66 6.910.087,07 +254.973,59 +3,56 +3.318.922,00 +12,14 1,54
(a)%ofLevies

ANNEX10
GUARANTEE SECTIONADVANCES ANDFUNDSAVAILABLE INMEMBERSTATESFOR1980
DateOf
decisionUtLUIUM
BFRDLNMARK
OKRUtKHANY
onFRANCE
FFIRELAND
IRLITALY
LITLllXEWBOURG
LFRNETHERLANDS
MFL1TEDKINGDOMttCJu0TAL
05.12.79 3.383.000.000 ,-692.944.485,88 791.000.000,-2.404.000.000 ,- 61.500.000,-71.Ofu.*.10.000,-25.000.000 ,- ■564.000.000 ,-38.700.000 ,-
17.01.80 2.100.000.000 ,-268.000.000 ,-322.000.000 ,-1.123.000.000 ,-10.000.000 ,-2Ο0.0ΓJ.tOO.000,-63.000.000 ,-274.000.000 ,-30.000.000 ,-
18.02.80 2.200.000.000 ,-440.000.000 ,-545.000.000 ,-1.600.000.000 ,-23.500.000 ,-210.OtO.000.000,-41.000.000 ,-250.000.000 ,-16.000.000 ,-
18.03.80 1.480.000.000 ,-381.000.000,-467.000.000 ,-1.076.000.000,-18.200.000 ,-2i8.ooo.ooo.ooo ;-16.000.000 ,-358.000.000 ,-28.000.000 ,-/
02.04.80 420.000.000 ,-110.000.000 ,-135.000.000 ,-309.000.000 ,- 5.300.000 ,-62.000.000.000 ,-3.000.000 ,-102.000.000 ,-8.000.000 ,-
24.04.80 1.526.000.000 ,-336.000.000 ,-443.000.000 ,-1.090.000.000 ,-30.200.000 ,-268.000.000.000 ,--325.000.000 ,-24.100.000 ,-j
20.05.80 1.400.000.000 ,-421.000.000 ,-402.000.000 ,-1.248.000.000 ,-40.700.000 ,-151.000.000.000 ,-128.000.000 ,-287.000.000 ,-45.800.000 ,-j
18.06.801.360.000.000,-320.000.000 ,-401.000.00-5,-1.291.000.000 ,-33.900.000 ,-151.000.000.000 ,-58.000.000 ,-366.000.000 ,-36.300.000 ,-j
16.07.80 2.536.000.000 ,-436.000.000 ,-690.000.000 ,-1.549.000.000 ,-53.000.000 ,-100.000.000.000 ,-23.000.000 ,-473.300.000 ,-45.500.000 ,-j
25.07.80 2.000.000.000 ,-370.000.000 ,-495.000.000 ,-1.210.000.000 ,-34.500.000 ,-250.000.000.000 ,-32.000.000 ,-465.000.000 ,-32.000.000 ,-
17.09.80 1.800.000.000 ,-470.000.000 ,-633.000.000 ,-1.407.000.000,-29.500.000 ,-156.000.000.000,-' 6.000.000 ,-221.000.000,-36.000.000 ,-
17.10.80 2.647.000.000 ,-373.000.000 ,-371.000.000,-1.2T4.000.000 ,-25.500.000 ,-155.000.000.000 ,-52.000.000 ,-365.000.000 ,-55.000.000 ,-j
18.11.80
28.11.801.450.000.000 ,-238.000.000 ,-586.000.000 ,-1.390.000.000 ,-32.500.000 ,-50.000.000.000 ,-
30.000.000.000 ,-"11.000.000 ,-192.000.000 ,-80.000.000 ,-
15.12.80
22.12.80 - - -90.000.000 ,-
- -7.000.000 ,-
-12.000.000,-/
Totaladvances 24.302.000.000 ,-4.855.944.485,88 6.281.000.000 ,-7.001.000.000,-398.300.000 ,-ï072.000.000.000 ,-465.000.000 ,->.242.300.000 ,-487.400.000 ,-
Balance on
01.01.80-417.194.992 ,--89.990.475,86 -146.381.949,81 -340.213.299,73 -11.803.008,21 -17.813.556.779 ,--5.206.97 7,--75.967.090,29 -6.058.047,08
Totalfundsavailable 23.884.805.00B ,-4.765.954.010,02 6.134.618.050,19 6.660.786.700,27 386.496.991,79 2054.186.443.221 ,-459.793.023 ,-U.166.332.909,71 481.341.952,92
Totalin
ECU(1)590.453.283,68 613.935.717,25 2.441.361.470,18 2.848.045.618,41 573.751.852,49 1.743.273.051,94 11.365.978,69 1.512.512.663,90 794.735.940,72 11.129.435.577,2f
j
enIncluding exchangedifferences

ANNEX ■'
Hllkpremluns (100%):AdvancesandfundsavailableInMeitherStagesfor1980
Dateof
dèciSionBELGIUM
BFRDENMARK ■
DKRGERMANY
DMFRANCE
FFIRELANO
IRLITALY
LITLUXEMBOURG
UFRNETHERLANDS
HFLUNITED KINGDOM
UKLEECTOTAL
ECU
05.12.79 20.000.000 ,-32.000.000 ,-53.000.000 ,-36.000,000 ,- 340.000,-- 500.000,-2.160.000 ,-3.250.000 ,- -/
17.01.80 5.000.000 ,-7.000.000 ,-- 23.000.000 ,- 260.000,-- 2.800.000 ,-3.200.000 ,-1.500.000 ,- /
18.02.80 13.000.000 ,-12,000,000 ,-- 21.000.000 ,- 190.000,-- 1.100.000 ,-1.600.000 ,-1.800.000,-
18.03.80_ 13.000.000 ,-- 19.500.000 ,- 220.000,-- 900.000,-1.500.000 ,- 200.000,-/
24.04.80 5.000.000 ,-15,000.000 ,-- - 1-935.000 ,-- 2.700.000 ,-4.200.000 ,-2.250.000 ,-/
20.05.80 5.000.000 ,-15.000.000 ,-- - - - 2.000.000 ,-1.500.000 ,-2.100.000 ,-
18.06.80 8.000.000 ,-30.000.000 ,-18.100.000 ,-5.000.000 ,- 105.000,-- - 1.700.000 ,-2.200.000 ,-j
16.07.80 10.000.000 ,-13.000.000 ,-10.800.000 ,-- 300.000,-- 3.600.000 ,-5.300.000 ,-2.000.000 ,-/
25.07.80 2.500.000 ,-15.000.000 ,-20.000.000 ,-12.000.000 ,- 245.000,- 2.500.000 ,-1.700.000 ,-2.000.000 ,-/
05.09.80- - - - - - - 3.100.000 ,--/
17.09.80 7.500.000 ,-22.000.000 ,-13.400.000 ,-22.600.000 ,- 1.000,000 ,-- 500.000,-2.100.000 ,-3.300.000 ,-/
17.10.80 5.000.000 ,-9.000.000 ,-20.100.000 ,-20.000.000 ,- 480,000,-- - 4.000.000 ,-3.100.000 ,-
18.11.80 8.000.000 ,-14.000.000 ,-29.000.000 ,-15.500.000 ,- 380.000,-- 1.700.000 ,-2.100.000 ,-7.500.000 ,-
08.12.80- - 17.000.000 ,-- /
Totaladvances 89.000.000 ,-197.000.000 ,-181.400.000 ,-174.600.000 ,- 5.455.000 ,-- 18.300.000 ,-34.160.000 ,-31.200.000 ,-
Balance on
01.01.80-11.995.768 ,--8.611.274,93 38.027.616,23 -5.395.835,81 -99.477,46- -2.021.239 ,--3.625.633,70 -519.173,54
Totalfunds
available 77.004.232 ,-188.388.725,07 219.427.616,23 169.204.164,19 5.355.522,54- 16.278.761 ,-30.534.366,30 30.680.826,46
TotalIn
ECU(2)1.903.526,31 24.231.533,53 87.128.132,53 28.908.837,53 7.945.303,47- 400.911,79 11.083.174,35 50.711.690,63 212.313.110,14
(DPreaftwsforthenon-aarketing of■!1kandfortheconversionofdairyherdsfinanced60%bytheGuaranteeSectionand*0%bytheGuidanceSection.
(2>Including exchangedifferences .

-76-
ANNEX 12
FUNDSAVAILABLE INMEMBERSTATESFOR1980GUARANTEE SECTION(EXCLUDING PREMIUMS)
ιMeaberState Jan.Feb MarAprilMayJuneJul.AugSeptOctNovDecAverage
BELGIUM A-10,315,319,921,118,819,1 12,1-18,3-5,25,2"8,"25,57,9
Β84,152,154,446,837,634,633,763,-49,644,465,235,550,1
C73,867,474,367,956,453,745,844,744,449,657,261,-58,-
058,447,453,249,137,441,6 64,149,939,257,631,635,647,1
E15,420,-21,118,819,-12/1-18,3-5,25,2"8,"25,625,410,9
DENMARK A"12,322,62,1-6,4-4,7"8,70,7"13,7 1,"7,526,731,-3,8
Β94,634,856,563,142,853,740,855,847,560,147,630,352,3
C82,357,458,656,738,145,-41,542,148,567,674,361,356,1
D58,555,365,-61,546,844,3 55,141,141,-40,843,246,749,9
E23,82,1-6,4-4,8-8,70,7-13,6 1,"7,526,831,114,66,2
GERMANY . A-59,-75,3-14,15,665,734,2-14,7-65,6-27,45,562,456,610,4
Β318,6129,7218,7241,-176,4159,9159,6274,1196,8250,2146,6229,5208,4
C259,6205,-204,6246,6242,1194,1144,9208,5169,4255,7209,-286,1218,8 !
0184,3219,2199,-180,5207,9208,8210,6235,9163,8193,3151,9253,7200,7 I
E75,3-14,25,666,134,2-14,7-65,7-27,45,662,457,132,418,1 I
¡
FRANCE A-58,450,433,134,356,732,1 6,9-50,8 1,117,338,858,118,3 !
Β412,7193,5274,2236,7186,-213,6220,3265,3207,-240,1206,3251,3242,2 I
C354,3243,9307,3271,-242,7245,7227,2214,5208,1257,4245,1309,4260,5 I
D304,1210,6272,9214,2210,6238,8277,9213,4190,7218,5186,9295,-236,1 !
E50,233,334,456,832,16,9-50,7 1,117,438,958,214,424,4 .
IRELAND A-17,537,522,21,4-3,7-13,1-5,5-34,216,926,414,9 6,-4,3
Β91,514,934,934,944,560,550,378,851,544,138,-47,749,3
C74,-52,457,136,340,847,444,844,668,470,552,953,753,6
D36,530,255,740,-53,852,978,927,842,-55,546,840,946,8
E37,522,21,4-3,7-13,--5,5-34,116,826,415,-6,112,86,8
ITALY A-15,4-48,9-59,9-41,79,431,817,5-18,3"51,545,-97,681,7
Β61,3172,6180,5242,1229,-127,9127,884,1208,8130,1129,166,1146,6
C45,9123,7120,6200,4238,4159,7145,365,8157,3175,1226,7147,8150,6
D94,8183,9162,-190,9206,3142,2163,7117,6112,377,4144,4113,2142,4
E-48,9-60,2»41,49,532,117,5-18,4-51,845,-97,782,334,68,2
LUXEMBOURG A-0,1-0,20,80,60,5-0,41,7-0,1P.M.0,7-P.M.0,4!
0,3 ¡
Β0,6..1/51,"0,5-3,21,40,60,80,11,30,5 1,-I
C0,51,31,81,10,52,8 3,10,50,80,8 1/30,91'3!
00,70,51,20,60,91,13,20,50,10,80,90,9 1'~
E-0,20,80,60,5-0,41,7"0,1P.M.0,7-P.M.0,4-P.M.0,3
NETHERLANDS A-27,459,811,6-29,916,23,4-18,6-42,237,597,235,651,916,2
Β203,4100,2 91,-167,3118,1103,9132,5171,7169,-80,3132,769,4128,3
C176,-160,-102,6137,4134,3107,3113,9129,5206,5177,5168,3121,3144,5
0117,-148,3132,5121,2130,9125,9 156,-92,1109,2142,-116,198,6124,1
E59,-11,7-29,916,23,4-18,6-42,137,497,335,552,222,720,4
UNITED KINGDOM A-9,420,621,7-7,7-4,8-23,3-15,3"21,14,8-16,6-23,6-11,5-7,2
Β59,746,125,357,339,475,159,674,752,660,593,2161,367,1
C50,366,747,-49,634,651,844,353,657,443,969,6149,859,9
029,745,554,754,257,867,165,448,873,767,380,7152,666,5
E20,621/2"7,7-4,6-23,2-15,3-21,14,8-16,3-23,4-11,1-2,8-6,6
EECTOTAL A-209,8232,437,4-22,7154,175,1-15,2-264,3-22,8188,2244,4299,7 58,-
Β1326,5745,4936,5089,7873,8832,4 826,-1068,1983,6909,9860,-891,6945,3
C1116,7977,8973,9067,-027,9907,5810,8803,8960,8098,11104,4191,31003,3
0884,-940,9996,2912,2952,4922,71074,9827,1772,-853,2802,5037,2914,6
E232,736,9-22,3154,875,5-15,2 ■<■264,1"23,3188,8244,9301,9154,188,7
A=Balanceatthebeginning oftheaonthatthataonths'rate
B=Advancesfoptheaonth
c=Totalavailable forthe*onth
D=Expenditure forthe«onth
E='Balancestillavailable
Thebalancestillregainingavailableattheendoftheaonthrepresents thedifference betweentheanountavailableatthe
beginning ofeachaonthandtheexpenditure declaredforthataonthtotheCoiaission ,withouttakingintoaccountsuas
paidafterthe20thoftheaonthinrespectofthefollowingaonth.Thisprocedureexplainswhynegativebalancesare
shownattheendoftheaonthforsoaeMeaberStates.

ANNEX13-77-
FUNDSAVAILABLE IKMEMBERSTATESFOR1980,PREMIUM FORTHENON-MARKETING OFMILKAND
MILKPRODUCTS ANDPREMIUM FORTHECONVERSION OFDAIRYHERDSHOPt\ '
■ECU
MeaberState JanFebMarAprilMayJune -JulyAugSeptOctNovDecAverage
BELGIUM A-0,30P.M. P.M.0,20P.M.P.M.0,01 P.M.P.M. P.M. P.M. P.M.-0,01
Β0,490,130,32-0,120,120,20 0,250,060,190,120,200,19
C0,190,130,320,200,120,120,210,250,060,190,120,200,18
D0,190,130,120,200,120,110,210,250,060,190,120,190,16
EP.N.P.M.0,20 P.M. P.M.0,01 P.M. P.M. P.M. P.M. P.M.0,01 0,02
DENMARK A-1,171,010,010,030,10-0,24-0,380,670,441,132,201,680,46
Β4,370,911,541,671,911,913,83 1,661,932,811,151,782,12
C3,201,921,551,702,011,673,452,332,373,943,353,462,58
D2,131,911,521,602,252,052,791,891,231,731,671,531,86
ε1,070,010,030,10-0,24-0,380,660,441,142,211,681,930,72
GERMANY A15,3133,6325,7419,0814,297,493,213,962,633,35-0,03-1,2010,62
Β21,35- - - - -7,204,297,955,307,9418,02 6,01
C36,6633,6325,7419,0814,297,4910,41 8,2510,588,657,9116,82 16,63
03,037,806,614,716,794,286,45 5,627,218,689,1316,40 7,23
E33,6325,8319,1314,37 7,503,213,96 2,633,37-0,03"1,220,429,40
FRANCE A-0,933,203,985,577,726,424,76 2,41-0,77-0,221,903,33 3,11
Β6,183,963,603,33- -0,86-2,053,863,402,632,49
C5,257,167,588,907,726,425,62 2,411,283,645,305,96 5,60
D2,073,15 2,"1,171,321,643,223,181,501,731,973,99 2,24
E3,184,015,587,736,404,782,40-0,77-0,221,913,331,97 3,36
IRELAND A-0,150,080,13-0,38-1,060,740,38-0,35-0,43-0,710,060,32-0,11
Β0,510,380,280,332,86-0,15 0,450,371,490,710,56 0,67
C0,360,460,41-0,051,800,740,530,10-0,060,780,770,880,56
00,280,330,791,021,070,360,88 0,530,650,720,441,250,69
E0,080,13-0,38-1,070,730,38-0,35-0,43-0,710,060,33-0,37-0,13
ITALY
iΝ0ΤΑΡΡLICABLE
LUXEMBOURG A-0,05-0,05 P.M.0,030,050,070,03-0,010,060,120,120,12 0,04
Β0,010,070,030,020,070,05-0,090,060,01-0,040,04 I
1C-0,040,020,030,050,120,120,030,080,120,130,120,16o,oa !
00,010,02--P.M.0,050,090,04 0,02-0,01 P.M.0,080,03 :
1E-0,05 P.M.0,030,050,070,03-0,01 0,060,120,120,120,080,05
!NETHERLANDS A-1,30-0,69-0,37-0,63-0,71-0,33-0,40"2,31-1,08-0,14-0,530,36-0,68
1 Β0,781,170,580,551,520,550,61 1,921,750,761,450,761,03 ι
j C-0,520,480,21-0,080,810,220,21-0,390,670,620,921,12 0,35
!D0,160,850,840,631,140,622,510,690,811,150,561,710,97
E-0,68-0,37-0,63-0,71-0,33-0,40-2,30-1,08-0,14-0,530,36-0,59-0,62I
UNITEDKINGDOM A-0,801,021,221,34-1,57-0,43-0,29-0,55-1,02-2,40-3,64-4,03-0,93
Β5,012,312,840,323,673,443,613,283,295,555,2613,15 4,31
C4,213,334,061,662,103,013,32 2,732,273,151,629,123,38
D3,182,152,733,192,533,303,87 3,754,626,765,515,97 3,96
ε1,031,181,33"1,53-0,43-0,29-0,55-1,02-2,35-3,61-3,893,15-0,58
TOTALEECA10,6138,2030,7125,2418,8213,727,32 3,82-0,171,130,080,5812,50 !
Β38,70 8,939,196,2210,156,0716,4611,9417,4619,9720,0337,14 16,86
C49,3147,1339,9031,4628,9719,7923,78 15,7617,2921,1020,1137,72 29,36
D11,0516,3414,6112,5215,2712,4519,97 15,9316,0820,9719,4031,12 17,14
1E38,2630,7925,2918,9413,70 7,343,81-0,171,210,130,716,6012,22
A=Balanceatthebeginning oftheaonthatthatninth'srate
B=Advancesforthe*onth
c=Totalavailablefortheaonth
■>*Expenditure fortheaonth
E=Balancestillavailable
Thebalancesreaainingavailableattheendoftheaonthrepresentthedifference betweentheaaountavailableatthe
beginningofeachaonthandtheexpenditure declaredforthataonthtotheCoaaission,withouttakingintoaccount
suaspaidafterthe20thoftheaonthinrespectofthefollowingaonth.Thisprocedureexplainswhynegativebalances
areshownattheendoftheaonthforsoaeMeaberStates.

ANNEX 14
EXCHANGE RATES-1980
i)Conversion ofmonthlyexpenditure intoECU-budgetrates
Expenditure
paidin Rateon:<■
OJ BFR DKR DM FF IRL IT LUX PB RU
JANUARY 21.11.79 -C292/7940,2186 7,32632 2,48296 5,82554 0,671729 1158,58 40,2186 2,77273 0,648399
FEBRUARY 20.12.79-C320/7940,3374 7,69948 2,48268 5,80432 0,671951 1158,72 40,3374 2,73570 0,680433
MARCH .18.01.80 -C15/8040,4706 7,78552 2,49183 5,83571 0,672894 1163,17 40,4706 2,74636 0,633243
APRIL 20.02.80-C44/8040,5489 7,77223 2,49787 5,85206 0,674032 1156,75 40,5489 2,74989 0,628205
MAY 20.03.80 -C70/8040,5910 7,84473 2,51185 5,85829 0,677835 1170,71 40,5910 2,75205 0,612223
JUNE 18.04.80 -c96/8040,4632 7,84615 2,51376 5,84370 0,672303 1180,15 40,4632 2,76228 0,610087
JULY 20.05.80 -c122/8040,3411 7,84940 2,51287 5,85918 0,674596 1181,17 40,3411 2,76165 0,609141
AUGUST 20.06.80 -c153/8040,2635 7,81217 2,51686 5,83814 0,672292 1189,12 40,2635 2,75625 0,609656
SEPTEMBER 18.07.80 -c181/8040,2774 7,78998 2,51571 5,84483 0,669912 1197,68 40,2774 2,75106 0,607779
OCTOBER 20.08.80 -c214/8040,4842 7,82133 2,53002 5,86036 0,670114 1198,92 40,4842 2,75381 0,594795
NOVEMBER 19.09.80 -c242/8040,6077 7,84378 2,53040 5,88336 0,672336 1200,65 40,6077 2,74993 0,590026
DECEMBER 20.10.80•c272/8040,8545 7,85692 2,55291 5,89027 0,680356 1210,00 40,8545 2,76669 0,570290
2)averagerates=TotaLexpenditure innationalcurrencyTotalexpenditure inECU
Belaium Denmark Germany France Ireland Italy Luxembourg Netherlands Un.Kingd.
Averagerate
inECU40,4335 7,76066 2,51225 5,84970 0,673477 1177,71 40,4548 2,75439 0,605540

ANNEX 15
EXCHANGE DIFFERENCES -1980 FINANCIAL YEAR (-|) ECU
Member StateGuarantee Premiums (2) Total
Belgium-237.217,12 +78,89 -237.138,23
Denmark-1.256.788,77 -51.586,16 -1.308.374,93
Germany-1.060.544,68 -169.073,50 -1.229.618,18
France -793.182,99 -35.630,15 -828.813,14
Ireland-203.883,08 +5.332,48 -198.550,60
Italy-591.032,25- -591.032,25
Luxembourg -5.617,30 -1.366,72 -6.984,02
Netherlands+479.976,34 -10.207,78 +469.768,56
United Kingdom-623.169,28 -215.892,89 -839.062,17
TOTAL -4.291.459,13 (3)-478.345,83 -4.769.804,96
(1)Foreach Member State there isadifference between
ECUatthat month 'srate andthesame balance asco
table shows thetotal exchange differences recorded
(2)Premiums forthenon-marketing ofmilk andpremiums
(3)ofwhich :60%financed bytheGuarantee Section =
40%financed bytheGuidance Section =thebalance attheendofeach month asconverted into
iverted into ECUatthefollowing month 'srate .This
foreach Member State forthewhole of1980 .
fortheconversion ofdairy herds (Regulation (EEC)No1078 /77
-287,007.50
-191,338.33

EAGGFGUARANTEE SECTION-1980
CASESOFIRREGULARITY REPORTED ANDAMOUNTS RECOVERED
(aaountsinECU)
Belgiù»Denaark GernanyPrance 1Ireland ItalyLuxembourg Netherlands UnitedKingdo TOTALEEC
SECTOR <gof
;asê:Aiount (loof
:asesAiount"°°f
case!Amount !No
case;Aaount !0of
ase:Aaount
<0of¡
asesAaountYoof
asesAnount '
10of
asesAaountloof
case:Aaount -Noof
case;Aaount
ihΒ
Cereals (2)I
Tot.6
ί44.319.303
339.013 !3113.914Í.
■1116.1899
54.433.302
355.202
,104.658.401 , 144.7Õ5.504
Milkand«Uk»
products Te*.X1.403 6β
54.588 ;46500.toi1
6.346.210Í 2132.673
117.1691
24.795
99.060 30263.56210
106538.131
7.3S1.992
547.346.8οθ22149.84? i103.855 1167.920.123
Pigaeat ΒI
Tot.25.044.1«11.474.1
¡43.712
21.5761 1Τ4
55.049.374
21.576
1525.28a 95.070.950
Eggs a
Poultryaeat B j
Beetandveala
I
Tot. l·
I240.5882
35.930
18.52812.149 3
118.079
259.116
524.45814267.195
Oilsand £
fats Tot.»
1 19584.505 19584.505
Fruitand*
vegetables Tot.133.100 2117.857 1986.474 11 ? 15X.137.431
Β
Sugar 1Tot.
1
Non-Annex 11B
■products1
j11.309 1
11.433
- .22.742
Other s
sectors 1!ì4.898
4.172i4
1104.430
1108.6855
2109.328
112.857
! 29.070I7222.165
HCAs i
1
13I35.41111548.562j329.110 10377.207 23498.329 501.488.619
TotalM.S.J
Tot.25.044.188 :2.2.78317
k._2._W.JOJLJj34,18«.
45.078.6911 11ι92.782931.830.089 10
^•569.416 24
2.948.067 37256.952
4a.7591
1?
721
211.587.166
1.587.16£1
14
254.795
207.745
589.7471
30
5426Î:$
764.04033
163
24610.140.956
9.852.679
21.482.254
ofwhich:
1.amountsrecove-
redorexpenditijustified
*·anountsforyhi(
therecoverypr
cedureisIn
Droaress1
-'176.524 :-·3.25648
;!
Jj.4'4.902.167 11»69.526 ,45
Ì:;' 1910.102 19
[2«037.965 18172.000
249.759 1Τ17
420.94;
1.566.22,6
19
1
1250.386
339.3a13
*178.275
685.765103
1431.611.488
19.570.7«6
i pruqress «
(1)Refunds "«
(2)Intervention I

EAGGFGUARANTEE SECTION
CASESOFIRREGULARITY REPORTED ANDRECOVERY OFOVERPAYMENTS
(anountsInECU)
U.S. 1971 1972 1971 197«'1975 19(6 1977 '1978 11979•i960•1981 TOIriLe.N.
68.422 15.146 312.379 41.536.932122.245 45.078.691 196.663.81$
Β
28.422 15.146 24.099 -99.511-176.524 5293.702
411.913.833 1·)1.048.614 31245.920 631.357.773 691.875.836 862.216.472 492.562.397 47934.671 3<565.651 9312.948.067 »93)5.669.234
D
311.783.741 151.048.614 30243.970 54375.567 64687.253 731.004.278 381.179.485 4C773.012 31393.229 48910.102 19618.399.251
DK6.692 7593.260 26362.684 12.714 13320.835 11133.298 1159.056 1192.782 811.571.3a
6.692 6290.324 26362.684 12.71411206.080 IC96.568 725.219-3.256 62993.537
5
11.279.565
2.402897.439
383.0755
22.108.336
9.OO77
3133.244
60.6674
2469.955
11.2008
2812.174
13.0549
~7171.253
~"35·89532
24232.005
186*.43737
194a.759
172.000·-r114
646.525.730
frTi.Tsf
IRL8.952 1184.912 2182.490 9561.6a5209.137 11.459 16.192 1 Τ 211.154.761
8.952 1I84.912 1I82.49O 5328.116i204.46I 11.459 16.192 13916.582
IT135.358 £8.6511446.259 21.1075618.170 2128.100 211.587.168 532.524.8II
-1.939 33.840 22.4901720.945 2229.214
LUX
HL423.299 14.130 6105.566 758.683 25.092 9989.054 37.533 6672.239 25589.747 632.455.343
423.29S 14.130 6105.566 758.683 25.092815.656 37.533 6672.239 6250.386 431.142.584 ,
ux1 635 4233.848 1182.386.621 552.089.148 371.625.922 23407.405 54764.040 Î927.507.615
1 635 111.815 46I.090.45I .7537.504 6212.810 541.0191378.275 791.972.50J
EEC811.937.132 202.328.179 511.307.54e 884.358.498 1302.898.190 2255.655.961148).137.847LOS2.874.136 1122.092.893 J4621.482.254 11Ϊ64^72^38
711.8C7.040 161.051.016 40657.815 72969.216 1051.371.228 131j2.445.950692.255.751 67jl.127.277 7<1.324.335 1031.611.488 68424.6a.ll <
NOTES
Firstline:Numberofcasesreported andamount
SecondLine:Numberofcaseswhereoverpayments wererecovered -withamountrecovered .

NNFX13
SUMMARY OFIMPLEMENTATION FORTHE1980FINANCIAL YEAR
(Chapter 92-Community foodaid)
Appropriations available mECU Implementation mECU Xutili23tion
A.APPROPRIATIONS FORTHEFINANCI ALYEAR C.COMMITMENTS-
100Χ1.Initialappropriations 389,84 1.Totalcommitments a) ===l§2é§4=«
2.Supp.appropriations-2.Automatic carryovers to1981 213,07
3.Transfers 3.Sumsnotcommitted b) 0Χ
TOTAL χ=_2§2í|i__==TOTALχ=a+b===II2éÍL==100Χ
8.APPROPRIATIONS FORTHEPREVIOU s 0.PAYMENTS
FINANCIAL YEAR«
-automatic carryovers 137,10 1.Application ofcarryovers from1979
s137,05 from1979 -payments (a)fromautomatic carryover
-non-automatic carryovers (b)fromnon-automatic
carryovers~
-lapsed 0405
TOTALy13Z*1Q TOTALCARRYOVERS FROM1979y=12Z*1Q___ 26Χ
2.Application of1980appropriations
(θ)payments 176,77 33,6Χ
(b)carryovers to1981
-automati c 213,07
-non-automat ic
TOTALCARRYOVERS FROM1980TO1981===11Í£2L== 40,4Χ
3.Appropriations lapsed
-outof1980allocation–
-outof1979carryovers . ozQ5
TOTALAPPROPRIATIONS LAPSED Q*Q5___
TOTALAPPROPRIATIONS AVAILABLEζ526,94 TOTALχ+y=zζ526,94 100Χ
χ+y=ζ
.. . ... ... Γ

ANNEX 19
COMMUNITY FOODAID-CHAPTER 92
CASHPOSITION AT31DECEMBER 1980
MEMBER STATEa b c d=(a+b)-c e
Amountavailable
-at
1January 1980Advances granted
from1January '80
to31December '80Expenditure from
1January 1980tc
31December 1980Amountavailable
at31Dec.1980Adjusted availab-
ilityat31/12/8C
(1)
BELGIUM BFR
ECU187519633
4662510,201603500000
39544584,211854315101
45813273,30-63295468
-1606178,89-63295468
-1540223,09
DENMARK DKR
ECU19181505,14
2618163,70-60138030,54
-7675991,27-40956525,40
-5274361,91-0-
216534,34-0-
-0-
GERMANY DM
ECU28063575,28
11302467,73289900000
115031359,07236263506,57
93976570,3681700068,71
32357256,4481700068,71
31973415,01
France FF
ECU28172199,56
4835980,79431300000
73708579,02461875387,46
78928853,84-2403187,90
-384294,03-2403187,90
-405420,01
IRELAND IRL
ecu586355,31
872904,563030000
4505759,802234025,09
3321112,571382330,22
2057551,791382330,22
2016354,86
ITALY LIT
ECU8739227680
7543050,6925960000000
21890608,9033585300204
28362266,051113927476
1071393,541113927476
917620,85
Luxembourg FLUX
ECU18509
460,20242200000
5924149,51204213894
5037716,7538004615
886892,9638004615
924799,00
NETHERLANDS £F¿-75890,58
27370,3429160000
10579632,2234944911,99
12672100,21-5709021,41
-2065097,65-5709021,41
-2059531,53
UNITEDKING.-UKL
ECU169087,76
260777,3315130000
25190267,658326597,54
13830303,066972490,22
11620741,926972490,22
12434688,09
Total CEE/ECU 32123685,54 288698949,11 276667834,23 44154800,42 44261703,18
N.B.:Thenegative .balances ,forsomeMemberStatescorrespond topayments madebytheminDecember1980fromfunds
available tothemasadvancesforJanuary1981,whichisperfectly compatible withthebudgetappropriations
available on31December 1980(some213.07 mECU)
Basedonconversion ratevalidforadvancesinJanuary 1981

ANNEX 20
EXPENDITURE DECLARED BYTHE MEMBER STATES
MEMBER
STATESinECU
Cereals and rice Milk productsSugar ,pigmea
other expenditand
tureTOTALS
Belgium
Denmark6824 521,09 7,4 %35
-9467
365612,72
719,8820
-5,3X
X3521139,49
4091357,9746,3 %
53,7 Χ45
-5813
274273,30
361,9116,6
:i)-2X
X
Germany 314873,62 0,3 %93661696,74 53 X- - 93976570,36 34 X
France 54571254,62 59,2 %24357599,22 13,8 %- - 78928853,84 28,5 X
Ireland- - 3321112,57 1,9 %- - 3321112,57 1,2 X
Italy 28362 266,05 30,7 %- - - 28362 266,05 10,3 X
Luxembourg- - 5037 716,75 2,8 X- - 5037716,75 1,8 %
Netherlands 2173367,77 2,4%10498732,44 6 %- - 1267?100,21 4,6 %
United King .- - 13830303,06 7,8 %- - 13830303,06 5 X
EEC 92246283,15 100 %176 809053,62 100 % 7612497,46 100 %276 667834,23 100 X
33,3 Χ 64 % 2,7 X 100 X
This negative expenditure "results from repayments byDenmark inrespect offood aid refunds incorrectly declared
in1979 asexpenditure under ChaDter 92instead ofTitle 6.

ANNEX^1
BUDGETAPPROPRIATIONS ,1980(INECU).POSITIONAT31DECEM8ER1980
(b)1980appropriations
ifi Amountsavailable Appropriation ;Expenditure Expenditure Total IAutonatic Lapsed
OProgrammesEnteredinTransferscommitted declared by by"Expenditure carryoversippropri ■
4-1
L.
<-Ί980TotallemberStates Connission Art.6h)(c )ations .
92
920Foodaid·;
9200CEREAIS4997000 10993833,74 15990883,74 15990833,74 15851744,28 139089,46 15990833,74 -0--
9201Betöre 1980 81282000 7006166,26 88288166,26 88288166,26 46087923,17 1617578,09 47705501,26 40582665,00-
9202Ricebefore1980 149000 3918066,35 4067066,35 4067066,35 4067066,35- 4067066,35 -Ο-
9203Rice 1980 29780000-3918066,35 25861933,65 25861933,65 1792246,11 7501672,64 9293918,75Ι6568014,90
921 Bilkproducts
9210iliLIMied-BllK p.·
Seid«IlkDowder24718000-350000,00 24368000,00 24368000,00 23516200,24 127344,31 23643544,55 724455,45-
9211 109955000-910059,83 109044940,17109044940,17 31764153,50 2438828,51 34202982,01 74841958,16-
9212B'oilbefore1980 9700000 293237,62 9993237,62 9993237,62 9882755,44 110482,18 9993237,62 -0--
9213Butteroi 1198067835000 6006762,38 73841762,38 73841762,38 14915758,08 14915758,08 58926004,30
922
9220SUGAR
p.m. 2250000,00 2250000,00 2250000,00 2073139,49_2073139,49 176860,51
9221 1980 1779000 350000,00 2129000,00 2129000,00 -0- 2129000,00
923Otherproducts
400.000,00 9230 1980 Ρ·ΠΙ· 4660059,83 4660059,83 4660059,83 464424,83 3795635,00 4260059,83
924
9240Transport costs
7485000 7485000,00 7485.000,00 2206218,08 449483,33 2655701,41 4829298,59.
9241 1980 52164000-30300000,00 21864000,00 21864000,00 4566998,29 3397752,76 7964751,05 13899248,95
TOTAL 389844000 -0- 389844000,00389844000,00157188627,86 19577866,28176766494,14213077505,86-

ANNEX 22
BUDGETAPPROPRIATIONS 1980(inECU);POSITION AT31DECEMBER 1980
(a)Appropriations carriedover
I.Article Item ProgrammeAmounts
available Expenditure
declared by
MemberStatesExpenditureTotal Lapsed
appro­
priation :o
+Jα
TO
-C
<_>1979appropria­
tionscarried over
to1980by
Commissionexpenditure
92
920
9200
9201Foodaid
CEREALS
Before 1979
1979-0-
31799963,49 20636764,28 11163199,21 31-0-
799963,49-
921
9210
9211
9212
9213Milkproducts·
Skimmedmilkp.(be
Skim,milkp.1979
Butteroil bef.1979
butteroi 11979f.79)-0-
60294089,96
-0-
37687870,4057580437,24
36092384,652713652,72
1595485,7560
37-0-
294089,96
-0-
687870,40-
922
9220
9221SUGAR
Before 1979
1979-Ο-
Ι448000,00 1448000,00-
1-0-
448000,00-
923
9230Otherproductsιy/9 5429076,78 3626933,14 1802143,64 5429076,78-
924 Otherexpenditure
iy/y 440238,77 94687,07 298995,62 393682,69 46556,08
TOTAL 137099239,40 119479206,38 17573476,94 137052683,32 46556,08

ANNEX 23
Summaryof1980appropriations andcarryovers
(inECU)
ECU
Totalbudgetfunds
avaitable
Appropr .committedExpenditure decla-
redbyMember
StatesExpenditure by
CommissionTotal
expenditure
Foodaid
Cereals &rice 166007963,49 88435744,19 20421539,40 108857283,59
MiLkproducts 315229900,53 173751689,15 6985793,47 180737482,62
Sugar 5827000,00 3521139,49-3521139,49
Otherproducts 10089136,61 4091357,97 5597778,64 9689136,61
Otherexpenditures 29789238,77 6867903,44 4146231,71 11014135,15
andtransport
TOTAL 526943239,40 276667834,24 37151343,22 313819177,46