ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)12
Vol.1979/0007

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COMMISSION OFTHEEUROPEAN COMMUNITIES
GENERALBUDGET COM(79)12final.
SeotionIII–Commission
Brussels,16january1979
TRANSPER OFAPPROPRIATIONS BETWEENCHAPTERS
(Compulsoryexpenditure )
■:'Μ/\ ■ ·■:·«/ \ ,.v■'\V '"\ />>Vav-
COM(79)12final

GErJERALBUDGET
SoeUonItt-CofnmisBion
Transferofappropriations "betweenChapters
(compulsoryexpenditure)
ProposalNo40 EUA.^
1.PromChapter60Cereals
Article 600Refunds
Item 60000Refunds 320000000
Article 601Intervention
Item 6013Aidfordurumwheat 40000000
Item 6014Carry-overpayments 20000000
Item 6015Buying-mandsubsequentoperations 32000000
2.PromChapter61Rice
Article 610Refunds
Item 6100Refunds 14000000
3.PromChapter63Oilsandfats
Article 631Intervention inrespeotofoliveoil
Item 6310Production aid 40000000
4.PromChapter66Pigmeat
Article 660Refunds 35000000
5-PromChapter68Fruitandvegetables
Article 681Intervention inrespectoffresh
fruitandvegetables
Item 6810Withdrawalcompensation andbuying>-in 20000000
Item 6811Processing anddistribution operations 3000000
Item 6812Compensation forpromotionof
Communitycitrusfruit 5oooooo
6.PromChapter69Wine
Article 691Intervention inrespectofwine
Item 6910Aidforprivatestorage 20000000
Item 6912Distillation ofwine 120000000
Article 692Otherexpenditure
Item 6920Obligatorydistillation ofthe
by-products ofwine–making 10000000
7.PromChapter70Tobacco
Article 701Intervention inrespectoftobacco
Item 7010Premiums 20000000
8.PromChapter45Monetarycompensatory amounts
collectedorgrantedinrespectof
tradeinagricultural products
(MCAs)
Article 450Intraf-Community trade
Item 4500Monetarycompensatory amountson
importspaidorleviedbyimporting
MemberStates 130000000
-829000000

-2-
9,ToChapter62
11.
12.
13.
14.Article
jtem
Article
Item
Item620
6200
621
6210
6214
10.ToChapter65
Article 65O
Item 6500
Article 651
Item 6511
•ToChapter67
Article 67O
Item 671
ToChapter73
Article 734
ToChapter74
740
ToChapter46
460-Milkand.milleproduots
–Refunds
–Refunds
–Intervention inrespectof
skimmedmilk
–Aidforskinuned-milk powderfor
useinanimalfeed
–Publicstorageandspecial
disposalmeasures
–Beefandveal
–Refunds
–Refunds
–Intervention inrespectof"the
storageofbeefandveal
–Publicstorage
–Eggsandpoultrymeat
–Refundsoneggs
–Refundsonpoultrymeat
–Othersectorsorproduotssubjectto
commonmarketorganization
–Dehydratedfodder
–Refundsoncertaingoodsobtainedby
processingagricultural product®
–Expenditureresultingfrom,the
application ofdifferentexchange
ratestotheEAGGFGuaranteeSection+290000000
+
+50000000
85000000
+5000.000
+115000000
+
+1000000
4000000
+15000000
+57000000
+207000000
+829000000
PursuanttotheprovisionsofArticle21(4)oftheFinanoialRegulation,
theFinancialControllerhasapprovedthisproposal,attestingthatthe
appropriations areavailableat20December1978*.

EXPLANATORY MEMORANDUM
A.Introductory note
Theappropriations enteredintheBudgetfor1978are,inoverallterms,
adequatetocovertheexpendituretobeincurredupto31December1978
andenableArticle8ofCouncilRegulation(EEC)No1883/78tobeapplied
forthefirsttime.Theseprovisions changethemethodofassessing
interventionstocksattheendofthefinancialyear(averagepurchase
priceinplaceoftheintervention priceobtainingatthebeginningofthe
followingfinancialyear,liklihoodoffurtherreductioninthevalueof
stocksarisingfromtheestimatedmarketconditions)andleadtothe
followingestimatesofadditionalexpendituretobebornebytheBudget
forthefinancialyear1978(inmillionEUA):
Cereals 13.4
Skimraed-milk powder 134.5
Butter 79.0
Oliveoil 22.6
Beefandveal 75-3
Tooacco 14.2
339.0
IXialrate 69.O
Total 408.0
Theproposed "transfers "takeaccountoftheaboveinentioned lesserstockvalue*
Thelargesumsinvolvedincertainoasescanbeexplainedbythefaotthatithasnotbeennecessary–giventheadequacyofoverallappropriations –
topresentanamendingbudgettothebudgetaryauthorityreflecting "the
adjustmentsarisingfromthefixingofpricesandchangesin
regulationsconcerningtheeconomioandmonetarysituation.
TheEAGGPCommitteewasconsultedon24November1978.

-4-
B. Chapters -where additional appropriations have been requested
■1.Chapter 62-Milk andmilk products +425»u.a .
.(Theshortfall inappropriations isduetothestock assessment operation
carried outinaccordance with Article 8ofRegulation 1883/78,tothe
Council Decision of12May 1978 »"toanincrease inexports ,theamounts
ofskimmed-milk powder tobeused forpigfeed ,theprivate storage of
butter andquantities covered byspecial measures for thedisposal of
butter fat .
Furthermore ,therevenue accruing from thefinancial participation of
milk producers will ,in1978 ,exceed theexpenditure ontheoo-responsibility
programme .Consequently ,theCommission will propose –inacoordanoe with
therules laid down inthefirst preliminary draft supplementary Budget
for 1978 -that transfers bemade under the 1979 Budget toincrease the
appropriations available forco-responsibility with theaimofbringing
about the overall nrulti –annual balance which isneeded inthis field .
Itshould benoted that theEAGGF Committee hasalready been advised of
this intention .
2.Chapter 65–Beef andveal +120mu.a *
This refund isjustified bythestock assessment operation carried out
inaccordance with Article 8ofRegulation 1883/78,byanincrease in
exports andbythefact that since improvement onthedomestic market has
been more sluggish that expected ,stocks attheendofthefinanoial year
are higher than forecast .
3.Chapter 67–Eggs andpoultrymeat +5®u.a.
Thedegree ofself-sufficiency hasincreased inrespect ofpoultrymeat ,thus
leading tohigher exports than anticipated ;hence theneed ,foranextra
5mu.a .
4.Chapter 7"^–Other common organizations ofthemarket +15mu.a .
Theadditional 15mu.a .requested istocover additional expenditure
principally arising from therestructuring ofthecommon organization of
themarket indehydrated ordried fodder andfrom thenewprovisions
concerning peas andfield beans .
5.Chapter 74-Refunds oncertain goods obtained byprocessing agricultural
products +57mu.a .
Theadditional 57®u.a .isneeded asaresult ofthegrowth inexports
ofprocessed products tonon-member countries hasbeen more rapid than
predicted andthelowworld rates forsugar andmilk products .

-5-
6.Chapter 46-Expenditu reresult ingfromijiheapplication ofdifferent j
exchange rates +207mu.a « f
»
Tothis chapter are charged ,thedifferences "between conversions ofnational !
currencies into agricultural units ofaccount bymeaJis oftheweighting ■
factors specified inRegulation (EEC)No724/78sjidtheir conversion into j
European units ofaccoujit at "therates onthe20th ofeach month .The j.
chapter shows alarge deficit basically because oftheextension ofthe t
provisions allowing exporter Member States topaymonetary compensatory
amounts onimport into certain Member States with adepreciated currenoy .
(Art .2aofRegulation (EEC)NO974/71)although when theBudget was
drawn upitwas assumed that these would not beextended .The extension
involves thetransfer ofamounts intheorder of250mu.a .from !
Chapter 45toChapter 46. '
Moreover ,itshould benoted thattheweighting factors wereadopted before i
theCouncil 'sdecision of12Mayandwere fixed onalump-sum basis by j
Regulation (EEC)No724/78. '
i
Finally ,there areslight differences inthedistribution ofexpenditure
inagricultural u.a .compared with what isintheBudget .Inparticular ,
the share ofexpenditure ofthose Member States with adual rate
coefficient higher than theaverage ismuch higher than expected .
Aninitial increase of207mu.a .issuggested while awaiting more details
oftheexpenditure under eaoh item .
C. Chapters where asaving isexpected tobemade
1.Chapter 60–Cereals –412mu.a .
Themain saving inthis sector relates torefunds ,storage items anddurum
wheat .
Thereduction inrefunds isdue tothe fact that world prices were more
favourable than attheendoftheprevious summer andparticularly toa
poorer harvest in1977-1978 than expected ,although theestimate was
itself very much lower than trends indicated .
Thereduction instorage expenditure wasalso duetothepoor harvest and
totheCouncil 'sdecisions of12May 1978 oncompensatory allowances .
Thesaving inrespect ofdurum wheat isdueboth toareduction inthe
amount ofland under thecrop in1977 which exoeeded thefigures used when
drawing uptheBudget andtothefact that payments forformer growing
seasons which hadfallen below forecasts had caught up.
r
f
i
i

2.Chapter 61-Rice –14mu.a
Thesaving isduetoadropmquantities exported andtotherefund rate .
3'.Chapter 63–Oils andfats –40mu.a.
This sector shows aslight excess inaids fortheproduction ofoilseeds
(10mu.a.)which islargely offset bythesavings expected inolive oil
where storage costs have increased butwhere production aidhasnot
caught upthedelay inpaymentsasexpected .
4.Chapter 66-Pigmeat –35■u.a .
There hasbeen aconsiderable saving inthis sector because thequantities
exported arelower than expected (asdomestio consumption hasincreased )as
too aretherefunds .Theappropriations cantherefore bereduced initially
by35mu.a .
5.Chapter 68-Fruit andvegetables –28mu.a.
Theexpected saving isdue toadecrease inproduction and thus toquantities
withdrawn from themarket ,particularly apples andpears .
6.Chapter 69-Wine –150mu.a.
Theharvest wasmuch poorer than expected from trends ,which accounts forthe
savings onstorage andparticularly ondistilling .Moreover ,theoperations
planned forwhen drawing uptheBudget byway ofapplication ofthereserve
guarantees inlong-term oontracts proved nottobenecessary .
7.Chapter70-Tobacco –20mu.a.
Thesaving expected inthis sector(20mu.a.)isaresult both oflower
production than expected andofmarketing difficulties forcertain oriental
varieties which ledtoanincrease inintervention butdelays inthepayment
ofpremiums .
8.Chapter 45–Monetary compensatory amounts –130mu.a«
Thedistribution ofMCAinintracommunity trade hashad tobereviewed
following theextension ofthearrangement whereby Member States areallowed topayatspecial lowrates v,Art .2(a)ofReg.974/71)•Although
ithasnoeffect ontheSUAasawhole ,this extension involves transf erring -
amounts intheorder of250mu.a.ofChapter45toChapter 46.