ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)520
Vol.1979/0179

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM (79)520 final
Brussels -27th September 1979
X-' ' '''
r- ,/ » •
- A ■ •/\
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\; .jV- - . -yv --y
\
PROPOSAL FOR ACOUNCIL REGULATION (EEC )
AMENDING ,ASREGARDS THE FRENCH FRANC /THE ITALIAN LIRA ,
THEPOUND STERLING ,THE IRISH POUND ANDTHE DANISH
KRONER REGULATION (EEC )No878/77ONTHE EXCHANGE
RATES TOBEAPPLIED INAGRICULTURE
(presented bytheCommission tothe Council )
C0M(79 )520 final

EXPLANATORY MEMORANDUM
Ever since Regulation (EEC)No652/79of29March 1979 (OJNoL84of
4.4.1979 ,p.1)introduced theECUinto thecommon agricultural policy ,
themonetary compensatory amounts (MCAs )h^vecafculated inrelation tothe
central rates laid down inthis system .
ByDecision taken 23September 1979 these central rates were adjusted for
allMember States .These changes assuch donot affect therepresentative
rates currently applied intheagricultural sector (seeTable 1).
do
However ,these changes inthecentral ratesyhave effects onthe
calculation ofthe MCAs .The effects are set out inTable 2.
(a)Asregards the "positive "MCAs applied inGermany and theBenelux
countries ,areduction ispossible ;adecision onthis matter will
have tobetaken bytheCommission inaccordance with theManagement
Committee procedure .
(b)Asregards the "negative "MCAs ,adistinction must bemade .Insome
cases ,(Denmark ,Ireland ,thepigsector inFrance ),MCAs donot
apply .Thechanges inthecentral rates would here entail a
reintroduction ofMCAs .For all other cases ofexisting negative
MCAs ,anincrease of1.1or1.2points results from thechanges in
thecentral rates ,since thealteration inthegappeaches orexceeds
inallcases 1point (first subparagraph ofArticle 3ofRegulation
(EEC)No974/71).This consequence cannot beavoided except bymeans
ofachange intherepresentative rates .i<Asregards Denmark ,such a
change hasbeen suggested Itwould have >tobemade insuch awayas
tocause ,asinthepast ,therepresentative rate and thecentral -
rate tocoincide .
.I » ; ·
Inthecase oftheother Member States ,France ,Ireland ,Italy and
theUnited Kingdom ,itappears appropriate toalter the
representative rates insuch away that theincreases intheMCAs are
nullified .
Mi
The effects ofsuch analteration intherepresentative rates are set
outinTable 3.

-2-
3.TheCommission considers thatsuchadevaluation intherepresentative
rateswouldmakeitpossibletoavoidthecreationofnewmonetary
ι
compensatory amounts .Theeffectsarerelatively limited ;thefinancial
statement contains the;details . -
•)
Inordertoavoiddifficulties intradewhichmightarisefromaprolonged
delayinadapting theMCAs,itisproposedthatthemeasures envisaged
shouldtakeeffecton1October 1979.

TABLE 1:CENTRAL RATESANDREPRESENTATIVE RATES
Centralratesvaliduntil
23.9.1979
ECU NCCentralratesvalidas
from24.9.1979 .
ECU HCDifférence
in%Representative rates
("greenrates")
currently inforce
Di 2.51064 2.43557 ♦1,009 2.73341
5-79331 5.85522 -0.972 5.50961
(UKL) ,* "*■I0.663247 0.649822 ♦2.066 0.531264
(LIT) 1143.15 1159.42 -0.972 1043.84
HfL 2.72077 2.74748 -0.972 2,79914
B/LFR 29.453239.8456 -0.972 40.5954
DKft 7.C3592 7,36594 -3.802 -7.C3592
IRL
♦0.662633
• ♦0.669141
/~ «-0,972
*-0,652840
Specificrepresentative ratesalreadyexistforthefollowing currencies andsectors :
DM pigs 2.81432
wine
milkproducts
F£ pigs•5.71259
wine 5.42697
2.. .• 'Thepoundsterling doesnotobserveanymarginoffluctuation
^Themarginoffluctuation oftheLitisapprox.6

TABLE2:EFFECTS ONTHEMONETARY COMPENSATORY AMOUNTS
rHonetary compensatory amounts (1) ––i
Currencies I Products concerned InforceResulting fromthenew
central rates Difference
ent/im^IPigs-milk,mil*products♦3«3 ♦2A Reduction of0.9I
MfCJOtherproducts2.8 ♦1.9 0.9I
0H Pigs,wine,milkandmilk
products .10-8.♦10.7(2> ! 0.1
Otherproducts 9.8 ♦9.7(2)I0.1
0KR Ailproducts i 0■•*2.5(3) Increase of 2.5
rr<3) Pigs 0 1.0••
1.0 |
Wine 5.3m6.4 1.1
Otherproductsm3.7 1.8 1.1
IaUproducts L_o 1.0 . 1.0
I
Ill–l Il»
LITC3)lAllproducts exceptwine
A.3(4) 5,5(5) Increase of 1.2
luine 8.9(4)m10.1(5) 1.2
UKK3)IAllproductsI16.5(4) 7.7(5)L 1'2.j
«)Thefiguresgivenarethe"monetarydifferences "usedincalculating MCAs.Thisdifference corresponds,forthecurrencies
observing themarginof2.25%tothedifference betweenthecentralrateandtherepresentative rate,forthepoundsterling
andtheItalianlira,tothedifference betweenthemarketrateandtherepresentative rate.
(2)Thisfigureistobeunderstoodafterthedeductionofan"allowance"of1point.Thisisthefirstapplication ofArticle2(1a),
thirdsubparagraph ofRegulation (EEC)No974/71,aruleintroduced byArticle3ofRegulation (EEC)No652/79;thelatter
Regulation introduced theECUintotheCAP.
(3)figuresare^understoodafterthedeductionofan"allowance"of1.5points.
(4)Theseamountsarecalculated fortheweekbegin^ng 24September 1979.Theyarearrivedatonthebasisofthemarketrates
ascertained -asregardstheLit:theweekfrom22to2J.t3.1979 * ■ '■
-asregardsthepound:theweekfrom12tol8.9«1979 » x
(5)Forpurposesofcomparison andinordertohighlight theeffectofthealteration inthecentralrates,thesefiguresarecal­
culatedonthebasisofthenewcentralratesandofthemarketratesreferredtoinNote4.

TABLE3:ALTERATIONS TOTHEREPRESENTATIVE RATES
1.
CurrenciesRepresentar
Currentiverates
Proposed••
Dévaluation in%.·; Εττβ
■On MCAs .
Reduction inpointsictr #
IOnprices
Increase "in%
■M- 1
j0<r |1IKrsO.K1125 ECU
j1ECUs7.C2592 DKr1DKr»0.135760 ECU
1ECU»7.31594 DKr. •"!
3,8 î 3.9S 3-95
irfpig1FF«0.175C52 ECU
1ECU=5.71259 ÉCU1FF*0.173343 ECU
1ECU*5.76891 Ff 0.976 1^^I
0.936 I
wine1FF«0.154265 ECU
1ECU*5.42697 FF1FF»:.1?23:7£CU
1ECU*5.;«235 FF 1*019 1-1 .1.030 I
»
;Other
.products 1!1Ff-0.131501 ECU
\1ECUs5.53961 FF1FF*C-179f?2 ECU
1ECU«5.5=725 FF 1,035 1-1s I
1.046
tIRl
t.1k*1.53177 ECU
1ECU«0.652343 ♦1*s1.51i?2 ECU
1ECU=0.659274t 0.976 1 C,9?6 .
litwine
J.
1100Lit«0.995C23 ECU100Lits:.1?c4327 ECU
1ECU«1::5.C3Lit1ECU*1115.92Lit1.075 1-2 1-C37
1Cther
products;100Lit*0.0953434ECU
j1ECU*1-4S.E4lit.l100Lit*C,l/«.2746ECU
1ECU=1-tZ.lliit1-121 1*2^ 1.133 I
1tSterl.
I
î
I;1%*1.72039 ECU
j1ECU=0.531264k1t*1.7?US ECU
1ECU«0.5:7724t1-099 1-* 1.111

«I
COUNCIL REGULATION (EEC )No
of
amending ,asregards theFrench franc ,theItalian lira ,thepound sterling ,
theIrish pound andtheDanish kroner Regulation (EEC )No878/77
ontheexchange rates tobeapplied inagriculture
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreat /establishing theEuropean Economic Community ,
Having regard toCouncil Regulation No129onthevalue oftheunit ofaccount
andtheexchange rates tobeapplied forthepurposes ofthecommon
agricultural policy (1),aslast amended byRegulation (EEC)No2543/73(2),
andinparticular Article 3thereof t
Having regard totheproposal from theCommission ,
Whereas therepresentative rates currently applicable were fixed byCouncil
Regulation (EEC )No878/77of26April 1977 ontheexchange rates tobe
applied inagriculture (3),aslast amended byRegulation (EEC )No2047 /79 (4)
Whereas with effect from 24September 1979 certain changes inthecentral
rates oftheCommunity currencies have occurred within theEuropean monetary
system ;whereas these changes theoretically involve ,insome Member States ,an
in,or
increase /theintroduction of,monetary compensatory amounts ;whereas itisf making a
possible toavoid this effect by/corresponding change intherepresentative
rates ofDenmark ,France ,Ireland ,Italy andtheUnited Kingdom ;
(1)0JNoL106,10.10.1962 ,ρ.2553 /62
20JNoL263 ,19.9.1973 ,P.1
(3)0JNoL106,29.4.1977 ,P.27
(4)0JNoL237 ,21.9.1979 ,p.1

Whereas -these rates must beadopted immediately inorder toavoid anincreas in, j
ortheintroduction of,monetary compensatory amounts insome Member States ; j
whereas ,particularly forthis reason ,itisnecessary toprovide fora j
specific representative rate inthewine sector inFrance andItaly until 15
December 1979 } j
i
Whereas ,inthecase oftheFrench franc wher'e representative rates arealready laid
down forthe1980/1981 marketing year andarealready applicable inthepig
sector ,thealteration provided forshould also beapplied tothat rate ;
Whereas theMonetary Committee will beconsulted andwhereas ,inview ofthe
urgency ,itisnecessary toadopt themeasures envisaged under theconditions
provided forinArticle 3(2)ofRegulation Ho129;
HAS ADOPTED THIS REGULATION :
Article 1
1*InArticle 2aofRegulation (EEC)No878/77,paragraph 3isreplaced by
thefollowing paragraph :
"3*3ywayofderogation from paragraph 2,asregards theFrench franc :
(a)therepresentative rate of1French franc ■O.I82387 ECUshall
apply with effect from 1October 1979 1until 15December 1979 in
thewine sector ;however ,other dates maybespecified for
distillation operations ;
(b)therepresentative rate of1French franc ■Oi-179622 ECUshall
apply with effect from :
-16December 1979 in "thewine sector ;-however ,other dates may
bespecified fordistillation operations
-1January 1980 forthefishery products sector
-1November 1979 asregards olive oil
-1October *1979 inallother cases . ■ ,

-3-
ctherepresentative rateof1French franc =0.173343 ECUshall apply with
effect from : i
-1October 1979 forthepigmeat sector ,
1July 1980 fortheisoglucose sector ,
-1August 1980fortheeggs,poultry ,ovalbumin andlactalbumin sectors ,
-16December 1980forthewinesector ;however ,other dates maybespecified
fordistillation operations ,
-1January 1981 forthefishery products sector , I
-thebeginning oftS-1980/81marketing yearfortheother products forwhich a
marketing year exist :;,
-thebeginning ofthe1980/81milkyearforaltother cases notreferred to
above .
2.InArticle 2aofRegulation (EEC)No878/77,paragraph ,4isreplaced bythe
following paragraph :
"4.Bywayofderogation fromparagraph 2,asregards theItalian lira :
(a)therepresentative rateof100Italian lira=0.0984327 ECUshall apply
witheffect from 1October 1979until 15December 1979inthewinesector .
However ,other dates maybespecified fordistillation operations .
(b)therepresentative rateof100lira=0.0942746 ECUshall apply witheffect
from :
16December 1979 inthewinesector ;however ,other dates maybespecified
fordistillation operations , •
–1January 1980 forthefishery products sector,-
–1November I979 asregards olive oil
–1October 1979 inallother cases .
1.InArticle 2aofRegulation (EEC)No878/77,paragraph 5isreplaced bythefollowing
paragraph :
"5.Bywayofderogation fromparagraph 2,asregards thepound sterling ,the
representative rateof1pound sterling =0.70148 ECUshall apply witheffect
from :
i-16Devember 1979inthewine sector ;however ,other dates maybespecified
fordistillation operations ,- .
-1January 1980 forthefishery products sector ,
-1November 1979 asregards olive oil,
-1October 1979 inallother cases *

*
-4-
4.InArticle2aofRegulation (EEC)No878/77,paragraph 6isreplaced by
thefollowing paragraph :
"6.Bywayofderogation fromparagraph 2/asregardstheIrishpound,the
representative rateof1Irishpound=..1,51682ECUshallapplywith
effectfrom1October 1979inallsectors .
5.InArticle2aofRegulation (EEC)No878/77,thefollowing paragraph 8is
added :
"8.Bywayofderogation fromparagraph 2,asregardstheDanishkroner,
therepresentative rateof1Danishkroner*0.135760 ECUshallapply
witheffectfrom1October 1979inallsectors .
Article 2
ThisRegulation shallenterintoforceonthedayofitspublication inthe
Official JournaloftheEuropean Communities .
DoneatBrussels , FortheCommission

INANCIAL 8TAT IMENT
DATE 26.9.1979
1.Number ofrelevant budget entry :Titles 6and7..•Appropriations :9»582.1 inEUA
2.Title ofproject :Draft Council Regulation amending ,asregards FF,LIT ,UKL ,
IRL,DKR ,Reg .878/77ont^eexchange rates tobeapplied inagriculture .
3.LEGAL BASIS 1Article 3ofCouncil Regulation 129
4.Aims :Alignment ofrepresentative rates with thelatest alterations tocentral
rates intheEur pean monetary sustem .
5.FINANCIAL Implicati ons
4.0EXFB:DITUHG
-CHARGED TOTHEECBUDGET
(ROU'JiS /lNTERVENTI ON'S)
-CHARGED TONATIONAL ADKINISTR .
-CHARCED TOOTHER NATIONAL CROUPS
5.1RECEIPTS
•OVfM R2S0UI?C!S OFT!!S EC
(LEVIHS/CU3T0i- 'SDUTIES )
-NATIO.'IALFOR THEMARKETING TEAR CURRENT PIF'ANCIAL TEAR
6.3m.EUAFCLLOWINO FINANCIAL TEAR
■(80 1
51m.EUA
Multiannual timetable
5.0.1 ofexpenditure -
5.1.1 Multi annual timetable
ofreceiptsTEAR TEAR TEAR
5«2KETilOD OFCALCULATION :inmEUA
Financial consequences onCMOexpenditure
" M **MCA "
Total12II
+9.2
-2.9
+6•3i2§o
+74.5
-23.5
+51.0
6,0Cantheproject befinanced from appropriations entered inthe
relevant chapter ofcurrent budget ? -ÏS/K0
6.1FINANCING POSSIBLE BYTRANSFER B2IVEEN CHAPTERS OFCURitOT BUDC3T ? ÏH/N0
6.2NECiSSITT F08ASUPPLES-SKTART BUDGET ?
Yes
6**Appropriations tobeentered infuture budgets ?
Yes
COiOIENTS 1