ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73)1570
Vol.1973/0271

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73 )1570 fin .
Brussels ,xjSeptember 1973
Proposal fora
REGULATION (EEC)oftheCOUNCIL
onthe exchange rates tobeapplied inagriculture forthe
Netherlands florin
(submitted totheCouncil bytheCommission )
COn(73 )1570 fin .

EXPLANATORY MEMORANDUM
I
Lytelexdated15September 1973,theNetherlands Government notifiedthe
Commission ofa5$revaluation ofthecentralratefortheNetherlands
florin.Atthesametime,theNetherlands Government requestedthata
specialconversion ratebefixedfortheNetherlands florinforthe
purposesofthecommonagricultural policy,suchratetobe105$ofthe
parvaluecommunicated fortheNetherlands florintotheInternational
Monetary Fundandrecognized bythePond.
II
1.TheNetherlands florinisoneofthecurrencies whicharefloating
jointly.Thecentralrateapplicable hitherto -was2.76$abovethe
parvaluecommunicated totheInternational Monetary Fund.Accordingly ,
"monetary"compensatory amountsbasedonsuchpercentage wereappliedin
tradeintheagricultural productsconcerned .(Article 2ofRegulation
(EEC)No974/71,amendedinthisrespectbyRegulation (EEC)No1112/73–
OJNoL114,30April1973,P-5.)
These"monetary "compensatory amountswereappliedintradewithnon-Member
Statesandinintra-Comiaunity trade,withtheexception ,however,oftrade
withtheBeneluxcountries .TheBelgo–Luxembourg Economic Unionandthe
Netherlands haddecidedtomaintain thesamemarginsoffluctuation
betweentheircurrencies asobtainedpriorto9May1971,nottochangethe
relationships betweentheeffective parvaluesoftheircurrencies .
Forthatreason,theseMemberStatesdeclared,pursuanttoArticle233of
theTreaty,thattheydidnotwishtoapplythe"monetary"compensatory
amountsamongstthemselves andtheyhavebeentreatedasasingleMember
Stateforouuposes ofapplying thesystemof"monetary "compensatory amounts.

2.Intheorytheincreaseinthecentralratefortheflorinshould "bring
about -acorresponding increaseinthe"monetary"compensatory amounts
applicable intradebetweentheNetherlands andtheotherMemberStatesand
non-Member States,and,inthecaseoftradewiththeotherBeneluxcountries ,
shouldresultincompensatory amountsbeingintroduced .
Ifthisresultistobea^/oided,astheNetherlands Government ha3requested ,
measures mustbetakentoensurethatthedifference between therateused
fortheconversion ofagricultural pricesandthecentralrateremainsequal
to2.75$,aspreviously .Thiscanbeachievedbyfixingarepresentative
ratefortheconversion ofagricultural p?icesbyrevaluing by5$theparvalue
hitherto usedforsuchconversions .
3.Thiswillresultinacorresponding decrease inagricultural pricesin
theNetherlands ofabout5Thismeasurevri.llnotonlyhaveanti-
inflationary effectsbutwillalsobeinaccordance withthebasicprinciple
ofuniformity ofpricesinthecommonagricultural market.Fromthetechnical
pchtofview,thischangeintherateusedforconverting variousamounts
pursuant tothecommonagricultural policywillnecessitate aseriesof
consequential changeswhichmustbedealtwithasiftheparvaluehad
changed:therelevantprovisions ofRegulation No1134/68musttherefore be
madeapplicable .
III
Thefixingofarepresentative rateisaderogation fromArticle2(1)of
Regulation No129/62(OJNo106,30October1962,p.2553)«Itismade
possible bytheprovisions ofArticle3(l)ofthatRegulation .
1.Thatparagraph ,initspresentform,providesthatderogations maybe
nedebytheCouncilortheCommission ,actingundertheinstruments respective !;
concerning themandinaccordance withtheprocedures laiddowntherein.For
thefixingofcertainprices,however,theprocedurelaiddownbyArticle43(2)
oftheTreatymustbefollowed.Inviewofthespeedatwhichmeasuresofthi

kindmustusually "botaken,wmchisparticularly trueofthepresentcase,
theCommission ,inMarch 1973Tsubmitted totheCouncil,aspartcfasetof
generalproposals ,provisions designedtosimplifytheprocedure involved
(doc.R784/73,ACJRI245,FUT178f26March1973;Article10).The
European Parliament delivereditsOpiniononthisproposal on6April1973.
TheCouncilagreedwiththeproposal ont-.-ropointsvrhichwereincorporated
inRegulations (SEC)libs1112/73and1225/73.which "bothamendedRegulation
(EF.C)!fo974/71*Asregardstheotherpoints,particularly Article10vrhich
providesforthesimplification oftheprocedure laiddownbyArticle3(l)
ofRegulation ITo129/62,consideration oftheproposalhasbeenpostponed.
TheCommission proposes totheCouncilthattheprovisions ofArticle 10
shouldbeadoptedasaseparate measure.
2.Article 3ofRegulation lib"29requiresthattheMonetary Committee be
consulted .Thismatterwillbesubmitted tothatCommittee attheirmeeting
on17Sentember 1973•

~~M–
Proposal fora
REGULATION (EEC)oftheCOUNCIL •
ontheexchangeratesto"beappliedinagriculture forthe
Netherlands florin
THECOUNCIL OPTHEEUROPEAN COMMUNITIES
1Havingregard ,toCouncilRegulation No129onthevalueoftheunitof
accountandtheexchangeratestobeappliedforthepurposesofthe
commonagricultural policy,aslastamended "byRegulation (EEC)No ,
andinparticular Article3(1)thereof;
Havingregardtotheproposal fromtheCommission ;
HavingregardtotheOpinionoftheMonetary Committee ;
WhereasthesituationreferredtoinArticle3(1)ofRegulation No129,
inwhichderogations mayhemadefromtheprinciple ofusingparvalues
forconverting onecurrencyintoanother,nowobtainsinvariousMember
States;
Whereas,however,ithasgenerally beenpossibletosolvetheproblems
posedbysuchasituation byapplying "monetary"compensatory amounts,
enabling exchangeratestobemaintained whichcorrespond tothepar
valuesofthecurrencies concerned ;
Whereas,byreasonofihecustomsunionexisting amongtheBeneluxcountries ,
andthefactthattheseMemberStateshaddecidedtomaintain amongsttheir
currencies theratesrulingbefore91971,"thesystemof"monetary"
compensatory amountsdoesnotapplyintradebetweenthesecountries which,
forthepurposesofthatsystem,aretreatedasoneMemberState;
Whereason15September 1973theNetherlands Government decidedtoraisethe
centralratefortheNetherlands florinby5^5whereas,therefore ,the
systemof"monetary"compensatory amountsshouldalsoapplyintradebetween
theBeneluxcountries ,sincefortheseMemberStatestheseamountsare
calculated onthebasisofthedifference betweenthecentralrateandthe
parvalueforeachcurrency,andthisdifference isnolongerthesamefor
thesecountries ;
10JNo10630October1962,p.2553/62. •*/•»

-r-
Whereas,however,thisresultcould "beavoided "byfixing,pursuanttothe
saidArticle 3,arepresentative exchangeratefortheNetherlands florin
of105$ P3,1"valueofthatcurrency,sothatthedifference "between
thecentralrateandtherepresentative rateisthesameasthedifference
existingfortheBelgian/Luxembourg francbetweenthecentralrateandthe
parvalue;
Whereastofixsucharepresentative ratewouldleadtoagricultural prices
intheNetherlands beingchangedonceagain;whereasthisresultis
consistent withthebasicprinciple ofuniformity ofpricesintheCommunity ;
whereasitwasonthebasisofthisprinciple anditsconsecmences that
*specificprovisions werelaiddowninCouncilRegulation (EEC)No1134/68
of30July1968layingdownrulesfortheimplementation of:Regulation
(EEC)No653/68onconditions foralterations tothevalueoftheunitcf
accountusedforthecommonagricultural policy;whereastheseprovisions
onlycoverthecaseofachangeiitheparvalueofacurrency ;whereas
theyshouldalsobeappliedinthiscase;
HASADOPTED THISREGULATION :
Article 1
J».Where,transactions tobecarriedoutpursuanttoinstruments concerning
thecommonagricultural policyorspecialmeasures takenunderArticle 235
oftheTreatyrequire sumsgiveninNetherlands florinstobeexpressed in
anothercurrencyorinunitsofaccount,theexchangeratetobeapplied
shall,bywayofderogation fromArticle2(1)ofRegulation No129,"b®
thatwhichcorresponds totherepresentative rateforthatcurrency.
2.Therepresentative ratereferredtoinparagraph 1shallbe:
1Netherlands florin=0.2904unitsofaccount.
Article 2
Theprovisions ofRegulation (EEC)No1134/68,inrespectofalterations in
therelationship betweentheparvalueofthecurrencyofaMemberState
andtheunitofaccountshallapply.
Article 3
1»ThisRegulation shallenterintoforceonthedayofitspublication in
theOfficialJournaloftheEuropean Communities .Itshallhaveeffect
asfrom17September 1973* „
\)JNoL188,1August1968,p.1.

2.Itshall cease tohave effect atsuch time astheKingdom ofthe
Netherlands shall declare anewparvalue totheInternational Monetary
Fund .
This Regulation shall he "binding initsentirety anddirectly applicable
inall Member States .
Done atBrussels , 1973
For the Council
The President