28. 8. 73 Official Journal of the European Communities No C 69/5 
the scope of the Directive to include taxes for which 
the Treaty does not give exclusive responsibility to 
Community authorities. 
This procedure would allow earlier entry into force 
than a standard international convention, would lend 
itself more easily to any amendments which might 
prove necessary and would enable the duplications, 
and the divergencies of procedure and precedent 
mentioned above to be avoided. those of the receiving authorities, or even be set out 
in a separate article. 
3. Article 6 
Under Article 6 (1), the expression 'competent 
authority of the Member State' should be amended, 
as it seems to exclude legal procedures. 
4. Article 8 
2. Article 5 
Under Article 5, the obligations of the applicant 
authorities should be more clearly distinguished from Article 8, should be amended so that the rights to 
repayment covered by the Directive have, where 
appropriate, the same preferences and priorities as 
'national' ones. 
Done at Brussels, 28 March 1973. 
The Chairman 
of the Economic and Social Committee 
Alfons LAPPAS 
CONSULTATION OF THE ECONOMIC AND SOCIAL COMMITTEE 
on the Commission proposal to the Council relating to the fixing of prices for certain 
farm products and certain related measures 
A. REQUEST FOR AN OPINION 
At its 235th meeting held on 22 March 1973, the Council decided to exercise its option 
of consulting the Economic and Social Committee on the above proposal. 
The request for an Opinion was sent by the President of the Council to the Chairman 
of the Economic and Social Committee on 23 March 1973. 
B. TEXT WHICH WAS THE SUBJECT OF THE CONSULTATION 
The text which was the subject of the consultation has not yet been published in the 
Official Journal of the European Communities. 
C. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
At its 110th Plenary Session held in Brussels on 28 and 29 March 1973, the Committee 
adopted its Opinion on the text referred to under B, by 62 votes to l,with 13 abstentions 
out of the 76 members present or represented. 
The text of the Opinion is as follows: 
No C 69/6 Official Journal of the European Communities 28. 8. 73 
THE ECONOMIC AND SOCIAL COMMITTEE, 
t Having regard to the request by the Council of the 
European Communities of 23 March 1973 for an 
opinion on the 'proposal from the Commission to the 
Council on the fixing of prices for certain farm 
products and certain related measures'1; 
Having regard to Articles 47 and 198 of the Treaty 
establishing the European Economic Community; 
Having regard to the Decision of its Bureau of 7 
March 1973 to instruct the Section for Agriculture to 
prepare an Opinion on the matter; 
Having regard to Articles 46 and 47 of the Rules of 
Procedure; 
Having regard to the various Opinions previously 
delivered by the Economic and Social Committee on 
this same matter; 
Having regard to the work of the Section for 
Agriculture on the Commission Report on the 
agricultural situation in the European Economic 
Community and on the Commission document on 
farm incomes in the enlarged Community; 
Having regard to the Opinion delivered by the 
Section for Agriculture at its meeting held on 29 
March 1973; 
Having regard to the verbal report given by Mr 
Clavel; 
Having regard to its deliberations at the 110th 
Plenary Session held on 28 and 29 March 1973, 
sitting of 29 March 1973; 
Considering the importance of the proposals for 
fixing the prices of farm products, particularly for 
producers, processors and consumers in the 
Community; 
Considering the consequent need to consult all the 
social and professional groups concerned early 
enough; 
Considering that the Annual Report on the 
agricultural situation and also the document on farm 
incomes supply certain elements which did not exist 
until now for the economic analysis of the 
agricultural situation in Europe; 
Considering the delays in the achievement of the 
common measures provided for by the Treaty of Rome in non-agricultural fields; and considering the 
consequent obstacles to the functioning and 
development of the common agricultural policy; 
Considering the upheaval caused in the working of 
the common agricultural policy by the extreme 
instability of the monetary situation; 
Considering that the situation of agriculture and of 
farmers in the enlarged Community requires 
immediate steps to remedy income disparities; 
HAS ADOPTED THE FOLLOWING OPINION: 
1. The Economic and Social Committee deeply 
regrets the fact that it must, yet again, remind the 
Council and the Commission that formal 
consultation of the advisory bodies on price 
proposals should be the culmination of a fruitful 
comparison of the various points of view existing 
within the Community. 
It is particularly regrettable that this comment, which 
the Committee has made in several previous 
opinions, should have to be reiterated on the occasion 
of the publication of the price proposals for the 
1973/74 marketing year, which for the first time 
apply to the enlarged Community. Whilst aware of 
the difficulties which have had to be overcome, the 
Committee objects to the very short time allowed, a 
time too short for it to formulate an opinion matching 
the relevance of the present proposals not only to 
agriculture and the future of farmers in the 
Community, but also to the development of the 
Community as a whole; similarly, the Committee is 
unable to express its pre-occupations in various fields 
of prices policy and concomitant aid measures, 
particularly as regards the future milk and beef and 
veal output in the light of demand. 
Finally, the Committee noted that the price proposals 
are closely linked to the monetary proposals 
contained in the Commission document, and 
expresses its regret that the Committee has not been 
consulted on this document. 
The Committee is bound to mention, however that it 
has been possible to establish a close collaboration 
with the Commission for the study of the annual 
farm report and the document on the situation of 
farm incomes in the enlarged Community. 
The Committee hopes that this sort of collaboration 
is in conformity with Article 47 of the Treaty and 
will be actively pursued in the future. 
28. 8. 73 Official Journal of the European Communities No C 69/7 
2. Following its careful study of the annual report 
and the report on farm incomes, the Committee has 
singled out the following aspects: 
— the effects of inflation on agriculture and the 
urgent need to implement a coordinated 
stabilization policy; 
— the need to speed up modernization of 
agriculture, implying increasing use of capital; 
— increased imbalance between milk and meat 
production in relation to the outlets for these 
products; 
— the magnitude of farm income disparities between 
countries, regions, individual holdings and type of 
production. In this context, the relatively low 
incomes of herbivorous animal farms is worthy of 
note; 
— the absence of any reference to improvment of 
members of the agricultural community who 
currently do not earn enough — in particular 
employees in agriculture (hired workers) — in a 
period of rapidly rising prices, and in view of the 
widening disparity between the income of 
agricultural workers and non-agricultural 
workers; 
— the need for a study on the differences between 
producer and consumer prices in order to 
high-light the causes and consequences of the 
situations observed and, where appropriate, to 
make the proposals called for. 
3. Moreover, the Committee notes that during 
1972 little progress was made towards common 
policies or harmonization in the various spheres 
covered by the Treaty of Rome (social, tax, regional, 
monetary, transport policies, etc). As a result, the 
differences between certain production cost factors 
have not been narrowed to any significant extent. 
This partly explains the increasing income disparities 
from one country or region to another noted by the 
report on farm incomes. 
The Committee is bound to reiterate in this context 
its Opinion of 28 October 1971 (OJ No C 16, 19 
February 1972, p. 19): 
'In order to achieve the objectives laid down in 
Article 39 of the Treaty including the obtaining 
for farmers of a satisfactory income comparable 
to those obtained in other sectors of the economy 
the Community must swiftly implement the other 
objectives envisaged by the Treaty using concrete 
and effective measures. Otherwise, the lack of 
such actions may destroy the common agricultural policy with all the consequences that 
this would entail for the wrhole of the Community 
structure.' 
The Committee formally draws the attention of the 
Council to the growing threat to the common 
agricultural policy in such a situation and to the 
effects that the continuing existence of such 
considerable disparities could have on the 
Community as a whole. The political responsiblity of 
the Community and the Member States with regard 
to the future of Europe will be seriously committed 
from now on. 
4. In its Opinion of 28 October 1971, the 
Committee declared itself to be: 
'In favour of a system for fixing agricultural 
prices which, on the basis of meaningful 
economic data and paying particular attention to 
the trend of the costs of production factors and 
the standard of living in the non-agricultural 
sectors, allows producers to obtain, from holdings 
which are well structured and economically run, 
incomes comparable with those earned in the rest 
of the economy.' 
Having analysed the criteria for determining prices 
proposed by the Commission in March 1971, the 
Committee accepted: 
'The Commission's new approach on condition 
that it is based on more significant yardsticks, 
that the socio-structural policy and policy on aid 
to priority agricultural regions at the same time 
have concrete effects, and that temporary income 
aids for certain categories of holdings are decided 
on and their implementing rules are extended and 
diversified.' 
Recalling this Opinion, which it confirms, the 
Committee notes that it has not been taken into 
consideration in the Commission's proposals: 
— in spite of the reference to the annual report, to 
the report on the results gathered by the 
accountancy data network and to the report on 
farm incomes, these proposals take insufficient 
account of the current situation and of future 
income prospects of people working in 
agriculture; 
— the aid measures for low-income brackets 
proposed in 1971 have not been accepted; the aid 
measures to priority agricultural regions have not 
yet been adopted; the proposals on hill farming 
and backward regions, even if they were 
No C 69/8 Official Journal of the European Communities 28. 8. 73 
immediately decided on, could not, at best, come 
into operation for a year; 
— the socio-structural measures decided are not yet 
in operation in any of the Member States and it 
seems that they can only come into operation 
after an added period of time, due to the Member 
States' delay in submitting the national provisions 
for their implementation and the lack of means at 
the Commission's disposal for examining them. 
Their effect on the agricultural structures and on 
the farmers' situation will be delayed accordingly. 
5. Finally as regards the problem of the 
relationship between farm prices, the Committee 
notes that the Commission has considered this 
problem, without, however, reaching a satisfactory 
solution for the Community as a whole. Among 
other things this applies to certain deficit production 
sectors (olive oil, durum wheat, certain varieties of 
tobacco) for which the Commission has not made 
any provision for price increases. 
6. The impact of the proposed prices in the 
various countries is greatly altered by the monetary 
considerations, and by the proposal for a Regulation 
altering the current rates for conversion of the unit of 
account into national currencies, which the 
Commission has added to the economic 
considerations underlying its price proposals. The 
Commission's proposals will, in fact, increase prices 
in the national currency of a given product in some 
countries and reduce it in others; producers and 
consumers will be affected to differing degrees, 
depending on the country. 
The Committee recognises the need for measures 
which allow a normal development of trade in 
agricultural products within the Community and 
simplify compensation operations and notes that the 
Commission proposals will really help safeguard the 
working of the single market without however 
narrowing income disparities in agriculture, and 
between agriculture and other sectors of the 
economy. 
The Committee can nevertheless accept the 
arrangement proposed by the Commission which 
gives priority to the single market, since under the 
present circumstances the Commission proposal on 
the rate of conversion of the unit of account 
Done at Brussels, 29 March 1973. preserves a single market and therefore the common 
agricultural policy which, for the Section, is a 
fundamental component of the Community venture. 
The Committee stresses the crucial relevance of 
economic and monetary union, or at least of 
establishing fixed monetary parities, in the pursuit of 
a common, lasting agricultural market. 
The Committee considers, however, that the system 
proposed responds to monetary rather than 
agricultural considerations, and there is a risk of it 
seriously affecting farm incomes in some countries 
and the situation of consumers in other countries. 
7. Finally, the Committee notes that, unlike the 
method used last year by the Commission to present 
its proposals to the Council, the present price 
proposals do not take into account certain economic 
elements, which, if they had been taken into 
consideration, would have led to the Commission 
proposing a general level of prices which is fairer to 
agricultural producers in the Community. 
The Commission's proposals are therefore 
unacceptable unless they are accompanied, especially 
in certain regions, by immediate measures to offset 
the negative effects they will have on the worst-off 
categories of producers and consumers, including 
employees (hired workers) in agriculture. 
8. Quite apart from the opinion expressed above, 
the Committee, referring to point 24 of the 
explanatory memorandum preceding the Commission 
proposals, considers that it is vital for a thorough 
overall examination to be made now of the 
medium-term prospects for agriculture in the 
Community, in order to provide a properly 
thought-out basis for the choice of the measures to 
be implemented to achieve the general objectives of 
the common agricultural policy. 
The Committee also asks the Commission to carry 
out an investigation into the relationship between the 
common agricultural policy and food consumer 
prices. This investigation ought to be carried out as 
soon as possible. 
Finally, the Committee hopes to be closely associated 
with Community work in these last two fields. 
The Chairman 
of the Economic and Social Committee 
Alfons LAPPAS 
28. 8. 73 Official Journal of the European Communities No C 69/9 
ANNEX 
to the Opinion containing amendments rejected at the Plenary Session 
The Opinion of the Section for Agriculture (Doc. 248/73 fin.) was the basis of the Economic and 
Social Committee's discussions on the preparation of its Opinion on the: 
'Commission proposal to the Council relating to the fixing of prices for certain farm 
products and certain related measures.' 
First amendment 
The amendment below was rejected, by 27 votes in favour, 36 votes against and 13 abstentions: 
Amend point 7 to read as follows: 
'Finally, the Committee notes that, unlike the method used last year by the Commission to 
present its proposals to the Council, the present price proposals do not take into account 
certain economic elements. 
However, these proposals of the Commission are acceptable but they must be accompanied 
by limited and degressive measures to offset the negative effects which they will have, in 
particular, on the worst-off categories of agricultural workers, producers and consumers, 
including employees (hired workers) in agriculture.' 
Second amendment 
The amendment below was rejected, by 12 votes in favour, 54 votes against and 12 abstentions: 
Insert the following at the end of point 7: 
'The Section considers that the Commission's price proposals do not suffice to allow 
farmers to keep pace with the income trend in the rest of the economy. 
The Section considers that average price increases of 7-5 % (on the intervention price level, 
with appropriate grading for the individual agricultural products) are necessary.'