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DOCUMENTS "COM"
COM(82)591
Vol.1982/0187

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(82)591 final
Strasbourg,14thSeptember 1982
PROPOSAL FORACOUNCILREGULATION _(EEC)V\•!.i-/V
MENDED ^
.**
ACOUNCILREGULATION (Ef,
EEC)No878/77on*-h'd/>amendingRegulation (EEC)No878/77on,theexchangerates
tobeappliedinagriculture a^
(presentedbytheCommissiontotheCouncil,
pursuanttothesecondparagraphofarticle149oftheEECtreaty)
COM(82)591final

EXPLANATORY MEMORANDUM
1.Inresponse toaFrench request for thedevaluation ofthegreen rate
oftheFFforpigmeat andsheepmeat ,theCommission forwarded a
proposal totheCouncil providing for such devaluation with effect from
1November 1982 forpigmeat andsheepmeat andfrom thebeginning ofthe
marketing year fortheother products (Council Doc .8305 /82).
TheCouncil failed toreach agreement ontheproposal ,hoping that a
debate could beheld ontherules tobefollowed .Belgium also put
forward arequest for »thedevaluation ofthegreen rate forpigmeat .
2.TheCommission takes theview that guidelines should bedrawn uponthe
basis ofthevarious practices followed inthepast .Anewgreen rate
should always bedecided onatthe same time for allproducts .The
newgreen rate should enter into force either simultaneously inall
sectors orinprinciple atthebeginning ofthemarketing year .
Exceptions could ,however ,bemade insome cases ,for instance when a
monetary event occurs after theprices have been fixed andafter the
beginning ofthemarketing year forcertain products .Insuch acase
itshould bepossible toapply thenewrate immediately for the
products forwhich themarketing year hasalready commenced and atthe
beginning ofthemarketing year for theothers .
Ifthedecision isadopted intheautumn ,when themarketing year has
already begun formost products ,itshould also bepossible toprovide
for therate toenter into force atthebeginning ofthemarketing year
immediately following thedecision soastoavoid delays ofmore than a
year .Lastly ,itshould bepossible tomake exceptions induly
justified cases .
3.TheCommission has therefore amended itsproposal with regard to
France ,proposing asthestarting date forallproducts thebeginning
ofthemarketing year following thedecision .
Italso proposes thesame arrangement forBelgium andLuxembourg .

-2-
4.Asregards thesize ofthedevaluation ,theCommission proposes that
thefull difference between thegreen rate and thecentral rate bemade
up .
5.Regulation (EEC )No878/77lays down that inthewine sector thedate
ofentry into force ofthenewgreen rates ,inthecase ofcertain
distillation operations andcertain aids ,maydiffer from thedate of
entry into force ofthenewgreen rates established inprinciple for
thewine sector .This possibility remains unchanged inthis
Regulation butfor thesake ofclarity therelevant provision hasbeen
redrafted .
6.Thefigures intheTable onthefollowing page describe themonetary
situation atpresent and that which would result from thepresent proposal .
7.(a)Cost ofthemeasure compared with thesituation atpresent
Asmatters stand ,applying negative MCAs inrespect ofFrance
(-5.3points )and theBLEU (-3.1points )would reduce expenditure from
thefinancial point ofview .Dismantling those MCAs would therefore serve
toraise itagain ,byanestimated 201mECU in1983 .
Ontheother hand ,this would not affect expenditure in1982 ,given the
proposed timetable forimplementation .
(b)Cost ofthemeasure compared with thedraft 1983 Budget and the
1982 Budget
Thefinancial implications oftheadjustments which took place on12June
1982 inrespect ofthecentral rates were not included inthedraft 1983
Budget .Thefinancial implications inquestion consist ,for theFF,BFR
andLFR,ofsubstantial savings in1983-estimated at473mECu' -
compared with thedraft Budget chosen .
Theproposed dismantling oftheMCAs forFrance ,Belgium andLuxembourg
will serve toreduce thesavings inquestion by201mECU ,from 473 to
272 MCU .
Compared with thedraft 1983 Budget ,theadjustment tothecentral rates
which took place of12June 1982 entails additional expenditure in1983 of
295mECU inrespect oftheDMandHFL .

-3-
Therefore ,compared with thedraft 1983 Budget ,theDecision of12June
concerning theFF,BFR ,LFR ,DMandHFLwill ,together with thepresent
proposal ,result inachange inestimated expenditure of+23mECU (-272
+295).
Such achange intheestimated level ofexpenditure isunlikely tolead to
asubstantial change intheoverall size ofthedraft 1983 Budget .
With regard tothe 1982 Budget ,thecombined effect oftheDecisions of
12June and ofthepresent proposal will beareduction inexpenditure of
89mECU ;the latter issolely attributable totheDecisions taken inJune ,
since thepresent proposal will ,byvirtue ofthedate ofitsentry into
force ,have noeffect onexpenditure in1982 .The figure inquestion is
theresult ofadrop inexpenditure of199mECU inrespect oftheFF,BFR
andLFR offset byanincrease of110mECU for theDMand theHFL .
Estimated expenditure inrespect ofthecurrencies concerned :
-inthedraft Budget :-43 ) (SeeAnnex to
-inthelight oftheDecisions taken inJune :-516 ) Financial Record
for details )
Increase insavings : 473

_L_
Keiner State Central rate
(1ECU =)Re ]
former
(1ECU =)presentative xz
new
(1ECU =)ite
devaluation
(%)Moneta
(without neu
before
devaluationrygap
tral margin )
after
devaluationMCA
tobe
appliedEffect on
prices
(%)
Belgium /
Luxembourg
Ffance44.9704
6.6138742.9772
6.1956444.9704
6.613874.4323
6.3235-4.6
-6.750
00
0+4.6378
+6.7504

Proposal for a
COUNCIL REGULATION (EEC )
amending Regulation (EEC)No878/77ontheexchange rates tobeapplied
magriculture
THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Regulation No129onthevalue oftheunit of
account and theexchange rates tobeapplied for thepurposes ofthecommon
1 _ ,__2agricultural policy ,aslast amended byRegulation (EEC )No2543 /73 ,and
inparticular Article 3thereof ,
Having regard totheproposal from theCommission ,
Whereas therepresentative rates currently applicable were fixed by
3Regulation (EEC )No878/77 ,aslast amended byRegulation (EEC )No
41668 /82 ;whereas newrepresentative rates closer topresent economic
circumstances should befixed for theFrench franc and theBelgian
franc /Luxembourg franc ;whereas ,moreover ,forreasons ofclarity ,all the
representative rates should berepublished ;
Whereas therates must beadjusted with proper regard totheeffects on
prices and thesituation intheMember States concerned ;whereas ,for that
reason ,among others ,provision should bemade for thenew rates toenter
into effect within areasonable period ,normally linked tothebeginning of
themarketing year orachange inprices ,although immediate entry into
force insome cases should not beruled out ;
Whereas Regulation (EEC )No337/79onthecommon organization ofthemarket
inwine^,aslastamended byRegulation (EEC)No2144/82^,provides for
certain distillation operations and aids ;whereas thedate ofapplication
ofthenewrates applying thereto maydiffer from thedate ofapplication
ofthenew rates inthewine sector ingeneral ;
*0JNo106,30.10.1962 ,p.2553/62.
^0JNoL263,19.9.1973 ,p. 1.
^OJNoL106,29.4.1977 ,p.27.
0JNoL184 ,29.6.1982 ,p.19.
^OJNoL54,5.2.1979 ,p.1.
OJNoL227 ,3.8 .1982 ,p. 1.

-2-
Whereas ,inorder toavoid differing treatment ofinterdependent products ,
provision should bemade for thenewrates toapply inthecereals andthe
eggs andpoultrymeat ,ovalbumin andlactalbumin sectors with effect from
the same date ;
Whereas theMonetary Committee will beconsulted andwhereas ,asthis isan
urgent matter ,themeasures envisaged should beadopted inaccordance with
theconditions laid down inArticle 3(2 )ofRegulation No129 ,
HAS ADOPTED THIS REGULATION :
Article 1
Article 2ofRegulation (EEC )No878/77shall bereplaced bythefollowing :
"1.Therepresentative rates andthedates from which they apply shall be
asset out inAnnexes ItoIX.
2.Other dates maybespecified for thedistillation operations andaids
referred toinArticles 14and 14aofRegulation (EEC )No337/79."
Article 2
This Regulation shall enter into force on 1982 .
This Regulation shall bebinding initsentirety anddirectly applicable in
all Member States .
Done atBrussels , 1982 .
For the Council

-3-
ANNEX
ANNEX I
BELGIUM /LUXEMBOURG
1ECU =44.9704 Belgian franc s/Luxembourg francs .
This rate shall apply from :
-1November 1982 for thepigmeat sector ,
-1November 1982 for theolive oil sector ,
-16December 1982 for thewine sector ,
-1January 1983 for thefishery products sector ,
-1April 1983 for themilk andmilk products sector ,
-4April 1983 for thebeef andveal sector ,
-4April 1983 for thesheepmeat andgoatmeat sector ,
-1July 1983 for thesugar and isoglucose sector ,
-1August 1983 for thecereals ,eggs andpoultrymeat ,ovalbumin and
lactalbumin sectors ,
- 1July 1984 for the seeds sector ,
-thebeginning ofthe 1983 /84marketing year for theother products for
which there isamarketing year ,
-1April 1983 inallother cases .
ANNEX II
DENMARK
1ECU =8.234 Danish kroner .
This rate shall apply from 29June 1982 .

-L-
ANNEX III
FEDERAL REPUBLIC OFGERMANY
1. 1ECU =2.57524 German marks .
This rate shall apply from :
-20May 1982 for themilk andmilk products sector ,
-20May 1982 for thebeef andveal sector ,
-20May 1982 for thesheepmeat andgoatmeat sector ,
-1July 1982 for the sugar and isoglucose sector ,
-1August 1982 for thecereals ,eggs andpoultrymeat ,ovalbumin and
lactalbumin sectors ,
-1November 1982 for thepigmeat sector ,
-16December 1982 for thewine sector ,
-1January 1983 for thefishery products sector ,
-1July 1984 for the seeds sector ,
-thebeginning ofthe 1982 /83marketing year forother products for
which themarketing year has not started by17May 1982 ,
-20May 1982 inallother cases .
2.Until thedate given inpoint 1,thefollowing rate shall apply for the
seeds sector :
1ECU =2.65660 German marks .
ANNEX IV
FRANCE
1ECU =6.61387 French francs .
This rate shall apply from :
-1November 1982 for thepigmeat sector ,
-1November 1982 for theolive oil sector ,
-16December 1982 for thewine sector ,
-1January 1983 for thefishery products sector ,
-1April 1983 for themilk andmilk products sector ,
-4April 1983 for thebeef andveal sector ,
-4April 1983 for thesheepmeat andgoatmeat sector ,
-1July 1983 for thesugar andisoglucose sector ,
-1August 1983 for thecereals ,eggs andpoultrymeat ,ovalbumin and
lactalbumin sectors ,
-1July 1984 for theseeds sector ,
-thebeginning ofthe1983 /84marketing year fortheother products
forwhich there isamarketing year ,
-1April 1983 inallother cases .
•*

-5-
ANNEX V
GREECE
1ECU -66.5526 Greek drachmas .
This rate shall apply from :
-1September 1982 fordried grapes ,
-1November 1982 forolive oil ,
-29June 1982 inall other cases .
ANNEX VI
IRELAND
1ECU =0.691011 Irish pound .
This rate shall apply from 29June 1982 .
ANNEX VII
ITALY
1ECU =1289.00 Italian lire .
This rate shall apply from :
-17May 1982 for themilk andmilk products sector ,
-17May 1982 for thebeef andveal sector ,
-17May 1982 for thesheepmeat andgoatmeat sector ,
-1July .1982 for thesugar and isoglucose sector ,
-1July 1982 for theseeds sector ,
-1August 1982 forthecereals ,eggs andpoultrymeat ,ovalbumin and
lactalbumin sectors ,
-1November 1982 for thepigmeat sector ,
-6May 1982 for thewine sector ,
-1January 1983 for thefishery products sector ,
-thebeginning ofthe1982 /83marketing year forother products for
which themarketing year hasnotstarted by 1April 1982 ,
-6May 1982 inallother cases .

-6-
ANNEX VIII
NETHERLANDS
1ECU =2.75563 Dutch guilders .
This rata shall apply from :
-20May 1982for the r.iilk andmilk products sector ,
-20May 1982 for thebeef andveal sector ,
-20May 1982 for the sheepmeat and goatmeat sector ,
-1July 1982 for thesugar andisoglucose sector ,
-1August 1982 for thecereals ,eggs and pcultryreeat ,ovalbumin and
laccalbumin sectors ,
-1November 1982 for thepigmeat sector ,
-16December 1982 for thewine sector ,
-1January 1983 for thefishery products sector ,
-1July 1984 for the seeds sector ,
-thebeginning ofthe 1982 /83marketing year forother products for
which themarketing year hasnot started by17May 1982 ,
-20May 1982 inallother cases .
ANNEX IX
UNITED KINGDOM
1ECU =0.618655 pound sterling .
This rate shall apply from 20May 1982 .

FüVAIVClÄL STATEMENT
Date10September 1982
BUDGET HEADINGTitle !and 2APPROBI ATIONS :1982 :i3217.3mECU §
1983 :14050 mECU f
2.TITLE Cc'Kc 1LRegulation amending Regulation (EEC)No878/77ontheexchange
rates tobeapplied inagriculture .
3.LEGAL BAS /.SCouncil Regulation No129
U.AI:•••$0FPROJECT
''A-<-^grunent oftherepresentative rate onthecentral rate inthe case
oftheFrench franc andtheBelgian franc /Luxembourg franc :from 1November 1982
forpigmeat andoliv ^oil ,from 16December 1982 forwine andfr-v ;thebeginning of
the1983 /84marketing year^for theother products . mECU
5.FINAUCIAI .IMPLICATIONS
5.0 EXPENDITURE
-CHARGED TOTHE ECBUDGET
(REFUNDS /INTERVENTIONS )
-raxxgcKxwnsoacatK
-KOGKBC
5.1 RECEIPTS
-OWN RESOURCES OFTHE EC
(LEVIES /CUSTOMS DUTIES )
-&CÎXOUIKPERIOD OF12MONTHS CURRENT FINANCIAL YEAR
MQ87 )
-199 (1)
-24FOLLOWING FINANCIAL YEAR
(1983 2
-272 (1)
-18
5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED RECEIPTS
5.2 METHOD OFCALCULATION
See Annex
6.0CAN THEPROJECT BEFINANCED FROM APPROBATIONS ENTERED INTHERELEVANT CHAPTER OFTHE CURRENT BUDGET ?
YES /BCK
6.1 >»4#. Mrg·^t ?
JBSXHOC
6.2 ISASUPPLEMENTARY BUDGET BENECESSARY ?
XJB6 /N0
6.3 WILL FUTLSC BUDGE *APPRCBI «ΓΙONSBENECESSARY ?
YESXJKJC
OBSERVATIONS :Thefollowing financial implications concerning theDManatheHFLarise
from themonetary events of12June 1982 :
1^82 :+110mECU
1983 :+295mECU
Accordingly ,theDecision of12June 1982 andthis proposal would result inthe
following changes inexpenditure :
1:982 :-89mECU
1983 :+23mECU .

ANNEX
1.For the French franc there was noMCA and the dual-rate coefficient was 1
inthecase ofthe 1982 budget andthedraft 1983 budget .
For theBelgian franc /Luxembourg franc there wasnoMCA and thedual-rate
coefficient was 1inthecase ofthe 1982 budget ;there wasanMCA of
-2.5points and adual-rate coefficient of0.962 inthe case ofthedraft
1983 budget .
Thebudget appropriations inrespect ofthose currencies were therefore :
Table I mECU
I1982 1983
FF BFR/LFR Total FF BFR/LFR Total
Expenditure
MCAs 0 0 0 0 -3 -3
MCAs tobe
deducted from
the refunds 0 0 0 0 -14 -14
Dual rate :
common organ -
izations of
the market 0 0 0 0 -26 -26
TOTAL 0 0 0 0 -43 -43
Income
Levies 0 0. 0 0 -19 -19
Sugar levy 0 0 0 0 -3 -3
TOTAL 0
..... .0 0 0 -22 -22

-2-
2.Iftherepresentative rate hadremained thesame asbefore themonetary events
inquestion and ifanMCA of-5.3points forFrance and -3.1points for
theBLEU hadbeen fixed ,theadjustment ofthecentral rate which took place on
12June 1982 would have resulted inthefollowing agri-monetary expenditure for
theMember States inquestion :
Table II mECU
j1982 1983
FF BFR/LFR Total FF BFR/LFR Total
Expenditure
MCAs -35 -2 -37 -94 -4 -98
MCAs tobe
deducted from
the refunds -50 -8 -58 -134 -17 -151
Dual rate :
common organ -
izations of
the market -89 -15 -104 -237 -30 -267
TOTAL -174 -25 -199 -465 -51 -516
Income
Levies - 6 -9 - 15 -17 -23 -40
Sugar levy 8 - 1 9 -21 -3 -24
TOTAL - 14 -10 -24 -38 -26 -64
3.Theexpenditure arising from theproposed Regulation aligning therepresentative
rate onthecentral rate inthecase oftheFrench franc and theBelgian franc /
Luxembourg franc ,asfrom thebeginning ofthe 1982 /83marketing year inthecase
ofpigmeat ,olive oilandwine andfrom thebeginning ofthe 1983 /84marketing
year inthecase ofother sectors isasfollows :
Table III mECU
•1982 1983
FF BFR/LFR Total FF BFR/LFR Total
Expenditure
MCAs -35 -2 -37 -81 + 7 -74
MCAs tobe
deducted from
the refunds -50 -8 -58 -84 -6 -90
Dual rate :
common organ -
izations of
the market -89 -15 -104 -134 -17 -151
TOTAL -174 -25 -199 -299 -16 -315
Income
Levies 6 - 9 - 15 -10 -16 -26
Sugar levy 8 - 1 9 -12 -2 -14
TOTAL -14 -10 -24 -22 -18 -40

-3-
4.The estimated cost ofthe measure assuch istherefore :
fable VI=Table III -Table II mECU
i 1982 1983
FF !BFR/LI'R Total FF BFR/LFR Total
Expenditure
MCAs:
0j
!0 0 + 13 +11 +24
MCAs tobe
deducted from
the refunds 0*
«
i00 +50 +11 +61
Dual rate :
common organ -
izations of
the market 0!
Ì
!
! 0 0 103 +13¡
+116 1
TOTAL 0 :o 0 +166 +35 +201 !
Incomei
i
Levies 0;°0 + 7 +ï +14 j
Sugar levy 0 0 0 + 9 + 1 +10 ]
!TOTAL 0 !o 0 + 16 +81
+24 i
5.Compared with thebudget ,thefinancial implications arising from themonetary
events of12June 1982 and ofthis proposal are asfollows :
Table V=Table III -Table I mECU
I
I 1982-■ – 1 ■
1983
jFF BFR/LFR Total FF BFR/LFR Total
Expenditure
-
MCAs -35 -2 -37 -81 +10 - 71
MCAs tobe
ideducted from
the refunds -50 -8 -58 -84 +8 -76
Dual rate :
common organ -
izations of
the market -89 -15 -104 -134 +9 -125
TOTAL -174 -25 -199 -299 +27 -272
Income
Levies - 6 -9 -15 -10 +3 7
Sugar levy - 8 - 1 9 - 12 + 1 - 11
TOTAL - 14 -10 -24 -22 +4 -18