COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 12.06.1996 
COM(96)267 final 
Proposal for a 
COUNCIL REGULATION (EQ 
amending Regulation (EC) No 2990/95 regulating compensation for appreciable reductions 
in the agricultural conversion rates before 1 July 1996 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
Regulation (EC) No 2990/95 lays down, until 30 June 1996, the measures to be adopted in 
the event of appreciable revaluations, in particular to prevent the application of Article 7 of 
Regulation (EEC) No 3813/92 running counter to compliance with the obligations deriving 
from the GATT Agreement and budgetary discipline. The fundamental reasons behind the 
adoption of Regulation (EEC) No 2990/95 remain valid and probably will do so for several 
months to come. 
Because of the increase in its value, the Swedish krona has recently been at risk of an 
appreciable revaluation which could occur after 1 July 1996. In accordance with Article 1(e) 
of Regulation (EEC) No 3813/92, any fall in the agricultural conversion rate resulting from 
the halving of a monetary gap of more than five points should be regarded as appreciable 
because it would be greater than the effects of previous devaluations. 
In order to afford the Swedish krona the same treatment as the other currencies which have 
found themselves in similar situations in the past, the validity of Regulation (EEC) 
No 2990/95 should be extended. 
The measures to be taken will of necessity be at Community level, because this is an area in 
which the Community has exclusive competence. They pursue the general objective of 
uniform application of the common agricultural policy and adapt provisions already laid down 
by the Council to take account of such situations. 
z 
Proposal for a 
COUNCIL REGULATION (EC) No ...796 
of 
amending Regulation (EC) No 2990/95 regulating compensation for appreciable reductions 
in the agricultural conversion rates before 1 July 1996 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
Having regard to the proposal from the Commission, 
Having regard to Council Regulation (EEC) No 3813/92 of 28 December 1992 on the unit 
of account and the conversion rates to be applied for the purposes of the common agricultural 
policy1, and in particular Article 9 thereof, 
Whereas Council Regulation (EC) No 2990/952 lays down special rules applicable until 
30 June 1996 to currencies which experience during that period an appreciable reduction in 
their agricultural conversion rates and in particular to the Finnish markka and the Swedish 
krona; whereas the risk of an appreciable reduction has again arisen in the case of the Swedish 
krona since monetary gaps of more than 5% have occurred for that currency; whereas this 
situation could lead to an appreciable reduction in an agricultural conversion rate after the 
period referred to in Regulation (EC) No 2990/95. 
1 OJ No L 387, 31.12.1992, p. 1. Regulation last amended by Regulation (EC) No 150/95 
(OJNoL22, 31.1.1995, p. 1.). 
OJ No L 312, 23.12.1995, p. 7. 
3 
Whereas Article 9 of Regulation (EEC) No 3X13/92 provides lor the Council to take all 
necessary measures in Ihc event of an appreciable revaluation, whieh, primarily to comply 
with obligations under the (îATT Agreement and budgetary discipline, may involve 
derogations from the provisions of the said Regulation concerning aid and the amount by 
which the monetary gaps are dismantled, without, however, resulting in the threshold being 
extended; whereas the measures provided for in Articles 7 and X of the said Regulation cannot 
be applied as they stand; whereas it is necessary lo lake steps at Community level to prevent 
distortions of monetary origin affecting the implementation of the common agricultural policy; 
Whereas on the basis ol the information currency available, it is impossible to know what the 
situation will be after 31 December 19%; whereas application ol the rules and amounts laid 
down in Regulation (EEC) No 2990/95 would be justified in similar cases until that time, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 2990/95 is hereby amended as follows: 
(a), in the title the date "1 July 1996" is replaced by "1 January 1997", 
(b) In Article I, the date "30 June 1996" is replaced by "31 December 1996". 
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5 
FINANCIAL STATEMENT 
DAI 
BUDGE •AD1NG: 390 APPROPRIATIONS: ECU 194m 
(Item 390) 
TITLE: Proposal for a Council Regulation amending Regulation (EC) No. 2990/95 regulating compensation for 
appreciable reductions in the agricultural conversion rates before 1 July 1996 
LEGAL BASIS: Regulation 3813/92 - Article 9 
AIMS OF PROJECT: 
Prorogation for 6 months of Regulation 2990/95 fixing in particular for Sweden degressive aid financed by the 
Community budget to compensate farmers for loss of income as a result of reductions in agricultural conversion rates 
FINANCIAL IMPLICATIONS PERIOD OF 12 
MONTHS CURRENT 
FINANCIAL 
YEAR (96) FOLLOWING 
FINANCIAL 
YEAR (97) 
5.0. EXPENDITURE 
- CHARGED TO THE EC BUDGET 
INTERVENTION 
- NATIONAL ADMINISTRATION + l: 
5.0.1 EXPENDITURE PREVISIONS 
5.2. METHOD OF CALCULATION: 1998 
+ 12 1999 
+6 
6.0. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT 
CHAPTER OF THE CURRENT BUDGET? 
6.1. 
6.2. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT 
BUDGET? 
IS A SUPPLEMENTARY BUDGET NECESSARY? 
6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES 
OBSERVATIONS: 
At present it is necessary to make assumptions in order to estimate the proposal's financial impact. 
The calculations are based on monetary gaps during the reference period from 18 to 27 May 1996 of around 5.5 points for the 
SKR. 
The measure proposed avoids the possible application of Article 7 of Regulation 3813/92 which, for 3% revaluation and for EUR-
15, could have a financial impact of around ECU 750 m, together with DR savings of ECU 3 m on the sectors other than those 
of Art. 7 of Re* 3813/92. 
C 
ISSN 0254-1475 
COM(96) 267 final 
DOCUMENTS 
EN 113 
Catalogue number : CB-CO-96-278-EN-C 
ISBN 92-78-05336-8 
Office for Official Publications of the European Communities 
L-2985 Luxembourg