COMVIISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 256 final 
Brussels, 12 July 1991 
Proposal for a 
COUNCIL REGULATION fEEC) 
amending, as regards operations financed by the EAGGF Guidance Section, 
Regulation (EEC) No 1676/85 on the value of the unit of account and the 
conversion rates to be applied for the purposes of the common agricultural 
policy and repealing Regulation (EEC) No 129/78 
(presented by the Commission) 
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EXPLANATORY MBCRAHEPM 
1. Council Regulation (EBC) No 1676/85, based an Artlole 43 of the Treaty, 
provides for the application of the agrl monetary system for all amounts 
fixed In the instruments relating to the common agricultural policy. 
Consequently, the agricultural conversion rate applies to amounts 
covered by the EAGGF Guidance Section. 
Artlole 22 of Council Regulation (EBC) No 4253/88, based on Artlole I30e 
of the EBC Treaty, however, excludes from the scope of the agrimonetary 
system all amounts relating to the EAGGF Guidance Section which are 
fixed by the Commission-
2. Thus, after the entry Into force of the Commissi on Regulation laying 
down detailed rules concerning the use of the ecu In the budgetary 
execution of the struotural Funds, the situation of the amounts relating 
to the EAGGF Guidance Section becomes as follows: 
the amounts fixed by the Commission are excluded from the 
agrimonetary system. These amounts are fixed in ecus and converted 
at the accounting rate; 
the amounts fixed by the Council continue to be subject to the 
agrimonef 3xy system. These amounts are fixed in agricultural ecus 
and converted at the agricultural conversion rate. 
Among the oonsequenoes of this situation it should, be noted that the 
decisions on Commission assistance expressed in ecus remain subject to 
ceilings fixed by the Council In "agricultural" ecus. The expenditure 
In national currencies must therefore be oonverted at the agricultural 
conversion rate to check that the ceilings fixed by the Council have 
been observed, as is already the oase at present. On this condition, 
the expenditure In national currencies is then oonverted using the 
accounting rate to be paid in ecus. 
This leads to great administrative oomplexlty with the use of two 
conversion rates: 
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the accounting rate for grants and payments; 
the agricultural rate for ohacfcliTg that the ceilings on grants have 
been observed. 
3. In order to avoid this complexity the amounts relating to the EAGGF 
Guidance Seotlon fixed by the Council should also be oonverted using the 
accounting rate. 
To that end there should be a derogation from Artlole 2 of Council 
Regulation (EBC) No 1676/85 to provide for the use of the aooounting 
rate which diverges from the central rate multiplied by the corrective 
factor. 
However, it must be Indicated that for the operations in question 
pertain provisions applicable to the agricultural rates are also 
applicable to the aooounting rate. This oonoerns the possibility of 
determining the operative events of the conversion rate used and the 
possibility of adjusting the amounts fixed In ecus when the rate is 
revalued. The latter possibility will be used so that the aids actually 
applying to farmers are not reduced. 
TO avoid the distortions which would arise from the application of the 
operative event provided for by Oouncll Regulation (EEC) No 129/78, it 
is proposed that that Regulation be repealed. The Commission then 
envisages applying Artlole 5 of Regulation (EBC) No 1676/85 in the 
appropriate manner. 
A period is required between the entry Into force and the application of 
this proposal for a Regulation In order to enable the Commission to 
adopt the adjustments referred to above. 
- à 
Proposal for a 
COUNCIL REGULATION (EEC) No /.. 
of 
amending, as regards operations financed by the EAGGF Guidance Section, 
Regulation (EEC) No 1676/85 on the value of the unit of account and the 
conversion rates to be applied for the purposes of the common agricultural 
policy and repealing Regulation (EEC) No 129/78 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, and in 
particular Article 43 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of the Monetary Committee, 
Whereas Article 2 of Council Regulation (EEC) No 1676/851, as last amended by 
Regulation (EEC) No 2205/902, defines the agricultural conversion rate to be 
applied for Instruments relating to the common agricultural policy, including 
operations financed by the EAGGF Guidance Section; whereas under that provision 
the agricultural conversion rate is in principle the central rate fixed for a 
currency In relation to the ecu but whereas agricultural rates different from 
the central rate may be fixed; whereas all the rates relating to the common 
agricultural policy are subject to the provisions of the said Regulation; 
Whereas, in accordance with Article 22 of Council Regulation (EEC) No 4253/88 of 
19 December 1988 laying down provisions for implementing Regulation (EEC) No 
2052/88 as regards coordination of the activities of the different structural 
Funds between themselves and with the operations of the European Investment Bank 
and the other existing financial Instruments3, Commission decisions, 
1 0J No L 164, 24.6.1985, p. 1. 
2 OJ No L 201, 31.7.1990, p. 9. 
3 0J NO L 374, 31.12.1988, p. 1. 
commitments and payments are to be denominated and made In ecus as far as the 
structural Funds are concerned, Including the EAGGF Guidance Section; whereas 
the provisions adopted by Commission Regulation (EEC) No 1866/90 of 2 July 1990 
on arrangements for using the ecu for the purposes of the budgetary management 
of the structural Funds4 cannot, however, affect the agricultural conversion 
rates applicable to the amounts fixed In ecus by the Council within the 
framework of the agricultural structures policy or for adjustments thereto by 
the Commission under Article 9 of Regulation (EEC) No 1676/85; 
Whereas, having regard to the objectives of coordination between the different 
structural Funds, and in particular those of Article 22 of Regulation (EEC) No 
4253/88, It should be ensured that a uniform conversion rate Is applied for all 
the structural Funds, Including the EAGFF Guidance Section, and that the 
accounting rate adopted by virtue of Article 126 of the Council Financial 
Regulation of 21 December 1977s, as last amended by Regulation (Euratom, ECSC, 
EEC) No 610/906 is applied for the purposes of the agricultural structures 
policy; whereas, however, the amounts relating to Joint financing of the 
Guidance and Guarantee Sections of the EAGGF are subject to the rules of 
management of the Guarantee Section and must therefore remain subject to 
application of the agricultural conversion rate; 
Whereas It should be possible to determine an operative event for the accounting 
rate and whereas an increase in the amounts concerned which are fixed In ecus 
may be necessary to avoid decreases In national currencies; whereas for such 
cases the possibility should be provided for of applying Articles 4, 5, 7, 9 and 
12 of Regulation (EEC) No 1676/85 to the accounting rate; whereas Council 
Regulation (EEC) No 129/78 of 24 January 1978 on the exchange rates to be 
applied for the purposes of the common agricultural structures policy7, which 
establishes an operative event for the agricultural conversion rate applicable 
to certain operations covered by the EAGGF Guidance Section, should therefore be 
repealed, 
HAS ADOPTED THIS REGULATION: 
4 0J No L 170, 3.7.1990, p. 36. 
5 0J No L 356, 31.12.1977, p. 1. 
6 0J No L 70, 16.3.1990, p. 1. 
7 0J No L 20, 25.1.1978, p. 16. 
ArtlCle 1 
The following Article 2a Is Inserted In Regulation (EEC) No 1676/85: 
"Article 2a 
By way of derogation from Article 2, within the framework of measures Community 
funding of which under the EAGGF Is the exclusive responsibility of the EAGGF 
Guidance Section, the accounting rate shall apply for the conversion of amounts 
fixed In ecus by the Council and for adjustments thereto by the Commission. 
"Accounting rate" means the rate at which expenditure arising under the general 
budget of the European Communities is entered in the accounts in accordance with 
the provisions of the Financial Regulation. 
Articles 4, 5, 7, 9 and 12 of this Regulation shall apply to the accounting rate 
referred to In the first paragraph." 
Article 2 
Regulation (EEC) No 129/78 Is hereby repealed., 
Article 3 
This Regulation shall enter Into force on the third day following Its 
publication In the Official Journal of the European Communities. 
This Regulation shall apply from the beginning of the third month following that 
of its entry into force. 
This Regulation sha11 be binding in Its entirety and directly applicable in all 
Member States. 
Done at ... , For the Council 
ISSN 0254-1475 
COM(91)256 final 
DOCUMENTS 
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ISBN 92-77-73991-6 
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