ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)770
Vol.1981/0220

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^...MISSION OFTHEEUROPEAN COMMUNITIES
COM(31)770 final
Brussels,11December1981
Proposalfora
COUNCIL DECISION
authorizing certainMemberStatestoraisetheleveloftheinterestrate
subsidyprovidedforbyDirective 72/159/EEConthemodernization offarms
and
Proposalfora
COUNCIL DECISION
amendingDecision76/402/EEContheleveloftheinterestratesubsidy,
providedforbyDirective 72/159/EEConthemodernization offarms,to
beappliedinItaly
(submittedtotheCouncilbytheCommission )
COrAo'i)770final

EXPMT7.VP02Y' rrn\TORANDUI !
Within theframework ofArticle 8(l)(b)ofDirective 72/159/EEC "the
granting ofaids intheform ofaninterest rate subsidy inrespect
ofinvestments necessary forcarrying outafarm development plan is
oneofthemain incentives onoffer tofarmer ?whose development plan
hasbeen approved .Inaccordance with Article 8(2)this interest rate
subsidy shall notexceed 5cfiand ,inprinciple ,shall cover loans
extending over aperiod of15years ,which Member States may ,however ,
extend to20years forinvestments inimmovable property andreduce
to10years forother investments .Theinterest rate remaining payable
bythebeneficiary maynotbelower than 3/5.
However theCouncil acting onaproposal from theCommission andvoting
asprovided forinArticle 43(2)oftheTreaty ,mayauthorize aMember
State ,foraspecified period ,togrant interest rate subsidies exceeding
5v/o,ifsuch action iswarranted bythesituation ofthecapital market
inthat Member State ,and ,inaddition ,tolower theminimum rate payable
bythebeneficiary to2 incertain regions .
Atitssession of22July 1981,theCouncil took note ofastatement by
theCommission representative reaffirming that hisInstitution would
continue tostudy thegeneral problem ofthe' interest rates charged to
Community farmers andthat itwould submit totheCouncil ,assoon as
possible butnotlater than theendof1981 ,itsconclusions and ,if
appropriate ,itsproposals forresolving this problem .
Astudy already presented totheCouncil shows howboth nominal and real
interest rates increased between 1973 andI98O .Since this study appeared ,
thesituation hasdeteriorated further and thefinancing offarm investment
hasbecome aneven more serious problem .Twopoints maybemade to
illustrate how theborrower^' position hasworsened .

-Civon tho /jrowintf r.qod forcapital whloh isa.foatur# ofmodern
a/^riculture ,notably asaresult ofinflationary pressures ,andthe
rice ininterest rates ,farmers whoborrow money find themselves
inadifficult position .Iftherepayments aretooheavy ,farmers
aredissuaded orprevented from contracting loans since they will be
unable toachieve thecomparable income oncompletion oftheir
development plan (theessential condition forapproval ofthelatter ).
–Asfc.rm incomes decrease ,farmers have fewer profits toplough back
into their business ana either have toborrow more money tofinance
their investments orabandon them altogether .
Ihcse twopoints maybestudied inrelation toeach Member State ,to
illustrate howeconomic conditions altered between 1973 and1980 .
Increaso ir.r.or.ir.al rates
!
.Attnctime when Directive 159wasadopted ,thedecision toauthorize
allMember States togrant a5interest rate subsidy (7%in
certain regions )could bejustified bythefact that nominal rates
varied little from oneMember State toanother .Only inDenmark and
Luxembourg didthey differ appreciably from theaverage .
.?hctrend followed bynominal rates between 1973 anaI98I indicates
that :
a)they have risen considerably inthevarious Member States ,
b)they nowciiffer widely from onecountry toanother .Inonegroup
ofcountries ,namely Denmark ,United Kingdom ,Ireland andItaly ,
nominal rates arenowhigher than theunweighted Community
average (15-5 />>).

The two facto rnontioncd above indicate how the overall position oftno
borrower hascfcteriorated intheCommunity .Ithasbecome even more
intolerable ,however ,inthefour countries listed above .
.Tr*pr.T ir.incomes
Ifboth thenetsurplus available tothefarmer^forinvestment and
hisannual income aredecreasing ,hemust limit theamounts poloughed
back into thebusiness inorder tosafeguard hisincome .Insuch cases
hemaynotmake thenecessary investments orhemay finance them by
obtaining loans onunfavourable terms when interest rates arehigh .
Theindex forthenet farm surplus at1S75 prices followed adownward
trend inalmost every case between 1975 and1979 •Thedrop wasparticularly
sharp inGermany ,theUnited Kingdom and theNetherlands and less soin
Ireland ,where noappreciable drop wasrecorded until 1979 *Nodata onthe
net farm surplus areavailable forDenmark orItaly .
Thenumber offarm plare forimprovements -tofarm structures pursuant to
Directive 72/159/EEChasfallen ,largely asaresult ofrising interest
rates and thedeterioration offarm incomes .InGermany ,thedrop inthe
number of .ilans isattributable tobudgetary constraints .Between
1979 andI9S0 thenumber ofdevelopment plans approved fell by72%in
Denmark ,by69 intheNetherlands ,by48%intheUnited Kingdom ,by
40 inIreland andby19%IntheFederal Republic ofGermany .InBelgium ,
there hasbeen aslight increase inthenumber ofplans whilst inFrance
there has been amore substantial increase .
(l)Thefarmer 'snetsurplus isequal tothegross value added atfactor
cost less depreciation andthewages bill .

-4-
III «Oonol ur;:ionr ;
Inthese circumstances ,thefarlure toadopt anewdecision oninterest
rate subsidies could prove inconsistent with therecent Council decision
toamend Directive 72/l5S/S2Gby {jiving amore flexible interpretation
totheidea ofthe "comparable income "sothat the less prosperous farmers
maymore easily qualify fordevelopment plans .
Another possible consequence isageneral slowing-down ofinvestments at
thevery time when agriculture mayhave tomake special efforts torationalize
production and toimprove theprocessing ofagricultural products ,inview
ofthechanges which will have tobemade intheway theprices andmarkets
policy isapplied .
for these reasons ,theCommission considers that the Community should take
p-ction tolimit theburden placed onfarmers bytheincrease ininterest rates .
£uch action could beselective innature :afurther interest rate subsidy
pould begranted to^akeaccount ofthelevel reached byinterest rates
t
^nI98I .Thisfacility isalready available toItaly andIreland ,until
J1December 1981 and31December 1983 respectively .
ï
Accordingly ,theCommission isproposing :
r
p)that theexisting Decision 'speriod ofvalidity beextended until
31December 1983 inthecase ofItaly ,forreasons ofcontinuity –from
the legal point ofview –butabove allbecause theproblem remains
unsolved ;
b)that anadditional interest rate subsidy beapplied inallMember States
until 31December 1983 .Thesubsidy ,aselective onewhich would depend
ontherate ofinterest nowobtaining ,would be3%inthecase ofthe
Member States whose present nominal rate ishigher than theunweighted
Community average (Denmark andtheUnited Kingdom )and2/6,subject to
acertain maximum ,fortheother Member States .This facility is
already available toIreland until 31December 1983 .Theestimated annual
cost tothebudget ofthis measure isabout 25,5nillion ECUover twoyears .

-5-
Financialimpaotonthe5–yo?-rfinancialenvelope
a)ProposalforaCounoildecisionamendingDecision76/402/ESCon"the
leveloftheinterestratesubsidyprovidedforinDirective72/159/EEC
onthemodernisationoffarmsttoapplyinItaly*
ThisproposalextendstheconditionsforapplicationinItalyfortwo
additionalyears*{Theoostsoftheextensionarealreadyincludedin
thetablesofexpenditureenvisagedfar1980to1984onthehypothesis
thattheperiodofjralidityofthismeasurewouldbeextended*
ProposalforaCotqjpilDecisiononthelevelofinterestratesubsidy
*providedforbyDirective12/l^S/EEGonthemodernisation offarms*
Theexpendituresrelatingtothisproposalwhichfalldueduringthe
5-yearperiod198(V84amountto$1millionECU,ofwhich25*5million
ECUapplyin1983pndthesameamountin.1984*Thetableofestimates
■;ofexpenditurefon1980-84(seeannex)wasrecalculatedinNovember1981,
takingaccountinparticularofthedelaysinthecommitmentofcertain
newmeasuresandofthelowerdegreeofutilisationofothermeasures
withreferencetothepreviousestimates*Itisestimatedthat
of"theenvelopeof3*735BillionECU,3*600millionECUareor
willbeusedforthefinancingoftheexistinglegislation *The
remaining95millionECUallowsforthefinancingofthisproposal.

ANNEXE
ENSASSflSNTS
UlNaiJCNNAi.5 :lANViSa19*0aDPCrVRSf :193419.11.81
Νο*<"Π·· Nomen-1Total
TUr* aíoenses £sf(mafíons deadéoenscs Quinquennaleljturectitur»19801931 1982 1981198219831934 β0·δ4
CHAP.20CHA9..'.0.
p?*jrrsG1å-Γ»'roi'KlC-.',Γ?:~Γ:;Γ>*χΡΛCCltS 139,6150148148 148 733,6
eco 400?ro}»t*IMMCJtìt- - - - -
474,48G"0 4010?re)«ttd«CM*creU¡««ttr«r.jTor»etUn s.:SSMÍ82,4989898 98
tjV.· A9pil€.35S¿ν<ΙϊΪΜ/·3^ίi4*irrtfict a.-.I«',/;; <•9,5444242 42219,5
SO"·24C12
,*ø,iHc«3SSλl'Ouesttri*r.i« í.1SÎ0/SC7,7888 839,7
CHA?.ILCHA».41ÍCT:CVS:RCIO-ST**RV?IUÏ zt-ζχϊΐζτζη -NÍWI 9î,S120,31C7,6129,8135 585,7
810 410 .'vfcriiiiatttfiinf«n·· 0\r.72/1538c,5114,9102122 127 S52,4
81' 41" 3tr.72/"£00,70,31,21,51,55,7
ei2 412 "«ijl-·lociá-*eenc«»ej% 'Dt'.72/"íl5,35,14,46,36,527,6
CMAP.S:C'ÎAO.42 *CT,lSÍr.i:r; Υ·;*γ:·«ΓΒ 210,4273,5354,1370,7326,21.539,9
820 420OirtrWejfnàç.O >:wi«»effects·» Úlr.75/:í3&&,?110,4147152.152 650,1
ε;·Ό4210*^eçrMu·feriti·ίβ»i»^réftítrn· * β.253/Í333,350504010,7 184
£12 42VPrft(5»"4í·»lftfr»tt*ueivr· *ic1t*rraaé«Mi· *.17ÍC/7Í29,0342525 12 125
8220 4.'20ConiBuUri eattallt ;>.- -0,50,52,2 3,2
Β::Ι.221?rr,ra*-»tirMçjtîcft"«líejUrne «.13:2/7647,855545449,2 260
rjj;4222P'ijrtaef <'r/>qt¡>9vtft#nitiili R.1^»/31■- -Ο.η.514,7 19,7
?,:ÎO4230 vtt'eo«·íwci4*t»frtocé 0lr.73/t275,59,218,411,42,246,7
3231423'?Γ»3Γ»β·* enCrne 3!r.:i/173"-1,22,62,62,6 9
1232 4232 &r«<jr.-sM«r.tr·lA.);A¿itlofiiHlniilt Olr.73/17* - 0,30,30,1 0,7
S:Î3 4233?reçfîi»tvMles·«Chartrrt·* Oír.75/353•2/*4,03,70,7p.a.10,3
S2Ï-4224Procries#lnté;rllo:«r» it«1i»:,'·"1 0.".0,32,4 2,7
82J9423ÍP-cçrm·C«C«.1« 3ir.S1/i27 - -p.m.517 2?
32*0 4240?re;ri···¿rit'a·;«»Γ>4Λ4· *·2195/31·Cir.rä,';:«3,79,312,615 10 50,6
8241 »241?re*;*a<·««riir*;·'rit«'»/irUnc«áuKofd3'Γ«'it'·lì - 0,32 2 4,3
?2424242?ra?r*8ss»>jh{Irtjnä* í.132C/Ì0 -S,417,020 20 62,4
S243 «243 vlyM*¡r*ir¿í¡\r\é*i*ÍJ"· β.10C>/S1 - 5148,527,5
824·· 4244 ACltflA 1C55/31 - -1,531,5 6
525 •425Vg^rt*»«c"'«ûremlfcrtC S.'?2\·'ίΕ - -0,20,50,7 1,4's:so 4>Cípoçr»···i.nUçrél'vv3c¿ir»r.iv¿ees«· ?»ΙΪ:9/61 - -ρ.π.2,42,4 4,8
82«.·.-¿v".Pro$"·«*·vvAHi.·rc*ln·iri«n<¡tcuS«r¿ R«1?42/S1 - -25 5'12
S242ic52Viottiif.í.'u.*:i"OiJi¿jηord 1.1«j/81 - .«32 1 6
32Γ *2"rrcg".¡C£»'AterréSbOlitii'çiCUi ».IM/.H - -2 1 1 4
£28 *•289ro?r*«>·»«ímtrvcttfr· A« i.1Í33/61 ~ ~99 9 27
CL-O.SÎ MAP.¿3;"!CN5WCTVTLIRS T:CNT'JX"IÍTVÍJ 133,1165.9153.5133.3 96.5 682.4
À"J4J23ôreuÎia«rtÎ»it:"5---*.»to'l »,::KÍM . _ 12 3 6•v 4^0"^•C^Stsifitíáf^''Jtiï.CÏWfïÍflifiü3le^ S.W 0,11,6O.a.p.m.P.m.1,7
8302-3.2 ««■*!fri't;·ΐ Se1,'2,11,61,61,6 8,6
33CI 4*0; ^raaeíltl·«
1
)p.m.1 2
3.Λ*4*"1ri"1*fvlj.'J# ·φi!
1,30,1p.a.p.m.p.m. 1,4-3'.2 )Cofl-C¿2S«rw<A ÎJJÎÎ:1ÍJ'«'ΐ 3.v:?;:?i32,3!10668,46231,4 350,1;::5-V3¿riálcjttea u^v:'.«β 31,6ι29,716,2j9a.m.86,5
dJ'·43'-'■1<ΙCRENTIER«>JIJ'TSLLOV'..'.URU Β^ΟΡΟ*ΐΓ·ΐ<*1->-I- _
S'**'.31Sïralic^tto .>?ίΐΐ»3o**cln« »t*·Γ'".ν»**1
j-3,3!19,613,3 36,2-3?0^r'tí."can*··**! ;if?-5IFÎ»•o*»J12.812,2!Ο.η,O.a.35,1
«.32*?rîî· »ι::/'..*· »:·; -*»Î'7I15,S15,5 50
Λ?22 4322 ?rl»·c«i¿.:londíí ή.•s:*-ι0,3;0,60,8 1,753:3 «?23^«líruC'U.UtiÍ OÎ'i'CtU· ■ï.**7*3m 14,527,5I16 25 73
ΟΫΟ.330«Crwftt· ;bv,/i»,.i.oI5,26!6 528,2
:
\¿332ttt.iftitttrtnt?r<?cuct*3Afpu'Í!«*«%?5·/75j•-j1,93.α.p.m.i
p.m.1,9
!·■_.,'5.3i19.9ιI25.2Tvr!IIF·*
!iîC360 »c«ií»'nWMisIt· »rt •5,2;'
19,8j25ι
25I32,5!117,5
jàci
!·3fyrcj?tr»n;írtouelf.-^í >(·:*ΐΐi0,11
1Λ"Iυ,ιι0,20,2j0,2!
!...lj0,3
OTALORIENTATION590,9i7Ï5,1726,4j807733,53.659,9

Changeinnominalinterestratesbetween1973ar.'i1981
Country ¡toteir.1973jRateinI98ORateinOct.I98I!·73/81
D––
i10.3..-Λ.r-10.5'–
a f..""I'-ii:.
+2.7
FRj
iIJ r
.'49.5
·.-'·■· i··■'·•.1
;11.6-1:
1 »1jοΐ;.ό13.Υ5
Oüi 1b.c·:i'+4.25
I'
»·■i-..-9.3-.-.–17.5 -19·ίδ--'+■10.-5
HL;1"...
11.8'...;11.4..,·¡'•'.y>.*■;·!IAV.yi12. +0.2
IiKL"¡'"
Jΐ2.>;
! ■·»]0%,,>15j'5.ó
I''i.ux'
---i–
ux:
IR;_'6.6!9.3';<\n.+'3.15
ι
•Hw!
.r.'.
1.2.5:16.8..λ;
t .·
18,0.·.·.17.5
•Λ.'«?^»j__18.5+6.4
+6.0
I'Xíú■
■·* 1 *!20.5·!
J ■·VJ?Λί;v'2o.$
'Λ· .έ!βΐ;+6.9
CR..1
...·..4.·..'.._14-■·--!-
* ♦·»»#«« <I
..-14.0 :-
,.VM/j–+10-
I
i.! \
-··-■«*■·· *'*'·*■*"**... -.....-
>
....L·'·' j r· <**\·4Λ4'·O 1 1·'«1 l i
"·""i··i !■*μ·IL+K-
;■Vι£»·*.t
ιi''4
•·'¡'·''♦:;'• .r··«Σ/·.·♦·*.ν»·.*i*»:ι>α.;'f
f
• ■\%

Trendinnetfarnsurpluses
1974 1975 1976 1977 1978 1979
FÍÍGa)15.239 18.010 19.016 17.913 17.959 15.
*)90.6 100 102.2 92.9 89.5 73.1
FRa)50.608 49.048 52.I66 55.088 60.826 68.<:;l
b)116 100 96.6 93.5'94-5 90...
KLa)5.77O 6.S20 8.08O 7.840 7.96O 7.1-
b)93.3 100 108.8 99.3 95.9 84.;:
BSLa)49.769 52.219 65.459 54.572 60.161 60.:;
b)1OS.8 100 116.2 90.8 93.6 92,'
LUXa)1.978 2.074 1.943 2.343 2.430 2.47V
b)112.8 100 83.2 97.3 98.1 91-i
UXa)944.3 1147.71458.4 .1454.2 1484.8 151:-·
b)96.9 100 110.9 97.4 90.8 εο.ό
IRa)329.3 476 537.7 741.1 839.2 723.-.
*>)73.8 100 93.2 113.8 II5.9 63.¿
a.1netsurplusperfarrainnationalcurrency
b)netsurplusexpressedasanindex(inconstantteras,1975■100)

17'inbcrof'leveloorrentnl&nsannrovedrervear
1577 I97S 1979 193ο
DSUTSCHLAÎÎD 6.514 5.820 5.29O 4.3C:-
VííAÍÍCS 2.597 * 4.457 5.566 6.4C;
ÎÎVÏÏERLAÎO 2.eòo 3.036 3.241 1.3-:.
IiiXCIQí^/EüLCIS 1.652 1.985 2.133 2.2.;.
LUXF.VJJO'jnC : t 15 :
ΙΠ.ΊΤ-ΏKINGDOM 7.U5 7.631 5.147 2.6:
ItiSlJUü 2.921 4.197 3.697 2.2;:
DANVJUIK 1.313 2.120 I.848c.j*·-
EUH-9 25.002 •29.156 *27.128 !

Proposal fora
COUNCIL racisiON
authorizing certain Member States toraise thelevel oftheinterest rate subsidy pr(
vided forbyDirective 72/159/EEConthemodernization offarms
?ΚΕΟΟϋϊίΟΙΙ ,0??Η2ΕϋϋΟΡΕΑΪΙ ΟΟΚΕϋΝΙΊΊΕΒ ,
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Directive 72/159/EECof17April 1972 onthe
modernisation offarms^\aslastamended byDirective 8l/528/]3EC^\and
inparticular thesecond subparagraph ofArticle 8(2)andthesecond
subparagraph ofArticle 19(l)thereof ,
Having totheproposal from theCommission ,
Whereas ,under thefirst indent ofthesecond sub-paragraph ofArticle 8(2)
ofDirective 72/159/22C ,theMember States maybeauthorized togrant
interest rate subsidies exceeding 5i*ifsuch action iswarranted bythe
situation ofthecapital market intheMember States ;
Whereas theinterest rates currently applicable inmost Member •States to
lon.<*-term agricultural loans and theexceptional burden placed onfarmers
wishing tomodernise their holdings bythese interest rates ,which arewell
inexcess oftheminimum laid downbyDirective 72/l59/SEC |mayadversely
affect ,oreven make impossible ,themodernization ofagriculture which this
Directive aims toachieve ;whereas thesituation ismore serious incertain
Member States .;
Whereas itistherefore »:-«..^«? sary togrant further interest rate subsidies ,
differentiated where possible totheinterest rates obtaining ;
Whereas thesecond subparagraph ofArti.>~ ofDirective 72/159/EEC
stipulates that increased expenditure incurred by states asaresult ofan
increase in*'neinterest rate subsidies maybedeclared
assistance from theGuidance Section ofthe European Agricultural Guioo.'.^' and
Guarantee Fund andwhereas theFund must make afinancial contribution tow\-j s
such expenditure , \
'"1
(1)OJNoL -96,23.4.1972 ,p.1
(2)OJNoL197 ,20.7.1981 ,P.41

2
HAU ADOPTi'D T1II3 LÏCI'JIOU t
ArMnlc 1
1.Denmark and theUnited Kingdom arehereby authorized toincrease by3/»
theinterest rate subsidies referred tointhefirst subparagraph of
Article 8(2)ofXirective 72/l59/SECandinArticle 9(l)ofDirective
75/268/22C ,provided that theinterest rate which remains tobepaid bythe
recipient oftheaid isnot less than that laid down intheArticles
concerned .
2•The I-'ederal Republic ofGermany ,Belgium ,Prance ,Greece ,Luxembourg and
theNetherlands arehereby authorized toincrease by25»theinterest rate
subsidies referred tointhefirst subparagraph ofArticle 8(2)of
Directive 72/159/2ECandinArticle 9(l)ofDirective 75/268/EEC ,providedthat
theinterest rate which remains tobepaid bytherecipient ofthe subsidy
isnot less than that laid down intheArticles concerned .
Article 2
Expenditure incurred byMember States pursuant toArticle 1shall be
eligible forassistance from theGuidance Section oftheEAGGP within the lii .
fixed inthefirst subparagraph ofArticle 19(3)ofDirective 72/159/13EC.
Article 3
This Decision shall apply until 31December 1983 .
Article 4
This decision isaddressed "totheKingdom ofBelgium ,theKingdom ofDenmark ,
theFederal Republic ofGermany ,theRepublic ofGreece ,theFrench Republic ,
theGrand Duchy ofLuxembourg ,theKingdom oftheNetherlands andtheUnited
Kingdom .
Done atBrussels ,
For the Council
The President

F5NAWCIAL STAT IMIENT
Date19.11.1981
|1.£jUt>Gfc THEADING 1810 APPROBATIONS IbôffillXlOllfl ECU «
?.TITLE :Proposal foraCouncil Decision ,onthelevel ofinterest rate subsidy
provided forbyDirective 72/159/E2C "themodernisation offarms .
j.up*i t-ASii :Article 6ofRegulation 70/729/EEC
4.AlK*Vfnr.-Jl Cï;
Partial compensation oftheincrease inthemarked rate ofinterest .
5.flNANCJAl IMPLICATIONS
5.0 EXPEND !TUPE
-ChAKGLO TOTHf fC'JUDGE T
(MEfUfOS /:Mt.»Vi.M ICUS )
-NATIONAL ADMINISTRATION
•?OTHFK
5.1 HECE.'PTS
-OWN Riscuicrs OfTHt EC
'(LEVIES /CUSTOMS DUTIES )
-NATIONALPLftIOO Of12r.ONTHS CURRENT FINANCIAL YEAR
tiq8i ;FOLLOWING FINANCIAL YEAR
<1982 >
pm
102 MECU
1983 1984 1985 1986
5.0.1 ESTIMATED fc<ΡΓ·θ ;τι:»Ε
5.1.1 ESïIMA *E0«iCtìPIUMECU 25,5 25,5 13,5 13,5
5.2 MCTHCO OfCALCULATION *!
Onthebasis oftherefunds addexperience acquired ,theadditional costs jj
are estimated asfollows : ?
fortheproposed increase :25.5 J®CU 2>rthefirst twoyears ;but , !:
taking account ofthecapital grants incertain Member States this amount ;
will be13.5 MECU from 1985 "tocover aids granted bywayofinterest subsidy.!'
*xx^xmxx>ocm4QLXjamx)«xxx;axxxxxxmxxxxm!JKmxxxxxxxx ^ 1
^AXXixxjox-xx;<j(mjcax;axxxxxxaxxyjcxxxxAXKxmj'imx^jc :^Ga ?JBSQCX i.
tmxiocxxmxjcmxmmmxm ■
i>»3 cuJviti APr-i^a.i ; ?
YES /fSV
|observations

Proposal fora
COUNCIL DECISION
amending Decision 76/402/EEConthelevel oftheinterest rate
subsidy ,provided forbyDirective 72/159/EEQonthemodernisation
offarms ,tobeapplied inItaly .
THE COUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Directive 72/159/EECof17April 1972 onthe
1. « ««a /AAA/«MMmodernization offarms ',aslast amended byDirective 8l/528/EEC *,and
inparticular thesecond subparagraph ofArticle 8(2)thereof ,
Having regard totheproposal from theCommission ,
Whereas theItalian Government hasrequested anextension ofthevalidity
ofCouncil Decision 76/402/EEC^y _ .aslastamended ,by
Decision 8l/24l/EEC^,which isapplicable until 31December 1981 ;
Whereas therate ofinterest currently applicable inItaly tolong-term
agricultural loans is19.6 which is6.2%greater than therate onwhich
Decision 76/402/EECwasbased ;
Whereas aninterest rate of19.6 i»andinterest rate subsidies of9%,11%
and12/»respectively will mean that therecipient iscalled upon tobear
arate ofinterest inexcess oftheminimum laid down byDirective
72/I59/EEC ,
(1)OJNoL96,23.4.1972 ,p.1
(2)OJNoL197 ,20.7.1981 .p.41
>(3)OJNoL108,26.4.1976 ,p.39
()OJNoL113,25.4.1981 ,p.46

HAS ADOPTED THIS DECISION :
Article 1
With effect from 1January 1902 ,Article 4ofDecision 76/402/EECshall
bereplaced "bythe following :
'Article 4
This Decision shall apply until 31December 1983 ".
Article 2
This Decision isaddressed totheItalian Republic .
Done at
Por the Council
The President

FHiUAIMClAL STAT EJVsEfJT
ADat*:16#10#198l
1.BUDGET HEADING :8lQ APPKOFLL ATIONS IL£OMBOU
2.TITLE :Proposal foraCouncil Decision amending Decision 76/402/EEConthelevel
oftheinterest rate subsidy ,provided for "byDirective 72/159/EEC5onthe
modernisation offarms ,to "beapplied inItaly#
waMaBa3 ^nna–aw 1–m– iMimmnmtso –mm––ninnr^–M–■M–wawa ––––––– I––
3.LEGAL OASIS :Article 43ofTreaty
4.AIMS OFPROJECT :
Partial compensation forincrease inmarket rate of 'interest® !;
I5.FINANCIAL IMPLICATIONS PERIOD OF12MONTHS CURRENT FINANCIAL YEAR
(ft! )FOLLOWING FINANCIAL YEAR
( ft? )
5.0 EXPENDITURE
-CHARGED TOTHE ECBUDGET
(REFUNDS /INTERVENT IONS )
-NATIONAL ADMINISTRATION/pmpm
14,6 MECURÎ
ij
-OTHER · » /
5.1 RECEIPTS
-OWN RESOURCES OFTHE EC
(LEVIES /CUSTOMS DUTIES )/ - ->■
(
-NATIONAL/■jj
1983 1984 1985 ; 1986 ι
5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED RECEIPTS5,1 5,6 5,6 5,6I
\
}\
*ME^ollovang Decision 76/402/EECthehigher rates arealready "being applied in
Italy# According toinformation received from theMember State ,thetotal
estimated costs ofcontinuing thehigher rates are :\
Year
1982
1983
1984
1985
1986Expenditure ■'M»S o
14,6
16,2
16,2
16,2Refund EAGGF
5,1
5,6
5,6
5,6 Co
5,6
6.0MXXXXmJOLJaXXXXKXXXXXXXOXXXXXXXXÍGCiQCmSQD&XBíXmKXKXXXÍSQÍi^iQí ^^ ?
Notapplicable XKXKK
6.1mmJQCXmxmXXXmXXXmXXXXJamEemmSÇmmaSOC *
NotapplicableEÉÏ /ISEXX
6.2 ISASUPPLEMENTARY NECcSSARY ?vSC/NO
0.3 WlLL fUTo'RE 9oDu£T APr-KCb ;ATl0\'i bfcNECciiSARYYES/fXX
OBSERVATIONS
60%ofplans areinnormal areas andaresubject toa25%refund#
40%ofplans areinless favoured areas andaresubject toa50i°refund .
(Directive 80o666)