ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76)531
Vol.1976/0163

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76)531 final.
Brussels .4thOctober 1976'
/
V:
-,•■\.
.;*
PROPOSAL FORACOUNCIL REGULATION (EEC)
/
AMENDING THEEWCHANGE RATETOBEAPPLIED
TOTHEIRISHPOUNDANDTUBPOUNDSTERLING
,FORAGRICULTURAL PURPOSES ..; ...,
CCM(76)531final.
•j
fv
/
/_ • .J A.^ -«t. V/IJ____?\ .(submitted totheCouncil bytheCommission ).
\
£

EXPLANATORY MEMORANDUM
Council Regulation (EEC)No557/76of15March 197^on'theexchange rates
tobeapplied inagriculture (OJNoL67,15March 1976 ,p.l)fixed a
newrepresentative rate fortheIrish pound andretained unchanged the
representative rate forthepound sterling which hadbeen applied since
27October 197%
Inrecent weeks fthese twocurrencies have depreciated sharply ,with
theresult that thedifferences used to .calculate monetary compensatory
V
amounts have widened appreciably .
These amounts areused tocompensate intheshort term forfluctuations in
theexchange rates ofcurrencies inrelation totherates used tofix
agricultural prices .When thedifference between the "green "rr.te and "the
real rate widens ,themonetary compensatory amounts ,instead ofpreventing
distortions ,actually give rise toserious imbalances ,thus preventing
areturn toanormal balance .
Differences intheregion of30%have rarely been recorded before .
Moreover ,thefinancial implications fortheCommunity ar^very serious :
Ifthemonetary compensatory amounts were tobemaintained atarate based
ontheprovisional average forthepresent week andremained unchanged for
thewhole of1977 ,appropriations totalling 900million u.a .would be
required ,whereas theestimate fortheEAGGP Guarantee Section budget for
1977 is582million u.a .
Itwould therefore beappropriate tochange therepresentative rates for
these currencies soastobring about :
asubstantial adjustment inthecase ofIreland ,and
inthecase oftheUnited Kingdom ailadjustment toprevent the
difference inrelation tothereal rate from widening still
further bymaintaining themonetary compensatory amounts s,t
theprevious week*s level .
Thetable below shows theimplications oftheproposed measure :

-2-
Effects of
MemberState Oldrate newrate devaluation in%price
increase
in%monetary c ,taav
amounts *calculate-*' '
onthebasisofthe
averagebetween22.9
and1.10.1976
Ireland £1=1.O9653u.a.
1u.a.=£0.589438£1=1.56773 u.a.
1u.a–£0.6373457.589 8.212
720.3applies -•
21.8real
UnitedKingdom £1=1.75560 u.a.
1u.a.=£0.569606£1=1.O7642 "u.a.
Iu.a.=£0.5965094.510 4.72328.7applied *"-%
30.2real

COUNCIL REGULATION (EEC)
amending theexchangeratetobeapplied
totheIrishpoundandthepoundsterling
foragricultural purposes
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropean Economic Community ,
HavingregardtoCouncilRegulation No129on"thevalueoftheunitofaccount
andtheexchangeratestobeanpliedforthepurposes ofthecommonagricultural
policy ,aslastamendedbyRegulation (EEC)No2543/73,andinparticular
Article 3thereof,
Havingregardtotheproposal fromtheCommission ,
VfhereasCouncilRegulation (EEC)NO5137/76ofISMarch1976ontheexchange
ratestobeappliedinagriculture andrepealing Regulation (EEC)No475/7't
aslastenendedbyRegulation (EEC)No145l/76^\fixedrepresentative rates
fortheIrishpoundandthepoundsterling ;whereasthemovement ofthesetwocurren­
ciesindicates theadvisability offixingnewrepresentative rateswhichrcf_ect
morecloselythepresenteconomicsituation ;whereasitwouldbeappropriate to
bringthemintoforceinprinciple onthedatesonwhichapricechangeoccurs ?
WhereastheMonetary Committee willbeconsulted andwhereas,inviewofthe
urgencyofthematter,theproposed measures shouldbeadoptedunderthe
conditions laiddowninArticle3(2)ofRegulati onNo129»
HASADOPTED THISREGULATION :
Article 1
InArticle2(l)ofRegulation (EEC)No557/76,points(e)and(h)arearnenc.ec .
asfollows :
"(e)fortheIrishpound:
£1Ir=I.56778unitsofaccount
(h)forthepoundsterling :
£1=1.67&42unitsofaccount;"
(1)OJN.i106,30October1962,p.2553
(2)OJNoL263,19September 1973,P*1
(3)OJHoL67,15foarch1976,p.1
(4)OJiToLlb3,24June1976,p*5

Article 2
ThisRegulation shallenterintoforceon11October 197°•
However,forthepurooses ofcalculating monetary compensatory amountsar.i
factorsfordetermining differential amountsapplicable tocolzaandrap^
seed,itshalltakeeffectfrom4October1976*
ThisRegulation shallbebindinginitsentirety anddirectly applicable in
allMemberStates. _
DoneatBrussels . FortheCommission

INCl DKNOKîi KTMANOX
1»Laprésente proposition amene,par rapport aux pourcentages
MCM ,qui résulteraient tels récente évolution monétaire ,à
uneréduction deCCÎSpourcentages rie -6,2points pour lei-St
-10pointe pour lo Irlandais .
Comme ils'agit d'unemodification dutaux reprôsentati fn,ily ,
aégalement uneffet dedouble taux .
2»L'incidence financière 66chiffrç comme suit : ....... j
Variatio ndesdépenses
(12mois enHue )
U.K. -réduction desMCM de6,2points -1o6
(6,2 x-JOMue )
-effet dedouble taux Fur les
dépenses autres quelesMCM + 8
Irlande •*réduction desMCM de10points
(10χ+9,2 ) +92
-effet dodouble taux sur lesdépenses
autres que les MCM +20
TOTAL -66
3.Compte tenu deladate d'entrée envigueur etdesdélais de
paiement ,l'incidence autitre dubudget 1976 sera limitée à
environ -10MUC .