ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)38
Vol.1979/0012

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COMMISSION OFTHEEUROPEAN COMMUNITIES
A i/" ' .v.-?-\ !
::
i Brussels :-9February 1979 .
•• at "1 i
.S.'P, ' .._L"" 1 t\ , •-■»!
i- ' •-/ ■
\ • .> S,V
Proposal fora
v V
COUNCIL REGULATION (EEC )
amending Regulation (EEC ),No974/71with regard tothe .
calculation ofmonetary compensatory amounts inthewine sector
(submitted totheCouncil bytheCommission )
COM(79 )38final .

Explanatory Memorandum
Inthewinesectorthemonetary compensatory amountscurrently applyto
winesimported fromnon-member countries,certainsparkling winesand
certaintablewines;however,thesem.c.a.'sareappliedonlyinFrance
andItalyaswellas,inthecaseofcertainwinesoftheGermantype,
inGermany.
InItalyandFrance,theseamountsareleviedonexportandgrantedon
import;inGermany,thereverseisthecase.
On20September 1978theFrenchGovernment submitted amemorandum tothe
Commission inwhichitsuggested thatm.c.a.'sshouldnolongerbeapplied
inFrance,inthecaseofItalianandFrenchwinesand,thatinItalyonly
thedifference betweenthem.c.a.normally calculated forFranceandItaly
shouldbeapplied,sincetheItalianm.c.a.iscurrently greaterthanthe
Frenchm.c.a.
Theattached proposal foraCouncilRegulation whichisintended toamend
Regulation (EEC)No974/71isinspired bytheideaputforwardbytheFrench
Government .
Application oftheproposed arrangements
-doesnotalterthesituation asregardscompetition betweenFrenchand
Italianwines;
-encourages exportsofCommunity wines,byreducing orabolishing the
m.c.a.'sleviedonexport;
-haspractically noeffectonimport,since,intradewithnon-member
countries,mostcountries haveundertaken toobserve areference price,
andthemeasureiswithouteffectsofarastheyareconcerned .
Thisbeingso,itappearssufficient ,inordertoremedytheeffectsofthe
monetarydifficulties ,tocompensate forthemonetary differences between
FranceandItaly.
TheCommission wouldstressthatthisproposal willentailanexceptional
measureforthewinesector,wherespecialconditions ofproduction exist,
andthatsuchameasurecouldnotbecontemplated forothersectors.
Asregardsthebudgetary aspectofthisproposal,itshouldbeemphasized
thatadvantages forthemanagement ofthemarket,namelyacertaindegree
ofpricestabilization ,appearlikely;however,anestimate ofthisparti­
cularaspectishardlypossible .

PROPOSAL
for
COUNCIL REGULATION
amending Regulation (EEC)No974/71with regard tothecalculation of
monetary compensatory amounts inthewine sector
THECOUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
and inparticular Articles 28,A3and 235thereof .
Having regard toCouncil Regulation No129onthevalue oftheunit of
account andtheexchange rates tobeapplied forthepurposes ofthecommon
1 . . . .._ ... .. 2agricultural policy ,aslast amended byRegulation (EEC)No2543 /73,and in
particular Article 3thereof ,
Having regard totheproposal frbm theCommission ,
Having regard totheopinion oftheEuropean Parliament ,
Having regard totheopinion oftheEconomic andSocial Committee ,
Having regard totheopinion oftheMonetary Committee ,
Whereas therules forcalculating themonetary compensatory amounts were
established byCouncil Regulation (EEC)No974/71of12May 1971 oncertain
measures ofconjunctural policy tobetaken inagriculture following the
temporary widening ofthemargins offluctuations forthecurrencies ofcertai
Member States 3,aslastamended byRegulation (EEC)No5§7/764;
Whereas ,inaccordance with those rules ,these amounts arenormally fixed
separately foreach Member State ;whereas ,however ,inthewine sector because
ofthespecial nature oftheproduction andmarketing oftheproduct the
monetary compensatory amounts areapplied only intheproducing Member States
andonly inrespect ofwines produced therein ; .
1OJNo106,30.10.1962 ,p.2553/62
2OJNo263,19.9.1973 ,p.1
3OJNoL106,12.5.1971 ,p.1
4OJNoL67,15.3.76 ,p.1

-2-
Whereas given these conditions andthedesirability ofLimiting theapplication
ofmonetary compensatory amounts asmuch aspossible use should bemade of
them inthis situation inrestricted fashion only ;whereas itappears possible ,
withoud disturbing trac^toapply only thedifference between themonetary
compensatory amounts inquestion ,
HAS ADOPTED THIS REGULATION :
Article 1
Regulation (EEC )No974/71isamended asfollows :
1.Thefollowing paragraph isadded toArticle 2:
"4.Themonetary compensatory amount tobeapplied inthewine sector by
Member States with depreciated currencies shall bethat oftheMember
State inquestion ,less thelowest monetary compensatory amount
oftheMember States with depreciated currencies .
Theconversion rate shall bethat used for theapplication ofArticle 2a."
2.Thefollowing paragraph isadded toArticle 3:
"Forthepurposes ofArticle 2(4 )thebalance ofthemonetary compensatory
amounts shall befixed bytheCommission byreference tochanges inthe&e
amounts ".
Article 2
This Regulation shall enter into force onthesixth Monday following its
publication intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done atBrussels ,
For the Council

FINANCiAS .STATEMENT
BATEI15.1.1979
i.BUDGLTLINSCONCERNEDiChapter78 Appropriations :809.2Meua
2.ACTIONICouncilRegulation amendingRegulation (EEC)No974/71
regardingthecalculation ofthemonetarycompensatory amounts
inthewinesector
3.LEGALBASISI Art.28,43and235oftheTreaty
4.OBJECTIVEStProposalthat,inthecaseofItalianandFrenchwines,MCAshould
nolongerbeappliedinFranceandthatinItalyonlythedifference
betweentheMCAnormallycalculated inthecaseofFranceandItaly
'shouldbeapplied
5.FINANCIAL CONSEQUENCE
5.0EXPENDITURE^Periodtof12monthsCURRENTFINANCIAL YEAR
CZ2.J i_FOLLOWING FINANCIAL TEAR
L8Q)
-CHARGED TOTIIKECBUDGET
{CJOMOtyXKit*K&MXty
MMonmxmmiimm
5.1RECEIPTS
-0'SiiRESOURCES OFT!!EEC
tixmxjfàxwkxxmxoo
mXXM'XK+17.3Meua<1>
+3.5Meua+13.-Meua(1)
+3.2Meua+11.2Meua(1)
+2.2Meua
5.0.1PLURIA.VNUAL PATTERNCPEXPENDITURE
5.1.1PLURIANNUALPATTERNOFRECEIPTST y»
5.2HETiiODOFCALCULATIOK
seeAnnex
6.0FINANCING POSSIBLEBYMEANSOFAPPROPRIATIONS INCLUDEDINTHECHAPTER
OFTHECURRENTBUDGET?.
6.1iKxxttxixxxocxmxxixmxm-m&xxxx ydaxmxxmmmmm&m*
6.2NEED F03ASUPPLE !STAR*BUDGET?WW»0
6.3APPROPRIATIONS TOBEINCLUDEDINFUTUREBUDGETS ? TES/Ciä
.uIENTSs(i)ThisexpenditureinrespectoftheMCAistobeunderstood as
appropriate ,,sincethismeasureissuchastoencouragetheexpansionof
intra-CommunitytradetowardsNorthernEuropeand,thus,earningsderivingfrom
theexportofwinefromItalywhichareincreasing andcould,inpart,offsetthe
expenditureoftheMCAresultingfromthismeasure.;therewillalsoresultabetter
balanceamongthewinemarketsand,hence,alikelyreductioninexpenditureof
commonorganizations ofmarketsinthissector.For1980,theexpenditureis
calculatedonthebasisoftheMCAresultingfromtherepresentative rateapplicable
toFrance,asfromthe1979/80marketingyear.

ANNiX
I.BASICFIGURES
A.Intra-Communi^_trade_subieçt_to_MÇ A
France :netimports :10Mua
Italy :netexports :160Mua
B.§xtra^Çommun^t^^trade_subiect_to_MCA
France :netimports :30Mua
Italy :netimports :
C.RatesoftheMCA
Presentsituation asat15.2.79
Futuresituation
following thisproposal
Abolition oftheMCA
II.METHOD OFCALCULATIONFrance
Italy
France
Italy
France
ItalyMarketing year
78/79
-10.68%
-18.04%
-6.65%Marketing year
79/80
-6.64%
-18.04%
-10.69%
10.68%
11.39%6.64%
7.35%
-Marketing year78/79
■iQtra;trade
France =10x(-10.68%)=-1.1Muaxcoeff.DR1.081=-1,2Meua
Italy =160x(-11.39%)-+18.2Muaxcoeff.DR1.015=+18.5Meua
+17.1Mua +17.3Meua
•§2<tra;trade
France =30x(-10.68%)=+3.2Muaxcoeff.DR1.081=+3.5Meua
-Marketing year79/80
.Intra^trade
France =10x(-6.64%)=-0.7Muaxcoeff.DR1.121=-0.8Meua
Italy =160x(-7.35%)=+11.8Muaxcoeff.DR1.015=+12.-Meua
+11.1Mua +11.2Meua
*»r
•Extra-trade
France =30x(-6.64%)=+2.-Muaxcoeff.DR1.121=+2.2Meua
Comment :Forthe1979financial year,forthepurposes ofthesecalculations ,
itisassumedthatthismeasurewillenterintoforceon1February 1979.
Increase inexpenditure fora
12monthperiod :17.3Meuax9=13.-Meua
12
Increase inownresources
fora12monthperiod 3.5Μβυδχ11=3.2Μβυβ
•12