NoC298/10 OfficialJournaloftheEuropeanCommunities 4.11.93
ii
(PreparatoryActs)
COMMISSION
ProposalforaCouncilRegulation(EEC)amendingRegulation(EEC)No3813/93ontheunit
ofaccountandtheconversionratestobeappliedforthepurposesofthecommonagricultural
policy
(93/C298/10)
CC>M(93)483final
(SubmittedbytheCommissionon14October1993)
WhereasArticle13ofRegulation(EEC)No3813/92
restrictstheapplicationoftheecucorrectingfactorto31
December1994andprovidesforare-examination ofthe
agrimonetaryarrangementsbeforethatdate;whereasthe
measuresadjustingthelimitsandtherulesforadjusting
theagriculturalconversionratesshouldbereviewed
withintheabovementioned framework ;
WhereasArticle7ofRegulation(EEC)No3813/92lays
downthat,attherequestoftheMemberState
concerned,certainamountsinecuscanbeincreasedto
avoidtheirreductioninnationalcurrency;whereasthis
isnoteconomically justifiedinthecaseofamounts
whichhavepreviouslybeensubjecttoanagrimonetary
increaseinnationalcurrencytermsgreaterthanthe
reductioninquestion;
WhereasArticle8ofRegulation(EEC)No3813/92
providesforthepossibilityofgrantingcompensatory aid
forlossofincomeresultingfromtheaveragemovement
oftheagriculturalexchangerateovertheprevious12
months;whereas,soastoavoidthedifficultiesthat
excessivedelaysinpaymentscouldcauseforfarmers,the
paymentofadvancesshouldbeauthorizedwherea
tendencytowardsarevaluation,onaverage,isnoted;
whereasthepaymentofannualinstalmentsof
compensatory aidisnolongereconomicallyjustified
wheremovementsinthenationalcurrencycompensate
forpastlossesofincome,THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticles42and
43thereof,
HavingregardtotheproposalfromtheCommission ,
HavingregardtotheopinionoftheEuropean
Parliament,
Whereastheagrimonetaryarrangementsapplicablefrom
1January1993arelaiddownbyRegulation(EEC)No
3813/92(*);whereas,on2August1993,theministersof
financialaffairsandthegovernorsofthecentralbanks
decidedtotemporarilyincreaseto15%themarginal
interventionthresholdsofcurrenciesparticipatinginthe
exchange-rate mechanismoftheEuropeanMonetary
System;whereas,fromtheagrimonetarypointofview,
therefore,allthecurrenciesoftheMemberStatesmust
temporarilybeconsideredasfloatingcurrencies;
Whereasthenewmonetarysituationcreatesariskof
widerandmorefrequentfluctuationsforalltheagri­
culturalconversionrates;whereasuniformimplementing
measuresapplicableinallMemberStatesmustbe
adoptedatCommunityleveltoensuregreaterstability;
whereas,tothatend,thefour-pointlimitonthe
monetarygapbetweenMemberStatesmaybewidened,
althoughnotbeyondthefive-pointlevelabovewhich
gapsprovokespecultativemovementsofgoods;whereas,
moreover,inordertotakeaccount,inparticular,ofthe
difficultiescausedbycurrencieswhichrevalue,the
maximummonetarygapallowedforaparticular
currencymaybevariedonthebasisofthenatureofthe
currencymovement ;HASADOPTEDTHISREGULATION :
Article1
Regulation (EEC)No3813/92isherebyamendedas
follows:
OOJNoL387,31.12.1992,p.1 1.thefollowingArticle4aisinserted

4.11.93 OfficialJournaloftheEuropeanCommunities NoC298/11
'Article4a
Until31December1994,andnotwithstanding Article
4:monetarygapsfortheMemberStatesconcerned
thatexceed:
—threepointswherethegapsarepositive,or
—twopointswherethegapsarenegative,
shallimmediatelybereducedtotheabovelimits.
Thisadjustmentshallbemadeafteranyadjustment
requiredpursuanttoparagraphs 1and2.';
2.thefollowingparagraphisaddedtoArticle7:
'ApplicationofthisArticlemaynotberequestedfor
amountsforwhichanagriculturalconversionrate
lowerthanthenewrateconcernedwasappliedduring
the24monthsprecedingtheintroductionofthe
latter.';
3.thefollowingisinsertedafterArticle8(2):
'2a.MemberStatesgrantingcompensatory aidmay
payanadvanceoutofnationalfundsbasedonthe
lossofagriculturalincomeduringtheperiodin
questionwheretheaverageagriculturalconversion
rateoveratleastthreeconsecutivemonthsfulfilsthe
conditionssetoutinparagraph 1fortheaverageagri­
culturalconversionrateovertheprevious12months.
i
Thelevelofadvancespaidshallnotaffectthe
Communitycontribution tothefinancingof
compensatory aid.TheMemberStateshallnotbe
obligedtorecoveradvancesexceedingthemaximum
aidpermissiblepursuanttoparagraphs 1and2.
2b.Wheretheaverageratetriggeringoffthe
grantingofaidislowerthantheaverageagricultural
conversionrateappliedsubsequentlyfor12conse­
cutivemonths,theannualinstalmentsofaidpayable
afterthe12monthsinquestionshallbecancelledor
reducedinaccordancewiththeprocedurelaiddown
inArticle12.'
Article2
ThisRegulationshallenterintoforceontheseventhday
followingitspublicationintheOfficialJournalofthe
EuropeanCommunities .
ThisRegulationshallbebindinginitsentiretyand
directlyapplicableinallMemberStates.1.Theagriculturalconversionrateforafloating
currencyshallbeadjustedwherethemonetarygap
forthelastreferenceperiodofamonthexceeds:
—threepointswherethegapispositive,or
—twopointswherethegapisnegative.
Insuchcases,thenewagriculturalconversionrate
shallbefixedsoastoreducethemonetarygapby
half,withoutprejudicetoparagraph3,andshall
takeeffectfromthestartofthefollowingmonth.
2.Intheeventofamonetaryrealignmentaffecting
thecentralratesdeterminedfortheMemberStates
withfixedcurrencies,theagriculturalconversion
ratesshallbeadjustedimmediatelysoasto:
—eliminatethemonetarygapsofthefixed
currencies,
and
—reducethemonetarygapsofthefloating
currenciesbyhalfwheretheyexceedthelimits
referredtoinparagraph 1overanappropriate
referenceperiod,withoutprejudiceto
paragraph3.
However,shouldamonetaryrealignmentleadtoa
monetarygapforafixedcurrency:
—lessthanorequalto0,5points,thisgapshall
bedismantledbythebeginningofthenext
marketingyearatthelatest,
—greaterthanfivepointswherethegapis
positiveorfourpointswherethegapis
negative,thisgapshallimmediatelybereduced
totwopointslessthantheabovelimits.The
remaininggapshallbedismantledovera
maximumperiodof12monthsfromthedate
ofrealignment .
Theadjustmentsoftheagriculturalconversion
ratesprovidedforinthesecondsubparagraphshall
bemadebytheCommissioninaccordancewith
theprocedurelaiddowninArticle12.
3.If,overareferenceperiod,theabsolutevalueof
thedifferenceinthegapsbetweentwocurrencies
ofanytwoMemberStatesexceedsfivepoints,any