ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)2181
Vol.1973/0399

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73)2181final
Brussels,9January1974
Proposalfora
REGULATION(BBC)OFTHECOUNCIL
amendingcertainRegulations onthefinancing .ofinterven­
tions"bytheGuaranteeSectionoftheEuropeanAgricultural
GuidanceandGuaranteeFund
(submitted ,totheComoillaytheCommission)
COM(73)2181final

Explanatory Memorandum
1.Theobjects ofthis Regulation aretomake certain changes tothepresent
rules governing thefinancing ofinterventions andtoextend them forayear
pending theexistence ofasituation inwhich final rules onthefinancing
ofinterventions consisting ofbuying -in,storage anddisposal can"beadopted .
2.Under theRegulations onrules forfinancing interventions inthevarious
product sectors »where theaccount showing netexpenditure oninterventions
consisting ofbuying-in isincredit ,thebalance iscarried forward tothe
following year .But inview ofrecent intervention measures this isnot an
appropriate means ofdealing with credit "balances .Ingeneral terms the
introduction into interventions asdefined inArticle 3(0 ofRegulation (E3C)
No729/70jofmonetary compensatory amounts granted andlevied inintra -
Community trade hasgiven rise since 1January 1973 toasituation inwhioh
theamounts levied arededucted from theamounts granted inconnection with
interventions inthecurrent year .This deduction ismade notonly from the'
expenditure ofaMember State butalso from Community expenditure .

-2-
Moreover ,inconnection with interventions consisting ofanintervention
agency buying inaproduct ,thetransfer ofproducts which are thesubject
I
ofintervention from one intervention agency toanother and the financial
1
procedure followed insuch acase (Begulation (EEC)No210^/73)involve ,
under thepresent rules ,substantial sums being carried over tosubsequent
years .
Inorder tocome into line with the financial procedure generally followed
and toavoid carrying over substantial sums tosubsequent years ,itis
proposed that with effect from theaccounts prepared asat31December I
1973 anycredit balance should form part ofthefinances forthecurrent
year .
3«The basic regulation for thecommon organisation ofthemarket inwine
(Regulation (EEC )Ho8l6/70)wascompleted in1972 byArticle which
provides forprivate storage aidfortable wines .Consequently ,Begulation
(EEC )No.2l8l/71 (relating tothefinancing ofintervention expenditures
inthis sector )should becompleted bymentioning theprivate storage aid
fortable wines setupbyArticle 6^1S.
r
k.TheAnnex toRegulation (EEC )No2824/72lists themeasures which are
considered tobeinterventions intended tostabilize markets within the
meaning ofArticle 3(1)ofRegulation (EEC )No729/70.This Annex must be
brought uptodate toreflect recent modifications inintervention measures
5.Article 3(2)ofCouncil Regulation (EEC)No729/70onthefinancing of3
thecommon agricultural policy requires theCouncil tolaydown thegene­
ralrules forfinancing interventions intended tostabilize agricultural
markets .
InJuly 1972 theCommission presented proposals forthis (Doc .R17^3/72
of7August 1972 ).Onthebasis ofthose proposals theCouncil adopted
Regulation (EEC )No282^/72laying down general rules forthefinancing of
interventions bytheGuarantee Section oftheEAGGF .Regulation (EEC )No
28^2/72lays down general rules forthefinancing ofinterventions in
respect ofwhich amounts have been fixed under thecommon organisations of
themarkets .Ontheother hand ,asregards interventions inrespect of
which noamount isfixed ,theRegulation provides that theCouncil isto
adopt before 1August 1973 general rules tobeapplicable from 1January
197^.

-3-
However,theCommissionconsidersthatnewgeneralrulesforfinancing
interventioncannotbeadopted£orthefollowingreasons:
(a)operationsrelatingtobuying-in,storage,preparationformarket,
processing,ifany,anddisposalarehighlycomplicatedandthework
doneinrecentmonths "bytheCommissionincooperationwiththe
»
MemberStates,whileithasmadexteasiertounderstandtheproblem,
hasnotyetthrownupanyconclusions whichcouldbeappliedinthe
nearfuture;
(b)followingenlargementoftheCommunitythethreenewMemberStatesmust
gainatleastamodicumofexperienceinthisfieldifthegeneralrules
governingintervention aretobeapplicableinthenineMemberStates;
(c)therearestill"considerabledelaysinfinalizingbalancesheets:
priorityshouldbegiventoputtingpastaccountsintoorderbefore
anysubstantialprogresscanbemadeintheproceduresfor •-•11*
publicintervention .

6•Promthefinancialangleitispointedoutthatthisproposalgives
risetononewexpenditureorrevenuebutextendsto1974thepresentsystem
offinancingoertainintervention measureswhileadjustingcertainfinancial
provisionsrelatingtoaccountingmethods*
/

-5-
Proposal fora
REGULATION (EEC)OPTHECOUNCIL
amending certain Regulations onthefinancing ofinterventions
bytheGuarantee Section oftheEuropean Agricultural Guidance and
Guarantee Fund
THECOUNCIL OPTHEEUROPEAN "COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ;
1Having regard toCouncil Regulation No17/64/EEC of5February .1964 onthe
conditions forgranting aidfrom theEuropean Agricultural Guidance and
2 .3Guarantee Fund ,aslast amended bytheAct annexed totheTreaty concerning
theaccession ofnewMember States totheEuropean Economic Community andto
theEuropean Atomic Energy Community ;
Having regard toCouncil Regulation (EEC)NO729/70^of21April 1970onthe
financing ofthecommon agricultural policy ,aslast amended byRegulation
(EEC)NO2788/72^,andinparticular Article 3(2)thereof ;
"Whereas ,inview ofrecent intervention measures ,theneed toknow foreach
financing year thenetexpenditure onintervention means that certain
amendments mustbemadetoCouncil Regulation (EEC)NO786/69^of22April 1969
onthefinancing ofintervention expenditure inrespect oftheinternal
market inoilsandfats ,asamended byRegulation (EEC)No526/73^,Council
O
Regulation (EEC)NO787/69of22April 1969 onthefinancing ofintervention
expenditure inrespect oftheinternal market incereals andrice ,asamended
byRegulation (EEC)No2092/70^,Council Regulation (EEC)NO
lojNo34,27February 1964 ,p.586/64
^OJNoL73,27March 1972 ,p.14
¿OJNoL73,27March 1972 ,p.5
;iOJNoL94 ,28April Í970,' p.13
5oJNoL295 ,30December 1972 ,p.t
^OJNoL105 ,2May1969 ,p.1LojNOL51 ,24February 1973 ,P*1
qOJNOL105 ,2May1969 ,p.__4
OJNoL232 ,21October p«3

-6-
788/69of22April 1969onthefinancing ofintervention expenditure in |
respect oftheinternal market inpigaeat ,asamended byRegulation (EEC )
No2092/70,Council Regulation (EEC)No233V69 2of25November 1969 on \
the financing ofintervention expenditure inrespect ofthe internal market
insugar ,asamended byRegulation (EEC)No2092/70,Council Regulation j
(EEC)No2305/70^of10November 1970 onthefinancing ofintervention ex-
I
penditure inrespect ofthe internal market inbeef and veal ,Council fie- 1
gulation (EEC)No2306/70of10November 1970 onthefinancing ofinter­
vention expenditure inrespect ofthe internal market inmilk andmilk
products ,andCouncil Regulation (EEC)No1697/71^of26July1971onthe j
financing ofintervention expenditure inrespect oftheinternal market in
raw tobacco ;
Whereas Council Regulation (EEC)No2l8l/71^of12October 1971fixed the
rules relating tothefinancing ofintervention expenses inthe wine sec­
tor ;whereas since thenArticle 6*"*ofCouncil Regulation (EEC)No8l6/70
of28April 1970 ,with complementary arrangements inregard tothecommon
7organisation ofthemarket inwine ,aslast amended byRegulation (EEC )
8No2592/73 ,introduced in1972 private storage aid fortable wines ,
which involved expenditure ;whereas this aid corresponds tothe idea of
interventions appearing inArticle 3(1 )ofRegulation (EEC)No729/70;
whereas Regulation (EEC )No2l8l/71should becompleted inrespect ofthe
financial year 1972 »
9Vhereas theAnnex toCouncil Regulation (EEC )No2824/72of28December
1972 laying down general rule® -for the financing ofinterventions bythe
Guarantee Section ofthe European Guidance and Guarantee Fund ,aslast
amended byRegulation (EEC)No /73^,lists themeasures which arecon­
sidered tobeinterventions intended tostabilize agricultural markets
within themeaning ofArticle 3(1)ofRegulation (EEC )No729/70;
whereas the said Annex should beadded to;
"OJNoL105 ,2May1969 ,p.7
*0JNoL298 ,27November 1969 ,p.1
?0JNoL249 ,17November 1970 ,p.1
OJNoL249 ,17November 1970 ,P«4'
gOJNoL175 ,4August 1971 ,p.»
_0JNoL231 ,1^October 1971 ,P*3
gOJNoL99,_5May1970 ,p.1°0JNoL269 ,26September 1973 ,p.1
£0JNoL298 ,31December 1972 ,p.5
OJNoL

-7-
Vhereas Article 2(2)ofRegulation (EEC)No282V72provides thatthe
Council shall before1August1973introduce general rules ,tobeapplicable
from 1January 197^,onthefinancing intheir entirety ofintervention
measures forwhich ,within theframework ofthecommon organization ofthe
markets ,nosumperunithasbeendetermined ;whereas ,however ,since
these measures arecomplicated andhaveonlyrecently become applicable in
thenewMember States ,afurther period ofoneyear isnecessary before
those rules canbebrought into operation ?
HASADOPTED THIS REGULATION :
Article 1
Article 4(*0 ofRegulation (EEC)No786/69*Article 3(H)ofRegulation
(EEC)No787/69,Article MM ofRegulation (EEC)No788/69andArticle
3(4)ofRegulation (EEC)No233V69 arereplaced bythefollowing :
"4.Anycredit balance inthesingle account referred toinparagraph 2
shall bededucted from expenditure forthecurrent year ."
Article 2
Article 2(3)ofRegulation (EEC)No2305/70isreplaced bythefollowing :
"3.Ifthebalance oftheaccount foragiven period isincredit ,such
balance shall bededucted from expenditure forthecurrent year."
Article 3
Article 3(4)ofRegulation (EEC)No2306/70isreplaced bythefollowing :
"4.Ifthebalance ofthefinal single account foragiven period isin
credit ,such balance shall bededucted from expenditure forthecurrent
year ."
Article 4
Article 3(2)ofRegulation (EEC)No1697/71isreplaced bythefollowing :
"2.Ifthebalance ofaccount foragiven period isincredit ,such
balance shall bededucted from expenditure forthecurrent year ."

-8-
Article 51
1.Article 1Paragraph (1)ofRegulation (EEC)No2l8l/71iscompleted by
the addition ofthe following text :
"d)private storage aide fortable wines provided forinArticle 6bu
ofRegulation (EEC)No8l6/70M
2..InArticle 1Paragraph (2)ofRegulation (EEC )No2181/71,after the
words "Article isadded thefollowing "6^'.
Article 6
1.Thefollowing isadded toSection I-"Cereals and rice "-ofthe
Annex toRegulation (EEC)No2824/72:
"9-Thespecial refunds forglucose manufactured inDenmark ,provided for
inthe Commission Decision of 7.
2.The following isadded toSection VIII -"Mine "-ofthe Annex to
Regulation (EEC )No282V7 2:
"4.Private storage aids fortable wines provided for inArticle
ofRegulation (EEC )No8l6/70"
"5.Subsidies forproducts similar tothewine product exported under the
label of"Cyprus Sherry "provided forinArticle 4ofRegulation (EEC)
No1253/73"
Article 7
InArticle 2(2)ofRegulation (EEC)No2824/72:
(a)thedate "1August 1973 "isreplaced byW1August 1974 ";
(b)thedate "1January 1974 "isreplaced by"1January 1975 "•
Article 8
This Regulation shall enter into force onthethird dayfollowing its
publication intheOfficial Journal oftheEuropean Communities .

-9-
-Articles 1tokshall take^euffect foraccounts tobedrawn upon
31December 1973 andforsubsequent annual accounts }
-Article 5shall have effect asfrom 1August 1972 ;
-Article 6shall have effect asfrom 1January 1973 .
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done at For Council
The President