No C 56/70 Official  Journal  of the European  Communities 7.3. 77 
munity  might  evaluate  the effectiveness  of this  Direc-
tive and  subsequently  decide  whether  any  further 
measures  could  be usefully  taken. theless  appears  to go as far as is possible  at this  stage 
of the Community's  economic,  financial  and  adminis-
trative  development. 
4. General  conclusions Done  at Brussels,  15 December  1976. 
4.1. The  Committee,  subject  to the  general  and 
specific  comments  set out  above,  approves  this  pro-
posal  for a Directive.  Although,  in certain  instances, 
it is too dependent  on bilateral  agreements,  it never-The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
ANNEX 
to the opinion  of the Economic  and  Social  Committee 
The following  amendment  was  rejected  during  the discussion: 
Delete  paragraph  3.7.1. 
Voting 
For : 37, against:  50, abstentions  : 10. 
Opinion  on the proposal  for a Council  Regulation  on the procedure  for applying  the 
European  unit  of account  (EUA)  to the legal  acts  adopted  by the institutions  of the 
European  Communities 
The text  referred  to the  Committee  has  been  pulblished  in Official  Journal  of the 
European  Communities  No  C 271  of 17 November  1976,  page  5. 
On 15 October  1976,  the  Council  referred  the  abovementioned  proposal  to the 
Economic  and  Social  Committee  in accordance  with  Article  198  of the  Treaty 
establishing  the European  Economic  Community. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 
144th  plenary  session,  held  in Brussels  on 15 and  16 December  1976. 
The full  text  of the opinion  is as follows: A. LEGAL  BASIS  FOR  THE  OPINION 
7.3.77 Official  Journal  of the  European  Communities No C 56/71 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  198  thereof, 
Having  regard  to the  request  for  an opinion  made  by 
the Council  of the  European  Communities  on  15 
October  1976, 
Having  regard  to the  decision  taken  by its Bureau  on 
26 October  1976,  instructing  the  Section  for  Econ-
omic  and  Financial  Questions  to draw  up an opinion 
on the  matter, 
Having  regard  to the  oral  report  submitted  by the 
rapporteur,  Mr van  Campen,  and  the opinion  adopted 
by the Section  at its meeting  on 30 November  1976, 
Having  regard  to the proceedings  of its 144th  plenary 
session  held  on 15 and  16 December  1976  (meeting  of 
15 December  1976), 
HAS  ADOPTED  THE  FOLLOWING  OPINIONS 
unanimously,  with  three  abstentions: 
1. Introduction 
1.1. The  institutions  of the  European  Communities 
have  long  been  interested  in the  idea  of having  a unit 
of account. 
1.2. It would  provide  a common  yardstick  for 
European  measures  which  apply  across  the  national 
frontiers,  and  surmount  the  difficulties  caused  so far 
by the multiplicity  of the national  currencies. 
1.3. At  present,  most  of the  national  currencies  are 
floating.  There  is no fixed  point  of reference.  Gold 
is no  longer  a standard  unit  of measurement  for 
money,  and  the  old  unit  of account,  based  on gold, 
has been  rendered  meaningless  by the  fact  that  gold 
parities  have  been  abandoned. 
1.4. The  Community  introduced  the  EUA  in 1975, 
its value  being  a 'basket'  of Member  States'  cur-
rencies.  It is defined  by reference  to the  value  of a 
group  of nine  currencies,  the  weight  given  to each 
national  currency  in the  basket  being  determined  by 
the relative  size  of Member  States'  GNP  and  levels  of 
trade.  Once  fixed,  it is not  proposed  to alter  the 
.composition  of the basket. 1.5. The  EUA  is already  in use  within  the  Com-
munity.  It was  adopted  for  the  EDF  (April  1975)  and 
for the  E1B  (March  1975).  Since  January  1976  the 
EUA  has  also  been  used  'by the ECSC. 
1.6. The  present  draft  Regulation  proposes  that  the 
EUA  be used  for  the  Community  budget  — from 
January  1978  — although  initially  its application  in 
this respect  would  be restricted. 
1.7. Until  then  the  unit  of account,  based  on gold 
parities,  will  continue  to be used  for  the  Community 
budget. 
1.8. For  CAP  purposes,  the  'green'  unit  of account 
is still  used,  based  on representative  rates  which  were 
initially  equal  to the  gold  parities,  but  are  being  pro-
gressively  brought  into  line  with  market  rates.  The 
'green'  unit  of account  is unaffected  by  the  pro-
visions  of the present  proposal. 
2. The  scope  of the  Commission's  proposal 
2.1. The  present  proposal  for  a Regulation  lays 
down  the  rules  for  the  application  of the  EUA, 
particularly  as regards  operating  and  intervention 
appropriations. 
2.2. It proposes  that  the  EUA  be  applied  to the 
Community  budgets  as an  accounting  instrument, 
and as an instrument  for settlement  of payments. 
2.3. The  application  of the  EUA  in the  fields  covered 
by this  Regulation,  is governed  by two  basic  prin-
ciples:  firstly,  there  will  be a daily  rate  for  the  EUA 
in terms  of Member  States'  national  currencies,  and 
secondly,  the  EUA  will  be used  to express  value  in 
the settling  of accounts  in connection  with  the  Com-
munity  budget. 
2.4. This  further  extension  of the  use  of the  EUA  as 
a Community  instrument  of  settlement  is fairly 
limited,  in so far at it excludes  settlements  under  the 
CAP,  and  expenditure  relating  to Community  staff 
remuneration. 
3. General  observations 
3.1. The  draft  Regulation  may  be seen  principally 
as having  internal  significance.  It can  be seen  as intro-
ducing  a fairer  mode  of dealing  with  the  revenue  and 
expenditure  aspects  of the  Community  budget.  It 
can also  be seen  as being  a further  step  forward 
No C 56/72  Official  Journal  of the European  Communities 
towards  the  day  when  there  is one  European 
currency. 
3.2. The  Committee  welcomes  the  greater  trans-
parency  that  the  application  of the  EUA  to the 
Community  budget  will  bring.  This  greater  trans-
parency  should  strengthen  the  Community,  in so far 
as it will  tend  towards  a more  just  sharing  out  of the 
costs  and  distribution  of the  benefits  of the  Com-
munity. 
3.3. The  Committee  is convinced  that  a common 
European  currency  is necessary  for a lasting  economic 
stability  to be achieved,  and  believes  that  it is by 
small  steps  such  as this  that  institutions,  govern-
ments  and  individuals  will  become  accustomed  to 
what  amounts  to a radical  break-away  from  some  of 
the rigidities  imposed  by the existence  of a multitude 
of national  monetary  practices. 
3.4. The  Committee  welcomes  the proposal  in so far 
as the manner  in which  the  EUA  is calculated  means 
that the  maintenance  of its value  for  Community 
Members  will  reflect  more  the  strength  of a Mem-
ber States'  currency  in relation  to all the  rest.  All 
Member  States  will,  so to speak,  carry  their  own 
currency  risk,  which  should  itself  be a stabilizing 
factor. 
4. Specific  observations 
4.1. The  Committee  endorses  the  proposal  that  in 
so far as Article  9 lays  down  rules  for  charging  the 
expenditure  of the  guarantee  section  of the  EAGGF 
and expenditure  on food  aid  financed  by advances, 
and provides  for  payments  transferred  in 1979  on-
wards  to be made  in EUA  but  distributed  to reci-
pients  in national  currencies,  the  recipients  them-
selves  will  receive  neither  smaller  nor  greater  monet-
ary sums  as a result  of this  Regulation. 
4.2. In noting  that  Article  10 lays  down  that  sup-
pliers  of goods  and  services  to the  Community  in-
stitutions  would  normally  be paid  in EUA,  the Com-
mittee  accepts  the  principle  that  exchange  risks  are 
transferred  to its suppliers,  provided  there  are  suf-
ficient  banks  or other  financial  institutions  ready  to 
cover  these  risks  when  the  Regulation  comes  into 
effect. 
4.3. Endorsement  is also  given  by the  Committee  to 
the derogation  in Article  11,  concerning  the effect  of 
the Regulation  on the  remuneration  of the  staff  em-7. 3. 77 
ployed  in Community  institutions,  in so far  as the 
Regulation  diverges  for a transitional  period  from  the 
principle  of expressing  rights  and  obligations  in EUA. 
Remuneration  will  continue  to be made  in national 
currencies. 
4.4. The  replacement  of 1 EUA  for 1 u. a. for settle-
ment  in connection  with  current  Community  Regu-
lations  (e.g.,  monetary  sanctions  connected  with  in-
fringements  of competition  policy),  outside  the  im-
mediate  area  of the  Community  budget,  seems  satis-
factory,  given  the  flexibility  of the  fifth  paragraph  of 
the relevant  Article  20. 
4.5. The  Committee  believes  that  the  provisions 
under  Article  21,  whereby  the  counter-value  in 
national  currencies  of the  EUA,  applicable  to specific 
duties  on imports,  are  fair.  They  apply  equally  to 
importers  in all Member  States.  The  items  to which 
specific  duties  apply  represent  as little  as 5 to 10%  of 
all dutiable  items. 
5. Conclusion 
5.1. The  Committee  generally  approves  the  draft 
Regulation,  believing  it to be a realistic  intitial  ap-
proach  to strengthening  one  aspect  of the  Com-
munity.  It will  make  for  greater  transparency  and 
justice  in the  settlement  and  accounting  of the  Com-
munities'  financial  rights  and  obligations.  It believes 
that it allows  for a sufficient  degree  of flexibility  for 
it to be realizable. 
5.2. It believes,  further,  that  a common  name  should 
be used  for  the  'new'  European  unit  of account 
throughout  the  Community,  and  suggests  that  once 
the name  'EUR'  is freed  from  other  associations  and 
becomes  available  for this  purpose,  it be adopted  and 
used  henceforward. 
Done  at Brussels,  15 December  1976. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI