25.7.92 OfficialJournaloftheEuropeanCommunities NoC188/23
(a)doesnotgrantCommunityundertakingseffective
accesscomparabletothatgrantedbythe
Communityundertakingsfromthatcountry;
(b)doesnotgrantCommunityundertakingsnational
treatmentorthesamecompetitiveopportunities as
areavailabletonationalundertakings ;or(c)grantsundertakingsfromotherthirdcountries
morefavourabletreatmentthanCommunity
undertakings ,
theCommissionshallinitiatenegotiationsinorderto
remedythesituation.'
[Paragraphs4and5areunchanged.]
ProposalforaCouncilRegulation(EEC)ontheunitofaccountandtheconversionratestobe
appliedforthepurposesofthecommonagriculturalpolicy
(92/C188/09)
COM(92)275final
(SubmittedbytheCommissionon10July1992)
—CouncilRegulation(EEC)No1678/85of11June
1985fixingtheconversionratestobeappliedinagri­
culture(4),aslastamendedbyRegulation(EEC)No
—CouncilRegulation(EEC)No129/78of24January
1978ontheexchangeratestobeappliedforthe
purposesofthecommonagriculturalstructures
policy(5),
requireschecksattheCommunity'sinternalfrontiers;
whereas,therefore,agromonetaryarrangementsmustbe
etablishedwhicharecompatiblewiththeinternalmarket
andtheRegulationsinquestionshouldberepealed;THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticles42and
43thereof,
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropean
Parliament,
HavingregardtotheopinionoftheEconomicand
SocialCommittee ,
HavingregardtotheopinionoftheMonetary
Committee .
WhereastheinternalmarketprovidedforinArticle8aof
theTreatywillconstitutefrom1January1993anarea
withoutinternalfrontiers;whereasapplicationofthe
agrimonetaryarrangementsonthebasisof:
—CouncilRegulation(EEC)No1676/85of11June
1985onthevalueoftheunitofaccountandthe
conversionratestobeappliedforthepurposesofthe
commonagriculturalpolicy('),aslastamendedby
Regulation(EEC)No2205/90(2),
—CouncilRegulation(EEC)No1677/85of11June
1985onmonetarycompensatory amountsinagri­
culture(J),aslastamendedbyRegulation(EEC)No
2205/90,WhereastheecuisdefinedbyCouncilRegulation(EEC)
No3180/78of18December1978changingthevalueof
theunitofaccountusedbytheEuropeanMonetary
CooperationFund('),aslastamendedbyRegulation
(EEC)No1971/89(7);whereasthisunitofaccount
shouldbeusedtofixandexpressthepricesoramounts
establishedunderthecommonagriculturalpolicy;
Whereas,priortotheachievementofeconomicand
monetaryunion,pricesandamountsfixedinecusmust
bepaidinnationalcurrencyandthe
(4)OJNoL164,24.6.1985,p.11.
C)OJNoL20,25.1.1978,p.16.
(')OJNoL379,30.12.1978,p.1.
OOJNoL189,4.7.1989,p.1.(')OJNoL164,24.6.1985,p.1.
OOJNoL201,31.7.1990,p.9.
OOJNoL164,24.6.1985,p.6.

NoC188/24 OfficialJournaloftheEuropeanCommunities 25.7.92
tivenessandoncoordinationoftheiractivitiesbetween
themselvesandwiththeoperationsoftheEuropean
InvestmentBankandtheotherexistingfinancial
instruments(');
Whereasprovisionmustbemadetoenableaspectsofthe
arrangementsgoverningtradeinagriculturalproducts
withthirdcountriestobeadaptedrapidlyintheeventof
changesinthecentralratesofthecurrenciesofthe
MemberStatesortheexchangeratesofthecurrenciesof
certainthirdcountries;
Whereasspecialrulesshouldbelaiddownfordealing
withexceptionalsituationsarisingeitherwithinthe
Communityorontheworldmarketandrequiring
immediateactiontoensurethatthearrangementsestab­
lishedunderthecommonagriculturalpolicyoperate
effectively;
Whereas,tofacilitateimplementation ofthisRegulation,
provisionshouldbemadeforaprocedureinstituting
closecooperationbetweentheMemberStatesandthe
Commission ;
Whereastheeffectsonpricesoramountsinnational
currenciesoftheabolitionofthecorrectingfactor
referredtoinArticle6(1)ofRegulation(EEC)No
1677/85duringthetransitionfromtheprevioussystem
tothesystemprovidedforinthisRegulationmustbe
neutralizedbyacorresponding increaseintheirvalue
expressedinecus;whereasprovisionshouldbemadefor
thepossibilityofinterimmeasurestofacilitatetheintro­
ductionofthenewagrimonetaryarrangements ,conversionratesapplicableintheagriculturalsectormust
thereforebedetermined ;whereassuchratesmustbe
reasonablystablewhilecloselyreflectingactualeconomic
andmonetarycircumstances ;whereas,withoutprejudice
totheratesprovidedforpursuanttoArticle22of
CouncilRegulation(EEC)No4253/88('),specificrates
maybenecessaryincertainspecialcases;
Whereas,intheeventofamonetaryrealignment,the
agriculturalconversionratesshouldinprinciplebe
adjustedimmediately ;whereas,however,itmaybe
worthwhiletomaketheadjustmentgraduallyinsmall
stepsinordertoavoidmarketdisturbance,ormayneed
tobemadeinstagesinordertolessentheimpactof
majoradjustments ;whereas,inallcases,apermissible
bilateralmonetarygapmustnotbeoversteppedif
significantmarketdisturbanceistobeavoided;
Whereastheconversionratesbetweentheecuandthe
currenciesofthirdcountriesusedinagricultureshould
beindicated,particularlyinordertodeterminethe
influenceofthesituationontheworldmarket;
Whereas,iftheagriculturalconversionrateischanged
duringtheperiodwhenanoperationisbeingcarried
out,therate,applicabletotheamountsconcernedmust
bedetermined ;whereas,asageneralrule,theoperative
eventfortheagriculturalconversionrateistheevent
wherebytheeconomicobjectiveoftheoperationis
attained;whereasitmaybenecessarytospecifyor
derogatefromthisoperativeevent,whilerespecting
certaincriteria,andparticularlythespeedwithwhichthe
newagriculturalconversionratesareactuallyapplied;
whereasthisautomatically excludesthevariouspossi­
bilitiesforadvancefixingoftherate;whereas,asregards
theamountsfixedbytheCouncilinthecontextofthe
agriculturalstructurespolicy,areductionintheaid
grantedbeforethenewagriculturalconversionratetakes
effectshouldbeprevented;
Whereas,intheeventofamajormonetaryreevaluation ,
agriculturalincomestendtoshrinkmorerapidlyandtoa
greaterextentthanincomesinothersectorsofthe
economy;whereasprovisionshouldaccordinglybemade
forthegrantingoftemporary,degressiveaidto
accompanytheadjustmentofagriculturalpricesinorder
tocompensateforreevaluations withoutthereby
hinderingthedefinitiveadjustmentofagriculturetothe
rulesoftheeconomyingeneral;whereastheprincipleof
thecohesionprovidedforinArticle130aoftheTreaty
callsforthepossibilityofaCommunitycontribution
towardsthecompensatory aidtoFarmers;whereasthe
leveloftheCommunitycontribution mustvary
accordingtotherequirementsandthefinancialresources
availableinthevariousregionsoftheCommunityfalling
withinObjective 1inaccordancewithArticle1of
CouncilRegulation(EEC)No2052/88of24June1988
onthetasksoftheStructuralFundandtheireffec­HASADOPTEDTHISREGULATION :
Article1
ForthepurposesofthisRegulation :
(a)'legalinstrumentsrelatingtothecommonagri­
culturalpolicy'means:
—legalinstrumentsbaseddirectlyorindirectlyon
Article43oftheEECTreaty,withtheexception
oftheCommonCustomsTariffandotherlegal
instrumentsofcustomslegislationapplicableto
bothagriculturalandindustrialproducts,
—legalinstrumentsapplicabletogoodsprocessed
fromagriculturalproductsandsubjecttospecific
tradearrangements ;
(')OJNoL374,31.12.1988,p.1. (J)OJNoL185,15.7.1988,p.9.

25.7.92 OfficialJournaloftheEuropeanCommunities NoC188/25
2.InthecaseofmeasuresCommunityfinancingof
whichundertheEAGGFcomessolelyfromthe
GuidanceSection,theagriculturalconversionrateshall
beequaltotherateapplyingfortheentryintothe
accountsofexpendituretothegeneralbudgetofthe
EuropeanCommunities .
3.Aspecificagriculturalconversionrateclosely
reflectingtheeconomiccircumstances maybe
determinedor,whererequired,detailedrulesfordeter­
miningsucharatemaybeadoptedinaccordancewith
theprocedurelaiddowninArticle10inorderto
forestallrisksofmarketdistortionofmonetaryorigin,
andinparticular;
—toavoidexceedingthemonetarygapcharacteristicof
thetrendintherepresentativemarketrateatthetime
theagriculturalconversionrateisdetermined,
—toconvertintoecusamountsrelatingtoworld
marketdataandexpressedinthenationalcurrency
ofaMemberState.(b)—'fixedcurrencies'meanscurrencieswhichare
maintainedwithinamaximumspreadatany
giventimeof2,25%oflesswithintheEuropean
MonetarySystem,
—'floatingcurrencies'meansothercurrenciesof
MemberStatesorofthirdcountries;
(c)'representativemarketrate'means:
—inthecaseofafixedcurrency,thecentralrate
fortheecufixedwithintheframeworkofthe
EuropeanMonetarysystemwithrespecttothat
currency,
—inthecaseofafloatingcurrency,theaverage
exchangeratefortheecuwithrespecttothat
currency,recordedoverareferenceperiod
determinedinaccordancewiththeprocedurelaid
downinArticle10;
(d)'agriculturalconversionrate'meanstherateusedin
legalinstrumentsrelatingtothecommonagricultural
policy,toconvert:
—amountsexpressedinecusintothenational
currencyofaMemberState,
—amountsexpressedinthenationalcurrencyofa
MemberStateintoecus;
(e)'monetarygap'meansthepercentageoftheagri­
culturalconversionraterepresentingthedifference
betweenthatrateandtherepresentativemarketrate.
Article2
1.Theunitofaccountusedinlegalinstruments
relatingtothecommonagriculturalpolicyshallbethe
ecuasdefinedinRegulation(EEC)No3180/78.
2.Thepricesandamountsconcernedshallbe
expressedinecusinadministrativedocumentsdrawnup
bytheCommunityorbytheMemberStates,forthe
purposeofapplyingtheinstrumentsreferredtoin
paragraph 1.
Article3
1.Withoutprejudicetothederogationsprovidedfor
inparagraphs2,3and4,theagriculturalconversionrate
shallbefixedbytheCommissiononthebasisofthe
representativemarketrateandinaccordancewithArticle
4.
Theagriculturalconversionrateshallinitiallybeequalto
therepresentativemarketrateforasignificantperiodof
themonthprecedingthedateonwhichittakeseffect.4.TheCouncilortheCommission ,byvirtueofthe
powerswithwhichtheyarevestedineachindividual
case,mayprovidewherenecessaryfortherateapplicable
fortheentryintheaccountsofexpenditureunderthe
generalbudgetoftheEuropeanCommunitiestobeused
insteadoftheagriculturalconversionrate.
Article4
1.Theagriculturalconversionrateforafloating
currencyshallbeadjustedwherethemonetarygap
exceeds2,5pointsforasignificantperiodofacertain
month.Inthatcase,thenewagriculturalconversionrate
shallbefixedsoastoreducethatmonetarygapbyhalf
andshalltakeeffectfromthefirstdayfollowingthe
monthinquestion.
2.Inthecaseofamonetaryrealignmentaffectingthe
centralratesdeterminedfortheMemberStateswith
fixedcurrencies,theagriculturalconversionratesshallbe
adjustedimmediatelysoasto:
—eliminatethemonetarygapsofthefixedcurrencies,
and
—reducethemonetarygapsofthefloatingcurrencies
inaccordancewithparagraph 1.

NoC188/26 OfficialJournaloftheEuropeanCommunities 25.7.92
However,inthecaseofamonetaryrealignmentleading
toamonetarygapforafixedcurrency:
—lessthanorequalto0,5points,thisgapisdismantled
overamaximumperiodof12monthsfromthedate
ofrealignment,andatthelatestatthebeginningof
thenextmarketingyear,
—greaterthanfivepoints,thisgapis,withoutprejudice
toparagraph3,immediatelyreducedtoaleveloffive
points,andtheremaininggapisdismantledovera
maximumperiodof12monthsfromthedateof
realignmentandatthelatestatthebeginningofthe
nextmarketingyear.
Theadjustmentsoftheagriculturalconversionrates,
providedforinthesecondsubparagrapharemadebythe
Commissioninaccordancewiththeprocedurelaiddown
inArticle10.
3.Alladjustmentstoagriculturalconversionrates
shallbemadeinsuchawaythatthepositiveandthe
negativegapsbetweenthecurrenciesoftwoMember
Statesshallnotexceedfivepointswhencombined.To
thatend,theamountbywhichthemonetarygapsfor
eachMemberStateconcernedarereducedshallbe
increasedinlinewiththesizeofthegap.Article6
1.Theoperativeeventfortheagriculturalconversion
rateshallbe:
—thecompletionofcustomsimportorexport
formalitiesinthecaseofamountscollectedor
grantedintradewiththirdcountries,
—theeventwherebytheeconomicobjectiveofthe
operationisattainedinallothercases.
2.Wheretheoperativeeventasreferredtoin
paragraph 1hastobespecifiedorcannotbetakeninto
accountforreasonspeculiartothemarketorganization
ortheamountinquestion,aspecificoperativeeventmay
bedeterminedinaccordancewiththeprocedurelaid
downinArticle10,takingaccountofthefollowing
criteria:
(a)actualapplicabilityassoonaspossibleofadjustments
totheagriculturalconversionrate;
(b)similarityoftheoperativeeventsforanalogousoper­
ationscarriedoutunderthosedifferentmarket
organizations ;
(c)coherenceintheoperativeeventsforthevarious
pricesandamountsrelatingtoasinglemarket
organization ;
(d)practicabilityandeffectivenessofchecksonthe
applicationofsuitableagriculturalconversionrates.
3.TheamountsfixedbytheCouncilinthecontextof
aidforwhichCommunityfinancingisprovidedbythe
EAGGFGuidanceSectionshallbeconvertedinto
nationalcurrencyattheagriculturalconversionrate
applicableon1Januaryoftheyearduringwhichtheaid
isgranted.
WheretheCommunityrulesstipulatethatpaymentof
theaidistobespreadoverseveralyears,theaid
instalmentsshallbeconvertedusingthelowestagri­
culturalconversionrateofthoseapplicableon1January
ofeachoftheyearsfromthatinwhichtheaidisgranted
untilthatforwhichtheinstalmentinquestionistobe
paid.
Article7
1.TheMemberStatesaffectedbymonetaryrevalu­
ationsmaygrantcompensatory aidtofarmersifthe
averageagriculturalconversionrate,forthemainbasic
productsconcernedwhicharecoveredbyamarket
organization ,is,duringamarketingyear,morethan
2%lowerthantheaveragerateforthepreceding
marketingyear.Article5
1.Therepresentative marketrateforthenational
currencyofathirdcountryshallbeusedinlegal
instrumentsrelatingtothecommonagriculturalpolicyto
convert :
—amountsexpressedinecusintothenationalcurrency
ofthatthirdcountry,
—amountsexpressedinthenationalcurrencyofthat
thirdcountryintoecus.
2.Inordertoavoidrisksofmarketdistortionof
monetaryorigin,theCommission ,byvirtueofthe
powerswithwhichitisvestedineachindividualcase,
mayderogatefromparagraph 1topermittheuseof
conversionratesmorecloselyreflectingtheactual
economiccircumstances .
3.Thedetailedrulesfordeterminingaspecific
conversionratemorecloselyreflectingtheactual
economiccircumstancesmaybelaiddowninaccordance
withtheprocedureprovidedforinArticle10withaview
totheconversionofamountsexpressedinthenational
currencyofathirdcountryintothenationalcurrencyof
aMemberState.

25.7.92 OfficialJournaloftheEuropeanCommunities NoC188/27
Article9
1.Whereunusualmonetarypracticesareliableto
upsettheapplicationofthelegalinstrumentsrelatingto
thecommonagriculturalpolicy,theCommissionshall
adoptsuitableprotectivemeasures,whichmay,where
necessary,derogatefromtheexistinglegalinstruments
relatingtothecommonagriculturalpolicy.
TheCouncilandtheMemberStatesshallbenotified
forthwithofthemeasuresreferredtointhefirst
subparagraph .
AnyMemberStatemayrefertheCommission'sdecision
totheCouncilduringthethreeworkingdaysfollowing
thatonwhichtheyarenotifiedofprotectivemeasures.
TheCouncil,actingbyaqualifiedmajority,maytakea
differentdecisionwithinonemonthofnotificationofthe
measuresinquestion.2.Themaximumcompensatory aidformonetary
reevaluationswhichmaybegrantedpermarketingyear
shallbeestablishedintermsoftherecordedlossof
incomeduetotheaveragefallintheagricultural
conversionratelesstwopointspermarketingyearof
granting.
3.Thebasicproductsreferredtoinparagraph 1and
themaximumaidreferredtoinparagraph2shallbe
determined,subjecttotheattainmentofminimum
values,bytheCommissioninaccordancewiththe
procedurelaiddowninArticle10.
4.TheCommunitycontributiontothefinancingof
thecompensatory aidformonetaryreevaluationsshall
amountto:
—50%oftheaidactuallygrantedforholdingslocated
inaregioncoveredbyObjective1asreferredtoin
Article1ofRegulation(EEC)No2052/88,
—25%oftheaidactuallygrantedinothercases.
Forthepurposesofthefinancingofthecommonagri­
culturalpolicy,thiscontributionshallbedeemedinter­
ventionintendedtostabilizetheagriculturalmarkets.2.Whereunusualmonetarypracticesareliableto
upsettheapplicationofthelegalinstrumentsrelatingto
thecommonagriculturalpolicy,theCommissionmay,by
virtueofthepowerswithwhichitisvestedineachindi­
vidualcase,derogatefromthisRegulation,inparticular
inthefollowingcases:
—whereacountryusesabnormalexchangetechniques
suchasmultipleexchangeratesoroperatesbarter
agreements ,
—wherecountrieshavecurrencieswhicharenot
quotedonofficialforeignexchangemarketsor
wherethetrendinsuchcurrenciesislikelytocreate
distortionintrade.Article8
Inthecaseofamonetaryrealignmentwithinthe
frameworkoftheEuropeanMonetarySystemorofan
abruptandsignificantchangeintheexchangerates
betweentheecuandthenationalcurrenciesofthird
countries,thefollowingamounts,fixedinthelegal
instrumentsrelatingtothecommonagriculturalpolicy,
may,wherenecessary,befixedanewbytheCommission
usingthenewagriculturalconversionratesinaccordance
withthemethodsapplicableineachcaseand,where
appropriate,inlightofdevelopmentsinthemarket
situation :
—importduties,
—exportduties,
—exportrefunds,
—sluice-gateprices,
—aidsfixedonthebasisofworldmarketdata,
—importsubsidies.Article10
ThedetailedrulesofapplicationforthisRegulationshall
belaiddowninaccordancewiththeprocedureprovided
forin:
(a)Article26ofCouncilRegulation(EEC)No2727/75
of29October1975onthecommonorganizationof
themarketincereals;or
(b)thecorresponding articlesoftheotherRegulations
onthecommonorganizationofthemarketsinagri­
culturalorfisheryproducts;or
(c)thecorresponding articlesofotherCommunity
provisionsintroducingasimilarprocedure .

NoC188/28 OfficialJournaloftheEuropeanCommunities 25.7.92
Article11
1.Pricesandamountsfixedinecusunderthe
commonagriculturalpolicy,thecorrespondingvalueof
whichinnationalcurrencyis,at31December1992,
subjecttothecorrectingfactorreferredtoinArticle6
(1)ofRegulation(EEC)No1677/85,shallbemultiplied
by1,145109.
2.Wheretransitionalmeasuresprovenecessaryto
facilitatetheinitialapplicationofthisRegulation,such
measuresshallbeadoptedbytheCommission in
accordancewiththeprocedurelaiddowninArticle10
andshallremainapplicablefortheperiodstrictly
necessarytofacilitatetheintroductionofthenew
arrangements .3.Thearrangements laiddowninthisRegulation
shallbereviewedbefore31December1996totake
accountoftheintroductionoftheparitiesfixedir­
revocablyundereconomicandmonetaryunion.
4.Regulations (EEC)No1676/85,(EEC)No
1677/85,(EEC)No1678/85and(EEC)No129/78are
herebyrepealed.
Article12
ThisRegulationshallenterintoforceon1January1993.
ThisRegulationshallbebindinginitsentiretyand
directlyapplicableinallMemberStates.