Proposal for a COUNCIL REGULATION (EC) amending Regulation (EC) No 2990/95 regulating compensation for appreciable reductions in the agricultural conversion rates before 1 July 1996
Date: 1996-06-12
Institutions: European Commission
Subjects: Sweden, agri-monetary policy, aid to agriculture, representative rate, terms for aid

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  12.06.1996 
COM(96)267  final 

Proposal  for a 

COUNCIL REGULATION  (EQ 

amending Regulation (EC) No 2990/95  regulating compensation for appreciable reductions 
in the agricultural conversion rates before  1 July  1996 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

Regulation  (EC) No 2990/95  lays down, until  30 June  1996,  the measures to be adopted  in 
the  event  of  appreciable  revaluations,  in particular  to prevent  the application  of Article  7 of 
Regulation  (EEC) No  3813/92  running  counter  to  compliance  with the  obligations  deriving 
from  the  GATT  Agreement  and  budgetary  discipline.  The  fundamental  reasons  behind  the 
adoption  of  Regulation  (EEC) No 2990/95 remain valid and probably  will  do so for  several 
months  to come. 

Because  of  the  increase  in  its  value,  the  Swedish  krona  has  recently  been  at  risk  of  an 
appreciable revaluation  which could occur after  1 July  1996. In accordance with Article  1(e) 
of Regulation  (EEC) No  3813/92, any  fall  in the agricultural  conversion rate resulting  from 
the  halving  of  a  monetary  gap  of  more  than  five  points  should  be  regarded  as  appreciable 
because  it would  be  greater  than the effects  of previous devaluations. 

In order  to  afford  the  Swedish krona the same treatment  as the other  currencies which have 
found  themselves  in  similar  situations  in  the  past,  the  validity  of  Regulation  (EEC) 
No  2990/95  should  be  extended. 

The measures to be taken will  of necessity be at Community  level, because this is an area in 
which  the  Community  has  exclusive  competence.  They  pursue  the  general  objective  of 
uniform  application of the common agricultural policy and adapt provisions already laid down 
by  the  Council  to take  account  of  such  situations. 

z 

Proposal for a 

COUNCIL REGULATION (EC) No  ...796 

of 

amending Regulation (EC) No 2990/95  regulating compensation for appreciable reductions 
in the agricultural conversion rates before  1 July  1996 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to the proposal from the Commission, 

Having regard to Council  Regulation  (EEC) No  3813/92  of 28 December  1992 on the unit 

of account and the conversion rates to be applied for the purposes of the common agricultural 
policy1,  and in particular Article 9 thereof, 

Whereas  Council  Regulation  (EC)  No  2990/952  lays  down  special  rules  applicable  until 

30 June  1996 to currencies which experience during that period an appreciable reduction in 

their agricultural  conversion rates and in particular to the  Finnish markka and the  Swedish 

krona; whereas the risk of an appreciable reduction has again arisen in the case of the Swedish 

krona since  monetary  gaps  of  more than 5% have  occurred  for that currency; whereas this 

situation  could  lead to  an appreciable  reduction  in an agricultural  conversion rate after the 

period referred to in Regulation (EC) No 2990/95. 

1 

OJ No L 387, 31.12.1992, p. 1. Regulation last amended by Regulation (EC) No  150/95 
(OJNoL22,  31.1.1995, p.  1.). 
OJ No  L 312, 23.12.1995, p. 7. 

3 

Whereas  A r t i c le  9  of  Regulation  ( E E C)  No  3X13/92  provides  lor  the  Council  to  take  all 

necessary  measures  in  Ihc  event  of  an  appreciable  revaluation,  w h i e h,  primarily  to  comply 

w i th  obligations  under 

the 

( î A TT  Agreement  and  budgetary  discipline,  may 

involve 

derogations  f r om  the  provisions  of  the  said  Regulation  concerning  aid  and  the  amount  by 

w h i ch  the  monetary  gaps  are  dismantled,  w i t h o u t,  however,  resulting  in  the  threshold  being 

extended;  whereas  the  measures  provided  for  in  Articles  7  and  X of  the  said  Regulation  cannot 

be  applied  as  they  stand;  whereas  it  is  necessary  lo  lake  steps  at  C o m m u n i ty  level  to  prevent 

distortions  of  monetary  o r i g in  affecting  the  implementation  of  the c o m m on  agricultural  p o l i c y; 

Whereas  on  the  basis  ol  the  information  currency  available,  it  is  impossible  to  know  what  the 

situation  w i ll  be  after  31  December  1 9 %;  whereas  application  ol  the  rules  and  amounts  laid 

d o wn  in  Regulation  ( E E C)  No  2990/95  w o u ld  be  justified  in  similar  cases  until  that  time, 

H AS  A D O P T ED  T H IS  R E G U L A T I O N: 

A r t i c le  1 

Regulation  ( E E C)  No  2990/95  is  hereby  amended  as  follows: 

(a), 

in  the  title  the  date  "1  July  1996"  is  replaced  by  "1  January  1997", 

(b) 

In  A r t i c le  I,  the  date  "30  June  1996"  is  replaced  by  "31  December  1996". 

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5 

FINANCIAL  STATEMENT 

BUDGE 

•AD1NG:  390 

D AI 

APPROPRIATIONS:  ECU  194m 

(Item  390) 

TITLE:  Proposal  for  a  Council  Regulation  amending  Regulation  (EC)  No.  2990/95  regulating  compensation  for 
appreciable  reductions  in  the  agricultural  conversion  rates  before  1 July  1996 

LEGAL  BASIS:  Regulation  3813/92  -  Article  9 

AIMS  OF  PROJECT: 
Prorogation  for  6  months  of  Regulation  2990/95  fixing  in  particular  for  Sweden  degressive  aid  financed  by  the 
Community  budget  to  compensate  farmers  for  loss  of  income  as  a  result  of  reductions  in  agricultural  conversion  rates 

FINANCIAL  IMPLICATIONS 

PERIOD  OF  12 
MONTHS 

CURRENT 
FINANCIAL 
YEAR  (96) 

FOLLOWING 
FINANCIAL 
YEAR  (97) 

5.0. 

EXPENDITURE 
-  CHARGED  TO  THE  EC  BUDGET 
INTERVENTION 
-  NATIONAL  ADMINISTRATION 

+  l: 

5.0.1 

EXPENDITURE  PREVISIONS 

5.2. 

METHOD  OF  CALCULATION: 

1998 
+  12 

1999 
+6 

6.0. 

6.1. 

6.2. 

6.3. 

CAN  THE  PROJECT  BE  FINANCED  FROM  APPROPRIATIONS  ENTERED  IN  THE  RELEVANT 
CHAPTER  OF  THE  CURRENT  BUDGET? 

CAN  THE  PROJECT  BE  FINANCED  BY  TRANSFER  BETWEEN  CHAPTERS  OF  THE  CURRENT 
BUDGET? 

IS  A  SUPPLEMENTARY  BUDGET  NECESSARY? 

WILL  FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY? 

YES 

OBSERVATIONS: 
At  present  it  is  necessary  to  make  assumptions  in  order  to  estimate  the  proposal's  financial  impact. 
The  calculations  are  based  on  monetary  gaps  during  the  reference  period  from  18 to  27  May  1996  of  around  5.5  points  for  the 
SKR. 

The  measure  proposed  avoids  the  possible  application  of  Article  7  of  Regulation  3813/92  which,  for  3%  revaluation  and  for  EUR-
15,  could  have  a  financial  impact  of  around  ECU  750  m,  together  with  DR  savings  of  ECU  3  m  on  the  sectors  other  than  those 
of  Art.  7  of  Re*  3813/92. 

C 

ISSN 0254-1475 

COM(96) 267 final 

DOCUMENTS 

EN 

113 

Catalogue number  :  CB-CO-96-278-EN-C 

ISBN 92-78-05336-8 

Office  for  Official  Publications of the European  Communities 

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