Proposal for a Council Regulation (EC) on transitional measures to be applied under the common agricultural policy with a view to the introduction of the euro
Date: 1998-06-10
Institutions: European Commission
Subjects: agri-monetary policy, common agricultural policy, euro, exchange rate, monetary compensatory amount, representative rate

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17.7.98

Proposal  for  a  Council  Regulation  (EC)  on  transitional  measures  to  be  applied  under  the
common  agricultural  policy  with  a  view  to  the  introduction  of  the  euro

(98/C  224/07)

COM(1998)  367  final  -  98/0215(CNS)

(Submitted  by  the  Commission  on  11  June  1998)

THE  COUNCIL  OF  THE  EUROPEAN  UNION,

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular  Articles
42  and  43  thereof,

Having  regard  to  the  proposal  from  the  Commission,

Having  regard  to  the  opinion  of  the  European  Parliament,

Having  regard  to  the  opinion  of  the  Economic  and  Social  Committee,

Having  regard  to  the  opinion  of  the  Monetary  Committee,

Whereas  Council  Regulation  (EEC)  No  .(cid:216).(cid:216)./.(cid:216).  of  .(cid:216).(cid:216).  establishing  agrimonetary  arrangements
for  the  euro  does  away  with  the  possibility  of  fixing  specific  agricultural  conversion  rates  that
are  different  from  the  real  conversion  rates  for  the  currencies;

Whereas  the  agricultural  conversion  rates  in  force  on  31  December  1998  pursuant  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  policy(cid:216)(˛)  could  be
different  from  the  conversion  rates  fixed  irrevocably  by  the  Council  for  the  currencies  of  the
participating  Member  States  in  accordance  with  the  first  sentence  of  Article  109l(4)  of  the
Treaty  and  from  the  real  exchange  rates  applying  on  1  January  1999  for  non(cid:220)participating
Member  States;

Whereas  the  disappearance  of  the  agricultural  conversion  rates  on  1  January  1999  may  be
regarded  under  certain  conditions  as  an  appreciable  revaluation;  whereas  it  may  accordingly
result  in  a  reduction  in  agricultural  income;  whereas,  as  a  consequence  provision  could
justifiably  be  made  for  temporary,  degressive  aid  to  be  granted  to  keep  pace  with  the  devel(cid:220)
opment  of  agricultural  prices  in  a  way  that  is  compatible  with  the  rules  of  the  general
economy;

Whereas  it  must  be  made  possible  to  offset  the  effect  of  the  disappearance  of  the  agricultural
conversion  rates  on  the  level  of  certain  types  of  direct  aid  in  terms  of  national  currency  in
accordance  with  specific  rules  adapted  to  such  aid;

(˛)(cid:217)OJ  L(cid:216)387,  31.12.1992,  p.  1.  Last  amended  by  Regulation  (EC)  No  150/95  (OJ  L(cid:216)22,  31.1.1995,  p.  1).

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Whereas  provision  should  be  made  for  a  procedure  introducing  close  cooperation  between  the
Member  States  and  the  Commission  to  facilitate  the  implementation  of  this  Regulation,

HAS  ADOPTED  THIS  REGULATION:

For  the  purposes  of  this  Regulation,  notwithstanding  Regulation  (EC)  No  .(cid:216).(cid:216)./.(cid:216).  of  .(cid:216).(cid:216).  estab(cid:220)
lishing  agrimonetary  arrangements  for  the  euro:

Article  1

(a)(cid:217)"appreciable  revaluation’  means  a  reduction  in  the  conversion  rate  applicable  on  1  January
1999  which  is  greater  in  absolute  value  than  the  differences  between  that  rate  and  the
lowest  levels  of  the  conversion  rates  applicable:

-(cid:217)over  the  last  12  months,  and

-(cid:217)at  any  time  more  than  12  months  but  not  more  than  24  months  previously,  and

-(cid:217)at  any  time  more  than  24  months  but  not  more  than  36  months  previously.

Only  two  thirds  and  one  third  respectively  of  the  differences  covered  by  the  second  and
third  indents  shall  be  taken  into  account;

(b) "appreciable  part’  means  the  difference  between,  on  the  one  hand,  the  threshold  between
appreciable  and  non(cid:220)appreciable  revaluations  and,  on  the  other  hand,  the  conversion  rate
for  the  euro  into  national  currency  units  or  the  exchange  rate  for  the  euro  into  national
currency  on  1  January  1999.  This  difference  is  expressed  as  a  percentage  of  the  said
threshold.

Article  2

Where  the  conversion  rate  for  the  euro  into  national  currency  units  of  any  Member  State  or
the  exchange  rate  for  the  euro  into  the  national  currency  of  any  Member  State  on  1  January
1999  undergoes  an  appreciable  revaluation  within  the  meaning  of  Article  1  against  the
agricultural  conversion  rate  in  force  on  31  December  1998,  Articles  4  and  6  of  Regulation
(EC)  No  .(cid:216).(cid:216)./.(cid:216).  establishing  agrimonetary  arrangements  for  the  euro  shall  apply  to  that  appre(cid:220)
ciable  revaluation  and  the  appreciable  part  thereof  shall  be  as  specified  in  Article  1(b).

1.(cid:218)(cid:217)Where  the  conversion  rate  for  the  euro  into  national  currency  units  or  the  exchange  rate
for  the  euro  into  national  currency  applicable  on  the  day  of  the  operative  event  in  1999  to:

Article  3

-(cid:217)flat(cid:220)rate  aid  calculated  per  hectare  or  per  livestock  unit

or

-(cid:217)compensatory  premiums  per  ewe  or  she(cid:220)goat

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or

-(cid:217)amounts  of  a  structural  or  environmental  nature

is  lower  than  the  rate  applied  previously,  compensatory  aid  shall  be  granted.  The  aid  shall  be
calculated  in  accordance  with  Article  5  of  Regulation  (EC)  No  .(cid:216).(cid:216)./.(cid:216).  establishing  agrimonetary
arrangements  for  the  euro.

Notwithstanding  the  second  indent  of  Article  6(1)  of  the  same  Regulation,  the  first  year  the
Community  contribution  shall  amount  to  100(cid:216)%  of  the  aid.

2.(cid:218)(cid:217)In  following  years,  the  Council,  acting  by  a  qualified  majority  on  a  proposal  from  the
Commission,  may  waive  the  provisions  of  paragraph  1,  first  and  second  subparagraph  and
provide  for  the  compensation  to  fall  degressively.

Article  4

Detailed  rules  for  applying  this  Regulation  shall  be  adopted  in  accordance  with  the  procedure
laid  down  in:

(a)(cid:217)Article  23  of  Council  Regulation  (EEC)  No  1766/92(cid:216)(˛)  of  30  June  1992  on  the  common

organisation  of  the  market  in  cereals,  or

(b) the  corresponding  articles  of  the  other  regulations  establishing  a  common  organisation  of

the  market  in  agricultural  or  fishery  products,  or

(c) the  corresponding  articles  of  other  Community  provisions  introducing  a  similar  procedure.

This  Regulation  shall  enter  into  force  on  the  seventh  day  following  its  publication  in  the
Official  Journal  of  the  European  Communities.

Article  5

It  shall  apply  from  1  January  1999.

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all  Member  States.

(˛)(cid:217)OJ  L  181,  1.7.1992,  p.  21.