Council Regulation (EC) No 2800/98 of 15 December 1998 on transitional measures to be applied under the common agricultural policy with a view to the introduction of the euro
Date: 1998-12-15
Institutions: Council of the European Union
Subjects: European Monetary System, agri-monetary policy, common agricultural policy, exchange rate, national currency, representative rate

L 349/8

EN

Official Journal of the European Communities

24. 12. 98

COUNCIL REGULATION (EC) No 2800/98

of 15 December 1998

on transitional measures to be applied under the common agricultural policy
with a view to the introduction of the euro

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 (1),

Having regard to the opinion of the European Parlia-
ment (2),

Having regard to the opinion of the Economic and Social
Committee (3),

Having
Committee (4),

regard to

the

opinion of

the Monetary

Whereas Council Regulation (EC) No 2799/98 of 15
December 1998 establishing agrimonetary arrangements
for the euro (5) eliminates the possibility of fixing specific
agricultural conversion rates that are different from the
actual conversion rates for the currencies;

Whereas the agricultural conversion rates in force at 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 (6) 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 actual exchange rates applying on 1
January 1999 for non-participating Member States;

Whereas the disappearance of the agricultural conversion
rates on 1 January 1999 may have the same effects as an
appreciable revaluation; whereas it may accordingly result
in a reduction in agricultural income; whereas, as a conse-
quence, provision could justifiably be made for temporary,
digressive aid to be granted to keep pace with the devel-
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;

Whereas, provision should be made for a procedure intro-
ducing close cooperation between the Member States and

(1) OJ C 224, 17. 7. 1998, p. 22.
(2) OJ C 328, 26. 10. 1998.
(3) Opinion delivered on 9 September 1998 (not yet published in

the Official Journal).

(4) Opinion delivered on 30 September 1998 (not yet published

in the Official Journal).

(5) See page 1 of this Official Journal.
(6) OJ L 387, 31. 12. 1992, p. 1. Regulation as last amended by
Regulation (EC) No 150/95 (OJ L 22, 31. 1. 1995, p. 1).

the Commission to facilitate the implementation of this
Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

For the purposes of
Regulation (EC) No 2799/98:

this Regulation, notwithstanding

(a)

‘appreciable revaluation' means a reduction in the
conversion rate applicable on 1 January 1999 which is
greater in absolute value than the differencies between
that rate and the lowest levels of the conversion rates
applicable:

— over the last 12 months, and
— at any time more than 12 months but not more

than 24 months previously, and

— 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-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 at 1 January 1999 undergoes an appreciable revalu-
ation against the agricultural conversion rate in force on
31 December 1998, Articles 4 and 6 of Regulation (EC)
No 2799/98 shall apply to that appreciable revaluation
and the appreciable part thereof shall be as specified in
Article 1(b).

the maximum amount

However,
in
conformity with Article 4(2) of Regulation (EC) No 2799/
98 shall be reduced or cancelled if necessary as a function
of
the
exchange rate recorded during the first nine months of
1999.

the effect on income of

the development of

established

24. 12. 98

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Official Journal of the European Communities

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Article 3

Article 4

1. 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:

— flat-rate aid calculated per hectare or per livestock

unit, or

— compensatory premiums per ewe or she-goat, or
— 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 2799/98.

Notwithstanding the second indent of Article 6(1) of the
said Regulation, the first year the Community contribu-
tion shall amount to 100 % of the aid.

2.
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 subpara-
graph and provide for the compensation to fall digres-
sively.

The Commission shall submit before 31 March 2001 a
report to the Council on the execution of the transitional
measures covered by this Regulation.

Article 5

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

(a) Article 23 of Council Regulation (EEC) No 1766/92
of 30 June 1992 on the common organisation of the
market in cereals (1), 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 provi-

sions introducing a similar procedure.

Article 6

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

It shall apply from 1 January 1999.

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

Done at Brussels, 15 December 1998.

For the Council

The President

W. MOLTERER

(1) OJ L 181, 1. 7. 1992, p. 21. Regulation as last amended by
Commission Regulation (EC) No 923/96 (OJ L 126, 24. 5.
1996, p. 37).