Council Regulation (EC) No 695/2005 of 26 April 2005 amending Regulation (EEC) No 1883/78 laying down general rules for the financing of interventions by the European Agricultural Guidance and Guarantee Fund, Guarantee Section
Date: 2005-04-26
Institutions: Council of the European Union
Subjects: EAGGF Guarantee Section, EU financing, interest, intervention buying

4.5.2005

EN

Official Journal of the European Union

L 114/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 695/2005

of 26 April 2005

amending Regulation (EEC) No 1883/78 laying down general rules for the financing of interventions
by the European Agricultural Guidance and Guarantee Fund, Guarantee Section

THE COUNCIL OF THE EUROPEAN UNION,

(3)

It may appear that in a Member State the buying into
public intervention of agricultural products can be
financed only at interest rates which are substantially
higher than the uniform interest rate.

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 1258/1999 of
17 May 1999 on the financing of the common agricultural
policy (1), and in particular Article 2(3) thereof,

(4) Where the difference between interest rates is more than
twice the uniform interest rate for a given Member State,
provision should be made for a correcting mechanism to
be
should nevertheless be
partially borne by the Member State concerned in
order to encourage it to seek the least costly financing
method.

applied. That difference

Having regard to the proposal from the Commission,

Whereas:

(5)

Application of this mechanism should be temporary and,
consequently, be carried out during the financial years
2005 and 2006. It should apply from the beginning of
the current financial year,

(1)

For intervention operations for which a unit amount has
not been set by market organisation rules, basic
Community financing rules have been set by Regulation
(EEC) No 1883/78 (2), in particular as to the method of
establishing the amounts to be financed, the financing of
expenditure resulting from tying up the funds needed for
intervention purchasing, the valuation of stocks to be
carried over
and the
financing of expenditure resulting from the physical
operations of storage.

from one year

to another

HAS ADOPTED THIS REGULATION:

Article 1

The third subparagraph of Article 5 of Regulation (EEC) No
1883/78 is hereby replaced by the following:

(2)

Article 5 of Regulation (EEC) No 1883/78 provides that
the interest charges incurred by Member States for the
purchase of intervention products are to be financed by
the Community according to a uniform method and a
uniform interest rate.

(1) OJ L 160, 26.6.1999, p. 103.
(2) OJ L 216, 5.8.1978, p. 1. Regulation as last amended by Regulation

(EC) No 1259/96 (OJ L 163, 2.7.1996, p. 10).

‘By way of derogation from the first subparagraph,
if the
interest rate borne by a Member State is more than twice
for the
the uniform interest rate,
financial years 2005 and 2006,
in financing the interest
costs incurred by that Member State, cover the amount
which corresponds to the uniform rate of interest plus the
difference between double that rate and the actual rate
borne by the Member State.’

the Commission may,

L 114/2

EN

Official Journal of the European Union

4.5.2005

Article 2

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

It shall apply to expenditure incurred from 1 October 2004.

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

Done at Luxembourg, 26 April 2005.

For the Council
The President

F. BODEN