Council Regulation (EC) No 734/2007 of 11 June 2007 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: 2007-06-11
Institutions: Council of the European Union
Subjects: EAGGF Guarantee Section, EU financing, agricultural expenditure, interest

29.6.2007

EN

Official Journal of the European Union

L 169/5

COUNCIL REGULATION (EC) No 734/2007

of 11 June 2007

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,

Having regard to the Treaty
Community, and in particular
Article 37(2) thereof,

establishing the European
the third subparagraph of

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (1),

Whereas:

(1)

(2)

(3)

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

Article 5 of Regulation (EEC) No 1883/78 provides that
the interest charges incurred by Member States in mobi-
lising the funds used to purchase public intervention
products are to be financed by the Community at a
uniform interest rate.

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

(4) Where,

in such cases, the average interest rate,

course of
period used for
interest rate by the Commission,

in the
the third month following the reference
the uniform
is more than twice

the establishment of

the uniform interest rate for a given Member State,
provision should be made for a correcting mechanism
to be applied. This average interest rate should never-
theless be partially borne by
the Member State
concerned in order to encourage it to seek the least
costly financing method.

Regulation (EEC) No 1883/78 should therefore be
amended accordingly.

This amendment to the rules should be carried out for
the financial years 2007 and 2008 and should apply
from the beginning of the current accounting year,

(5)

(6)

HAS ADOPTED THIS REGULATION:

Article 1

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

‘By way of derogation from the first subparagraph,
if the
average interest rate borne by a Member State in the course
of the third month following the reference period used for
the establishment of
rate by the
Commission is more than twice the uniform interest rate,
the Commission may,
for the financial years 2007 and
incurred by that
2008,
Member State, cover the amount which corresponds to the
interest rate borne by this Member State minus the uniform
rate of interest.’

in financing the interest costs

the uniform interest

Article 2

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

It shall apply to expenditure incurred from 1 October 2006.

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

Done at Luxembourg, 11 June 2007.

For the Council
The President

H. SEEHOFER

(1) Opinion of the European Parliament delivered on 13 March 2007

(not yet published in the Official Journal).

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

(EC) No 695/2005 (OJ L 114, 4.5.2005, p. 1).