CELEX: 51976PC0112
Language: en
Date: 1976-03-19
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL amending the rate of exchange to be applied for agricultural purposes to the French franc (submitted to the Council by the Commission)

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DOCUMENTS "COM"
COM (76) 112
Vol. 1976/0037
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            COMMISSION OF THE EUROPEAN COMMUN1TIES
                                                             COM(76)112 final.
                                                             Brussels , 19 March 1976
                                                                                      i 1
                   ■■ ■ .            V                              ; : •
                                         Proposai for a.        ,
                                 REGULATION ( EEC ) OF THE COUNCIL   ,
                     amending the rate of exchange to be applied for
                  , agricultural purposes to the /French franc
                          ( submitted to the Council by the Commission )
                                                                       ' *r .
|0M.(76>' 112 final .
 ---pagebreak---                               EXPLAMTORY MMOMOTUM
  Council Regulation (EEC ) No           /'(6 of                on the exchange rate
 to be applied for agricultural purposes and repealing Regulation (EEC )
 K'o 475/75 1 introduced 3- representative rate for the French franc which in fact
 reintroduced the application of the central rate for that currency for the
 conversion " into national currency of the amounts fixed in u.a . under the common
 agricultural policy .       The fixing of this rate corresponded to a 1.42 >
 revaluation of the " green" franc .      It was to come into effect in principle at '
 the beginning of the marketing year for the different agricultural products
 concerned and therefore for milk and milk products , beef and veal , pigmeat
 and for the 'products covered by Regulation (ESC ) NO 1059/69 » on 15 March 1976 *
 Since that date , the French franc has left the " snalce " of currencies which
maintain a maximum gap of 2.25fc in their spot rates and is now floating. In
 these circumstances , the abovementioned revaluation is no longer economically
 justifiable . It is therefore proposed that the value fixed by Regulation '
                     2
 (.ftiSC ) Jjo 4Y5/75 should be restored for the "green" rate of the PVench franc .
 It had also been laid down in Article 7 °f Regulation (EEC ) No              /l6
 that "the rate to be used for the conversion into BVench francs of the premium
 for tobacco , fixed in. iwa . for the 1975 harvest , would be that value before
 15 iiarch 1976e It would thus have been possible to prevent the premium paid
 from 15 March 197^ from being less in national currency than that granted
 oeiore tnat date . With the cancellation of the revaluation , which forms the
basis of that provision , there is no longer any need for the abovementioned
<Ai*v "Gi. c J.s Jo
                    view of the economic importance of the proposed measure , it is
ac.;.«ri sable for the Council to take a decision as quickly as possible , for
implementation on 1 Auril .
 (1)        OJ Mb L
( 2 ) QJ Ko L 52 .
 ---pagebreak---                            PROPOSAL POE
                COUNCIL REGULATION (EEC ) NO        HS
                            of
                amending the rate of exchange to be applied,
                 for agricultural purposes to the French franc
THE COUNCIL OF THE EUROPEAN COI®IUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation (EEC ) NO 129 on the value of the unit
of account ami the exchange rates to be applied for the purposes of the
common agricultural policy , as last amended by 'Regulation (EEC ) HO
2543/73 . and in particular Article 3 thereof ,
Having regard to the proposal from the Commission,
Whereas Council Regulation (EEC ) Ho         /76 of                on the exch^jtge
rate to be applied for agricultural purposes and repealing Regulation (EEC ) No
475/75"* introduced a representative rate for the French franc to take effect
 basically at      the beginning of the marketing year for the various
agricultural products and , in certain cases , from 15 March 1976 ;
whereas the movement of the French franc shows that it is necessary to revert t
the representative rate previously valid for that currency ;
Whereas Article 7 of the abovementioned Regulation provides for a special
measure in view of the fact that the new representative rate may , in certain
 circumstances result in a reduction' in terms of the national currency      of
      amounts fixed in units of account ; whereas that special measure is no
longer necessary if the old representative rate is restored ;
Whereas the Monetary Committee will be consulted and whereas , in view of the
urgency of the matter , the proposed measures should be adopted under the
conditions laid down in Article 3(2 ) of Regulation No 129 ,
MS ADOPTED THIS REGULATION:
( 1 ) OJ No 106 , 30.10.1962 , p. 2553/62
( 2 ) OJ No L 263 , 19.9.1973 , p. 1
(3)
 ---pagebreak---                              Article 1
1 . In Article 2(l)(d ) of Régulation (SEC) No        h6 ,
 "5Trs 1 = 0.18044 unit of account " is hereby replaced "by
 "ITrs 1 = 0.177520 unit of account".
2 . Article 7 OF Régulation (EEC ) NO        is repealed.
                             Article 2
                i
This Regulation shall enter into force on 1 April 1976-
This Regulation shall he binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,                                        For the Council
 ---pagebreak---       FINAJJCIAL RECORD SHEET
                                                                          Bate 17,3.1976
  1.   Relevant budget heading : Various Articles and items of Titles -6 and 7
 2.    Title of project :    Proposal for a Council Regulation amending the exchange rate
                             to be applied to the French franc for agricultural purposes .
  3.   Legal basis :  Article 3 of Regulation No 129
 4«    Purpose :  Realignment of the representative rate of the French franc at the _
                  level fixed by Regulation ( EEC ) NO 475/75 , following the movement
                  of that currency .
 5-0    Cost
                                                  12 months   current financial       following .
                                                                 year ( 76 )          financial
                                                                                     year ( 77 )
        assigned to the EC Budget (experaliiurg   + 17 mill­   ■+ 1 million u.a .     + 17 million
                                                  ion u.a »                             u.a .
        Revenue ( own resources )                 + 1 mill­    + 0.5 million         – 1 million
                                                  ion u.a .         u.a .               u.a .
 5.1 Multiannual timetable Year 1977               Year 1978        Year
                                        + 17 million u.a .
 5-2   Method of calculation                    :
 a) . Expenditure : the realignment of the representative rate produces the effect of the
      double conversion rate of 1.42$. On the basis of an expenditure level in France
      of 1 200 million u.a., over 12 months , the effect of the double rate is an
      increase in expenditure of 17 million u.a . For the 1976 financial year , allowing
      for the entry into force of the representative rate sector by sector , the effect
      of the double rate on expenditure will be + 9 million u.a ., and the revaluation in
      French francs of the intervention stocks estimated at 8 million u.a , should be
      deducted from that amount . It should be noted that the proposed measure , in line
      with the floating of the French franc , will preclude or delay the introduction of
      monetary compensatory amounts into French trade .       Owing to the structure of
      French trade , the possible application of monetary compensatory . amounts will
      result in revenue which will be deducted from other EAGGF expenditure .
b) Revenue : The effect of the 1.42$ double rate on the revenue from levies and-
      contributions in France ( 78 million u.a.) will result in additional revenue of
      1 million u.a .
6.1 Can the project be financed from appropriations entered in the relevant
       chapter of the current Budget?
                  Yes           EK ( in view of the negligible effect )
                         "be financed by a transfer^between chapters of tha--et r gnT^Budge^
6.3 V/illa_S]^ji«iBTrnfaxy–Budget be needed ■               Ypg """"         Wa_
6.4 Are there appropriations to be entered in future budgets?                     Yes