CELEX: 51996PC0267
Language: en
Date: 1996-06-12
Title: Proposal for a COUNCIL REGULATION (EC) amending Regulation (EC) No 2990/95 regulating compensation for appreciable reductions in the agricultural conversion rates before 1 July 1996

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    Brussels, 12.06.1996
                                                    COM(96)267 final
                                     Proposal for a
                          COUNCIL REGULATION (EQ
amending Regulation (EC) No 2990/95 regulating compensation for appreciable reductions
                 in the agricultural conversion rates before 1 July 1996
                           (presented by the Commission)
 ---pagebreak---  ---pagebreak---                            EXPLANATORY MEMORANDUM
Regulation (EC) No 2990/95 lays down, until 30 June 1996, the measures to be adopted in
the event of appreciable revaluations, in particular to prevent the application of Article 7 of
Regulation (EEC) No 3813/92 running counter to compliance with the obligations deriving
from the GATT Agreement and budgetary discipline. The fundamental reasons behind the
adoption of Regulation (EEC) No 2990/95 remain valid and probably will do so for several
months to come.
Because of the increase in its value, the Swedish krona has recently been at risk of an
appreciable revaluation which could occur after 1 July 1996. In accordance with Article 1(e)
of Regulation (EEC) No 3813/92, any fall in the agricultural conversion rate resulting from
the halving of a monetary gap of more than five points should be regarded as appreciable
because it would be greater than the effects of previous devaluations.
In order to afford the Swedish krona the same treatment as the other currencies which have
found themselves in similar situations in the past, the validity of Regulation (EEC)
No 2990/95 should be extended.
The measures to be taken will of necessity be at Community level, because this is an area in
which the Community has exclusive competence. They pursue the general objective of
uniform application of the common agricultural policy and adapt provisions already laid down
by the Council to take account of such situations.
                                               z
 ---pagebreak---                                          Proposal for a
                          COUNCIL REGULATION (EC) No ...796
                                               of
 amending Regulation (EC) No 2990/95 regulating compensation for appreciable reductions
                    in the agricultural conversion rates before 1 July 1996
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to the proposal from the Commission,
Having regard 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
policy1, and in particular Article 9 thereof,
Whereas Council Regulation (EC) No 2990/952 lays down special rules applicable until
30 June 1996 to currencies which experience during that period an appreciable reduction in
their agricultural conversion rates and in particular to the Finnish markka and the Swedish
krona; whereas the risk of an appreciable reduction has again arisen in the case of the Swedish
krona since monetary gaps of more than 5% have occurred for that currency; whereas this
situation could lead to an appreciable reduction in an agricultural conversion rate after the
period referred to in Regulation (EC) No 2990/95.
 1
       OJ No L 387, 31.12.1992, p. 1. Regulation last amended by Regulation (EC) No 150/95
       (OJNoL22, 31.1.1995, p. 1.).
       OJ No L 312, 23.12.1995, p. 7.
                                              3
 ---pagebreak--- Whereas A r t i c l e 9 o f Regulation ( E E C ) No 3X13/92 provides lor the Council to take all
necessary measures in Ihc event o f an appreciable revaluation, w h i e h , primarily to comply
with      obligations         under  the ( î A T T Agreement    and budgetary discipline, may      involve
derogations f r o m the provisions o f the said Regulation concerning aid and the amount by
w h i c h the monetary gaps are dismantled, w i t h o u t , however, resulting in the threshold being
extended; whereas the measures provided for in Articles 7 and X o f the said Regulation cannot
be applied as they stand; whereas it is necessary lo lake steps at C o m m u n i t y level to prevent
distortions o f monetary o r i g i n affecting the implementation o f the c o m m o n agricultural p o l i c y ;
Whereas on the basis ol the information currency available, it is impossible to know what the
situation w i l l be after 31 December 1 9 % ; whereas application ol the rules and amounts laid
d o w n in Regulation ( E E C ) N o 2990/95 w o u l d be justified in similar cases until that time,
HAS ADOPTED THIS REGULATION:
                                                      Article 1
Regulation ( E E C ) N o 2990/95 is hereby amended as follows:
(a),     in the title the date "1 July 1996" is replaced by "1 January 1997",
(b)      In A r t i c l e I , the date "30 June 1996" is replaced by "31 December 1996".
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                                                   5
 ---pagebreak---           FINANCIAL STATEMENT                                                               DAI
          BUDGE          •AD1NG: 390                                                        APPROPRIATIONS: ECU 194m
                                                                                                                     (Item 390)
          TITLE: Proposal for a Council Regulation amending Regulation (EC) No. 2990/95 regulating compensation for
          appreciable reductions in the agricultural conversion rates before 1 July 1996
          LEGAL BASIS: Regulation 3813/92 - Article 9
          AIMS OF PROJECT:
          Prorogation for 6 months of Regulation 2990/95 fixing in particular for Sweden degressive aid financed by the
          Community budget to compensate farmers for loss of income as a result of reductions in agricultural conversion rates
           FINANCIAL IMPLICATIONS                                   PERIOD OF 12             CURRENT           FOLLOWING
                                                                      MONTHS                FINANCIAL           FINANCIAL
                                                                                             YEAR (96)           YEAR (97)
5.0.       EXPENDITURE
          - CHARGED TO THE EC BUDGET                                                                                + l:
            INTERVENTION
          - NATIONAL ADMINISTRATION
                                                                         1998                     1999
5.0.1     EXPENDITURE PREVISIONS                                         + 12                      +6
5.2.      METHOD OF CALCULATION:
6.0.      CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT
          CHAPTER OF THE CURRENT BUDGET?
6.1.      CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT
          BUDGET?
6.2.      IS A SUPPLEMENTARY BUDGET NECESSARY?
6.3.      WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?                                                            YES
OBSERVATIONS:
At present it is necessary to make assumptions in order to estimate the proposal's financial impact.
The calculations are based on monetary gaps during the reference period from 18 to 27 May 1996 of around 5.5 points for the
SKR.
The measure proposed avoids the possible application of Article 7 of Regulation 3813/92 which, for 3 % revaluation and for EUR-
15, could have a financial impact of around ECU 750 m, together with DR savings of ECU 3 m on the sectors other than those
of Art. 7 of Re* 3813/92.
                                                                      C
 ---pagebreak---                                                                     ISSN 0254-1475
                                                             COM(96) 267 final
                                              DOCUMENTS
EN                                                                             113
                                     Catalogue number : CB-CO-96-278-EN-C
                                                              ISBN 92-78-05336-8
Office for Official Publications of the European Communities
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