CELEX: 51979DC0012
Language: en
Date: 1979-01-16
Title: TRANSFER OF APPROPRIATIONS BETWEEN CHAPTERS (Compulsory expenditure)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 12
Vol. 1979/0007
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
  GENERAL BUDGET                                      COM(79)12 final.
  Seotion III – Commission
                                              Brussels , 16 january 1979
                TRANSPER OF APPROPRIATIONS BETWEEN CHAPTERS
                         ( Compulsory expenditure )
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COM(79 ) 12 final
 ---pagebreak---   GErJERAL BUDGET
  SoeUon Itt - CofnmisBion
                      Transfer of appropriations "between Chapters
                                ( compulsory expenditure )
                                    Proposal No 40                    EUA .^
 1.   Prom Chapter 60       Cereals
      Article      600      Refunds
      Item         60000    Refunds                                  320 000 000
      Article      601      Intervention
      Item         6013     Aid for durum wheat                       40 000 000
      Item         6014     Carry-over payments                       20 000 000
      Item         6015     Buying-m and subsequent operations        32 000 000
2.    Prom Chapter 61       Ri ce
      Article      610      Refunds
      Item         6100     Refunds                                   14 000 000
3.    Prom Chapter 63       Oils and fats
      Article      631     Intervention in respeot of olive oil
      Item         6310     Production aid                            40 000 000
4.    Prom Chapter 66      Pigmeat
      Article      660      Refunds                                   35 000 000
5-    Prom Chapter 68       Fruit and vegetables
      Article      681      Intervention in respect of fresh
                            fruit and vegetables
      Item         6810     Withdrawal compensation and buying>-in    20 000 000
      Item         6811    Processing and distribution operations      3 000 000
      Item         6812     Compensation for promotion of
                            Community citrus fruit                     5 ooo ooo
6.    Prom Chapter 69       Wine
      Article      691      Intervention in respect of wine
      Item         6910     Aid for private storage                   20 000 000
      Item         6912     Distillation of wine                     120 000 000
      Article      692      Other expenditure
      Item         6920     Obligatory distillation of the
                            by-products of wine–making                10 000 000
7.    Prom Chapter 70       Tobacco
      Article      701      Intervention in respect of tobacco
      Item         7010     Premiums                                  20 000 000
8.    Prom Chapter 45      Monetary compensatory amounts
                            collected or granted in respect of
                            trade in agricultural products
                            (MCAs )
      Article      450      Intraf-Community trade
      Item         4500    Monetary compensatory amounts on
                            imports paid or levied by importing
                            Member States                            130 000 000
                                                                   - 829 000 000
 ---pagebreak---                                           - 2 -
  9,    To Chapter 62   - Milk and. mille produots
       Article     620  – Refunds
       jtem        6200 – Refunds                                  + 290 000 000
       Article     621  – Intervention in respect of
                          skimmed milk
       Item        6210 – Aid for skinuned-milk powder for
                          use in animal feed                       +  50 000 000
       Item        6214 – Public storage and special
                          disposal measures                        +  85 000 000
10 .   To Chapter 65    – Beef and veal
       Article     65O  – Refunds
       Item        6500 – Refunds                                  +   5 000.000
       Article     651  – Intervention in respect of "the
                          storage of beef and veal
       Item        6511 – Public storage                           + 115 000 000
11 . • To Chapter 67    – Eggs and poultry meat
       Article     67O  – Refunds on eggs                          +   1 000 000
       Item        671  – Refunds on poultry meat                  +   4 000 000
12 .   To Chapter 73    – Other sectors or produots subject to
                          common market organization
       Article     734  – Dehydrated fodder                        +  15 000 000
13 .   To Chapter 74    – Refunds on certain goods obtained by
                   740    processing agricultural product®         +  57 000 000
14 .   To Chapter 46    – Expenditure resulting from, the
                   460    application of different exchange
                          rates to the EAGGF Guarantee Section     + 207 000 000
                                                                   + 829 000 000
       Pursuant to the provisions of Article 2 1(4 ) of the Finanoial Regulation,
       the Financial Controller has approved this proposal , attesting that the
       appropriations are available at 20 December 1978 * .
 ---pagebreak---                            EXPLANATORY MEMORANDUM
A.   Introductory note
The appropriations entered in the Budget for 1978 are , in overall terms ,
adequate to cover the expenditure to be incurred up to 31 December 1978
and enable Article 8 of Council Regulation (EEC ) No 1883/78 to be applied
for the first time .   These provisions change the method of assessing
intervention stocks at the end of the financial year     ( average purchase
price in place of the intervention price obtaining at the beginning of the
following financial year , liklihood of further reduction in the value of
stocks arising from the estimated market conditions ) and lead to the
following estimates of additional expenditure to be borne by the Budget
for the financial year 1978 ( in million EUA):
            Cereals                       13.4
            Skimraed-milk powder         134.5
            Butter                        79.0
            Olive oil                     22.6
            Beef and veal                 75-3
            Tooacco                        14.2
                                         339.0
                      IXial rate          69.O
                      Total              408.0
The proposed "transfers "take account of the aboveinentioned lesser stock value *
The large sums involved in certain oases can be explained by the faot that
it has not been necessary – given the adequacy of overall appropriations –
to present an amending budget to the budgetary authority reflecting "the
adjustments arising from the fixing of prices and changes in
regulations concerning the economio and monetary situation.
 The EAGGP Committee was consulted on 24 November 1978 .
 ---pagebreak---                                       - 4 -
 B.    Chapters -where additional appropriations have been requested
  ■1 . Chapter 62 - Milk and milk products                              + 425 » u.a.
.(The shortfall in appropriations is due to the stock assessment operation
 carried out in accordance with Article 8 of Regulation 1883/78 , to the
 Council Decision of 12 May 1978 » "to an increase in exports , the amounts
 of skimmed-milk powder to be used for pig feed , the private storage of
 butter and quantities covered by special measures for the disposal of
 butter fat .
 Furthermore , the revenue accruing from the financial participation of
 milk producers will , in 1978 , exceed the expenditure on the oo-responsibility
 programme .    Consequently , the Commission will propose – in acoordanoe with
 the rules laid down in the first preliminary draft supplementary Budget
 for 1978 - that transfers be made under the 1979 Budget to increase the
 appropriations available for co-responsibility with the aim of bringing
 about the overall nrulti–annual balance which is needed in this field .
 It should be noted that the EAGGF Committee has already been advised of
 this intention .
 2.    Chapter 65 – Beef and veal                                       + 120 m u.a*
 This refund is justified by the stock assessment operation carried out
 in accordance with Article 8 of Regulation 1883/78 , by an increase in
 exports and by the fact that since improvement on the domestic market has
 been more sluggish that expected , stocks at the end of the finanoial year
 are higher than forecast .
 3.    Chapter 67 – Eggs and poultrymeat                                + 5 ® u.a.
 The degree of self-sufficiency has increased in respect of poultrymeat , thus
 leading to higher exports than anticipated;      hence the need, for an extra
 5 m u.a .
 4.    Chapter 7 "^ – Other common organizations of the market          + 15 m u.a.
 The additional 15 m u.a . requested is to cover additional expenditure
 principally arising from the restructuring of the common organization of
 the market in dehydrated or dried fodder and from the new provisions
 concerning peas and field beans .
 5.    Chapter 74 - Refunds on certain goods obtained by processing agricultural
       products                                                         + 57 m u.a.
 The additional 57 ® u.a. is needed as a result of the growth in exports
 of processed products to non-member countries has been more rapid than
 predicted and the low world rates for sugar and milk products .
 ---pagebreak---                                     - 5 -
 6 . Chapter 46 - Expenditure resulting fromijihe application of different        j
      exchange rates                                                 + 207 m u.a« f
                                                                                  »
 To this chapter are charged, the differences "between conversions of national    !
 currencies into agricultural units of account by meaJis of the weighting         ■
 factors specified in Regulation (EEC ) No 724/78 sjid their conversion into      j
European units of accoujit at "the rates on the 20th of each month .   The        j.
 chapter shows a large deficit basically because of the extension of the          t
provisions allowing exporter Member States to pay monetary compensatory
amounts on import into certain Member States with a depreciated currenoy .
 (Art . 2a of Regulation (EEC ) NO 974/71 ) although when the Budget was
drawn up it was assumed that these would not be extended .     The extension
involves the transfer of amounts in the order of 250 m u.a. from                   !
Chapter 45 to Chapter 46 .                                                        '
Moreover, it should be noted that the weighting factors were adopted before        i
the Council 's decision of 12 May and were fixed on a lump-sum basis by            j
Regulation (EEC ) No 724/78 .                                                      'i
Finally , there are slight differences in the distribution of expenditure
in agricultural u.a. compared with what is in the Budget .     In particular ,
the share of expenditure of those Member States with a dual rate
coefficient higher than the average is much higher than expected .
An initial increase of 207 m u.a. is suggested while awaiting more details
of the expenditure under eaoh item .
C.   Chapters where a saving is expected to be made
1.   Chapter 60 – Cereals                                           – 412 m u.a.
The main saving in this sector relates to refunds , storage items and durum
wheat .
The reduction in refunds is due to the fact that world prices were more
favourable than at the end of the previous summer and particularly to a
poorer harvest in 1977-1978 than expected , although the estimate was
itself very much lower than trends indicated .
The reduction in storage expenditure was also due to the poor harvest and
to the Council 's decisions of 12 May 1978 on compensatory allowances .
The saving in respect of durum wheat is due both to a reduction in the
amount of land under the crop in 1977 which exoeeded the figures used when
drawing up the Budget and to the fact that payments for former growing
seasons which had fallen below forecasts had caught up.
                                                                                  r
                                                                                  f
                                                                                  i
                                                                                  i
 ---pagebreak--- 2.    Chapter 61 - Rice                                             – 14 m u.a
The saving is due to a drop m quantities exported and to the refund rate .
3'.   Chapter 63 – Oils and fats                                    – 40 m u.a.
This sector shows a slight excess in aids for the production of oilseeds
 ( 10 m u.a.) which is largely offset by the savings expected in olive oil
where storage costs have increased but where production aid has not
caught up the delay in payments as expected.
4.    Chapter 66 - Pigmeat                                          – 35 ■ u.a.
There has been a considerable saving in this sector because the quantities
exported are lower than expected (as domestio consumption has increased) as
too are the refunds .   The appropriations can therefore be reduced initially
by 35 m u.a.
5.    Chapter 68 - Fruit and vegetables                             – 28 m u.a.
The expected saving is due to a decrease in production and thus to quantities
withdrawn from the market , particularly apples and pears .
6 . Chapter 69 - Wine                                               – 150 m u.a.
The harvest was much poorer than expected from trends , which accounts for the
savings on storage and particularly on distilling. Moreover , the operations
planned for when drawing up the Budget by way of application of the reserve
guarantees in long-term oontracts proved not to be necessary.
7.    Chapter 70 - Tobacco                                          – 20 m u.a.
The saving expected in this sector (20 m u.a.) is a result both of lower
production than expected and of marketing difficulties for certain oriental
varieties which led to an increase in intervention but delays in the payment
of premiums .
8.    Chapter 45 – Monetary compensatory amounts                   – 130 m u. a«
The distribution of MCA in intracommunity trade has had to be reviewed
following the extension of the arrangement whereby Member States are
allowed to pay at special low rates v,Art . 2(a) of Reg. 974/71 )• Although
it has no effect on the SUA as a whole , this extension involves transferring-
amounts in the order of 250 m u . a. of Chapter 45 to Chapter 46 .