CELEX: 31978D0840
Language: en
Date: 1978-10-10 00:00:00
Title: 78/840/EEC: Council Decision of 10 October 1978 adapting Decision 77/359/EEC fixing the economic policy conditions to be observed by the Italian Republic

No L 291 / 12                          Official Journal of the European Communities                               17. 10 . 78
                                                                II
                                           (Acts whose publication is not obligatory)
                                                       COUNCIL
                                                    COUNCIL DECISION
                                                      of 10 October 1978
                adapting Decision 77/3S9/EEC fixing the economic policy conditions to be
                                              observed by the Italian Republic
                                                          (78/840/EEC)
THE COUNCIL OF THE EUROPEAN                                        for this purpose it is appropriate to fix the economic
 COMMUNITIES,                                                      policy conditions to be observed during the remainder
                                                                   of 1978 ; whereas the economic policy conditions to
 Having regard to the Treaty establishing the European             be observed in 1979 will be fixed before the end of
 Economic Community,                                                1978 ;
 Having regard to Council Regulation (EEC) No
 397/75 of 17 February 1975 concerning Community                   Whereas the Italian authorities have declared that they
 loans ('), and in particular Article 3 thereof,                   will not, unilaterally, take any measure of a commer­
                                                                   cial or financial nature to restrict imports or subsidize
 Having regard to Council Decision 77/359/EEC of 17                exports,
May 1977 adapting Decision 76/324/ EEC fixing the
economic policy conditions to be observed by the
 Italian Republic (2), and in particular Article 3 thereof,
 Having regard to the proposal submitted by the                    HAS ADOPTED THIS DECISION :
 Commission which has for this purpose consulted the
Monetary Committee,
Whereas by Decision 77/359/EEC the Council fixed                                             Article 1
the economic policy conditions to be observed by the
Italian Republic during 1977,                                      The economic policy conditions to be observed by the
Whereas it is appropriate to fix the conditions to be              Italian Republic during the 1978 calendar year in
observed for subsequent years during which the loans               connection with the Community loans granted to this
are granted to the Italian Republic by Decisions                   Member State by Decisions 76/322/EEC and
                                                                   77/361 / EEC shall be as follows :
76/322/EEC (3) and 77/361 /EEC (4) ;
Whereas the development of the economic situation                  (a) current cash expenditure of public administration
in Italy must permit the attainment in 1978 of a                        must be limited to Lit 90 500 000 million ;
current balance of payments surplus of at least Lit                (b) the overall deficit of the public sector (treasury,
3 000 000 million and an increase in consumer prices                    local authorities, sickness insurance, ENEL), taking
of less than 14 % for the fourth quarter of 1978                        into account the financial assistance given directly
compared with the fourth quarter of 1977 ; whereas                     to entities outside the public sector, must not
                                                                       exceed Lit 31 500 000 million , i.e. about 15-5%
(!) OJ  No   L 46, 20 . 2. 1975, p. 1 .
(2) OJ  No   L 132, 27. 5. 1977, p. 34.                                of    gross    domestic     product,   including     Lit
(3) OJ  No   L 77, 24. 3. 1976, p. 12.                                  28 000 000 million for the transactions of the trea­
(4) OJ  No   L 132, 27. 5. 1977, p. 37.                                sury and local authorities as a whole ;
 ---pagebreak--- 17. 10 . 78                          Official Journal of the European Communities                       No L 291 / 13
(c) the growth in total lending, as defined in Article 6        Before the end of 1978 , the Council, on the recom­
     ( 1 ) of Council Directive 74/637/EEC of 17                mendation of the Commission, shall adapt, for 1979,
     December 1974 granting medium-term financial               the conditions contained in Article 1 .
     assistance to the Italian Republic ('), must not
     exceed Lit 46 000 000 million ;                                                  Article 3
(d) total monetary-base creation (excluding postal             This Decision shall adapt Decision 77/359/EEC.
     deposits) must not exceed Lit 7 500 000 million ;
(e) the sliding salary scale system should be modified                                Article 4
     so as to reduce its effect on labour costs and on
     the overall deficit of the public sector.                  This Decision is addressed to the Italian Republic .
                         Article 2                              Done at Luxembourg, 10 October 1978 .
Before the end of October 1978 , intermediate quar­
                                                                                           For the Council
terly objectives shall be established by agreement
between the Italian authorities and the Commission
                                                                                            The President
in relation to the conditions indicated in Article 1 ,
except for that set out in (e).                                                            R. OFFERGELD
 (1) OJ No L 341 , 20. 12. 1974, p. 51 .