CELEX: 51973PC1582
Language: en
Date: 1973-09-18
Title: PROPOSAL FOR A REGULATION OF THE COUNCIL concerning measures to be taken in agriculture in view of the rise in the central rate for the Dutch guilder (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1582
Vol. 1973/0272
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMMISSION OE THE EUROPEAN COMMUNITIES
                                                         COM(73 ) 1582 Final
                                                         Brussels . 18 September 1973
                                      PROPOSAL FOR A
                             . REGULATION CF THE COUNCIL
               concerning measures to "be taken in agriculture in
                  vie :-/ of the rise in the central rate for
                                     the Dutch guilder
                                               \
                   'submitted to the Council by the Commission)
   Cûl*(7:) 1582 Final
 ---pagebreak---                           EXPLANATORY HEMDRAEHJM
In a Telex of 15 September 1973 » "the Netherlands government informed the
Commission of a raising by 5 P er cent of the central rate for the Dutch
guilder to take effect as from 17 September 1973 • At the same time the
Netherlands government requested that a special conversion rate be fixed
for the Dutch guilder for the purposes of the Common Agricultural Policy
at approximately 105% of the parity for the Guilder notified to the IMP
and recognized by the latter .
The Commission has submitted a proposal to the Council requesting that a
representative rate be fixed for the Dutch guilder as from 17 September,
amounting to a revaluation of 5 P er cent over and above the rate force until
now for the conversion of figures for the purposes of the Common Agricultural
Policy . This will result in a lowering of CAP prices fixed in units of
account and expressed in guilders . The effect of this measure , which also
has an ant i- inflationary character , will be to prevent a fresh breakdown
in the unity of the agricultural common market .
The Netherlands government has stated that it intends to compensate producers
by granting them aid for a period of six months by means of an increase in
the rates of Value Added Tax from 4«25 per cent to 6,25 Per cent .    The
Netherlands government estimates that this aid will amount to around
120 million guilders .
It appears advisable to authorize the Netherlands government to grant this
compensation as requested . In view of the precedents and the importance
of the measure for the Community , the Commission further proposes that the
EAGGF contribute about 15 per cent of the total expenditure , to be charged
to the 1974 budget .
With reference to the financial aspect of the matter , under the terms of
Article 2 of this proposal , an additional expenditure of 5 million units
of account would be called for from the Guarantee Section of the EAGGF , to
be charged to the Budget of the European Communities for 1974«
In addition to this additional expenditure , it should be mentioned that it
appears from the proposal for a Council Regulation concerning the exchange
rate to be applied in agriculture for the Dutch guilder , that the represent­
ative rate suggested in this proposal would bring about the non-
application of the 5 P 9r cent revaluation of the guilder under the system
provided for in Regulation (EEC ) No 974/71 in Dutch trade (both within and
and outside the Community ). In view of the fact that Article 7 of Regulation .
(EEC ) no . 974/71 provides for the financing of Compensatory amounts by the
Community , this non-application will avoid additional expenditure and
revenue which                                                     /
 ---pagebreak---                                     - 2 -
may "be estimated as follows for the different types of trada over a twelve
month period :
   - intra-Community trade : 65 million units of account additional
                                                          expenditure
                              20 million units of account additional revenue
                              45 million units of account net additional
                                                          expenditure
                                                          (EAGGF guarantee )
                                                          (intervention )
      export to third
                countries :   20 million units of account additional
                                                          expenditure
                                                          (refunds )
                                                          (EA^GF Guarantee )
      export from third
                  countries : 15 million units of account additional revenue
                                                          (levies to te
                                                          included in own
                                                          resources exclud­
                                                          ing 10 per cent
                                                          collection fees )
 ---pagebreak---                                                     COM (73 ) 1502 Pinal
              PROPOSAL FOR A REGULATION OP THE COUNCIL
           concerning measures to be taken in agriculture
           in view of the rise in the central rate for
           the Dutch guilder .
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 42 and 43 thereof ;
Having regard to the proposal from the Commission ;
Having regard to the Opinion of the European Parliament ;
Whereas the rise in the central rate for the Dutch guilder on 17 September
1973 has led, pursuant to Council Regulation"' of
on the exchange rate to be applied in agriculture for the Dutch guilder
to a reduction in agricultural prices , expressed in guilders , which are
fixed in units of account under the common agricultural policy;
Whereas the Kingdom of the Netherlands should be authorized to grant
compensation up to a limit of 2% of the selling price of agricultural
products ;
Whereas the Community should contribute towards the financing of the aids
provided for through the EAGGP ;
HAS ADOPTED THIS REGULATION:
1
  OJ No L
 ---pagebreak---                                                         COM(73 ) 1532 Final
                                   - 2 -
                                Article 1
1 ) The Netherlands are hereby authorized to grant aid to. Dutch
agricultural producers for a six month period , under the following
conditions ,
2 ) This aid shall "be granted in the form of compensation received "by the
agricultural producer when he sells his products up to a ceiling of 2>o
of the selling price and may be paid either by the purchaser or by a
body to be designated by the competent national authorities .
                                Article 2
      The EAGGF , Guarantee Section , shall contribute towards the financing
of the measures referred to in Article 1 by a payment to the Kingdom of
the Netherlands of 5 million units of account under the Budget of the
European Communities for the financial yoar (1974)«
                                Article 3
      Thic Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities .
             This Regulation shall be binding in its entirety
             and directly applicable in all Member States .
Done at Brussels ,              19                       The Council