CELEX: 51979PC0038
Language: en
Date: 1979-02-09
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 974/71 with regard to the calculation of monetary compensatory amounts in the wine sector (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 38
Vol. 1979/0012
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
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                            Proposal for a
               v                                  V
                       COUNCIL REGULATION ( EEC )
      amending Regulation ( EEC ), No 974/71 with regard to the .
  calculation of monetary compensatory amounts in the wine sector
            ( submitted to the Council by the Commission )
   COM(79 ) 38 final .
 ---pagebreak---                        Explanatory Memorandum
In the wine sector the monetary compensatory amounts currently apply to
wines imported from non-member countries , certain sparkling wines and
certain table wines ; however , these m.c.a. 's are applied only in France
and Italy as well as , in the case of certain wines of the German type ,
in Germany .
In Italy and France , these amounts are levied on export and granted on
import ; in Germany , the reverse is the case .
On 20 September 1978 the French Government submitted a memorandum to the
Commission in which it suggested that m.c.a. 's should no longer be applied
in France , in the case of Italian and French wines and, that in Italy only
the difference between the m.c.a . normally calculated for France and Italy
should be applied, since the Italian m.c.a . is currently greater than the
French m.c.a .
The attached proposal for a Council Regulation which is intended to amend
Regulation ( EEC ) No 974 / 71 is inspired by the idea put forward by the French
Government .
Application of the proposed arrangements
- does not alter the situation as regards competition between French and
   Italian wines ;
- encourages exports of Community wines , by reducing or abolishing the
   m.c.a. 's levied on export ;
- has practically no effect on import , since , in trade with non-member
   countries , most countries have undertaken to observe a reference price ,
   and the measure is without effect so far as they are concerned .
This being so , it appears sufficient , in order to remedy the effects of the
monetary difficulties , to compensate for the monetary differences between
 France and Italy .
The Commission would stress that this proposal will entail an exceptional
measure for the wine sector , where special conditions of production exist ,
and that such a measure could not be contemplated for other sectors .
 As regards the budgetary aspect of this proposal , it should be emphasized
 that advantages for the management of the market , namely a certain degree
 of price stabilization, appear likely ; however, an estimate of this parti­
 cular aspect is hardly possible .
 ---pagebreak---                                     PROPOSAL
                                  for
                COUNCIL REGULATION
amending Regulation ( EEC ) No 974/ 71 with regard to the calculation of
          monetary compensatory amounts in the wine sector
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 28, A3 and 235 thereof .
Having regard to Council Regulation No 129 on the value of the unit of
account and the exchange rates to be applied for the purposes of the common
                    1       . .       . . .  _  ...          ..        2
agricultural policy , as last amended by Regulation ( EEC ) No 2543/ 73 , and in
particular Article 3 thereof ,
Having regard to the proposal frbm the Commission ,
Having regard to the opinion of the European Parliament ,
Having regard to the opinion of the Economic and Social Committee ,
Having regard to the opinion of the Monetary Committee ,
Whereas the rules for calculating the monetary compensatory amounts were
established by Council Regulation ( EEC ) No 974/ 71 of 12 May 1971 on certain
measures of conjunctural policy to be taken in agriculture following the
temporary widening of the margins of fluctuations for the currencies of certai
Member States3, as last amended by Regulation ( EEC ) No5§7/764 ;
Whereas , in accordance with those rules , these amounts are normally fixed
separately for each Member State; whereas , however , in the wine sector because
of the special nature of the production and marketing of the product the
monetary compensatory amounts are applied only in the producing Member States
and only in respect of wines produced therein ; .
1 OJ No 106, 30.10.1962, p. 2553/62
2 OJ No 263, 19.9.1973, p.1
3 OJ No L 106, 12.5.1971 , p.1
4 OJ No L 67, 15.3.76 , p.1
 ---pagebreak---                                     - 2 -
    Whereas given these conditions and the desirability of Limiting the application
    of monetary compensatory amounts as much as possible use should be made of
    them in this situation in restricted fashion only ; whereas it appears possible,
    withoud disturbing trac^ to apply only the difference between the monetary
    compensatory amounts in question ,
    HAS ADOPTED THIS REGULATION :
                                   Article 1
    Regulation ( EEC ) No 974/71 is amended as follows :
1 . The following paragraph is added to Article 2 :
    " 4 . The monetary compensatory amount to be applied in the wine sector by
          Member States with depreciated currencies shall be that of the Member
          State in question, less the lowest monetary compensatory amount
          of the Member States with depreciated currencies .
          The conversion rate shall be that used for the application of Article 2a ."
2 . The following paragraph is added to Article 3 :
     "For the purposes of Article 2(4 ) the balance of the monetary compensatory
    amounts shall be fixed by the Commission by reference to changes in the&e
    amounts ".
                                    Article 2
    This Regulation shall enter into force on the sixth Monday 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 ,
                                                         For the Council
 ---pagebreak---                      FINANCiAS.             STATEMENT
                                                                               BATE I   15.1.1979
  i . BUDGLT LINS CONCERNED i         Chapter 78                     Appropriations : 809.2 Meua
  2. ACTION I        Council Regulation amending Regulation ( EEC ) No 974 / 71
                     regarding the calculation of the monetary compensatory amounts
                     in the wine sector
  3 . LEGAL BASIS I                   Art . 28 , 43 and 235 of the Treaty
  4. OBJECTIVES t Proposal that , in the case of Italian and French wines , MCA should
                        no longer be applied in France and that in Italy only the difference
                        between the MCA normally calculated in the case of France and Italy
                      ' should be applied
  5 . FINANCIAL CONSEQUENCE                          ^ Period t
                                                    of 12 months
                                                                    CURRENT FINANCIAL YEAR    FOLLOWING FINANCIAL TEAR
  5.0 EXPENDITURE                                                          CZ2.J           i_        L8Q    )
         -CHARGED TO TIIK EC BUDGET             + 17.3 Meua < 1 >   + 13.- Meua ( 1 )         + 11.2 Meua ( 1 )
          {CJOMOtyX Kit* K&MXty
         MMonmxmmiimm
  5.1 RECEIPTS
         -0'Sii RESOURCES OF T!!E EC             + 3.5 Meua         +    3.2 Meua             +   2.2 Meua
          tixmxjfà xwkx xm xoo
         mXXM'XK
 5.0.1 PLURIA.VNUAL PATTERN CP EXPENDITURE
                                                  T                  y»
 5.1.1 PLURI ANNUAL PATTERN OF RECEIPTS
 5.2 HETiiOD OF CALCULATIOK
                                     see Annex
 6.0 FINANCING POSSIBLE BY MEANS OF APPROPRIATIONS                INCLUDED IN THE CHAPTER
         OF THE CURRENT BUDGET ?             .
6.1 iKxxttxixx xocxmx xix mxm-m&xxxx ydaxmxx m mmm m&m *
6.2       NEED      F03 A SUPPLE! STAR* BUDGET ?                                                        WW »0
6.3       APPROPRIATIONS TO BE INCLUDED IN FUTURE BUDGETS ?                                             TES/Ciä
   . u IENTS s ( i ) This expenditure in respect of the MCA is to be understood as
appropriate ,, since this measure is such as to encourage the expansion of
i nt ra-Commun i t y trade towards Northern Europe and , thus , earnings deriving from
the export of wine from Italy which are increasing and could , in part , offset the
expenditure of the MCA resulting from this measure.; there will also result a better
balance among the wine markets and, hence , a likely reduction in expenditure of
common organizations of markets in this sector .                        For 1980 , the expenditure is
calculated on the basis of the MCA resulting from the representative rate applicable
to France , as from the 1979 / 80 marketing year .
 ---pagebreak---                                      ANNiX
  I . BASIC FIGURES
      A. Int r a-Commun i^_trade_subieçt_to_MÇ A
           France : net imports :      10 Mua
           Italy    : net exports : 160 Mua
      B. § xt ra ^Çommun^t ^^t r ade_subiect_to_MCA
           France : net imports :      30 Mua
          Italy     : net imports :
       C. Rates of the MCA
                                                                 Marketing year    Marketing year
                                                                       78 / 79          79 / 80
          Present situation as at 15.2.79              France        - 10.68%         -  6.64%
                                                       Italy         - 18.04%         - 18.04%
           Future situation                            France
           following this proposal                     Italy         -  6.65%         - 10.69%
          Abolition of the MCA                         France          10.68%            6.64%
                                                       Italy           11.39%            7.35%
II . METHOD OF CALCULATION
      - Marketing year 78 / 79
         ■ iQt r a;t rade
            France =    10 x (- 10.68% ) =-    1.1 Mua x coeff . DR 1.081 =-       1,2 Meua
            Italy    = 160 x (- 11.39% ) -+ 18.2 Mua x coeff . DR 1.015 =+ 18.5 Meua
                                           + 17.1 Mua                           + 17.3 Meua
         • §2<t ra;t rade
            France =    30 x (- 10.68% ) =+    3.2 Mua x coeff . DR 1.081 =+       3.5 Meua
      - Marketing year 79 / 80
         . Intra^trade
            France =    10 x (- 6.64% ) =-     0.7 Mua x coeff . DR 1.121 =-       0.8 Meua
            Italy    = 160 x (- 7.35% ) =+ 11.8 Mua x coeff . DR 1.015 =+ 12 .- Meua
                                           + 11.1 Mua                           + 11.2 Meua
                                                   *»r
         • Ext ra -t rade
            France =    30 x (- 6.64% ) =+     2 .- Mua x coeff . DR 1.121 =+      2.2 Meua
Comment : For the 1979 financial year , for the purposes of these calculations ,
it is assumed that this measure will enter into force on 1 February 1979 .
 Increase in expenditure for a
            12 month period            : 17.3 Meua x         9 = 13 .- Meua
                                                            12
 Increase in own resources
     for a 12 month period                 3.5 Μβυδ χ 11 =        3.2 Μβυβ
                                                           •12