CELEX: 51983PC0586(01)
Language: en
Date: 1983-10-06
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 974/71 IN PARTICULAR IN RESPECT OF THE SYSTEM OF NEUTRAL MARGINS AND THE GRADUAL DISMANTLEMENT OF THE MONETARY COMPENSATORY AMOUNTS APPLYING TO CERTAIN AGRICULTURAL AND PROCESSED PRODUCTS

5.11.83                               Official Journal of the European Communities                           No C 299/7
                                                             II
                                                     (Preparatory Acts)
                                                COMMISSION
              Proposal for a Council Regulation
               I. amending Regulation (EEC) No 974/71 in particular in respect of the system of
                  neutral margins and the gradual dismantlement of the monetary compensatory
                  amounts applying to certain agricultural and processed products
              II. amending Regulation (EEC) No 652/79 on the impact of the European Monetary
                  System on the common agricultural policy
                                                    COM(83) 586 final
                             (Submitted by the Commission to the Council on 7 October 1983)
                                                              I
              Proposal for a Council Regulation amending Regulation (EEC) No 974/71 in particular
              in respect of the system of neutral margins and the gradual dismantlement of the
               monetary compensatory amounts applying to certain agricultural and processed products
THE COUNCIL OF THE EUROPEAN                                      Whereas these rules must govern the representative
COMMUNITIES,                                                     rates, the aim being to bring them more into line with
                                                                 actual economic circumstances; whereas the resulting
Having regard to the Treaty establishing the                     changes in the representative rates will also contribute
European Economic Community, and in particular                   to the gradual elimination of the differential amounts
Articles 42 and 43 thereof,                                      introduced by Council Regulation (EEC) No
                                                                 1569/72 of 20 July 1972 laying down special
Having regard to the proposal from the Commission,               measures for colza and rape seed (3), as last amended
                                                                 by Regulation (EEC) No 2027/83 ( 4 );
Having regard to the opinion of the              European
Parliament,                                                      Whereas these rules must be so framed as to prevent
                                                                 the creation in the future of durable monetary
Having regard to the opinion of the Economic and                 compensatory amounts and to ensure that the present
Social Committee,                                                NCAs are gradually phased out so that the unity of
                                                                 the common agricultural prices is restored;
Having regard to the opinion of the              Monetary
Committee,                                                       Whereas, in the case of the new amounts, adjusting a
                                                                 central rate should not, in theory, lead to lasting
Whereas the substantial adverse effects on the
                                                                 increases in the said amounts; whereas appropriate
common agricultural policy which arise from a
                                                                 measures should be adopted in order to avoid this, at
tendency towards permanent price differences as a
                                                                 least in the long term; whereas a system should
result of monetary instability and the introduction of
                                                                 therefore be introduced for abolishing the new
representative rates should in future be reduced;
                                                                 amounts, in principle by dismantling them in three
whereas rules are therefore needed concerning the
                                                                 equal stages, the first of which should coincide with
dismantlement of the monetary compensatory
                                                                 the adjustment of the central rates;
amounts introduced by Council Regulation (EEC)
No 974/71 of 12 May 1971 on certain measures of                  Whereas, however, there appears to be a possibility of
conjunctural policy to be taken in agriculture                   dismantling the old amounts in two equal stages;
following the temporary widening of the margins of
fluctuation for the currencies of certain Member                 Whereas adjusting the representative rates could lead
States ('), as last amended by Regulation (EEC)                  to a drop in incomes in some Member States; whereas
No 2025/83 ( 2 );                                                provision should be made for offsetting this via the
(') O J N o L 106, 12. 5. 1971, p. 1.                             (3) OJ No L 167, 25. 7. 1972, p. 9.
O OJ No L 199, 22. 7. 1983, p. 11.                                (4) OJ No L 199, 22. 7. 1983, p. 14.
 ---pagebreak--- N o C 299/8                        Official Journal of the European Communities                               5. 11.83
granting of degressive amounts of aid, the actual                shall be equal to the amounts obtained by
details of which will be decided by the Council in due           applying to the prices the monetary gap as defined
course;                                                          in paragraph 2.
Whereas, as regards the calculation of monetary                  For the other products referred to in Article 1 —
compensatory amounts, Regulation (EEC) N o                       hereafter designated "derived products" — the
974/71 makes a distinction only between basic                    monetary compensatory amounts shall be equal to
products in respect of which provision has been made             the incidence on the price of the product
for intervention measures, and other products, for               concerned of the application of the monetary
which the amounts are derived from those applicable              compensatory amount to the price of the basic
to the basic products; whereas pigmeat has hitherto              product from which it is derived.
been regarded as a basic product in view of the
existence of a buying-in system; whereas that system             2.    The monetary gap shall be equal to the real
will be discontinued as from 1 November 1984;                    monetary gap minus the neutral margin as defined
whereas the monetary compensatory amounts for that               in paragraph 3.
sector will henceforth have to be calculated on the              The real monetary gap shall be equal:
basis of pigmeat being regarded as a product derived
                                                                 (a) for the Member States the currencies of which
from cereals; whereas, in order to avoid the
                                                                      are maintained in relation to each other
drawbacks which would result from too abrupt a
                                                                      within a spread at any given moment of
change in the system, the calculation method should
                                                                      2,25 %, to the percentage representing the
be adjusted in two equal stages;
                                                                      difference between:
Whereas the levels of the monetary compensatory                       — the conversion rate used under              the
amounts are influenced by the neutral margin                              common agricultural policy, and
arrangement referred to in Article 2 (1) (a) of Regu-                 — the conversion rate resulting from          the
lation (EEC) No 974/71 ('franchise'); whereas this                        central rate;
arrangement makes no distinction between basic
products and derived products; whereas, however, the             (b) for the Member States other than those
prices of the latter partly depend on processing costs,               referred to under (a), the average of the
the cost of the raw material having only a limited                    percentage     representing     the   differences
incidence; whereas, accordingly, the neutral margin                   between:
for the monetary compensatory amounts for derived                     — the relationship between the conversion
products could be increased without danger of                             rate used under the common agricultural
disruption of trade;                                                      policy for the currency of the Member
                                                                          State concerned and the central rate of
Whereas the neutral margin system includes certain
                                                                          each of the currencies of the Member
restrictions designed to prevent unduly wide                              States referred to in (a), and
monetary gaps not bridged by the monetary
compensatory amounts; whereas these rules have not                    — the spot market rate for the currency of
given entire satisfaction; whereas they should                            the Member State in question in relation
 therefore be repealed;                                                   to each of the currencies of the Member
                                                                          States referred to in (a), recorded over a
Whereas Article 2 (4) of the abovementioned Regu-                         period to be determined.
 lation provides for deduction of the lowest amount
 for the negative monetary compensatory amounts                   3.    The neutral margin to be referred to for the
 applicable in the wine sector; whereas experience has            calculation of the monetary             compensatory
 shown that in certain circumstances this rule may lead           amounts applicable to basic products shall be:
 to frequent, unforeseeable and economically inappro-             — 1,50 points in the case of Member States
 priate changes; whereas it should be repealed;                       which levy monetary compensatory amounts
 whereas the way the wine market is organized allows,                 on exports and grant them on imports,
 however, for a wider increase in the neutral margin,
                                                                  — 1 point in the case of Member States which
                                                                      levy monetary compensatory amounts on
 HAS ADOPTED THIS REGULATION:
                                                                      imports and grant them on exports.
                         Article 1                                In accordance with the procedure laid down in
                                                                  Article 6, the neutral margin may, however, in the
 Article 2 of Regulation (EEC) No 974/71 shall be
                                                                  case of the following products, be fixed at a
  replaced by the following:                                      higher level, subject to the following limits:
 'Article 2                                                       — two points in the case of monetary
                                                                      compensatory amounts for derived products,
      1.    For products covered by intervention
      arrangements — hereafter designated "basic                  — five points in the case of                monetary
      products" — the monetary compensatory amounts                   compensatory amounts for wine.
 ---pagebreak--- 5-11.83                               Official Journal of the European Communities                            N o C 299/9
    4.     Whenever the market price for adult bovine                     The remaining part of the increase in the
    animals remains lower than the intervention price                     relevant real monetary gaps shall be
    for a relatively long period, the monetary                            eliminated "by adjustment of the relevant
    compensatory amounts applicable in the beef and                       representative rates in two equal stages, taking
    veal sector may be correspondingly altered, in                        effect at the beginning of the first and at the
    accordance with the procedure provided for in                         beginning of the second marketing year
    Article 6.                                                            respectively, following the currency event.
    5.     Until 31 October 1984, the monetary                            Should the above rules not allow for
    compensatory amount for pig carcases shall be the                     dismantlement in three stages of any increase
    arithmetic mean of:                                                   in the monetary gaps referred to in Article
                                                                          2 (2) (b), the relevant increase shall be
    — the amount calculated, in accordance with the
                                                                          eliminated by adjustment of the representative
         MCA calculation rules, in respect of 90 % of
                                                                          rates concerned in two equal stages, taking
         the minimum buying-in price for pig carcases,
                                                                          effect at the beginning of the first and at the
         and                                                              beginning of the second marketing year
    — the amount calculated on the basis of the                           respectively, following the relevant increase.
         MCAs for the quantity of cereals required in
         order to produce one kilogram of pig carcase.'              2.      Where this Article provides as date of entry
                                                                     into force of a measure the beginning of a
                          Article 2                                  marketing year, this date shall, for products of
                                                                     sectors which do not have marketing years, be
Article 3 of Regulation (EEC) No 974/71 shall be                     fixed by the procedure instituting the measure
replaced by the following:                                           itself.
     'Article 3                                                      3.      This Article shall apply without prejudice to
    If the gap referred to in Article 2 (2) changes by               the provisions:
    not less that one point from the percentage
    referred to for the previous fixing, the monetary                — of Article 3 of Regulation No 29 (s) in respect
    compensatory amounts shall be altered by the                          of accelerated dismantlement of monetary
    Commission on the basis of the change in the                          compensatory amounts,
    gap.'                                                            — of Regulation (EEC) N o 129/78 (6).
                          Article 3                                  4.      Where adjustments of the representative
                                                                     rates carried out under this Article lead, in view of
The following shall be added to Regulation (EEC)
                                                                     increases in the price in ECU taking effect at the
N o 974/71:
                                                                     same time, to a reduction in prices expressed in
     'Article 5a                                                     national currencies, the Member States concerned
                                                                     may be authorized to grant offsetting aids.
    1.     The monetary compensatory amounts shall
    be phased out by adjustments of the representative               Such aids may not exceed the incidence of the
    rates. Such adjustments shall be made under the                  price reduction. They shall be degressive and may
    procedure provided for in Article 6.                             not be granted for more than three marketing
                                                                     years. There may be a Community financial
    (a) The amounts already existing on' the entry                   contribution.
          into force of Regulation (EEC) N o 000/83,
          including the effect of the neutral margins,               The general rules for the implementation of the
          shall be abolished by adjustment of the repres-            provisions of this paragraph shall be adopted by
          entative rates by two equal stages, taking                 the Council, acting by a qualified majority on a
          effect at the beginning of the first and at the            proposal for the Commission.
          beginning of the second marketing year
          respectively, following the entry into force of
          the Regulation.                                        (s) OJ No 106, 20. 10. 1962, p. 2553/62.
     (b) On the occasion of each adjustment of the               (6) OJ No L 20, 15. 1. 1978, p. 1-6.'
          central rates, any increase in the real
          monetary gaps since the last adjustment of the                                    Article 4
          representative rate shall be eliminated by one-
          third by corresponding adjustment of the               This Regulation shall enter into force on 1 January
          relevant representative rates.                          1984.
 ---pagebreak--- N o C 299/10                              Official Journal of the European Communities                              5. 11. 83
                                                                  II
                Proposal for a Council Regulation amending Regulation (EEC) No 652/79 on the impact
                             of the European Monetary System on the common agricultural policy
THE COUNCIL OF THE EUROPEAN                                          Whereas, by an amendment to Article 3 (b) of Regu-
COMMUNITIES,                                                         lation (EEC) N o 652/79, Regulation (EEC) N o
                                                                     1011/80 (6) introduced a new system with regard to
Having regard to the Treaty establishing the                         the neutral margins adopted for calculating the
European Economic Community, and in particular                       monetary compensatory amounts; whereas, under the
Article 43 thereof,                                                  second subparagraph of Article 5 of Regulation
                                                                     (EEC) No 652/79, this system is also limited to
Having regard to Council Regulation N o 129 on the                   31 December 1983;
value of the unit of account and the exchange rates to
                                                                     Whereas the Commission has proposed to the
be applied for the purposes of the common agri-
                                                                     Council that it amend the arrangements concerning
cultural policy ('), as last amended by Regulation
                                                                     the neutral • margins; whereas also, in view of
(EEC) No 2543/73 (2), and in particular Article 3
                                                                     experience gained, the ECU should be adopted
thereof,
                                                                     definitively for use in the common agricultural policy;
                                                                     whereas the time restriction should therefore be
Having regard             to   the     proposals    from    the      eliminated,
Commission (3),
                                                                     HAD ADOPTED THIS REGULATION:
Having regard to the opinion of the                   European
Parliament,                                                                                   Article 1
Whereas Regulation (EEC) N o 652/79 (4), as last                     The second subparagraph of Article 5 of Regulation
amended by Regulation (EEC) N o 108/83 ( s ),                        (EEC) No 652/79 shall be deleted.
introduced the European Monetary System into the
common agricultural policy for a period ending on                                             Article 2
31 December 1983;                                                    This Regulation shall enter into force on the day of
                                                                     its publication in the Official Journal of the European
                                                                      Communities.
O OJ No 106, 30. 10. 1962, p. 2553/62.
O OJ No L 263, 19. 9. 1973, p. 1.                                    This Regulation shall be binding in its entirety and
O OJ No C 57, 7. 3. 1980, p. 11; OJ No C 302, 19. 11.                directly applicable in all Member States.
    1982, p. 4.
(4) O J N o L 8 4 , 4. 4. 1979, p. 1.
(') O J N 0 L I 6 , 20. 1. 1983, p. 2.                               (*) OJ No L 108, 26. 4. 1980, p. 3.