CELEX: 51983PC0039
Language: en
Date: 1983-01-21
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) amending Regulation (EEC) No 878/77 on the exchange rates to be applied in agriculture in Greece (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
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DOCUMENTS "COM"
COM (83) 039
Vol. 1983/0015
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 ---pagebreak--- COMMISSION OF THE E U R O P E A N COMMUNITIES
                                     COM(83) 39 f i n a l
                                     Brussels, 21st January 1983
                PROPOSAL FOR A COUNCIL REGULATION (EEC)
        amending Regulation (EEC) No 878/77 on the exchange
        rates to be applied in agriculture in Greece
             (presented by the Commission to the Council)
   COM(83) 39 f i n a l
 ---pagebreak---                                  EXPLANATORY MEMORANDUM
  I„  The Greek Government announced on 9 January 1983 that i s was devaluing
      the drachma by 15-5?; against the US d o l l a r . As a r e s u l t of t h i s
      devaluation, which took effect on 10 January, monetary compensatory
      amounts at -23.3 were introduced with effect from 13 January; the MCA
      applying i n Greece had previously been - 1 . 7 ·
  II. In a telex sent on 1A- January,, the Greek Government requested the
      Commission to forward a proposal to the Council designed to a l i g n
      the "green" representative rate of the drachma on the spot market
      r a t e s . The telex s p e c i f i e d that the new rate should be phased i n as
      follows:
      - immediately with respect to fresh f r u i t and vegetables, wine, milk
           and milk products, beef and v e a l , pigmeat, sheepmeat and f i s h e r y
           products;
      - at the s t a r t of the 1983/8^· marketing year i n sectors with a defined
           marketing year, except for :
           —* for the tobacco sector, where the new rate should take effect on
           '·   1 January 1984;
      - from 4 April 1983 in a l l other cases.
III.  In view of the considerable impact on price l e v e l s for         agricultural
      products which would result from a complete devaluation of the
      representative rate of th*> drachma (an increase of 2^.8?'·)» the
      Commission has been unable to accept the Greek Government's request.
      Instead, i t proposes a devaluation of the "green" drachma by 7.0 %.
       As to when the new rate should come into e f f e c t ,       the Commission would
       l i k e to remind the Council of i t s proposals i n connection with the
       devaluation of the "green" rates of the French and Belgian francs
       (COK(82)591 of 1^ September 1982); i n the explanatory memorandum, i t
       set out the guidelines i t intended to follow i n such cases. On the
       basis of the p r i n c i p l e s enunciated there, the Commission proposes i n
       the present case that the new representative rate for the drachma
       take effect i n a l l sectors immediately, except olive oiL ("from start of
       1983/84 marketfng year, to avoid differential treatment of producers).
  IV. The f i n a n c i a l implications of this proposal are set out i n an annex
       to t h i s memorandum.
 ---pagebreak---                                                                - 2 -
Member State  Market rate               Represervative vtite                   Monetary gap (*)        MCA    Effect on
              19.1.1983                                                  (without neu trai margin)    to be    prices
                               former          new         devaluation                               applied
              (1 ECU =)                                                    before          after                ( % )
                              (1 ECU =)     (I ECU =)           ( % )
                                                                        devaluation devaluation
Greece        80.8016        66.5526       71:5619         7.000        - 21.419        - 12.9      - 11.4   + 7.527
(*) The MCAs of - 22.1 valid from 24.1.1983 are based on the reference period from 12 to 18.1.1983.
 ---pagebreak---                                     Proposal f o r a
                               COUNCIL REGULAnON (EEC)
               amending Regulation (EEC) No 878/77 on the exchange rates to he applied in
                                                  agriculture i n Greece
THE COUNCU. OF THE EUROPEAN                                these new rates applying in this context n.ay differ
COMMUNITIES,                                               from the other date of application of the new rates in
                                                           the wine sectoi;;
Having regard to the Treaty establishing the European
Economic Community, -                                       Whereas, in order to avoid differing treatment of inter­
                                                            dependent products, provision should be made for the
 Having regard to Council Regulation No 129 on the new rates to apply in thy cereals (with the exception of
 value of the unit of account and the exchange rates todurum wheat) and the eggs and poultrymeat, oval­
 be applied for the purposes of the common agricul­ bumin and lactalbumin sectors with effect from the
 tural policy ('), as last amended by Regulation (EEC) same date;
 No 2543/73f) and in particular Article 3 thereof,
                 s
 Having regard to the proposal from the Commission, W         hereas the Monetary Committee will be consulted;
                                                             whereas, as this is an urgent mé-ter, the measures envi­
  Whereas the representative rates currently applicable saged should be adopted in accordance with the condi­
  were fixed by Regulation (EEC) No 878/77 (·), as iasttions laid down in Article 3 (2) of Regulauon No 129,
                                                     4
  amended by Regulauon (EEC) No3^37 /82 ( );
             a
  whereasnew representative rate closer to present
  economic circumstances should be fixed for the             HAS ADOPTED THIS REGULATION :
  Greek drachma;
                                                                                   Article 1
  Whereas the rate must be adjusted with proper regard Annex
   to i t s effect, in particular on prices, and to the situ­shall be replV
                                                                          a ced
                                                                                 to Regulation (EEC) No 878/77
                                                                                 by Annex       V      hereto.
   ation in the Member State concerned;
   Whereas Council Regulation (EEC) No 337/79 of 5                                 Article 2
    February 1979 on the common organization of the
    market in wineO. as last amended by Regulation This Regulation shall enter into force on
    (EEC) No 2144/82 0. provides for certain distillation 31 January 1983.
    operations and aid; whereas the date of application of
                 This Regulauon shall be binding in its entirety and directly applicable in all Member
                 States.
                  Done at                          1983.
                                                                         For the Council
      (') OJ No 106, 30. 10. 1962, p. 2553/62.
      0 OJ No L 263, 19. 9. 1973. p. I. .
        J
      () OJ No L 106, 29 4. 1977. p. 27.
       (·) OJ No L362, 23.i2.i982, p . 1 .
       O OJ No L 54/5. 2. 1979. p. 1.
       (•) OJ No L 227, 3. 8. 1982, p. 1.
 ---pagebreak---                                 ANNEX V
                                 Greece
  1. 1 ECU = 71.5619 Greek drachmas.
                                                                       z
     This rate s h a l l apply from:
     - 1 November 1983 i n the o l i v e o i l s e c t o r ;
     - 31 January 1983 i n a l l other s e c t o r s ; other dates may, however, be
       fixed for the amounts s p e c i f i e d ' i n A r t i c l e s 10, 11, 12a, 1^+, 14a,
       15, 39, ^0 and ^1 of Regulation (EEC) No 337/79·
2 . The following rate s h a l l apply u n t i l the dates s p e c i f i e d i n 1 above:
                      1 ECU = 66.5526 Greek drachmas.
 ---pagebreak---                  FINANCIAL               STATEMENT
                                                                             Date :
                                                                                       20 January 19&3
1. BUDGET HEADING :      T i t l e s 1 and 2                                 APPROPRIATIONS :  1^ O87 mill.ECU
                                                                                 I983
2. TITLE    :    council Regulation amending Rep;. 878/77 with regard to the
                 exchange rates applying i n a g r i c u l t u r e i n Greece
3.   LEGAL BASIS   :    Council Reg. 129
i.. AIMS OF PROJECT Devaluation of the representative rate for the Greek drachma
                      :
      by 7 % with effect from 1 November 1983 in the olive o i l sector and
      31 January 1983 in a l l other sectors
                                                                                                 m i l l i o n ECU
5. FINANCIAL IMPLICATIONS                   PERIOD OF 12 MONTHS CURRENT FINANCIAL YEAR   FOLLOWING FINANCIAL YEAR
                                                                       < 1983?                 (            )
5.0 EXPENDITURE
      - CHARGED TO THE EC BUDGET
         (REFUNDS/INTERVENTIONS)                                        - . 78
      - irceKX
5.1 RECEIPTS
      - OWN RESOURCES OF THE EC                                         _ 14
         (LEVIES/CUSTOMS DUTIES)
5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED RECEIPTS
 5.2 METHOD OF CALCULATION
             see   Annex attached
 6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ?
                                                                                                                YES,
 6.1
 6.2
 6.3
 OBSERVATIONS :
 ---pagebreak---                          ANNEX
Adjustment to the Greek drachma: current p o s i t i o n and l e v e l s of
 revenue and expenditure i n the agrimonetary             field
 1. The 1983 budget makes no -.provision for MCAs i n connection with
      the drachma, the d i f f e r e n t i a l between market and representative
     rates being put at p a r i t y .
2. An MCA of -1.7 was introduced for the drachma on 3 January 1983?
      following: the devaluation of the Greek currency on 9 January,
     MCAs went to -23-3 as from 13 January.
     The result i n terms of agrimonetary expenditure i n 1983 i s set out
     below (Table    I).
     Table I
                                                                m i l l i o n ECU
                                                                      1983
                   Expenditure
                   MCAs                                              + 63
                   MCAs deductible from refunds                      - 20
                   Dual rate effect on
                   common organisations of market                     -157
                   TOTAL                                              -114
                   Revenue
                   Dual rate and MCAs: effect on l e v i e s         - 20
                   Dual rate effect on sugar l e v i e s             -      3
                   TOTAL                                             - 23
3· The proposed Regulation devalues the representative rate for
   . the drachma by 7 % with effect from 1 November 1983 in the olive sector
     and 31 January 1983 in a l l other sectors, changing the figures for
     agrimonetary revenue and expenditure given under 2 above to the figures
     given in Table II.
 ---pagebreak---                                         - 2 -
    Table     II
                                                        m i l l i o n ECU
                                                            1983
                      Expenditure
                      MCA s                                 + 35
                      MCAs deductible from refunds          - 12
                      Dual rate effect on
                      common organisations of market        _101
                      TOTAL                                 - 78
                      Revenue
                      Dual rate and MCAs: effect on
                      levies                                - 12
                      Dual rate effect on sugar
                      levies                                -      2
                      TOTAL                                 - 14
II- Conclusions
    1. As against the budget drawn up.for 1983i which did not make
        p r o v i s i o n for agrimonetary revenue or expenditure i n connection
        with the drachma, the r e s u l t of recent changes i n that currency
        and the proposed devaluation of i t s representative rate w i l l be:
        - a reduction of 73 m i l l i o n ECU i n expenditure;
        - a reduction of 14 m i l l i o n ECU i n own resources revenue.
    2 . The cost of the proposed devaluation of the representative rate
        for the drachma can thus be estimated as below (Table                    III).
        Table III         (Table II minus Table I)
                                                               m i l l i o n ECU
                                                                    19ü3
                       Expenditure
                      MCAs                                          _ 28
                       MCAs deductible from refunds                 + 8
                       Dual rate effect on
                       common organisations of market               + 5.6
                      TOTAL                                         + 36
                       Dual rate and MCAs: effect on
                       levies                                       + 8
                       Dual rate effect on sugar l e v i e s        + 1
                       TOTAL                                        + 9