CELEX: 51973PC1570
Language: en
Date: 1973-09-17
Title: Proposal for a REGULATION (EEC) of the COUNCIL on the exchange rates to be applied in agriculture for the Netherlands florin (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1570
Vol. 1973/0271
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 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COM(73 ) 1570 fin .
                                                 Brussels , xj September 1973
                                 Proposal for a
                       REGULATION (EEC ) of the COUNCIL
           on the exchange rates to be applied in agriculture for the
                                Netherlands florin
                      ( submitted to the Council by the Commission )
COn(73 ) 1570 fin .
 ---pagebreak---                            EXPLANATORY MEMORANDUM
                                     I
Ly telex dated 15 September 1973 , the Netherlands Government notified the
Commission of a 5$ revaluation of the central rate for the Netherlands
florin . At the same time , the Netherlands Government requested that a
 special conversion rate be fixed for the Netherlands florin for the
purposes of the common agricultural policy , such rate to be 105$ of the
par value communicated for the Netherlands florin to the International
Monetary Fund and recognized by the Pond .
                                       II
1.    The Netherlands florin is one of the currencies which are floating
jointly .   The central rate applicable hitherto -was 2.76$ above the
par value communicated to the International Monetary Fund .     Accordingly ,
"monetary" compensatory amounts based on such percentage were applied in
trade in the agricultural products concerned .     (Article 2 of Regulation
(EEC ) No 974/71 , amended in this respect by Regulation (EEC ) No 1112/73 –
OJ No L 114 , 30 April 1973 , P-5 .)
These "monetary" compensatory amounts were applied in trade with non-Member
States and in intra-Comiaunity trade , with the exception , however , of trade
with the Benelux countries .    The Bel go–Luxembourg Economic Union and the
Netherlands had decided to maintain the same margins of fluctuation
between their currencies as obtained prior to 9 May 1971 ,       not to change the
relationships between the effective par values of their currencies .
For that reason , these Member States declared , pursuant to Article 233 of
the Treaty , that they did not wish to apply the "monetary" compensatory
amounts amongst themselves and they have been treated as a single Member
State for ouuposes of applying the system of "monetary" compensatory amounts .
 ---pagebreak---  2.    In theory the increase in the central rate for the florin should "bring
 about- a corresponding increase in the "monetary" compensatory amounts
 applicable in trade between the Netherlands and the other Member States and
 non-Member States , and , in the case of trade with the other Benelux countries ,
 should result in compensatory amounts being introduced .
 If this result is to be a^/oided , as the Netherlands Government ha3 requested ,
 measures must be taken to ensure that the difference between the rate used
 for the conversion of agricultural prices and the central rate remains equal
 to 2.75$, as previously.     This can be achieved by fixing a representative
 rate for the conversion of agricultural p?ices by revaluing by 5$ the par value
hitherto used for such conversions .
 3.   This will result in a corresponding decrease in agricultural prices in
the Netherlands of about 5        This measure vri.ll not only have anti-
inflationary effects but will also be in accordance with the basic principle
of uniformity of prices in the common agricultural market .       From the technical
pcht of view , this change in the rate used for converting various amounts
pursuant to the common agricultural policy will necessitate a series of
consequential changes which must be dealt with as if the par value had
changed : the relevant provisions of Regulation No 1134/68 must therefore be
made applicable .
                                      III
The fixing of a representative rate is a derogation from Article 2(1 ) of
Regulation No 129/62 (OJ No 106 , 30 October 1962 , p.2553 )«     It is made
possible by the provisions of Article 3(l ) of that Regulation .
1 . That paragraph , in its present form , provides that derogations may be
nede by the Council or the Commission , acting under the instruments respective!;
concerning them and in accordance with the procedures laid down therein .      For
the fixing of certain prices , however , the procedure laid down by Article 43(2 )
of the Treaty must be followed .     In view of the speed at which measures of thi
 ---pagebreak--- kind must usually "bo taken , wmch is particularly true of the present case ,
the Commission , in March 1 97 3 T submitted to the Council , as part cf a set of
general proposals , provisions designed to simplify the procedure involved
(doc . R 784/73 , ACJRI 245 , FUT 178 f 26 March 1973 ; Article 10 ).   The
European Parliament delivered its Opinion on this proposal on 6 April 1973 .
The Council agreed with the proposal on t-.-ro points vrhich were incorporated
in Regulations (SEC ) libs 1112/73 and 1 225/ 73 . which "both amended Regulation
(EF.C ) !fo 974/71 * As regards the other points , particularly Article 10 vrhich
provides for the simplification of the procedure laid down by Article 3(l )
of Regulation ITo 129/62 , consideration of the proposal has been postponed .
The Commission proposes to the Council that the provisions of Article 10
should be adopted as a separate measure .
2.     Article 3 of Regulation lib "29 requires that the Monetary Committee be
consulted .     This matter will be submitted to that Committee at their meeting
on 17 Sent ember 1 97 3 •
 ---pagebreak---                               ~~M –
                             Proposal for a
                    REGULATION (EEC ) of the COUNCIL    •
       on the exchange rates to "be applied in agriculture for the
                            Netherlands florin
THE COUNCIL OP THE EUROPEAN COMMUNITIES
                                             1
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 agricultural policy , as last amended "by Regulation (EEC ) No       ,
and in particular Article 3(1 ) thereof ;
Having regard to the proposal from the Commission ;
Having regard to the Opinion of the Monetary Committee ;
Whereas the situation referred to in Article 3(1 ) of Regulation No 129 ,
in which derogations may he made from the principle of using par values
for converting one currency into another , now obtains in various Member
States ;
Whereas , however , it has generally been possible to solve the problems
posed by such a situation by applying "monetary" compensatory amounts ,
enabling exchange rates to be maintained which correspond to the par
values of the currencies concerned ;
Whereas , by reason of ihe customs union existing among the Benelux countries ,
and the fact that these Member States had decided to maintain amongst their
currencies the rates ruling before 9        1971 , "the system of "monetary"
compensatory amounts does not apply in trade between these countries which ,
for the purposes of that system , are treated as one Member State ;
Whereas on 15 September 1973 the Netherlands Government decided to raise the
central rate for the Netherlands florin by 5^5 whereas , therefore , the
system of "monetary" compensatory amount s should also apply in trade between
the Benelux countries , since for these Member States these amounts are
calculated on the basis of the difference between the central rate and the
par value for each currency , and this difference is no longer the same for
these countries ;
1 0J No 106 30 October 1962 , p. 2553/62 .                          • */• »
 ---pagebreak---                                        - r-
  Whereas , however , this result could "be avoided "by fixing , pursuant to the
  said Article 3 , a representative exchange rate for the Netherlands florin
  of 105$         P3,1" value of that currency , so that the difference "between
  the central rate and the representative rate is the same as the difference
  existing for the Belgian/Luxembourg franc between the central rate and the
  par value ;
 Whereas to fix such a representative rate would lead to agricultural prices
  in the Netherlands being changed once again ;     whereas this result is
  consistent with the basic principle of uniformity of prices in the Community ;
 whereas it was on the basis of this principle and its consecmences that
                                                                                 *
  specific provisions were laid down in Council Regulation (EEC ) No 1134/ 68
 of 30 July 1968 laying down rules for the implementation of : Regulation
  (EEC ) No 653/68 on conditions for alterations to the value of the unit cf
 account used for the common agricultural policy ;      whereas these provisions
 only cover the case of a change ii the par value of a currency ;      whereas
 they should also be applied in this case ;
 HAS ADOPTED THIS REGULATION :
                                   Article 1
J » . Where, transactions to be carried out pursuant to instruments concerning
 the common agricultural policy or special measures taken under Article 235
 of the Treaty require sums given in Netherlands florins to be expressed in
another currency or in units of account , the exchange rate to be applied
 shall , by way of derogation from Article 2(1 ) of Regulation No 129 , "b®
that which corresponds to the representative rate for that currency .
 2.     The representative rate referred to in paragraph 1 shall be :
               1 Netherlands florin = 0.2904 units of account .
                                  Article 2
The provisions of Regulation (EEC ) No 1134/68 , in respect of alterations in
the relationship between the par value of the currency of a Member State
and the unit of account      shall apply .
                                  Article 3
1»     This Regulation shall enter into force on the day of its publication in
the Official Journal of the European Communities .        It shall have effect
as from 17 September 1973 *                                                 „
 \)J No L 188 , 1 August 1968 , p. 1 .
 ---pagebreak--- 2.     It shall cease to have effect at such time as the Kingdom of the
Netherlands shall declare a new par value to the International Monetary
Fund .
This Regulation shall he "binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,             1973
                                               For the Council
                                                The President