CELEX: 51973PC2181
Language: en
Date: 1974-01-09
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL amending certain Regulations on the financing of interventions by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 2181
Vol. 1973/0399
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                              COM(73 ) 2181 final
                                              Brussels , 9 January 1974
                           Proposal for a
                  REGULATION (BBC) OF THE COUNCIL
  amending certain Regulations on the financing . of interven­
  tions "by the Guarantee Section of the European Agricultural
  Guidance and Guarantee Fund
            (submitted, to the Comoil lay the Commission)
  COM(73 ) 2181 final
 ---pagebreak---                          Explanatory Memorandum
1 . The objects of this Regulation are to make certain changes to the present
rules governing the financing of interventions and to extend them for a year
pending the existence of a situation in which final rules on the financing
of interventions consisting of buying-in , storage and disposal can"be adopted.
2 . Under the Regulations on rules for financing interventions in the various
product sectors » where the account showing net expenditure on interventions
consisting of buying-in is in credit , the balance is carried forward to the
following year . But in view of recent intervention measures this is not an
appropriate means of dealing with credit "balances . In general terms the
introduction into interventions as defined in Article 3(0 of Regulation (E3C )
No 729/70 j of monetary compensatory amounts granted and levied in intra-
Community trade has given rise since 1 January 1973 to a situation in whioh
the amounts levied are deducted from the amounts granted in connection with
interventions in the current year. This deduction is made not only from the'
expenditure of a Member State but also from Community expenditure .
 ---pagebreak---                                      - 2 -
Moreover , in connection with interventions consisting of an intervention
 agency buying in a product , the transfer of products which are the subject
                                                                               I
 of intervention from one intervention agency to another and the financial     1
 procedure followed in such a case ( Begulation ( EEC ) No 210^/73 ) involve ,
under the present rules , substantial sums being carried over to subsequent
years .
 In order to come into line with the financial procedure generally followed
and to avoid carrying over substantial sums to subsequent years , it is
 proposed that with effect from the accounts prepared as at 31 December          I
 1973 any credit balance should form part of the finances for the current
year .
 3«   The basic regulation for the common organisation of the market in wine
 ( Regulation ( EEC ) Ho 8l6/70) was completed in 1972 by Article     which
provides for private storage aid for table wines . Consequently , Begulation
 ( EEC ) No . 2l8l/71 ( relating to the financing of intervention expenditures
 in this sector ) should be completed by mentioning the private storage aid
 for table wines set up by Article 6^1S.
                                                                   r
 k.   The Annex to Regulation ( EEC ) No 2824/72 lists the measures which are
considered to be interventions intended to stabilize markets within the
meaning of Article 3(1 ) of Regulation ( EEC ) No 729/70 . This Annex must be
brought up to date to reflect recent modifications in intervention measures
5 . Article 3(2 ) of Council Regulation ( EEC ) No 729/70 on the financing of 3
the common agricultural policy requires the Council to lay down the gene­
ral rules for financing interventions intended to stabilize agricultural
markets .
In July 1972 the Commission presented proposals for this ( Doc . R 17^3/72
of 7 August 1972 ) . On the basis of those proposals the Council adopted
Regulation ( EEC ) No 282^/72 laying down general rules for the financing of
interventions by the Guarantee Section of the EAGGF . Regulation ( EEC ) No
28^2/72 lays down general rules for the financing of interventions in
respect of which amounts have been fixed under the common organisations of
the markets . On the other hand , as regards interventions in respect of
which no amount is fixed , the Regulation provides that the Council is to
adopt before 1 August 1973 general rules to be applicable from 1 January
197^.
 ---pagebreak---                                       -3-
However , the Commission considers that new general rules for financing
intervention cannot be adopted £or the following reasons:
( a) operations relating to buying-in , storage , preparation for market ,
     processing, if any , and disposal are highly complicated and the work
     done in recent months "by the Commission in cooperation with the
                                                                »
     Member States , while it has made xt easier to understand the problem ,
     has not yet thrown up any conclusions which could be applied in the
     near future ;
(b)  following enlargement of the Community the three new Member States must
     gain at least a modicum of experience in this field if the general rules
     governing intervention are to be applicable in the nine Member States ;
(c ) there are still " considerable delays in finalizing balance sheets :
     priority should be given to putting past accounts into order before
     any substantial progress can be made in the procedures for          •-• 11 *
     public intervention.
 ---pagebreak--- 6 • Prom the financial angle it is pointed out that this proposal gives
 rise to no new expenditure or revenue but extends to 1974 the present system
 of financing oertain intervention measures while adjusting certain financial
provisions relating to accounting methods *
                                                                    /
 ---pagebreak---                                                  -5-
                             Proposal for a
                   REGULATION (EEC ) OP THE COUNCIL
        amending certain Regulations on the financing of interventions
        by the Guarantee Section of the European Agricultural Guidance and
        Guarantee Fund
 THE COUNCIL OP THE EUROPEAN" COMMUNITIES,
 Having regard to the Treaty establishing the European Economic Community ;
                                                     1
 Having regard to Council Regulation No 17/64/EEC of 5 February .1964 on the
  conditions for granting aid from the European Agricultural Guidance and
                                               2                   .3
  Guarantee Fund , as last amended by the Act annexed to the Treaty concerning
 the accession of new Member States to the European Economic Community and to
 the European Atomic Energy Community ;
 Having regard to Council Regulation (EEC) NO 729/70^ of 21 April 1970 on the
 financing of the common agricultural policy , as last amended by Regulation
  (EEC) NO 2788/72^, and in particular Article 3(2) thereof;
 "Whereas , in view of recent intervention measures , the need to know for each
 financing year the net expenditure on intervention means that certain
 amendments must be made to Council Regulation (EEC) NO 786/69^ of 22 April 1969
 on the financing of intervention expenditure in respect of the internal
market in oils and fats , as amended by Regulation (EEC) No 526/73^, Council
                               O
Regulation (EEC ) NO 787/69 of 22 April 1969 on the financing of intervention
 expenditure in respect of the internal market in cereals and rice , as amended
by Regulation (EEC) No 2092/70^ , Council Regulation (EEC) NO
loj No 34 , 27 February 1964 , p. 586/64
^OJ No L73 , 27 March 1972 , p. 14
¿OJ No L73 , 27 March 1972 , p. 5
;iOJ No L94 , 28 April Í970,' p . 13
5oJ No L295 , 30 December 1972 , p. t
^OJ   No L105 , 2 May 1969 , p. 1
Loj NO L51 , 24 February 1973 , P* 1
qOJ NO L105 , 2 May 1969 , p.__4
   OJ No L232 , 21 October        p« 3
 ---pagebreak---                                      - 6 -
 788/69 of 22 April 1969 on the financing of intervention expenditure in |
 respect of the internal market in pigaeat , as amended by Regulation ( EEC )
 No 2092/70, Council Regulation (EEC) No 233V692 of 25 November 1969 on        \
 the financing of intervention expenditure in respect of the internal market
 in sugar , as amended by Regulation ( EEC ) No 2092/70 , Council Regulation    j
 (EEC) No 2305/70^ of 10 November 1970 on the financing of intervention ex-
                                                                                I
 penditure in respect of the internal market in beef and veal , Council fie - 1
 gulation ( EEC ) No 2306/70 of 10 November 1970 on the financing of inter­
 vention expenditure in respect of the internal market in milk and milk
 products, and Council Regulation (EEC) No 1697/71^ of 26 July 1971 on the j
 financing of intervention expenditure in respect of the internal market in
 raw tobacco ;
 Whereas Council Regulation (EEC) No 2l8l/71^ of 12 October 1971 fixed the
 rules relating to the financing of intervention expenses in the wine sec­
 tor ; whereas since then Article 6*"* of Council Regulation (EEC ) No 8l6/70
 of 28 April 1970 , with complementary arrangements in regard to the common
                                       7
organisation of the market in wine , as last amended by Regulation ( EEC )
            8
No 2592/73 , introduced in 1972 private storage aid for table wines ,
which involved expenditure ; whereas this aid corresponds to the idea of
 interventions appearing in Article 3(1 ) of Regulation ( EEC ) No 729/70 ;
whereas Regulation ( EEC ) No 2l8l/71 should be completed in respect of the
financial year 1972 »
                                                             9
Vhereas the Annex to Council Regulation ( EEC ) No 2824/72 of 28 December
1972 laying down general rule®- for the financing of interventions by the
Guarantee Section of the European Guidance and Guarantee Fund , as last
amended by Regulation (EEC) No         /73^, lists the measures which are con­
sidered to be interventions intended to stabilize agricultural markets
within the meaning of Article 3(1 ) of Regulation ( EEC ) No 729/70 ;
whereas the said Annex should be added to ;
" OJ No L 105 ,   2 May 1969 , p. 7
*0J No L 298 , 27 November 1969 , p. 1
?0J No L 249 , 17 November 1970, p. 1
  OJ No L 249 , 17 November 1970 , P « 4 '
gOJ No L 175 , 4 August 1971 , p. »
_0J No L 231 , 1 ^ October 1971 , P * 3
gOJ No L 99 , _ 5 May 1970, p. 1
°0J No L 269 , 26 September 1973, p. 1
£0J No L 298 , 31 December 1972 , p . 5
  OJ No L
 ---pagebreak---                                    - 7 -
Vhereas Article 2(2) of Regulation (EEC) No 282V72 provides that the
Council shall before 1 August 1973 introduce general rules , to be applicable
from 1 January 197^, on the financing in their entirety of intervention
measures for which , within the framework of the common organization of the
markets , no sum per unit has been determined ; whereas , however , since
these measures are complicated and have only recently become applicable in
the new Member States , a further period of one year is necessary before
those rules can be brought into operation ?
HAS ADOPTED THIS REGULATION :
                               Article 1
Article 4(*0 of Regulation ( EEC ) No 786/69 * Article 3 ( H ) of Regulation
 ( EEC ) No 787/69 , Article MM of Regulation (EEC ) No 788/69 and Article
 3(4) of Regulation (EEC) No 233V69 are replaced by the following :
 "4 . Any credit balance in the single account referred to in paragraph 2
   shall be deducted from expenditure for the current year ."
                               Article 2
 Article 2(3) of Regulation (EEC) No 2305/70 is replaced by the following :
 "3 . If the balance of the account for a given period is in credit , such
   balance shall be deducted from expenditure for the current year ."
                               Article 3
 Article 3(4 ) of Regulation ( EEC) No 2306/70 is replaced by the following :
  " 4 . If the balance of the final single account for a given period is in
    credit , such balance shall be deducted from expenditure for the current
    year ."
                                Article 4
  Article 3(2 ) of Regulation (EEC) No 1697/71 is replaced by the following :
   "2 . If the balance of account for a given period is in credit , such
    balance shall be deducted from expenditure for the current year ."
 ---pagebreak---                                    - 8 -
                                Article 5 1
 1 . Article 1 Paragraph ( 1 ) of Regulation ( EEC ) No 2l8l/71 is completed by
 the addition of the following text :
 " d ) private storage aide for table wines provided for in Article 6bu
     of Regulation ( EEC ) No 8l6/70M
 2 . . In Article 1 Paragraph ( 2) of Regulation ( EEC ) No 2181/71 , after the
 words "Article           is added the following "6^' .
                                Article 6
 1 . The following is added to Section I - "Cereals and rice " - of the
 Annex to Regulation ( EEC ) No 2824/72 :
 " 9 - The special refunds for glucose manufactured in Denmark , provided for
    in the Commission Decision of      7.
2.     The following is added to Section VIII - "Mine " - of the Annex to
Regulation ( EEC ) No 282V72 :
 " 4 . Private storage aids for table wines provided for in Article
    of Regulation ( EEC ) No 8l6/70"
 " 5 . Subsidies for products similar to the wine product exported under the
    label of " Cyprus Sherry " provided for in Article 4 of Regulation ( EEC )
    No 1253/73"
                                Article 7
In Article 2(2 ) of Regulation ( EEC ) No 2824/72 :
( a ) the date "1 August 1973 " is replaced by W1 August 1974";
( b ) the date "1 January 1974" is replaced by "1 January 1975" •
                                Article 8
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities .
 ---pagebreak---                                - 9 -
- Articles 1 to k shall take ^euffect for accounts to be drawn up on
   31 December 1973 and for subsequent annual accounts }
- Article 5 shall have effect as from 1 August 1972 ;
- Article 6 shall have effect as from 1 January 1973 .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at                               For     Council
                                      The President