CELEX: 31977D0359
Language: en
Date: 1977-05-17 00:00:00
Title: 77/359/EEC: Council Decision of 17 May 1977 adapting Council Decision 76/324/EEC fixing the economic policy conditions to be observed by the Italian Republic

No L 132/34                         Official Journal of the European Communities                               27. 5. 77
                                                             II
                                        (Acts whose publication is not obligatory)
                                                    COUNCIL
                                                 COUNCIL DECISION
                                                     of 17 May 1977
               adapting Council Decision 76/324/EEC fixing the economic policy conditions to
                                         be observed by the Italian Republic
                                                       (77/359/EEC)
 THE COUNCIL OF THE EUROPEAN                                    December 1977 ; whereas for this purpose it is appro­
 COMMUNITIES,                                                   priate to fix the economic policy conditions to be
                                                                observed in 1 977 ;
 Having regard to the Treaty establishing the European
 Economic Community,                                            Whereas it is possible, subject to any changes made in
                                                                accordance with the development of the Italian
 Having regard to Council Regulation (EEC) No                   economic situation, to fix at this stage the general
 397/75 of 17 February 1975 concerning Community                economic policy conditions to be observed in 1978
 loans ('), and in particular Article 3 thereof,                which permit the attainment during the said year of a
                                                                current balance of payments surplus of about Lit
 Having regard to Council Decision 76/324/ EEC of 15            1 000 000 million and a reduction in the rate of
 March 1976 fixing the economic policy conditions to            consumer price increases bringing these to a rate not
be observed by the Italian Republic (2), and in parti­          exceeding 8 % at the end of 1978 ;
 cular Article 2 (2) thereof,
 Having regard to the proposal submitted by the                 Whereas the Italian authorities have declared that they
Commission which has for this purpose consulted the             will not, unilaterally, take any measure of a commer­
Monetary Committee,                                             cial or financial nature to restrict imports or subsidize
                                                                exports ;
Whereas Decision 76/324/ EEC fixed the economic
policy conditions to be observed by the Italian Repu­           Whereas the conditions thus fixed will also apply to
blic during 1976 ;                                              the granting, to the Italian Republic, of the Commu­
                                                                nity loan which the Council authorized the Commis­
Whereas it is appropriate to fix the conditions to be           sion to negotiate on 18 April 1977,
observed for the subsequent years of duration of the
loan granted to the Italian Republic by Decision
76/322/EEC (3) ;
                                                                HAS ADOPTED THIS DECISION :
Whereas the development of the economic situation
in Italy must permit the attainment, during 1977, of
the objective of eliminating the current balance of
payments deficit and of moderating the increase in                                       Article 1
consumer prices to a year on year rate of 16% in
(>) OJ No L 46, 20 . 2. 1975, p. 1 .                            The following economic policy conditions shall be
(2) OJ No L 77, 24. 3 . 1976, p. 16.                            observed by the Italian Republic during the 1977
b) OJ No L 77, 24. 3. 1976, p. 12.                              calendar year :
 ---pagebreak---  27. 5. 77                            Official Journal of the European Communities                          No L 132/35
 (a) total central government cash expenditure must be                                   Article 3
     limited to Lit 55 350 000 million ;
                                                                 1 . The following economic policy conditions shall
(b) the overall deficit of the public sector (treasury,         be observed by the Italian Republic during the 1978
     local authorities, social security, ENEL) must not         calendar year, subject to any changes made in accor­
     exceed Lit 1 6 450 000 million, that is 9-7 % of           dance with the development of the Italian economic
     gross domestic product at current prices, according        situation :
     to the present forecast, Lit 13 100 000 million of
     which for the transactions of treasury and local           (a) the growth in total government expenditure on an
     authorities as a whole and Lit 9 800 000 million                appropriations basis over 1977 must be limited to
     for the transactions of the treasury alone (as                  7 % , while avoiding, as far as possible, a reduction
                                                                     in public investment ;
     defined in Article 6 (3) of Directive
     74/637/EEC 0)) ;                                           (b) the overall deficit of the public sector (treasury,
                                                                     local authorities, social security, ENEL) must not
(c) the financing of the deficit on treasury transactions            exceed Lit 14 450 000 million, that is 7-6% of
     by the monetary authorities must be limited to Lit              gross domestic product at current prices.
     4 000 000 million ;
(d) the growth in total lending, as defined in Article 6        2. The other conditions shall be fixed on a prop­
     ( 1 ) of Directive 74/637/EEC, must not exceed Lit         osal by the Commission before the end of 1977.
     30 600 000 million ;
                                                                                         Article 4
(e) public service charges and administered prices
     must be organized without effects on the sliding           This Decision shall adapt Decision 76/324/EEC.
     salary scale, in such a way as to ensure that the
                                                                                         Article 5
     public sector deficit does not exceed the amount
     set out in paragraph (b).                                  This Decision is addressed to the Italian Republic.
                          Article 2
                                                                Done at Brussels, 17 May 1977.
 Before 30 June 1977, intermediate objectives for 1977
                                                                                              For the Council
shall be established by agreement between the Italian
authorities and the Commission in relation to the
                                                                                                The President
measures laid down in Article 1 , except for that set
out in Article 1 (e).                                                                            J. SILKIN
(!) OJ No L 341 , 20 . 12. 1974, p . 51 .