CELEX: 51979PC0520
Language: en
Date: 1979-09-27
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) AMENDING, AS REGARDS THE FRENCH FRANC, THE ITALIAN LIRA, THE POUND STERLING, THE IRISH POUND AND THE DANISH KRONER REGULATION (EEC) No 878/77 ON THE EXCHANGE RATES TO BE APPLIED IN AGRICULTURE (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 520
Vol. 1979/0179
 ---pagebreak--- Disclaimer
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concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
                                                           COM ( 79 ) 520 final
                                                           Brussels - 27th September 1979
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                     PROPOSAL FOR A COUNCIL REGULATION ( EEC )
            AMENDING , AS REGARDS THE FRENCH FRANC / THE ITALIAN LIRA ,
               THE POUND STERLING, THE IRISH POUND AND THE DANISH
                KRONER REGULATION ( EEC ) No 878 / 77 ON THE EXCHANGE
                        RATES TO BE APPLIED IN AGRICULTURE
                   (presented by the Commission to the Council )
C0M(79 ) 520 final
 ---pagebreak---                             EXPLANATORY MEMORANDUM
Ever since Regulation ( EEC ) No 652/79 of 29 March 1979 ( OJ No L 84 of
4.4.1979 , p. 1 ) introduced the ECU into the common agricultural policy ,
the monetary compensatory amounts (MCAs) h^ve cafculated in relation to the
central rates laid down in this system .
By Decision taken 23 September 1979 these central rates were adjusted for
all Member States .    These changes as such do not affect the representative
rates currently applied in the agricultural sector ( see Table 1 ).
                                              do
However , these changes in the central ratesyhave effects on the
calculation of the MCAs .    The effects are set out in Table 2 .
(a)  As regards the "positive" MCAs applied in Germany and the Benelux
     countries , a reduction is possible ; a decision on this matter will
     have to be taken by the Commission in accordance with the Management
     Committee procedure .
(b ) As regards the "negative " MCAs , a distinction must be made . In some
     cases , ( Denmark , Ireland , the pig sector in France ), MCAs do not
     apply . The changes in the central rates would here entail a
     reintroduction of MCAs . For all other cases of existing negative
     MCAs , an increase of 1.1 or 1.2 points results from the changes in
     the central rates , since the alteration in the gap peaches or exceeds
     in all cases 1 point ( first subparagraph of Article 3 of Regulation
     ( EEC ) No 974 /71 ). This consequence cannot be avoided except by means
     of a change in the representative rates . i < As regards Denmark , such a
     change has been suggested It would have > to be made in such a way as
     to cause , as in the past , the representative rate and the central -
     rate to coincide .
                                                 .I »     ;  ·
     In the case of the other Member States , France , Ireland , Italy and
     the United Kingdom , it appears appropriate to alter the
     representative rates in such a way that the increases in the MCAs are
     nullified .
                                                          Mi
     The effects of such an alteration in the representative rates are set
     out in Table 3 .
 ---pagebreak---                                      - 2 -
3. The Commission considers that such a devaluation in the representative
   rates would make it possible to avoid the creation of new monetary
                                                      ι
   compensatory amounts .  The effects are relatively limited ; the financial
   statement contains the; details .                    -
                                                  • )
   In order to avoid difficulties in trade which might arise from a prolonged
   delay in adapting the MCAs , it is proposed that the measures envisaged
   should take effect on 1 October 1979 .
 ---pagebreak--- TABLE 1    : CENTRAL RATES AND REPRESENTATIVE RATES
                               Central rates valid until     Central rates valid as   Différence Representative rates
                               23.9.1979                     from 24.9.1979     .     in %       ("green rates ")
                                  ECU             NC          ECU                 HC             currently in force
          Di                           2.51064                         2.43557          ♦ 1,009          2.7 3341
                                       5-79331                         5.85522          - 0.972          5.50961
     ( UKL ) *             ,           0.663247                        0.649822         ♦ 2.066          0.531264
                      " *■   I
     ( LIT)                         1143.15                         1159.42             - 0.972       1043.84
       HfL                             2.72077                         2.74748          - 0.972          2,79914
       B / LFR                        29.4532                         39.8456           - 0.972         40.5954
       DKft                            7.C3592                         7,36594          - 3.802      -   7.C3592
       IRL                             0.662633                        0.669141         - 0,972          0,652840
        ♦
                                                •  ♦
                                                               /  ~           «
                                                                                        * -
 Specific representative rates already exist for the following currencies and sectors :
 DM            pigs               2.81432
               wine
               milk products
 F£            pigs •             5.71259
               wine               5.42697
2..                                                    . • '
 The pound sterling does not observe any margin of fluctuation
^The margin of fluctuation of the Lit is approx . 6
 ---pagebreak---         TABLE 2 :    EFFECTS ON THE MONETARY COMPENSATORY AMOUNTS
                                                     r Honetary  compensatory amounts ( 1 )                                             ––i
Currencies I               Products concerned                 In force
                                                                                     Resulting from the new
                                                                                     central rates                         Difference
  ent / im ^ I    Pigs - milk , mil *  products              ♦   3«3                            ♦  2A               Reduction of             0.9       I
  MfC       J     Other products                                 2.8                            ♦  1.9                                       0.9       I
  0H              Pigs , wine , milk and milk
                  products                                   .  10-8   .                        ♦ 10.7(2>        !                           0.1
                                                                                                   9.7(2 )                                   0.1
                  Other products                                 9.8                            ♦
                                                                                                                  I
  0KR              Ail products                       i          0                    ■     •   *  2.5(3 )          Increase of              2.5
                                                                                                                                ••
  rr<3 )           Pigs                                          0                                 1.0                                     1.0          |
                   Wine                                          5.3                            m
                                                                                                   6.4                                     1.1
                   Other products                            m   3 .7                              1.8                                     1.1
                I aU products                          L_        o                                 1.0     .                               1.0
                                                                                                                                                        I
                                                                                                                                                        I
                                                                                                                                        ll–l        Il  »
   LITC3 )      lAll products except wine
                                                                 A. 3(4 )                          5,5 ( 5 )        Increase of            1.2
                luine                                            8.9(4 )                        m 10.1 ( 5)                                1.2
   UKK3 )        I Al l products
                                                       I     1   6.5(4 )                           7.7(5 )
                                                                                                                  L                        1 '2.        j
«) The figures given are the "monetary differences " used in calculating              MCAs . This difference corresponds , for the currencies
      observing the margin of 2.25% to the difference between the central rate and the representative rate, for the pound sterling
      and the Italian lira, to the difference between the market rate and the representative rate .
(2 ) This figure is to be understood after the deduction of an "allowance" of 1 point . This is the first application of Article 2 ( 1a ),
      third subparagraph of Regulation ( EEC ) No 974/ 71 , a rule introduced by Article 3 of Regulation ( EEC ) No 652 /79;       the latter
      Regulation introduced the ECU into the CAP .
(3)        figures are^         understood after the deduction of an "allowance" of 1.5 points .
 (4) These amounts are calculated for the week begin^ng 24 September 1979 . They are arrived at on the basis of the market rates
      ascertained - as regards the Lit :          the week from 22 to 2J.t3.1979 *                           ■                                   '■
                      - as regards the pound :    the week from 12 to l8.9«1979 »                              x
 (5) For purposes of comparison and in order to highlight the effect of the alteration in the central rates , these figures are cal­
      culated on the basis of the new central rates and of the market rates referred to in Note 4 .
 ---pagebreak--- TABLE 3 :       ALTERATIONS TO THE REPRESENTATIVE RATES
                                                                              •   •
 1   .                            Representar i ve rates                                            .  ·   ;        Εττβictr               #
       Currencies
                           Current                     Proposed           Dévaluation in %
                                                                                                  ■ On       MCAs .     I      On prices
                                                                                                Reduction in points          Increase "in %
    ■M -                                      1
                                                  1 DKr » 0.135760 ECU     .               •" !
j 0<r             | 1 IKr s O.K1125 ECU
                  j 1 ECU s 7.C2592 DKr           1 ECU » 7.31594 DKr           3,8           î          3.9S                      3-95
i rf pig             1 FF « 0.175C52 ECU
                     1 ECU = 5.71259 ÉCU
                                                  1 FF * 0.173343 ECU                                                                   ^    ^ I
                                                  1 ECU * 5.76891 Ff            0.976                    1                        0.936        I
          wine       1   FF « 0.154265 ECU
                     1 ECU * 5.42697 FF
                                                  1 FF » :. 1?23:7£CU
                                                  1 ECU * 5.;«235 FF            1*019                    1-1                  . 1.030          I
»
                   ! 1 Ff - 0.131501 ECU                                                                                        s              I
                                                  1 FF * C-179f?2 ECU
 ; Other
 . products       1\ 1 ECU s 5.53961 FF           1 ECU « 5.5=725 FF            1,035                    1-1                       1.046
   t IRl             1 k    * 1.53177 ECU         1 *   s 1.51i?2     ECU
t .                  1 ECU « 0.652343 ♦           1 ECU = 0.659274 t            0.976                    1                       C,9?6 .
 lit wine            100 Lit « 0.995C23 ECU 100 Lit s:.1?c4327 ECU              1.075                    1-2                      1-C37
 J .
 1                   1 ECU «     1::5.C3 Lit 1 ECU       * 1115.92 Lit
 1 Cther           ; 100 Lit * 0.0953434ECU 100 Lit * C,l / «.2746 ECU         1-121                     1*2 ^                   1.133         I
       products    j 1 ECU *     1-4S.E4 lit.l 1 ECU     = 1 - tZ.ll iit
     1 t Sterl . ; 1 % * 1.72039 ECU            1 t    * 1.7?US ECU             1-099                    1 -*                  1.111
  I
  î
  I                j 1 ECU = 0.531264 k         1 ECU « 0.5:7724 t
 ---pagebreak--- « I
                                 COUNCIL REGULATION ( EEC ) No
                                               of
      amending , as regards the French franc , the Italian lira , the pound sterling ,
            the Irish pound and the Danish kroner Regulation ( EEC ) No 878/77
                     on the exchange rates to be applied in agriculture
  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 Having regard to the Treat / establishing the European Economic Community ,
 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 ( 1 ), as last amended by Regulation (EEC) No 2543/73 (2 ),
 and in particular Article 3 thereof t
 Having regard to the proposal from the Commission ,
 Whereas the representative rates currently applicable were fixed by Council
 Regulation ( EEC ) No 878 /77 of 26 April 1977 on the exchange rates to be
 applied in agriculture ( 3 ), as last amended by Regulation ( EEC ) No 2047 /79 ( 4 )
 Whereas with effect from 24 September 1979 certain changes in the central
 rates of the Community currencies have occurred within the European monetary
 system ; whereas these changes theoretically involve, in some Member States, an
            in, or
 increase / the introduction of, monetary compensatory amounts ; whereas it is
             f                        making a
 possible to avoid this effect by / corresponding change in the representative
 rates of Denmark , France , Ireland , Italy and the United Kingdom ;
 ( 1 ) 0J No L 106 , 10.10.1962 , ρ . 2553/62
    2   0J No L  263 , 19.9.1973 , P. 1
 (3)    0J No L  106 , 29.4.1977 , P. 27
 (4)    0J No L 237 ,  21.9.1979 , p.  1
 ---pagebreak--- Whereas -these rates must be adopted immediately in order to avoid an increas in ,    j
or the introduction of, monetary compensatory amounts in some Member States ;         j
whereas, particularly for this reason, it is necessary to provide for a               j
specific representative rate in the wine sector in France and Italy until 15
December 1979 }                                                                       j
                                                                                       i
Whereas , in the case of the French franc wher'e representative rates are already laid
down for the 1980/1981 marketing year and are already applicable in the pig
sector , the alteration provided for should also be applied to that rate ;
Whereas the Monetary Committee will be consulted and whereas , in view of the
urgency , it is necessary to adopt the measures envisaged under the conditions
provided for in Article 3(2 ) of Regulation Ho 129 ;
HAS ADOPTED THIS REGULATION:
                                    Article 1
1 * In Article 2a of Regulation (EEC ) No 878/77 , paragraph 3 is replaced by
the following paragraph :
     "3*   3y way of derogation from paragraph 2 , as regards the French franc :
           ( a) the representative rate of 1 French franc ■ O . I82387 ECU shall
                apply with effect from 1 October 1979 1 until 15 December 1979 in
                the wine sector ; however , other dates may be specified for
                distillation operations ;
           (b ) the representative rate of 1 French franc ■ Oi-179622 ECU shall
                apply with effect from :
                - 16 December 1979 in "the wine sector ; - however , other dates may
                  be specified for distillation operations
                - 1 January 1980 for the fishery products sector
                - 1 November 1979 as regards olive oil
                - 1 October *1979 in all other cases . ■   ,
 ---pagebreak---                                       - 3 -
       c effect
           the representative
                     from :
                                rate of 1 French franc = 0.173343i ECU shall apply with
           - 1 October 1979 for the pigmeat sector,
              1 July 1980 for the isoglucose sector,
          - 1 August 1980 for the eggs, poultry, ovalbumin and lactalbumin sectors,
          - 16 December 1980 for the wine sector; however, other dates may be specified
             for distillation operations,
          - 1 January 1981 for the fishery products sector, I
          - the beginning of tS- 1980/81 marketing year for the other products for which a
             marketing year exist :;,
          - the beginning of the 1980/81 milk year for alt other cases not referred to
             above .
 2 . In Article 2a of Regulation (EEC) No 878/77, paragraph, 4 is replaced by the
     following paragraph :
     "4 . By way of derogation from paragraph 2, as regards the Italian lira:
           (a) the representative rate of 100 Italian lira = 0.0984327 ECU shall apply
                with effect from 1 October 1979 until 15 December 1979 in the wine sector .
                However, other dates may be specified for distillation operations .
           (b) the representative rate of 100 lira = 0.0942746 ECU shall apply with effect
                from :
                  16 December 1979 in the wine sector; however,
                  for distillation operations,           •
                                                                  other dates may be specified
                – 1 January 1980 for the fishery products sector ,-
                – 1 November I979 as regards olive oil
                – 1 October 1979 in all other cases .
1. paragraph
    In Article : 2a of Regulation (EEC) No 878/77, paragraph 5 is replaced by the following
    "5 . By way of derogation from paragraph 2, as regards the pound sterling, the
         representative rate of 1 pound sterling = 0.70148 ECU shall apply with effect
         f rom :
           i- 16 Devember 1979 in the wine sector ; however , other dates may be specified
               for distillation operations,-                                          .
           - 1 January 1980 for the fishery products sector ,
           - 1 November 1979 as regards olive oil,
           - 1 October 1979 in all other cases *
 ---pagebreak--- *
                                         - 4 -
  4.  In Article 2a of Regulation ( EEC ) No 878 /77 , paragraph 6 is replaced by
      the following paragraph :
      "6 . By way of derogation from paragraph 2/ as regards the Irish pound , the
           representative rate of 1 Irish pound = .. 1,51682 ECU shall apply with
           effect from 1 October 1979 in all sectors .
  5.  In Article 2a of Regulation ( EEC ) No 878 /77 , the following paragraph 8 is
      added :
      "8 . By way of derogation from paragraph 2, as regards the Danish kroner ,
           the representative rate of 1 Danish kroner* 0.135760 ECU shall apply
           with effect from 1 October 1979 in all sectors .
                                      Article 2
  This Regulation shall enter into force on the day of its publication in the
  Official Journal of the European Communities .
  Done at Brussels ,                                        For the Commission
 ---pagebreak---                         INANCIAL            8TAT IMENT
                                                                                   DATE        26.9.1979
    1. Number of relevant budget entry : Titles 6 and 7.. • Appropriations : 9 » 582.1 in EUA
    2. Title of project : Draft Council Regulation amending, as regards FF, LIT, UKL ,
      IRL , DKR , Reg . 878/77 on t^e exchange rates to be applied in agriculture .
   3. LEGAL BASIS 1        Article 3 of Council Regulation 129
   4. Aims : Alignment of representative rates with the latest alterations to central
                   rates in the Eur pean monetary sustem .
  5. FINANCIAL Implicati ons                   FOR THE MARKETING TEAR  CURRENT PIF'ANCIAL TEAR   FCLLOWINO FINANCIAL TEAR
  4.0 EXFB:DITUHG                                                                                    ■  ( 80 1
        -CHARGED TO THE EC BUDGET
         ( ROU'JiS/l NTERVENTI ON'S )                                     6.3 m . EUA             51 m . EUA
       -CHARGED TO NATIONAL ADKINISTR.
       -CHARCED TO OTHER NATIONAL CROUPS
  5 .1 RECEIPTS
       •OVfM R2S0UI?C!S OF T!!S EC
         (LEVI HS/CU3T0i-'S DUTIES )
       -NATIO.'IAL
           Multiannual timetable              TEAR                    TEAR                      TEAR
 5.0.1 of expenditure                  -
 5.1.1 Multi annual timetable
           of receipts
 5«2 KETilOD OF CALCULATION         : in m EUA
                                                                              12II                i2§o
               Financial consequences on CMO expenditure                       + 9.2            + 74.5
                    "                    M       ** MCA         "              - 2.9            - 23.5
                                                             Total             + 6•3            + 51.0
6,0 Can the project be financed from appropriations entered in the                                         ÏS/K0
       relevant chapter of current budget?                                   -
6.1 FINANCING POSSIBLE BY TRANSFER B2IVEEN CHAPTERS OF CURitOT BUDC3T ?                                    ÏH/N0
6.2 NECiSSITT F08 A SUPPLES-SKTART BUDGET ?
                                                                                                           Yes
6** Appropriations to be entered in future budgets?
                                                                                                           Yes
COiOIENTS 1