CELEX: 51976PC0146
Language: en
Date: 1976-04-02
Title: Proposal for a COUNCIL REGULATION (EEC) on the transfer to the Italian intervention agency of common wheat held by the French intervention agency (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 146
Vol. 1976/0043
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                COM(76 ) 146 final
                                Brussels , 2 April 1976
                      Proposai for a
                COUNCIL REGULATION ( EEC )
  on the transfer to the Italian intervention agency
  of common wheat held by the French intervention
  agency                      ,       <
       ( submitted to the Council by the Commission )
   C0M(76 ) 146 final
 ---pagebreak---                                      EXPLANATORY NOTE
Re : Draft Council Regulat ion ' on the transfer to the Italian intervention agency
      of common wheat held by the French intervention agency.
      The Italian authorities have requested permission to use 100 000 t of common
      wheat in intervention in the Community in order to meet supply difficulties .
      The market price for common wheat in Italy is well above the intervention price .
This is due on the one hand to the structural deficit in common wheat production in
Italy and on the other hand to the speculative with holding of stocks , caused by
the depreciation of the lira on the exchange markets .     This latter factor has been
an obstacle to imports from non-member countries and from the Community ,
       In order to stabilize the market , the Italian authorities , have therefore put
part of the intervention stocks ( 100 000 t ) out for tender and the remaining quan­
tities will be put up for sale , but these may prove insufficient .
       In view of the supplies available to the French and German intervention agencies
it will be possible to put 100 000 t of common wheat at the disposal of the Italian
intervention agency.
    /
       Given that at the present time a refund of 30 u,a, /t , is granted for the ex­
port of this cereal and that market prices in Italy axe 25/30$ above the intervention
price , there exists a profit margin for the EAGGF which would make it possible to
cover the transport costs arising from this operation without any loss to the
EAGGF .
       This calculation is valid if transport costs are limited between France and
Italy ,
 ---pagebreak---                         COUNCIL REGULATION (EEC )
on the transfer to the Italian intervention agency of common wheat held by
                          the French intervention agency
THE COUNCIL OP THE EUROPEAN COMJNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation (EEC ) No 2727/75 of 29 October 1975 on "th0
common organization of the market in cereals          as last amended by Regulation
(EEC ) Ho        /76       and in particular Article 7 (4) thereof ,
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 ,
Having regard to Council Regulation (EEC ) Ho 2738/75 of 29 Ootober 1975 - laying
                                                                      5
down general rules for intervention on the market in cereals K / , and in particu­
lar Article 4 thereof ,
Whereas the Italian market for common wheat is experiencing supply difficulties
and is currently characterised by fairly high price levels ;       whereas several
factors have given rise to this situation; these axe the structural production
deficit in Italy , speculative retention caused by the depreciation of the Italian
Lira on the exchanges and the decrease in imports which have been made more
difficult as a result of these monetary events ;
Whereas in response to this situation the Italian authorities have offered for
sale part of the existing intervention stocks ; whereas the offer for sale of
the quantity remaining may turn out to he insufficient to restore the supply
situation to normal ;
 ( 1 ) OJ No L 281 ,. 1.11.1975 , P. 1
 ( 2 ) OJ No L              1976 , p.
 ( 3 ) OJ No L 94 , 28 . 4.1970 , p. 13
 (4) OJ No L 275 , 30.12.1972 , p. 1
 ( 5 ) OJ No L 281 , 1.11.1975 , P. 49
 ---pagebreak--- Whereas in order to attain this objective part of the quantity of common wheat
which is still available in intervention in the rest of the Community should "be
made available to the Italian intervention agency ; whereas a       certain amount of
common wheat is still held by , inter alia , the French intervention agency ;
Whereas detailed rules for taking over the wheat and for the transfer of respon­
sibility should be laid downj
Whereas provision should be made for this operation to be integrated into the
arrangements contained in Council Regulation (EEC ) Wo 787/69          22 April 1969
on the financing of intervention expenditive in respect of the domestic market
in cereals and in rice^\ as last amended by Regulation (EEC) No 330/74^^;
Whereas this operation    involves      .the Guarantee Section of the European Agricul­
tural Guidance and Guarantee Fund assuring          responsibility for transport costsj
whereas it is also clear that the Community 's monetary Regulations do not apply
to this operation ;                       '
HAS ADOPTED THIS REGULATION :
                                    Article 1                                          .
The French intervention agency       shall , -until 31 May - 197", hold 100 000 metric
tons of common wheat at the disposal of the Italian intervention agency which
may take delivery of it under the conditions specified in Article
                                    Article 2
1 . The Italian intervention agency shall take delivery of the wheat at the
     place in which it is stored and shall thereupon assume responsibility for it .
 2. The delivery operations referred to in . paragraph 1 shall be assigned by
     tender . Such operations shall refer to the supply of wheat        in stock at
     the departure point delivered to the store in the Italian ports designa- . .
     ted by the Italian intervention agency .
     The successful tenderer shall be the tenderer or tenderers who offer the
     best terms .
  6 ) OJ No L 105 , 2.5.1969 , p . 4
  7/ OJ No L 37 , 9.2.1974 , p. 5
 ---pagebreak--- 3 . The tender shall be carried out by the Italian intervention agency .
      The Italian intervention agency shall determine the clauses and conditions
      of the invitation to tender in so far as they are compatible with the pro­
      visions of this Regulation. They may provide for, in particular , the lodging
      of a security to guarantee the fulfilment of the obligations under the
      tender. They shall also ensure equality of access and treatment for
      all interested parties wherever they may he established in the Community.
4. Tenders must be made in Italian Lira to the Italian intervention agency.
5 . The Italian authorities shall keep the Commission informed of the
      operation of the invitation to tender .
                                       Article 3
1 . The French intervention agency shall show the quantity of common wheat
      transferred under Article 1 as a zero debit in the account referred to
      in Article N3 ( l ) of Regulation (EEC ) Kb 787/69-
2 . The Italian intervention agency shall show wheat taken over by it under
      Article 1 as a zero credit in the account referred to in paragraph 1*
                                      Article 4
The costs provided for in the invitation to tender referred to in Article 2
for the quantity of common wheat specified in Article 1 shall be entered in
the account referred to in Article 3(l ) of Regulation ( EEC ) No 787/69 *
                                       Article 5
1 . The Italian Republic shall take all necessary steps to ensure that , when
      resold , the common wheat referred to in Article 1 is used exclusively for
      the manufacture of foodstuffs to be supplied to the population.
2 . Commission Regulation (EEC ) No 376/70 of 27 February 1970 laying down the
      procedure and conditions for the disposal of cereals held by intervention
      agencies        as last amended by Regulation (EEC ) No 129/73       shall
      apply to the common wheat referred to in Article 1 .
                                                                       • • o /
 ( 8 ) OJ No L 47 , 28.2.1970 , p. 49                                       /•••
 (9) OJ No L 17 , 20.1.1973 , p. 17
 ---pagebreak---                                   Article 6
This Regulation shall enter into force on
This Regulation shall "be "binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,                                    For the Council
                                                      The Président
 ---pagebreak---                                                                                          Ar.nax to Doc.
                   FINANCIAL                STATEMENT
                                                                                         Date
                                                                                                  19-3.1976
      1,  Line of tha Btidget concemed :
                                           6015
     2.  ntle of the action : p____        ^ »
                                  Serantf™ L^OUnCH fie«ulatit»> on «« transfer to the Italian
                                  ventIonIZcJf ^ °°™'°n "h6at h8ld ty the *™noh tot"-
    3.   Légal basis       Régulations 2727 /75
                                             729/70
                                            2738/75
    ». Objectives of the «tle» Transfer of 100 000 t of common wheat held by the French
                                      intervention agency to the Italian intervention agency.
    5.0   Cost of tha action                            duri r.g the caspalon    carrent exercise [ 76 ) I follo*lng exerdsef 77]
            charge to the EC Budget                             - 1.75               - 1.75
    5.1 E.stiiated costs        Year               Year                  Year
                                                            none
    5.2  Method of calculation                           <L » estimate a saue m Italy m August 1976 at the
1 • Current possibility Tor the                                intervention price                             132.50 u.a./t
    export sale of intervention                          3 . Estimated saving on the sale
    stocks in Prance and. Germany.                             ( 132.5-90 ) = 42.5 χ 100 000 =                  -4.25million
   Net receipts after deduction                                                                                              u.à.
    of refunds and MCA 's :              90u.a. /t      4 . Transport costs
                                                               25 u.a. /t x 100 000                     t       +2.5million u»a
                                                         5 . Estimated saving                                   -1.75niillionula
    6.1 Possible financing by credits Britten into the relative chapter of the current Budget
                              Ye*            Abe
         PossTbTrfrrenctmLby transfers between chaptersjxf_ihe-corrent Budget
    6#3^eces$fty^or~a~*suppl enentary Budget                 Yes              No      x              "        ––^
         Credits to be ■ritten into future budgets                    No
      "ents : ( 1 ) Without taking account of the effect of the double rate which,
                       with the transfer at " zero " price , increases the estimated saving.