CELEX: 51973PC1832
Language: en
Date: 1973-10-24
Title: AMENDMENT to the proposal for a Regulation of the Council concerning measures to be taken in agriculture in view of the rise in the central rate for the Dutch guilder (presented by the Commission to the Council pursuant to the second paragraph of Article 149 of the EEC Treaty)

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DOCUMENTS "COM"
COM (73) 1832
Vol. 1973/0317
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                                           COM(73)1832 final
                                           Brussels . 24 October 1973
             AMENDMENT
to the proposal for a Regulation of the
Council concerning measures to be taken ;
in agriculture in view of the rise in
the central rate for the Dutch guilder
(presented by the Commission to the
 Council pursuant to the second
 paragraph of Article 149 of the EEC
 Treaty)
 ---pagebreak---                                                                       COM(73) 1832 final
                             EXPLANATORY MEMORANDUM
1 . On 17 September 1973 the Dutch Government raised the central rate for the
    guilder "by 5$. At the same time it requested that a special conversion
    rate be determined for the guilder for agricultural purposes , at 105$ of
    the parity declared to and recognized by the IMP.
    On 19 September 1973 the Council fixed a special conversion rate
    ("representative rate") for the Dutch guilder ( Regulation (EEC )
    No 2544/73 : OJ No L 236 , 19«9«1973, p. 2 ). This led to a fall of
    approximately 5$ in the prices for agricultural products in the
    Netherlands#
    To offset the losses incurred by agricultural producers , the Dutch
    Government requested authorization to grant them aids for six months * The
    aid would consist of raising the VAT rate "by 2$, the increase to be paid
    not to the revenue authorities but to the farmers themselves .     The cost
    of this measure can be estimated at PI 120 million .
    The Commission has presented to the Council a proposal to authorize the
    Netherlands to grant that aid (Doc . R/2252/73(AGRl)642(FIN)567 ) dated
    21 September 1973 )* The Commission has also proposed that , in view of the
    implications of the Dutch measures at Community level ( the introduction
    or, in certain cases , the increase of compensatory amounts would involve
    approx. 50 million u.a. extra expenditure ), 15i° of the Dutch expenditure ,
    or 5 million u.a., should be borne by the EAGGP.
2 . In the meantime the Dutch Government has informed the Commission of a
    further problem.
    On the day on which the central rate was raised, 38 000 metric tons of
    butter were held under Community–subsidized private storage contracts .
    The loss in value of this butter would be PI 12 million if the new
    representative rate were applied. This is a net loss which those concerned
    cannot cover and is the direct result of the Regulation introducing the
    representative rate .
                                                                   • • ♦/• • •
 ---pagebreak---                                                                  COM(73 ) 1832 final
There are no Community rules which can be applied to make good this
loss. Article 29 of Regulation (EEC) No 685/69 (OJ No L 90, 15*4*1969»
p. 12, as amended "by Regulation (EEC ) No 603/70 (OJ No L 72 , 1.4*70,
p. 62 ) t applies only where the common price is altered.
It cannot , however, "be denied that Article 29 is worded in such a way
as to give rise to misinterpretations on the part of storers .
The Dutch Government has therefore requested that a solution "be found
to the problem. The Commission has considered the matter and feels
that a solution could be found by so extending the authorization given
in the proposal mentioned above that the Netherlands could grant a
special aid in this case . The Community could participate in financing
the expenditure which this would impose on the Dutch authorities .
The Commission therefore presents an amendment to the original proposal
for a Regulation, under Article 149(2 ) of the Treaty.
 ---pagebreak---                                                            COM(73) 1832 final
                              AMENDMENT
               to the proposal for a Regulation of the
               Council concerning measures to be taken
               in agriculture in view of the rise in the
               central rate for the Dutch guilder
               (Doc. R/2252/73 (AGRI 642 ) (PIN 567 ) of
               21 September 1973 )
The abovementioned proposal is amended as follows :
1 . The following paragraph is added to Article 1 :
    " 3 * The Guarantee Section of the EAGGF shall contribute to the
      financing of the measures provided for in this Article by paying
      to the Kingdom of the Netherlands an amount of five million
     units of account , chargeable to the Budget of the European
      Communities for 1974 *"
2 » Article 2 is replaced by the following:
    "Article 2
    The Netherlands are authorized to grant , in respect of butter
    which on 15 September was held under storage contracts concluded
    with the intervention agency, a special aid to offset the loss
    in value resulting from the application of Regulation ( EEC )
    No 2544/73.
    The Guarantee Section of the EAGGP shall contribute to the
    financing of the measures provided for in this Article by paying
    to the Kingdom of the Netherlands an amount of 3*5 million units
    of account , chargeable to the Budget of the European Communities
    for 1974 ."