CELEX: 51977PC0419
Language: en
Date: 1977-09-08
Title: Proposal for a COUNCIL DECISION amending the Decision of 3 August 1972 (72/335/EEC) on the Community financing of certain expenditure arising from the implementation of the Food Aid Convention of 1971 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
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COM (77) 419
Vol. 1977/0136
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 ---pagebreak---             COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         COM(77)419 final.
                                                         Brussels . 8 September 1977
                                         Proposal for a
                                        COUNCIL DECISION
                       amending the Decision of 3 August 1972 ( 72/ 335/ EEC )
                       on the Community financing of certain expenditure
                       arising from the implementation of the Food Aid
                                       Convention of 1971
                                 I
                         ( submitted to the Council by the Commission )
1 C OM ( 77) 419 final .
 ---pagebreak---                     EXPLANATORY MEMORANDUM
1. The Council Decision of 3.8.1972 ( 72/ 335 / EEC ) on the Community financing
   of certain special expenditure arising from the implementation of the
   Food Aid Convention of 1971 centres round the distinction between the
   value of food aid calculated at the world price level and the amount
   corresponding to the refund .
   This distinction entails two entries in the Eiudget , one under Title 9
   ( Chapter on 'Food aid expenditure' ) for the value at the world price
   level and the other under the Guarantee Section of the 'uropeon
   Agricultural Guidance Fund for the refund .
2. Experience has shown that the application of this accounting method har.
   the following disadvantages as regards the management of appropriations :
   - the need for the paying authorities of Member Stater, to draw an
      artifical distinction between refunds and other expenditure on an
      operation , thus creating a source of confusion and ei - or ;
   - complex administrative work for the Commission staff ;
   - the need to transfer appropriations during the fin.ihr at yv r Ketvoeri
      the Guarantee- Section of the EAGGF and food aid , depending on the
      rates of the refunds , which often vary .
   Furthermore , as the EEC 's agricultural products are given at the
   Community 's internal prices , the total cost of the food aid policy
   corresponds to those prices .
 ---pagebreak--- 3. In order to redu J these drawbacks , it is proposed that the entire
   cost of food aia at Community level should be entered in . the Budget
   in the Chapter on 'Food aid expenditure' , thereby eliminating the
   need to enter the amount corresponding to the export refunds .
   However , since it is necessary to know and inform the competent
   international bodies of the value of the food aid at the world price ,
   this will be indicated in the " Remarks " on the Budget .   Similarly ,
   the value corresponding to the refunds could be given by way of
   information , because if the food products were not disposed of as gifts ,
   additional outlets would have to be found inside or outside the EEC
   and in this latter case provision would have to be made for corresponding
   appropriations to the EAGGF .
4. This proposal has no financial repercussions on the Community 's Budget ,
   but will irean a change in presentation in " line with the draft Council
   Regulation amending Regulations ( EEC ) N° 2052/ 69 of 17 October 1969 ,
   N° 1703/ 72 of 3 August 1972 and N° 2681 / 74 of 21 October 1974
   presented on
   It is consequently appropriate to amend the sole article of the Decision
   in question , as proposed in this draft Council Decision amending the
   Decision of 3 August 1972 ( 72/ 335/ EEC ) on the Community financing
   of certain special expenditure arising from the implementation of
   the Food Aid Convention of 1971 . .
 ---pagebreak---                                 COUNCIL DECISION
     amending the Decision of 3 August 1972 ( 72/ 335/ EEC ) <"» the Community
     financing of certain expenditure arising from the implementation of the
     Food Aid convention of 1971 .
    T'-fE COUNCIL OF THE EUROPEAN COMMUNITIES,
   Having regard to the Treaty establishing the European Economic Community ,
  and in particular Articles 43 and 209 '.hereof ,
  Having regard to the proposal from the Commission ,        J
  Having regard to the Opinion of the European Parliament ,
 Whereas the Community grants food aid to developing or disaster-stricken
 countries and is responsible for the financing thereof,
Whereas und^r present rules the part of this expenditure which relates to
export refunds is financed by the Guarantee Section of the European
Agricultural Guidance and Guarantee Fund and the remainder is financed
under Title 9 ( Chapter on 'Food aid expenditure' );
Whereas experience has shown that such a distinction involves several
disadvantages in the management of appropriations of the Community               ■• /'
3udget ;       whereas the entire cost of food aid should consequently be /■/
charged solely to Title ^ ( Chapter on 'Pood aid expenditure ' ) :
                 " '                               '                     /
h'- s- pfls it is therefore necessary to amend the sole Article of tie j
auncil Decision of 3 August 1972 ( 72/ 335/ EEC ) on the Comnuniiv. financing
f certain special expenditure arising from the imp lemeritat ior/ of t/he
                               1                                      -
 >od Aid Convention of 1971
\S DECIDED AS FOLLOWS
                             Article 1                                         ;
 e sole Article of Decision 72/335/ EEC of 3 August 1972 is amended as \
  Hows ;
 ---pagebreak---                                  - 2 -
i/i i
 " Where measures are taken under the Food Aid Convention of 1971 and
 pursuant to the Decisions adopted by the institutions of the Community ,
 in exceptional or urgent cases the following types of expenditure may
 qualify in whole or in part for Community financing :
      -  the value , at the fob or equivalent stage , of cereals or rice in
         the form of goods not listed in Annex II to the Treaty ;
      -  forwarding costs to the frontier of the country of destination and,
         if necessary , to the destination itself ;
      -  distribution costs where the goods are distributed through an
         international agency .
 Such cases shall be determined by the Council acting unanimously on a
proposal from the Commission .
                                                                  2
 In such cases Article 10(1 ) of Regulation ( EEC ) N° 1703/ 72     shall apply
mutatis mutandis and the expenditure shall be financed from the food aid
appropriations in the Budget of the European Communities ."
                            Article 2
This Decision shall enter into force on the third day following its
publication in the Official Journal of the European Communities .         It
shall apply with effect from           1 January 1978 .
Done at Brussels                                        For the Council
                                                        The President
      0J N° L 227, 5.10.1972 , p. 11
2 OJ N° L 180, 8.8.1972, p. 1 .