CELEX: 51991PC0256
Language: en
Date: 1991-07-12
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING, AS REGARDS OPERATIONS FINANCED BY THE EAGGF GUIDANCE SECTION, REGULATION ( EEC ) NO 1676/85 ON THE VALUE OF THE UNIT OF ACCOUNT AND THE CONVERSION RATES TO BE APPLIED FOR THE PURPOSES OF THE COMMON AGRICULTURAL POLICY AND REPEALING REGULATION ( EEC ) NO 129/78

COMVIISSION OF THE EUROPEAN COMMUNITIES
                                          C0M(91) 256 final
                                          Brussels, 12 July 1991
                               Proposal for a
                         COUNCIL REGULATION fEEC)
  amending, as regards operations financed by the EAGGF Guidance Section,
  Regulation (EEC) No 1676/85 on the value of the unit of account and the
  conversion rates to be applied for the purposes of the common agricultural
  policy and repealing Regulation (EEC) No 129/78
                       (presented by the Commission)
 ---pagebreak---                                 -iko-
                           EXPLANATORY MBCRAHEPM
1. Council Regulation (EBC) No 1676/85, based an Artlole 43 of the Treaty,
   provides for the application of the agrl monetary system for all amounts
   fixed In the instruments relating to the common agricultural policy.
   Consequently, the agricultural conversion rate applies to amounts
   covered by the EAGGF Guidance Section.
   Artlole 22 of Council Regulation (EBC) No 4253/88, based on Artlole I30e
   of the EBC Treaty, however, excludes from the scope of the agrimonetary
   system all amounts relating to the EAGGF Guidance Section which are
   fixed by the Commission-
2. Thus, after the entry Into force of the Commissi on Regulation laying
   down detailed rules concerning the use of the ecu In the budgetary
   execution of the struotural Funds, the situation of the amounts relating
   to the EAGGF Guidance Section becomes as follows:
        the amounts fixed by the Commission are excluded from the
        agrimonetary system. These amounts are fixed in ecus and converted
        at the accounting rate;
        the amounts fixed by the Council continue to be subject to the
        agrimonef 3xy system. These amounts are fixed in agricultural ecus
        and converted at the agricultural conversion rate.
   Among the oonsequenoes of this situation it should, be noted that the
   decisions on Commission assistance expressed in ecus remain subject to
   ceilings fixed by the Council In "agricultural" ecus. The expenditure
   In national currencies must therefore be oonverted at the agricultural
   conversion rate to check that the ceilings fixed by the Council have
   been observed, as is already the oase at present. On this condition,
   the expenditure In national currencies is then oonverted using the
   accounting rate to be paid in ecus.
   This leads to great administrative oomplexlty with the use of two
   conversion rates:
 ---pagebreak---                                    - 2 -
        the accounting rate for grants and payments;
        the agricultural rate for ohacfcliTg that the ceilings on grants have
        been observed.
3. In order to avoid this complexity the amounts relating to the EAGGF
   Guidance Seotlon fixed by the Council should also be oonverted using the
   accounting rate.
   To that end there should be a derogation from Artlole 2 of Council
   Regulation (EBC) No 1676/85 to provide for the use of the aooounting
   rate which diverges from the central rate multiplied by the corrective
   factor.
   However, it must be Indicated that for the operations in question
   pertain provisions applicable to the agricultural rates are also
   applicable to the aooounting rate. This oonoerns the possibility of
   determining the operative events of the conversion rate used and the
   possibility of adjusting the amounts fixed In ecus when the rate is
   revalued. The latter possibility will be used so that the aids actually
   applying to farmers are not reduced.
   TO avoid the distortions which would arise from the application of the
   operative event provided for by Oouncll Regulation (EEC) No 129/78, it
   is proposed that that Regulation be repealed. The Commission then
   envisages applying Artlole 5 of Regulation (EBC) No 1676/85 in the
   appropriate manner.
   A period is required between the entry Into force and the application of
   this proposal for a Regulation In order to enable the Commission to
   adopt the adjustments referred to above.
 ---pagebreak---                                        - à
                                   Proposal for a
                       COUNCIL REGULATION (EEC) No       /..
                                     of
     amending, as regards operations financed by the EAGGF Guidance Section,
     Regulation (EEC) No 1676/85 on the value of the unit of account and the
     conversion rates to be applied for the purposes of the common agricultural
     policy and repealing Regulation (EEC) No 129/78
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community, and in
particular Article 43 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Having regard to the opinion of the Monetary Committee,
Whereas Article 2 of Council Regulation (EEC) No 1676/85 1 , as last amended by
Regulation (EEC) No 2205/90 2 , defines the agricultural conversion rate to be
applied for Instruments relating to the common agricultural policy, including
operations financed by the EAGGF Guidance Section;    whereas under that provision
the agricultural conversion rate is in principle the central rate fixed for a
currency In relation to the ecu but whereas agricultural rates different from
the central rate may be fixed;    whereas all the rates relating to the common
agricultural policy are subject to the provisions of the said Regulation;
Whereas, in accordance with Article 22 of Council Regulation (EEC) No 4253/88 of
19 December 1988 laying down provisions for implementing Regulation (EEC) No
2052/88 as regards coordination of the activities of the different structural
Funds between themselves and with the operations of the European Investment Bank
and the other existing financial Instruments3, Commission decisions,
1 0J No L 164, 24.6.1985, p. 1.
2 OJ No L 201, 31.7.1990, p. 9.
3 0J NO L 374, 31.12.1988, p. 1.
 ---pagebreak--- commitments and payments are to be denominated and made In ecus as far as the
structural Funds are concerned, Including the EAGGF Guidance Section;    whereas
 the provisions adopted by Commission Regulation (EEC) No 1866/90 of 2 July 1990
on arrangements for using the ecu for the purposes of the budgetary management
of the structural Funds 4 cannot, however, affect the agricultural conversion
rates applicable to the amounts fixed In ecus by the Council within the
framework of the agricultural structures policy or for adjustments thereto by
the Commission under Article 9 of Regulation (EEC) No 1676/85;
Whereas, having regard to the objectives of coordination between the different
structural Funds, and in particular those of Article 22 of Regulation (EEC) No
4253/88, It should be ensured that a uniform conversion rate Is applied for all
the structural Funds, Including the EAGFF Guidance Section, and that the
accounting rate adopted by virtue of Article 126 of the Council Financial
Regulation of 21 December 1977 s , as last amended by Regulation (Euratom, ECSC,
EEC) No 610/90 6 is applied for the purposes of the agricultural structures
policy;    whereas, however, the amounts relating to Joint financing of the
Guidance and Guarantee Sections of the EAGGF are subject to the rules of
management of the Guarantee Section and must therefore remain subject to
application of the agricultural conversion rate;
Whereas It should be possible to determine an operative event for the accounting
rate and whereas an increase in the amounts concerned which are fixed In ecus
may be necessary to avoid decreases In national currencies;    whereas for such
cases the possibility should be provided for of applying Articles 4, 5, 7, 9 and
12 of Regulation (EEC) No 1676/85 to the accounting rate;    whereas Council
Regulation (EEC) No 129/78 of 24 January 1978 on the exchange rates to be
applied for the purposes of the common agricultural structures policy7, which
establishes an operative event for the agricultural conversion rate applicable
to certain operations covered by the EAGGF Guidance Section, should therefore be
repealed,
HAS ADOPTED THIS REGULATION:
4  0J No L  170, 3.7.1990, p. 36.
5  0J No L  356, 31.12.1977, p. 1.
6  0J No L  70, 16.3.1990, p. 1.
7  0J No L  20, 25.1.1978, p. 16.
 ---pagebreak---                                     ArtlCle 1
The following Article 2a Is Inserted In Regulation (EEC) No 1676/85:
                                   "Article 2a
By way of derogation from Article 2, within the framework of measures Community
funding of which under the EAGGF Is the exclusive responsibility of the EAGGF
Guidance Section, the accounting rate shall apply for the conversion of amounts
fixed In ecus by the Council and for adjustments thereto by the Commission.
"Accounting rate" means the rate at which expenditure arising under the general
budget of the European Communities is entered in the accounts in accordance with
the provisions of the Financial Regulation.
Articles 4, 5, 7, 9 and 12 of this Regulation shall apply to the accounting rate
referred to In the first paragraph."
                                    Article 2
Regulation (EEC) No 129/78 Is hereby repealed.,
                                    Article 3
This Regulation shall enter Into force on the third day following Its
publication In the Official Journal of the European Communities.
This Regulation shall apply from the beginning of the third month following that
of its entry into force.
This Regulation sha11 be binding in Its entirety and directly applicable in all
Member States.
Done at ... ,                                        For the Council
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(91)256 final
                                                     DOCUMENTS
EN                                                                              03
                                Catalogue number : CB-CO-91-298-EN-C
                                                             ISBN 92-77-73991-6
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