CELEX: 51976PC0590
Language: en
Date: 1976-11-04
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) relating to the fixing of representative exchange rates in the agricultural sector. (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 590
Vol. 1976/0183
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                            COM (7 6) 590 final .
                                            Brussels . 4 November 1976 .
       v»
         ;/ ' ' h       - r
                            A . ' -
           ^^PROPOSAL FOR A COUNCIL REGULATION (EEC )
  relating to the fixing of representative exchange rates in the
                          agricultural sector .
            ( submitted to the Council "by the Commission)
  COM (7 6) 590 final .
 ---pagebreak---                                                                    I
                 Proposai for a Council Regulation (EEC ) NO      /76
                                         of
                 relating to the fixing of representative exchange rates
                 in the agricultural sector
  THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community
 and in particular Articles 28 , 43 and 235 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 Council Regulation (EEC ) NO 129 , as last amended by Council Regulation
 (EEC ) NO 2543/73\ relating to the value of the unit of account and. to the
 exchange rates to be applied for the purposes of the common agricultural
        2
 policy , fixed the value of the agricultural unit of account and the conversion
 rates to be applied for the purposes of the common agricultural policy
 between this unit of account and the national currencies , on the one hand ,
 and between the national currencies themselves , on the other hand ; whereas
Article 3 of this Regulation enables derogations to be made from the rules
 originally established to meet cases of exceptional monetary practices ;
whereas , since the utilization of floating rates by some Member States , this
provision has been resorted to on nurcerous occasions for the purpose of
introducing and modifying the representative rates ;
Whereas , since 1 975 * these rates have been applied by all the Member States ;
whereas they serve to harmonize the rates used in connection with the
agricultural policy on market rates j whereas they thus contribute particularly
to a diminution of the monetary compensatory amounts fixed by Council Regulation
^OJ No L 263 of 19 September 1973 . p. 1 .
η
  OJ No 106 , of 30 October 1962 , p. 2553/62 .
 ---pagebreak---    ( EEC ) No 974/ 71 of 12 May 1971 , relating to certain political measures
  of medium-term economic planning to be taken in the agricultural sector
  as a result of the temporary enlargement of the margins of fluctuation
  in the currencies of certain Member States^, as modified subsequently
  by Regulation (EEC ) NO 557/76^;
  Whereas the development of the currency of certain Member States has
  several times led to compensatory monetary amounts of such a nature
  as to turn a government from its original objectives ; whereas these
  amounts have been introduced for the purpose of preventing these exchange
  rates from having immediate repercussions on the agricultural prices
  expressed in national money ; whereas maintaining them permanently causes
 disturbing effects on the unity of the agricultural market and distortions
 of competition ;
 Whereas , in addition , this reasoning is equally valid for the differential
 elements introduced by Council Regulation (EEC ) No 1569/72 of 20 July 1972 ,
 providing special measures for rape and turnip seeds , as modified
 subsequently by Regulation (EEC ) No 3477/73^;
 Whereas , under these conditions , it is appropriate to administer the system
 in force by means of measures which produce direct effects upon the
 representative rates and hence on the level of compensatory amounts and
 differential units ;     whereas it is appropriate that the new system shall
 act at two different      levels , i.e. , by introduction , on the one hand ,
 of an upper limit to     the amounts involved , which , if it were to be
 exceeded , would lead    to an adaptation of the representative rates , and
on the other hand , a permanent system for managing these rates ; whereas ,
in practioe , the latter ought regularly to be modified as a function of
market development in the currency concerned during a reference period ;
Whereas it is necessary to limit the incidences of these measures , particularly
in respect of their effects on the level of prices on produotion and consumption
30J No L 106 of 12 May 1971 , p. 1 .
40J No L 67 of 15 March 1976, p. 1 .
50J No L 16? of 25 July 1972 , p. 9.
 OJ No L 357 of 28 December 1973 » p. 6 *
 ---pagebreak---                                     - 3 -
whereas for this purpose , a reference period must first be chosen
which is sufficiently long that it is truly representative of the
value of currency concerned ;  whereas it is necessary to proceed with
caution in the fixing of the limits for triggering the mechanism and
to take account of the various economic situations of the original
and new Member States on the one hand , and of the Member States with
depreciated or valorized currency on the other ;  whereas it is indicated
that changes only be permitted in the representative rates within
reasonable limits and on condition that the gaps existing between the
exchange rates are not increased and that no new gaps are introduced .
 ---pagebreak---                                 - 3a -
HAS ADOPTED THE PRESENT REGULATION
                               Article 1
1 . The provisions of this Regulation shall compliment those of
Regulation No 129 *
2 . The provisions of Article 3 of Regulation No 129 cannot "be applied
in such a way as to introduce or increase the monetary compensatory
amount s .
                               Article 2
1 . The representative rate of a currency shall be modified when the
gap in the monetary compensatory amounts applied to the Member State
concerned does not exceed a triggering level , which has to be determined .
In the case of valorized currencies , this level is less than that taken
for depreciated currencies , and up until 30 June 1978 in the new Member
States , is greater than the value for the other Member States .
2 . According to the case , the adaptation of representative rates, shall
consist of a revaluation or devaluation of such a type that tha gap
provided for in paragraph 1 is carried to the triggering point .
                               Article 3
1 . The representative rates shall be modified regularaly in accordance
with the development of market rates during a reference period .
(a ) every six months , and with effect from 1 January 1977 > for the
      Member States with depreciated currency ,
(b ) with effect from the beginning of each trading year for the
      Member States with valorized currency .
2 . The reference period shall be the period of 18 months commencing :
( a ) in the case of Member States with depreciated currency :
      two years before the date on which the representative rate comes into
      effect in accordance with this article,
( b ) in the case of Member States with valorized currency :
 ---pagebreak--- The 1 January of the second, year preceding that m which the modifying
 decision was taken .
                                 Article 4
 1 . The application of the provisions of Articles 2 and 3
 cannot lead during a period , to "be determined., to the adaptation of a
representative rate whioh exceeds a maximum      percentage .  This maximum
percentage is lower for valorized currencies than for depreciated
currencies .
2 . Nevertheless , the Council acting by a qualified majority on a
proposal from the Commission may derogate the rule in paragraph 1 .
                                 Article 5
Within the meaning of this regulation , the following meanings shall
apply :
 ( a ) representative rate :  the conversion rate to be used when the
       operations to be implemented in the application of the acts relating
       to the common agricultural policy of the specific regulations taken
       under the heading of Article 235 of the Treaty require the sums
       mentioned to be expressed in the currency of a Member State or in
       units of account , or vice versa ,
(b ) valorized currency :    the currencies of the Member States in which
       the monetary compensatory amounts are collected on export and
       granted on import .
                                 Article 6
The Council acting upon a qualified majority on a proposal from the
Commission shall adopt general rules for the applicaton of this
regulation , and in particular
(a) the triggering level provided for in Article 2(l ),
(b ) the period and hence the maximum percentage provided for in Article <
 ---pagebreak---                                 Article 7
 1 . The modifications of the representative rates provided for
 in Articles 2 and 3 shall "be carried out according to the procedure
                                           A
 laid down in Regulation (EEC ) NO 2727/ 75 f as subsequently modified
"by Regulation (EEC ) 1143/76 or according to the case , according to the
article corresponding to other agricultural regulations which institute
an analogous procedure .
 2 . In the case of Article 3 , the modification is made after consultation
with the Monetary Committee .
For the consultation of the Monetary Committee , the provisions of
Article 3(2 ) of Regulation 129 shall apply .
                                Article 8
This regulation shall enter into force on the third day following its
 publication in the Official Journal of the European Communities .
It shall "be binding in all its parts and directly applicable to all
Member States .
Done at Brussels                                For the Council
                                                The President
                                  η
 'OJ No L 281 of 1 November 1975 , p.1
  OJ No L 230 of 19 May 1976 , p . 1 .