CELEX: 51976PC0725
Language: en
Date: 1976-12-21
Title: Proposal for a COUNCIL REGULATION amending Regulation (EEC) No No 557/76 as regards the exchange rate to be applied in agriculture for the Irish pound (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 725
Vol. 1976/0219
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 ---pagebreak---                                                                  !
                                                                  I
                                                                 i
COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         \
                                   COM(76)725 final.
                                    Brussels , 21 December 1976.
                           Proposal for a
                         COUNCIL REGULATION
                 amending Regulation (EEC) NO NO 557/ 76
                 as regards the exchange rate to "be
                 applied in agriculture for the Irish
                 pound
              (submitted to the Council by the Commission)
  COM(76) 725 final .
 ---pagebreak---                         EXPLANATORY MEMORANDUM
1 . Council Regulation (EEC ) No 557/76 of 15 March 1976 (QJ No L 67 of
15 March 1976 ) fixed the representative rates to "be used for the Community
currencies for the purposes of the common agricultural policy . This
Regulation has been amended several times in order to align the representative
rates more closely with the real rates recorded on the markets .
With regard in particular to the situation concerning the Irish pound , on
11 October 1976 the Council decided to devalue the Irish green pound tjy
7.6 /0; this devaluation fallowed that of 15 March 197^ ( l*8$).
2.    The monetary compensatory amount applicable in Ireland from 20 D^qember
1976 is calculated on the basis of a margin of 23*5 (real margins 24 , ?6 ).
Such high compensatory amounts are a serious danger to the common agricultural
policy ; the Commission has pointed this out in several documents whiofy it has
recently presented to the Council , including various proposals for tfy€i
adjustment of the representative rateB .
The Irish Government has meanwhile requested the Commission to effect a
 further devaluation of the Irish green poundT
 3 . The Commission therefore proposes to the Council an      devaluatiqo, of the
Irish green pound , to be effected in two stages:
- %l$with immediate effect ;
- 3-1$ at the beginning of the 1977/76 marketing year .
 The real margin of 24*76 would then be reduced successively to 18 . 46 and
 14*76 (reduction of 10 points in all )*
 Such a proposal would result in :
 - a total increase of 8 .7 % in agricultural prices in Ireland ( 5*3$; 3*2y£; );
 - an overall inflationary effect of about 1.2%.
 The attached table indicates in diagrammatic form the repercussions of this
 new proposal *
 ---pagebreak---                         i
                            Présent green rate      Green rate as from
                                                                                      ^
                                                                                      I
                                                                                                              Repercussions on
                       J                                                                ^ devaluation I th6            JI prices
arfnMitiMMi II Ml . il
                                                                                                        in points (x} 1
    Irish pound              £1 = 1,56778 u.a .    27.12.76 : £1 - 1,48861 u.a.              5.1             -6.3          +5.3
                              1 u.a . = £ 0,637845             I u.a . - £ 0,671768
                                                   77/78 market . £1 ■ 1,44212 u.a.          3.1             -3.7          +3.2 .
                                                         year
                          I                                       1 u.a . - £0,693424
                                                                                  J
(*) Based on a margin of – 24.76 for the Irish pound.
    &
 ---pagebreak---                  COUNCIL REGULATION (EEC )
                 amending Regulation (EEC ) No No 557/ 76
                 as regards the exchange rate to "be
                 applied in agriculture for the Irish
                 oound
                 -                    'II      ■ I
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the EuroDean Economic Community ,
Having rrgarrt to Council Regulation No 129 on the value of the unit of
account and the exchange rates to "be applied for the purpose of the common
agricultural policy^, as last amended by Regulation (EEC) NO 2543/73 F
and in particular Article 3 thereof ,
Having regard to the proposal from the Commission,
Whereas Council Regulation (EEC) No 557/76 of 15 March 1976 on the exchange^
 rates to "be applied in agriculture and repealing Regulation (EEC) No 475/75    t
 as last amended by Regulation (EEC) No 2596/76(4\ fixed the representative
 rate for the Irish pound ; whereas the movement of this currency indicates the
 advisability of fixing a new representative Trate which would reflect ipore
 closely the real economic situation ; whereas , in view of the repercussions
 on consumer prices in Ireland, this measure should be applied in stages ; whereas
 provision should therefore be made for an immediate adjustment to the
  representative rate and for a subsequent adjustment , to be made in principle
  on the dates when priceq are changed ;
  Whereas the Monetary Committee will be consulted and whereas, in view of the
  urgency of the matter , the proposed measures should "be adopted in the manner
   provided for in Article 3(2 ) of Regulation No 129t
   HAS ADOPTED THIS REGULATION:
    1 ) OJ No L 106 , 30.10,1962 , p . 2553/62
    2 ) OJ No L 263 , 19.9.1973 , p. 1
    3 ) OJ No L 67 , 15.3.1976 , P. 1
    4)   OJ No L 296 , 27.10,1976 , p. 11
 ---pagebreak---                                      - 2 -
                                   Article 1                                          «•
                                                   -rnut
 1 . In Article 2(l ) of Regulation (EEC ) HO 537/76 , pointsje ) end (H)
are amended to read as follows ; .
             "( e ) for the Irish pound :
                    £1 Irish = 1,48861 units of account ;"
 2.    However the rate
              £1 » 1.44212 unit of account
 must "be taken as the new representative rate in the Council Regulation to
 "bo adopted "before the "beginning cf the 1977/78 campaign on new exchange rates
  to "be appliced in the agricultural sector .
                                    Article 2
The following paragraph is added to Article 2 of Regulation (EEC) No 557/ 76:
•?(£ ) i>he representative rate for the Irish pound fixed in Article X (1 ) of
        Regulation (EEC ) Ho                    fl$ shall apply from :
         (a) the date laid down in paragraph 2 (c) for the products mentioned
                 therein ;                                                               –-
         ("b ) from 27 December 197^ in all other cases".
                                     Art icle 3
                                     MJ'IRAX'-.RV' IMIIII < '*■»
This Regulation shall snter into force on the day of its publication in
 the Official Journal of the European Coamaunitiea .
 This Regulation shall be binding in its entirety and direotly applicable in
 all Mesl:".r States .
vone et                                                                    ^
                                                                 For the Council
                                                                  λ1ht' Pres 3. 'jent