CELEX: 51978PC0033
Language: en
Date: 1978-01-23
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 878/77 as regards the exchange rate for the pound sterling and the Italian lira to be applied in agriculture (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 33
Vol. 1978/0013
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 ---pagebreak---     COMMISSION OF THE EUROPEAN COMMUNITIES
                                                             COM(78)33 final.
                                                             Brussels , 23 January 1978 •
                                    Proposal for a
                                 COUNCIL REGULATION (EEC )
                      amending Regulation (EEC ) No 878/77 as regards
                    the exchange rate for the pound sterling and the
                       Italian lira to be applied in agriculture
                        ( submitted to the Council "by the Commission )
COM(78 ) 33 final .
 ---pagebreak---                                                                Vl/690/77
                       EXPLANATORY MEMORANDUM
                                 U
Council Regulation ( EEC ) No 878/77 of 26 April 1977 on the exchange
rates to be applied in agriculture ( OJ No L 106 , 29«4«77t P « 27 ) as last
amended by Regulation ( EEC ) No 2840/77 (OJ No L 328 , 21*12 . 1977 » P * l )
fixed the representative rates to be used in agriculture , in particular for
the Italian lira and the pound sterling .    There is a considerable difference
between these representative rates and the current market rates , with the
result that the monetary compensatory amounts currently applicable are
calculated by reference to a rate of 24*4 for the Italian lira and 29*2 for
the United Kingdom ( 31*1 for milk).    It should be mentioned in this
context that the United Kingdom have to makeafurther devaluation of 2$> in respect
of milk, to take effect from 1 April 1978 ( Article 3 of Regulation ( EEC )
No 877/77 ).
Italy and the United Kingdom have requested that the Commission propose the
measures required to adjust the representative rates for their currencies , by
6fo and 5$ respectively , Which would enable a reduction in the monetary
compensatory amounts .
In view of the present difference in exchange rates , it is proposed to accede
to the Italian and United Kingdom requests and to alter the representative
rates in question .
The following tables show the effect of the proposed measures .       It is
proposed that the United Kingdom bring froward to the 1 February the 2%
devaluation in the milk sector which had been deferred until 1 April 197& .
1.   Italian lira *
                                                                       Effect on
      Old rate                 New rate            Deval . xn prices xn     m .c . a . ' s
                                                      $           *         Γβάυσχιοη
                                                                            οί" χ
 Lit 100 » 0.0970874 u.a . Lit 100 » 0.0912409     6,022      +6,408        - 7.6
 1 u.a . « Lit 1,030.00     1 u.a. = Lit 11896.00
x ) calculated on the basis of the difference at 20.1.iy<78 »
                 applied rate : 24«4 ?
                 current ratei 25*9
 ---pagebreak--- 2.  Pound sterling :
                                                                 Effect on
      Old rate                New rate         De val . in  prices    m.c.a . ' s
                                                    *       in %      ΓββΛΙΟΐΐΟΠ
                                                                      οί" χ
 £1 m I . 70463 u.a.     ( Cl « 1.61940 u.a.        5       +5.263       6.5
 1 u.a . « £0.^86638     ) 1 u.a . « £0.617513
x) calculated on the basis of the difference at 20.1.1978 *
              applied rate » 29*2 f
              current rateï 30.7 .
 ---pagebreak---                    COUNCIL REGULATION ( EEC ) No
                         of             1978
                   amending Regulation (EEC ) No 878/77 as
                   regards the exchange rate for the pound
                   sterling and the Italian lira to be
                   applied in agriculture .
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation No 129 on the value of the unit of account
and of the exchange rates to be applied for the purposes of the common
                      1       .   .     .  . . _ ...    /  x „      /__2
agricultural policy , as last amended by Regulation ( EEC ) No 2543/73 » and in
particular Article 3 thereof ,
Having regard to the proposal from the Commission ,
Whereas Council Regulation (EEC ) No 878/77 of 26 April 1977 » on the exchange
rates to be applied in agriculture^, as last amended by Regulation (EEC ) No
2440/77 f fixed a representative rate for the pound sterling and the Italian
lira , inter alia ; whereas the fluctuations in these currencies make it
appropriate that a new representative rate Bhould be fixed at a level closer
to present eoonomio reality ;
Whereas provision should be made in principle for these new representative
rates to take effect immediately , due account being taken , however , of special
needs in some sectors ;
Whereas Article 3 of Regulation ( EEC ) No 878/77 provides that for milk and
milk products the devaluation of the representative rate of the pound
sterling shall become operative in two stages , with a final stage taking effect
from 1 April 1978 ; whereas provision should be made to combine this latter
lateration of the representative rate with that provided for in this
Regulation ;
Whereas the Monetary Committee will be consulted ; whereas in view of the
urgency of the matter the envisaged measures should be ado;: p>d in the manner
specified in Article 3(2 ) of Regulation No 129 ,
(1)   QJ No  106 , 30.10.1962 , p. 2553
(2)   0J No  L 263 , 19-9 . 1973 , p. 1
( 3)  0J No  L 106 , 29.4.1977 , P. 27
(4 )  OJ No  L 328 , 2.12.1977 » P. 1
 ---pagebreak---                                         - 2 -
HAS ADOPTED THIS REGULATION :
                                     Article 1
In Article ?( l ) of Regulation ( EEC ) No 878/77 , subparagraph ( f) and (h ) are
amended to read as follows :
     w ( f ) for the Italian lira:                                           .
             100 lira - 0.0912409 u.a .}
       ( h ) for the pound sterling :
             £1 - 1.61940 u.a .".
                                     Article 2
The following paragraph is added to Article 2 of Regulation ( EEC ) No 878/ 77 1
"5 *   The representative rates for the Italian lira and the pound sterling,
       fixed by Regulation ( EEC ) No         /78 shall apply with effect from :
      a)     1 August 1978 for eggs , poultry , ovalbumin and lactalbumin ;
      b)     16 December 1970 for wine ? however , other dates may be laid down
             for distillation operations !
      c)     1 January 1979 for fishery products ;
      d)     subject to the provisions laid down under e ), from the beginning of
             the 1978/1979 marketing eyar for the other products for which the
             marketing year has not yet commenced on the day on which this
             Regulation enter into force }
      e ) the date on which this Regulation enters into force for
             -  milk and milk products , beef and veal and pigmeat }
             –  sugar , in the case of Italy }
             - the additional aid referred to in Article 1(2 ) of Regulation
                (EEC ) No 2511/695*
             –  all other oaseB .
                                   Article 3
Article 3 of Regulation (EEC ) No 878/ 77 is hereby repealed .
                                   Article 4
This Regulation Bhall enter into foroe on 1         February 1978 .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .                                       _
                                                             For the Council
Done at Brussels ,                                            The President
(5)    OJ No L 318 , 18 . 12.1969 , P » 1
 ---pagebreak---                        FINANCIAL                  STATEMENT
                                                                                            ι*τε ·         ?0Λ·19Ίο
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  Itrian lira ovl the "ound rterlin /r to b« ap'ilici in orrictilture .
   j. v-.r.i bams i J?e ,dilation 1?9 » Article 3 *
   4. C' JncTi ves t To realirn t-ie reorercntative rates , intro'lucinp; a reduction of 6y.>
       for the Italian lira and of yJL ( 6»47« for milk products ) for . the pound sterling
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                      TO katkvàl iimazmi
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                                     Dual rcte on comrcon organieation'o
                                     of market                                                     -   *3               -         9
                                     Dunl Tatc on I-îCÀ's                                        _+    27               +
                                          •
                                                Total .                       •
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  co^u;tu iiic cnan«Tj in exnenHiture represents a caving compared with the expenditure
               which the current situation would have warranted .                               The downward trend in the
               lira and the exiendit*:re which would have been necensary in the current
                situation exceeds bu^(*et estimates . Concoqcuently the saving in relation to
                the buriret figures will bo loss than that indicated abovt>«