CELEX: 51976PC0585
Language: en
Date: 1976-11-11
Title: Proposal for a COUNCIL REGULATION (EEC) on the entries in the Budget of the Communities relating to the financial effect of the different conversion rates applied for measures financed by the Guarantee Section of the EAGGF (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 585
Vol. 1976/0182
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                            COM(76 ) 585 final
              f                                                   ■
                                            Brussels / 11 November 1976
                              Proposal for a
                           COUNCIL REGULATION ( EEC )
             on the entries in the Budget of the Communities
             relating to the financial effect of the different
                                          /
             conversion rates applied for measures financed by
                      the Guarantee Section of the EAGGF
                ( submitted to the Council by the Commission )
           .
C0M(76 ) 585 final
 ---pagebreak---                                EXPLANATORY MEMORANDUM
1 . Since representative exchange rates were introduced in 1973 within the frame­
    work of the common agricultural policy , there has been a financial effeot due
    to the application of different conversion rates . This is caused "by the fact
    that the amounts expressed in units of aocount (u.a. ) in agricultural measures
    are converted into national currencies at the representative rates "before being
    granted to operators ,, After the Member States has recorded the expenditure in
    national currency it is converted at Community level into u.a. at the budgetary
    conversion rates so that it may be charged up . Since the representative rates
    tend to follow the actual market exchange rates while the budgetary conversion
    rates remain the same as the par values declared to the IMP , the application of
    these different conversion rates is producing a financial effect which is of
    increasing significance for the budget .
2 . This financial effect increases progressively as changes in the real rates of
    exchange are followed by changes in the representative rates . Following the
    changes in the latter and in the relative share of each Member State in total
    EAGGF expenditure , the financial effect has entailed additional expenditure whic^
    was relatively minor in 1973 but has grown year by year end which is estimated
    at 377 million u . a. for 1976 ax>d 538 million u.a« in 1977 *
                                                                   »«/ ••
 ---pagebreak---                                    - 2 -
3 . The Commission has proposed that a separate heading be created in the 1977
    "budget in order to isolate this phenomenon and this proposal was accepted "by
     the Council when the draft budget was approved on 22 July 1976 .
4 . As the paying agencies ( pursuant to Artiole 4 of Regulation 729/70) keep
     their accounts in the national currency, the Commission has to convert this
     expenditure into budgetary units of account . If the effect of different con­
     version rates were to be isolated in accounting terms , there would have to be
     separate accounting for agricultural expenditure depending on the representa­
     tive rate applied ; this would oblige the 42 paying agencies and their bran­
     ches to revise their accounting system . Such a change-over at short notice
     would cause administrative complications which all agencies would find diffi­
      cult to overcome .
5 . As "the separation of expenditure takes place between headings within the same
     budget and has no general financial effect , the Commission proposes to avoid
      administrative complications by separating the financial effects of different
      conversion rates at Community level according to a method to be implemented
      under the procedure provided for in Article 13 of Regulation 729/70 ( Commission
      Decision after an Opinion from the EAGGF Committee). This method would consist
      of arriving at a separation by applying weightings per Member State to all the
      expenditure notified by the®. These weightings would be fixed in the light of
      the effect of different exchange rates for eaoh currency and the period of
      payment in each Member State * If the representative conversion rates were chan­
      ged , these weightings would be adjusted accordingly.
 ---pagebreak---                                           PROPOSAL
                                          FOR
                                 COUNCIL REGULATION
                        on      entries in the Budget of the
                        Communities relating to the financial
                        effect of the different conversion
                        rates applied for measures financed
                        by the Guarantee section of the EAGGF *
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and in
particular Article 43 and 209 thereof ,
Having regard to the proposal from the Commission ,
Having regard to the Opinion of the European Parliament ,
Whereas the Budget of the Communities provides that from 1 January 1977 a separate
heading shall "be used for expenditure resulting from the application            of different
conversion    rates , namely , the representative rates used to convert into national
currencies the amounts relating to operations financed by the Guarantee Section of
the EAGGF and the budgetary rates used to convert expenditure expressed in national
 currencies for the purpose of charging it to the Budget ;
Whereas the paying authorities and bodies referred to in Article 4 of Council Regu­
lation (EEC ) NO 729/70 of 21 April 1970 on the financing of the common agricultural
                  last amended i)Y Regulation, ( EEC ) 2783 / 72(2 ) ...
policy ^ 1 ; do not In general Tceejr separate accounts according to the represent at
rate applied ;     whereas the introduction of separate accounts at this level would
lead to major administrative complications ;        whereas therefore a method should be
used which takes account of the factors determining the level of such expenditure .
so that separate acoounts ceil be kept at Community ISTSI of the expenditure resul­
ting from different conversion rates ;
HAS ADOPTED THIS REGULATION
                                                                         • •/« 9
( 1 ) OJ No L 94 ,   28.4.1970 , p . 13
 (") n.l Mn !                19 ?? . n  1
 ---pagebreak---                                     Article 1
1 , The entries in the Budget of the Communities relating to the finanoial effect
     of applying , on the one hand, the representative rates to convert into
    national currencies the amounts relating to operations financed by the
     Guar ant ee -:Sect ion of the EAGGF , and , on the other hand , the budgetary rates
      to convert expenditure expressed in national currencies for the purpose
     of charging it         to the Budget of the Communities , shall "be made in acoofdanoa
     with a method to "be adopted under the procedure provided for in Article 13 of
     Regulation (EEC) No 729/70*
 2 . The method referred . to in paragraph 1 shall , in the case of each
     Member State, take particular account of the budgetary rate , the various re­
      presentative rates , the period of their application and the
      customary inerjod ofjpayi^en£r~       . .    ■
                                     Article 2
 This Regulation 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 the 1977 finanoial year .
  This Regulation shall be binding in its entirety and direotly applicable in all
  Member States *
                                                                     Por the Counoil
  Bone at
                                                                     The President ,