CELEX: 51981PC0770
Language: en
Date: 1981-12-11
Title: Proposal for a COUNCIL DECISION authorizing certain Member States to raise the level of the interest rate subsidy provided for by Directive 72/159/EEC on the modernization of farms and#Proposal for a COUNCIL DECISION amending Decision 76/402/EEC on thelevel of the interest rate subsidy, provided for by Directive 72/159/EEC on the modernization of farms, to be applied in Italy (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 770
Vol. 1981/0220
 ---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
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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---  ^... MISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(31)770 final
                                                    Brussels , 11 December 1981
                                 Proposal for a
                                COUNCIL  DECISION
      authorizing certain Member States to raise the level of the interest rate
      subsidy provided for by Directive 72 / 159 / EEC on the modernization of farms
                                       and
                                   Proposal for a
                                 COUNCIL   DECISION
      amending Decision 76 / 402 / EEC on thelevel of the interest rate subsidy ,
     provided for by Directive 72 / 159 / EEC on the     modernization of farms , to
     be applied in Italy
                 ( submitted to the Council by the Commission )
COrAo'i ) 770 final
 ---pagebreak---                              EXPMT7.VP02Y' rrn\TORANDUI!
Within the framework of Article 8 ( l ) (b ) of Directive 72/ 159/ EEC "the
granting of aids in the form of an interest rate subsidy in respect
of investments necessary for carrying out a farm development plan is
one of the main incentives on offer to farmer? whose development plan
has been approved .    In accordance with Article 8 ( 2 ) this interest rate
subsidy shall not exceed 5 cfi and , in principle , shall cover loans
extending over a period of 15 years , which Member States may , however ,
extend to 20 years for investments in immovable property and reduce
to 10 years for other investments . The interest rate remaining payable
by the beneficiary may not be lower than 3 /5.
However the Council acting on a proposal from the Commission and voting
as provided for in Article 43 ( 2 ) of the Treaty , may authorize a Member
State , for a specified period , to grant interest rate subsidies exceeding
5 v/o , if such action is warranted by the situation of the capital market
in that Member State , and , in addition , to lower the minimum rate payable
by the beneficiary to 2      in certain regions .
At its session of 22 July 19 81 , the Council took note of a statement by
the Commission representative reaffirming that his Institution would
continue to study the general problem of the' interest rates charged to
Community farmers and that it would submit to the Council , as soon as
possible but not later than the end of 1981 , its conclusions and , if
appropriate , its proposals for resolving this problem .
A study already presented to the Council shows how both nominal and real
interest rates increased between 1973 and I98O. Since this study appeared ,
the situation has deteriorated further and the financing of farm investment
has become an even more serious problem. Two points may be made to
illustrate how the borrower^' position has worsened .
 ---pagebreak--- - Civon tho /jrowintf r.qod for capital whloh is a. foatur# of modern
   a/^ri culture , notably as a result of inflationary pressures , and the
   rice in interest rates , farmers who borrow money find themselves
   in a difficult position . If the repayments are too heavy , farmers
   are dissuaded or prevented from contracting loans since they will be
   unable to achieve the comparable income on completion of their
   development plan ( the essential condition for approval of the latter).
– As fc.rm incomes decrease , farmers have fewer profits to plough back
   into their business ana either have to borrow more money to finance
   their investments or abandon them altogether.
Ihcse two points may be studied in relation to each Member State , to
illustrate how economic conditions altered between 1973 and 1980.
Increaso ir. r.or.ir.al rates
 !
. At tnc time when Directive 159 was adopted , the decision to authorize
   all Member States to grant a 5 interest rate subsidy (7 % in
   certain regions ) could be justified by the fact that nominal rates
   varied little from one Member State to another. Only in Denmark and
   Luxembourg did they differ appreciably from the average .
. ?hc trend followed by nominal rates between 1973 ana I98I indicates
   that :
   a) they have risen considerably in the various Member States ,
   b ) they now ciiffer widely from one country to another. In one group
       of countries , namely Denmark , United Kingdom , Ireland and Italy ,
       nominal rates are now higher than the unweighted Community
       average ( 15-5 />>).
 ---pagebreak---   The two facto rnontioncd above indicate how the overall position of tno
  borrower has cfcteriorated in the Community.    It has become even more
  intolerable , however , in the four countries listed above .
. Tr*pr.T ir. incomes
  If both the net surplus available to the farmer^ for investment and
  his annual income are decreasing , he must limit the amounts poloughed
  back into the business in order to safeguard his income . In such cases
  he may not make the necessary investments or he may finance them by
  obtaining loans on unfavourable terms when interest rates are high.
  The index for the net farm surplus at 1S75 prices followed a downward
  trend in almost every case between 1975 and 1 979 • The drop was particularly
  sharp in Germany , the United Kingdom and the Netherlands and less so in
  Ireland , where no appreciable drop was recorded until 1979 * No data on the
  net farm surplus are available for Denmark or Italy.
  The number of farm plare for improvements - to farm structures pursuant to
  Directive 72/159/EEC has fallen , largely as a result of rising interest
  rates and the deterioration of farm incomes . In Germany , the drop in the
  number of      .ilans is attributable to budgetary constraints . Between
  1979 and I9S0 the number of development plans approved fell by 72 % in
  Denmark , by 69 in the Netherlands , by 48 % in the United Kingdom , by
  40 in Ireland and by 19 % In the Federal Republic of Germany. In Belgium ,
  there has been a slight increase in the number of plans whilst in France
  there has been a more substantial increase .
   ( l ) The farmer 's net surplus is equal to the gross value added at factor
         cost less depreciation and the wages bill .
 ---pagebreak---                                     - 4 -
III « Oonol u r;:i onr;
      In these circumstances , the farlure to adopt a new decision on interest
      rate subsidies could prove inconsistent with the recent Council decision
      to amend Directive 72/l5S/S2G by {jiving a more flexible interpretation
      to the idea of the " comparable income" so that the less prosperous farmers
      may more easily qualify for development plans .
      Another possible consequence is a general slowing-down of investments at
      the very time when agriculture may have to make special efforts to rationalize
      production and to improve the processing of agricultural products , in view
      of the changes which will have to be made in the way the prices and markets
      policy is applied .
      for these reasons , the Commission considers that the Community should take
      p-ction to limit the burden placed on farmers by the increase in interest rates .
      £uch action could be selective in nature : a further interest rate subsidy
      pould
      t
              be granted to ^ake account of the level reached by interest rates
      ^n I98I . This facility is already available to Italy and Ireland , until
      J1 December 1981 and 31 December 1983 respectively.
      ï
      Accordingly , the Commission is proposing :
      r
      p) that the existing Decision 's period of validity be extended until
          31 December 1983 in the case of Italy , for reasons of continuity – from
          the legal point of view – but above all because the problem remains
          unsolved ;
      b ) that an additional interest rate subsidy be applied in all Member States
          until 31 December 1983 . The subsidy , a selective one which would depend
          on the rate of interest now obtaining, would be 3 % in the case of the
          Member States whose present nominal rate is higher than the unweighted
          Community average (Denmark and the United Kingdom) and 2 /6 , subject to
          a certain maximum , for the other Member States . This facility is
          already available to Ireland until 31 December 1983 . The estimated annual
          cost to the budget of this measure is about 25,5nillion ECU over two years .
 ---pagebreak---                          - 5 -
Financial impaot on the 5–yo?-r financial envelope
a) Proposal for a Counoil decision amending Decision 76/402/ESC on "the
    level of the interest rate subsidy provided for in Directive 72/159/EEC
    on the modernisation of farms t to apply in Italy*
    This proposal extends the conditions for application in Italy for two
    additional years * {The oosts of the extension are already included in
    the tables of expenditure envisaged    far 1980 to 1984 on the hypothesis
    that the period of jralidity of this measure would be extended*
    Proposal for a Cotqjpil Decision on the level of interest rate subsidy
 * provided for by Directive 12/l^S/EEG on the modernisation of farms*
    The expenditures relating to this proposal which fall due during the
    5-year period 198(V84 amount to $1 million ECU, of which 25*5 million
    ECU apply in 1983 pnd the same amount in . 1984* The table of estimates
 ■; of expenditure fon 19 80-84 ( see annex) was recalculated in November 1981 ,
    taking account in particular of the delays in the commitment of certain
    new measures and of the lower degree of utilisation of other measures
    with reference to the previous estimates *   It is estimated that
    of "the       envelope of 3*735 Billion ECU, 3*600 million ECU are or
    will be used for the financing of the existing legislation*    The
    remaining 95 million ECU allows for the financing of this proposal .
 ---pagebreak---                                                                                                    ANNEXE
                                                                                              ENSASSflSNTS                                                                                           19.11.81
                                                                                         UlNaiJCNNAi.5 :           lANViSa 19*0 a DPCrVRSf: 1934
                                                                                                                                                                                                              1
                                                                                                                                                                                                 Total
   Νο*<"Π··        Nomen-                                                                                             aíoenses                £sf(mafíons dea déoenscs
                                                                       T Ur *                                                                                                                 Quinquennal
    el jtu re      ctitur »
                                                                                                                        1980             1981         1982        1983         1934              β0·δ4
      1931           1982
                                  .
                                                                                                                        139,6            150         148         148           148               733,6
    CHAP . 20      CHA9..'.0   p?*jrrs G 1 å-Γ» 'roi 'Kl C-.', Γ?:~Γ: ; Γ> * χΡΛ CCltS
                                                                                                                               -            -            -           -             -
      eco            400       ?ro}»t * IMMCJtìt
                                                                                                   s . : SSMÍ                82,4         98          98           98            98             474,4
      8G"0           4010      ?re)«tt d« CM*creU¡««t tr«r.jTor»etUn
      tjV. ·                   A9pil€.35S ¿ν <ΙϊΪΜ/·3^ί i 4 *i rrtfict                             a. -. I«',/;;             <•9,5        44          42           42            42              219,5
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                                                                                                                                                          0,5         0,5           2,2             3,2
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                                                                                                                                                          0,3        0,3           0,1              0,7
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     82J9            423Í      P-cçrm·         C«C«.1 «                                            3ir.S1 /i27                 -            -
                                                                                                                                                     p.m .           5           17               2?
     32*0            4240      ?re;ri···        ¿rit'a·;« » Γ>4Λ4·                 *· 2195/31 · Cir.rä,' ;:«                   3,7          9,3        12,6        15            10               50,6
     8241            » 241     ?re*;*a<· «       «riir*;· 'r it«' »/ irUnc« áu Kofd               3' Γ«' it'· lì               -
                                                                                                                                                         0,3         2             2                4,3
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                                                                                                                                             S ,4      1 7,0       20            20               62,4
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                                                                                                                                                         5         14              8,5            27,5
     824··          4244       ACltflA                                                                   1C55/ 31              -            -
                                                                                                                                                         1,5         3             1,5              6
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                                                                                                                                                    ρ.π.             2,4           2,4              4,8
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   CL-O.SÎ        MAP . ¿3     ;"! CN5 WCTVTLIRS T:CN T'JX " IÍTVÍJ                                                     133,1           165.9       153.5        133.3           96.5           682.4
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                                        OTAL ORIENTATION                                                               590,9 i 7Ï5,1                726,4 j 807               733,5          3.659,9
 ---pagebreak---                               Change in nominal interest rates between 1973 ar.'i 1981
Country                ¡tote ir. 1973                                  j           Rate in I98O                                      Rate in Oct . I98I                      !·                73/81
                                                                                                                                  .."" I'-ii :
                                                                                                                                                                                       .
  D
        i
            ––                   10.3             ..                     - Λ . r-10.5'            a               f
                                                                                                                         –                                                                   + 2.7
                                                                                            •             .1
  FR j                     I J
                    . ' 4 9.5
                                                            r
                                                                             ;         11.6         - 1           :
                                                                                                                                    οΐ;.ό13.Υ5                                  : i '+ 4.25
        i         ·.-'·■·                 i                ··■'·             1                         »1         j                    Oüi               1       b .c·                 I           '
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                                          1              "...
                                                                                – 17.5                                            -
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  I'X í                          ú          ■                                  ! 20.5 ·                             !                ?Λί; v'2o.$
                                                                                                                                       ' Λ ·                      . έ! β ΐ
                                                                                                                                                                                          ; + 6.9
                      ■ ·*                   1
                                             1
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                                 • ·' ¡ '        ·     ' '♦ :    ; '      •                  . r· ·    « Σ / ·.             ·♦· *   .ν »    ·. *    i* » :     ι      >α .       •                 ■   \ %
 ---pagebreak---                                         Trend in net farn surpluses
                   1974           1975           197 6          1977           1978  1979
 FÍÍG     a)    15.239          18.010         19.016         17.913         17.959 15 .
          *)       90.6           100          102.2           92.9           89.5   73.1
FR        a)    50.608          49.048         52.I66         55.088         60.826 68 . <: ;l
          b)       116            100           96.6           93.5  '        94-5   90 ...
KL        a)     5.77O           6.S20          8.08O          7.840          7.96O  7.1-
          b)       93.3           100          108.8           99.3           95.9   84 .;:
BSL       a)   49.769           52.219         65.459         54.572         60.161 60 .:;
          b)     1 OS. 8          100          116.2           90.8           93.6   92 , '
LUX       a)     1.978           2.074          1.943          2.343          2.430  2.47V
          b)     112.8            100           83.2           97.3           98.1   91-i
UX        a)     944.3          1147 .7        1458.4  .     1454.2          1484.8 151:-·
          b)       96.9           100           110.9          97.4           90.8   εο.ό
IR        a)     329.3            476           537.7         741.1           839.2  723.-.
          *>)      73.8           100            93.2         113.8          II5.9   63 . ¿
      a.1 net surplus per farra in national currency
      b) net surplus expressed as an index ( in constant teras , 1975 ■ 100)
 ---pagebreak---                    17'inbcr of 'level oorrent nl&ns annroved rer vear
                    1577                     I97S                1979 193ο
DSUTSCHLAÎÎD      6.514                     5.820               5.29O 4.3C :-
VííAÍÍCS          2.597     *               4.457               5.566 6.4C;
ÎÎVÏÏERLAÎO       2 . eòo                   3.036               3.241 1.3 -:.
IiiXCIQí^/EüLCIS  1.652                     1.985              2.133  2.2 .;.
LUXF.VJJO'jnC        :                        t                    15     :
ΙΠ.ΊΤ-Ώ KINGDOM   7.U5                      7.631               5.147 2.6:
ItiSlJUü          2.921                     4.197               3.697 2.2; :
DANVJUIK          1.313                     2.120               I.848    c.
                                                                         j*·-
EUH-9            25.002               •    29.156           * 27.128    !
 ---pagebreak---                                     Proposal for a
                                   COUNCIL racisiON
authorizing certain Member States to raise the level of the interest rate subsidy pr(
vided for by Directive 72 / 159 / EEC on the modernization of farms
 ?ΚΕ ΟΟϋϊίΟΙΙ, 0? ?Η2 ΕϋϋΟΡΕΑΪΙ ΟΟΚΕϋΝΙΊΊΕΒ ,
 Having regard to the Treaty establishing the European Economic Community ,
 Having regard to Council Directive 72/159/EEC of 17 April 1972 on the
 modernisation of farms^\ as last amended by Directive 8l/528/]3EC^\ and
 in particular the second       subparagraph of Article 8 ( 2) and the second
 subparagraph of Article 19 ( l ) thereof,
 Having            to the proposal from the Commission ,
 Whereas , under the first indent of the second sub-paragraph of Article 8 ( 2)
 of Directive 72/159/22C , the Member States may be authorized to grant
 interest rate subsidies exceeding 5 i* if such action is warranted by the
 situation of the capital market in the Member States ;
 Whereas the interest rates currently applicable in most Member • States to
 lon.<*-term agricultural loans and the exceptional burden placed on farmers
 wishing to modernise their holdings by these interest rates , which are well
 in excess of the minimum laid down by Directive 72/l59/SEC | may adversely
 affect , or even make impossible , the modernization of agriculture which this
 Directive aims to achieve ; whereas the situation is more serious in certain
 Member States.;
 Whereas it is therefore »:-«..^«?sary to grant further interest rate subsidies ,
 differentiated where possible                 to the interest rates obtaining;
 Whereas the second subparagraph of Arti.>~               of Directive 72/159/EEC
 stipulates that increased expenditure incurred by             states as a result of an
  increase in*'ne interest rate subsidies may be declared
 assistance from the Guidance Section of the European Agricultural Guioo.'.^' and
  Guarantee Fund and whereas the Fund must make a financial contribution tow\-js
  such expenditure ,                                                                \
                                                                                       '"1
  ( 1 ) OJ No L - 96 , 23.4.1972 , p. 1
  ( 2 ) OJ No L 197 , 20.7.1981 , P. 41
 ---pagebreak---                                        2
       HAU ADOPTi'D T1II3 LÏCI'JIOU t
       ArMnlc 1
   1 . Denmark and the United Kingdom are hereby authorized to increase by 3 /»
        the interest rate subsidies referred to in the first      subparagraph of
        Article 8 ( 2 ) of Xirective 72/l59/SEC and in Article 9 ( l ) of Directive
        75/268/22C , provided that the interest rate which remains to be paid by the
        recipient of the aid is not less than that laid down in the Articles
       concerned .
   2 • The I-'ederal Republic of Germany , Belgium , Prance , Greece , Luxembourg and
        the Netherlands are hereby authorized to increase by 2 5» the interest rate
       subsidies referred to in the first subparagraph of Article 8 ( 2 ) of
       Directive 72/159/2EC and in Article 9 ( l ) of Directive 75/268/EEC , providedthat
       the interest rate which remains to be paid by the recipient of the subsidy
       is not less than that laid down in the Articles concerned .
       Article 2
       Expenditure incurred by Member States pursuant to Article 1 shall be
       eligible for assistance from the Guidance Section of the EAGGP within the lii.
fixed in the first subparagraph of Article 19 ( 3) of Directive 72/159/13EC.
       Article 3
       This Decision shall apply until 31 December 1983 .
       Article 4
       This decision is addressed "to the Kingdom of Belgium, the Kingdom of Denmark ,
       the Federal Republic of Germany, the Republic of Greece, the French Republic ,
       the Grand Duchy of Luxembourg, the Kingdom of the Netherlands and the United
       Kingdom .
       Done at Brussels ,
                                                       For the Council
                                                       The President
 ---pagebreak---                       F5NAWCIAL                    STAT IMIENT
                                                                                         Date
                                                                                                  19.11.1981
| 1 . £jUt>Gfc T HEADING 1             810                                              APPROBATIONS I      bô ffillXlOllfl ECU «
   ?. TITLE : Proposal for a Council Decision, on the level of interest rate subsidy
                 provided for by Directive 72/159/E2C                        "the modernisation of farms.
   j . up*i t-ASii : Article 6 of Regulation 70/ 729/EEC
   4 . AlK * Vf nr.-Jl C ï ;
                 Partial compensation of the increase in the marked rate of interest.
    5 . flNANCJAl IMPLICATIONS                       PLftIOO Of 12 r.ONTHS CURRENT FINANCIAL YEAR   FOLLOWING FINANCIAL YEAR
                                                                                  t iq8i ;                < 1982 >
    5.0 EXPEND ! TUPE
         - C h AKGLO TO THf fC 'JUDGE T                                                                       pm
             ( ME fUfOS / :Mt.»Vi.M ICUS )                                                                 102 MECU
         - NATIONAL ADMINISTRATION
         •? OTHFK
    5.1 HECE.'PTS
         - OWN Riscuicrs Of THt EC
          ' ( LEVIES / CUSTOMS DUTIES )
         - NATIONAL
                                                           1983              1984                 1985             1986
    5.0.1 ESTIMATED fc < ΡΓ·θ ; τι:»Ε          ME CU       25 ,5             25,5             13,5               13,5
    5.1.1 E S ï IMA * E 0 « iCtìPIU
    5.2 M C THCO Of CALCULATION                                                                                                     *!
                On the basis of the refunds add experience acquired, the additional costs
                are estimated as follows :
                                                                                                                                    j?
                for the proposed increase : 25.5 J®CU 2>r the first two years ; but ,                                                !:
                taking account of the capital grants in certain Member States this amount                                            ;
                will be 13.5 MECU from 1985 "to cover aids granted by way of interest subsidy.!'
   *xx^xmxx>ocm4QLXjamx)«xxx;axxxxxxmxxxxm!JKmxxxxxxxx^                                                                1
    ^AXXixxjox-xx;<j(mjcax;axxxxxxaxxyjcxxxxAXKxmj'imx^jc :^Ga ?
                                                                                                                         JBSQCX    i.
    tmxiocxxmxjcmxmmmxm ■
    i>»3                   cuJviti APr-i^a.i ;                 ?
                                                                                                                         YES / fSV
 | observations
 ---pagebreak---                               Proposal for a
                             COUNCIL DECISION
amending Decision 76/402/EEC on the level of the interest rate
subsidy , provided for by Directive 72/159/EEQ on the modernisation
of farms , to be applied in Italy.
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Directive 72/159/EEC of 17 April 1972 on the
modernization of farms 1 '. , as «last amended
                                            « « a               /A A A /«MM
                                                by Directive 8l/528/EEC     * , and
 in particular the second subparagraph of Article 8 ( 2 ) thereof,
Having regard to the proposal from the Commission ,
Whereas the Italian Government has requested an extension of the validity
of Council Decision 76/402/EEC^y          _          . as last amended, by
Decision 8l/24l/EEC ^ , which is applicable until 31 December 1981 ;
Whereas the rate of interest currently applicable in Italy to long-term
agricultural loans is 19.6         which is 6.2 % greater than the rate on which
Decision 76/402/EEC was based ;
Whereas an interest rate of 19.6 i» and interest rate subsidies of 9 %, 11 %
and 12 /» respectively will mean that the recipient        is called upon to bear
a rate of interest in excess of the minimum laid down by Directive
72/I59/EEC ,
 ( 1 ) OJ No L 96 , 23.4.1972 , p. 1
 ( 2 ) OJ No L 197 , 20.7.1981 . p. 41
 >( 3 ) OJ No L 108 , 26.4.1976, p.39
 ( ) OJ No L 113 , 25.4.1981 , p. 46
 ---pagebreak--- HAS ADOPTED THIS DECISION :
Article 1
 With effect from 1 January 1902 , Article 4 of Decision 76/402/EEC shall
be replaced "by the following :
' Article 4
 This Decision shall apply until 31 December 1983".
 Article 2
 This Decision is addressed to the Italian Republic .
Done at
                                              Por the Council
                                              The President
 ---pagebreak---                    FHiUAIMClAL                  STAT EJVsEfJT
                                                                                           Dat * : 16 # 10# 198l
                                                                                        A
  1 . BUDGET HEADING : 8lQ                                                                 APPKOFLL AT IONS I L£O MB OU
  2. TITLE : Proposal for a Council Decision amending Decision 76/402/EEC on the level
             of the interest rate subsidy , provided for "by Directive 72/159/EEC5 on the
             modernisation of farms , to "be applied in Italy#
  waMaBa3^nna–aw          1–m–                    iMimmnmtso– mm––n inn r^–M– ■M–wawa– ––––––I––
   3. LEGAL OASIS :        Article 43 of Treaty
   4 . AIMS OF PROJECT :
             Partial compensation for increase in market rate of ' interest®                                                            !;
I 5 . FINANCIAL IMPLICATIONS                           PERIOD OF 12 MONTHS   CURRENT FINANCIAL YEAR      FOLLOWING FINANCIAL YEAR
                                                                                                               (   ft?    )
                                                                                    (  ft!    )
   5.0 EXPENDITURE                                                                                                                      RÎ
        - CHARGED TO THE EC BUDGET
           ( REFUNDS / INTERVENT I ONS )
        - NATIONAL ADMINISTRATION
                                                                       /           pm
                                                                                                                 pm
                                                                                                               14,6 MECU
                                                                                                                                        ij
        - OTHER     ·                                »             /
   5.1 RECEIPTS
        - OWN RESOURCES OF THE EC
           ( LEVIES / CUSTOMS DUTIES )
                                                             /                      -                              -
                                                                                                                                        >■
                                                                                                                                        (
        - NATIONAL
                                                       /                                                                               ■j
                                                               1983           1984                 1985 ;              1986             ι
    5.0.1 ESTIMATED EXPENDITURE                                5,1              5,6                5,6                   5,6            I
    5.1.1 ESTIMATED RECEIPTS                                                                                                            \
                                                                                                                                        }\
      * ME ^ollovang Decision 76/402/EEC the higher rates are already "being applied in
             Italy# According to information received from the Member State , the total
             estimated costs of continuing the higher rates are : \
                            Year                                 Expenditure ■'M»S o                 Refund EAGGF
                             1982                                   14,6                                  5,1
                            1983                                    16,2                                  5,6
                             1984                                   16,2                                  5,6
                            1985                                    16,2                                  5,6       Co
                             1986                                                                         5,6
    6.0 MXXXXmJOLJaXXXXKXXXXXXXOXXXXXXXXÍGCiQCmSQD&XBíXmKXKXXXÍSQÍi^iQí^^ ?
                                          Not applicable                                                                    XKXKK
    6.1 mmJQCXmxmXXXmXXXmXXXXJamEemmSÇmmaSOC *
                                                                                                                            EÉÏ/ ISEXX
                                          Not applicable
    6.2 IS A SUPPLEMENTARY                  NECcSSARY ?
                                                                                                                             vSC/ NO
    0.3 WlLL fUTo'RE 9oDu£T APr-KCb ; A T l 0\'i bfc NECciiSARY
                                                                                                                             YES / fXX
    OBSERVATIONS
             60 % of plans are in normal areas and are subject to a 25 % refund#
             40 % of plans are in less favoured areas and are subject to a 50 i° refund.
                                                                                                         (Directive 80o 666)