85/16/EEC: Commission Decision of 19 December 1984 authorizing the Italian Republic to continue to apply certain protective measures pursuant to Article 108 (3) of the Treaty (Only the Italian text is authentic)

COMMISSION  DECISION
of 19 December 1984
authorizing the Italian Republic to continue to apply certain protective measures pursuant to Article 108 (3) of the Treaty
(Only the Italian text is authentic)
(85/16/EEC)
THE COMMISSION OF THE EUROPEAN
COMMUNITIES
,
Having regard to the Treaty establishing the European Economic Community, and in particular Article 108 (3) thereof,
Whereas by Decision 74/287/EEC (1), as amended by Decision 75/355/EEC (2), the Commission authorized the Italian Republic to take certain measures pursuant to Article 108 (3) of the Treaty;
Whereas the rise in the price of petroleum products that occurred in 1979 and 1980 has led to a marked deterioration of the balance on current transactions; whereas the improvement that began in 1983 is still fragile and dependent on continued efforts to reinforce the competitiveness of the Italian economy in conditions of increased domestic and external monetary stability;
Whereas the Italian authorities are committed to an economic and financial programme to control public expenditure, reduce the budget deficit and reduce the rate of inflation; whereas that programme is designed to contribute to the restoration of external equilibrium;
Whereas it is important to limit the costs arising from external indebtedness, which have substantially increased as a result, in particular, of the appreciation of the dollar and the rise in international interest rates in real terms;
Whereas the lifting of protective measures that Italy was authorized to take must be gradual to prevent long-deferred portfolio adjustments from leading to destabilizing capital movements and interrupting the process of a return to external equilibrium; whereas it is therefore appropriate to maintain certain exchange controls on the capital movements liberalized on principle;
Whereas the Italian authorities have relaxed the protective measures originally authorized by way of derogation from Community obligations for the free movement of capital; whereas they are determined to continue the process of relaxation to match the degree of success in restoring a healthy balance of payments,