85/14/EEC: Commission Decision of 19 December 1984 authorizing the French Republic to continue to apply certain protective measures pursuant to Article 108 (3) of the Treaty (Only the French text is authentic)

COMMISSION  DECISION
of 19 December 1984
authorizing the French Republic to continue to apply certain protective measures pursuant to Article 108 (3) of the Treaty
(Only the French text is authentic)
(85/14/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 68/301/EEC (1), as amended by Decision 68/406/EEC (2), the Commission authorized the French Republic to take certain measures pursuant to Article 108 (3) of the Treaty; whereas the increase in the prices of petroleum products in 1979/80, the pressures on the French franc and the lack of cyclical synchronization with the partner countries since 1981 have gradually led to a pronounced deterioration of the deficit on the basic balance;
Whereas the French authorities have introduced an economic policy programme with a view to restoring a sustainable balance-of-payments situation, reducing the rate of inflation and ensuring better convergence of economic performance within the Community; whereas on 16 May 1983 the Council decided, in view of that programme, to grant the French Republic a loan of 4 000 million ECU pursuant to Council Regulation (EEC) No 682/81 (3) in order to facilitate the adjustment of the French economy;
Whereas the balance on current transactions and the balance on long-term capital, excluding authorized borrowing by residents from abroad, are still in deficit; whereas it is important to stabilize and later reduce the cost of external indebtedness, which has increased considerably, notably as a result of the appreciation of the dollar and the rise, in real terms, in international interest rates;
Whereas immediate and complete abrogation of the protective measures France was authorized to take would expose the French economy to destabilizing capital movements and the risk of seriously compromising the current process of restoring external equilibrium; whereas it is therefore appropriate to maintain certain exchange controls on the capital movements liberalized on principle;
Whereas the French authorities have relaxed the protective measures originally taken by way of derogation from Community obligations in the area of freedom of capital movements; whereas they are determined to continue the process of relaxation to match the degree of success in restoring a healthy balance of payments,