Council Regulation (EEC) No 352/78 of 20 February 1978 on the crediting of securities, deposits and guarantees furnished under the common agricultural policy and subsequently forfeited

22.2.1978 EN Official Journal of the European Communities L 50/1
COUNCIL REGULATION (EEC) No 352/78
of 20 February 1978
on the crediting of securities, deposits and guarantees furnished under the common agricultural policy and subsequently forfeited
THE COUNCIL OF THE EUROPEAN COMMUNITIES
,
Having regard to the Treaty establishing the European Economic Community, and in particular Article 43 thereof,
Having regard to Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (1), as last amended by Regulation (EEC) No 2788/72 (2), and in particular Article 2 (2) and Article 3 (2) thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament (3),
Whereas under Community regulations numerous securities are required in connection with operations relating to agricultural products; whereas provision must be made for the crediting of such securities in cases where they are forfeited;
Whereas in most cases where securities are forfeited the European Agricultural Guidance and Guarantee Fund (EAGGF) suffers a financial loss either because it has financed a measure and the operator has failed to meet his obligations or because such failure by the operator subsequently involves the EAGGF in expenditure; whereas such loss should consequently be remedied by using forfeited securities to reduce EAGGF expenditure;
Whereas, however, securities which do not cover a risk of financial loss by the EAGGF should be retained by the Member States;
Whereas securities forfeited in respect of food-aid operations should be used to reduce the food-aid expenditure concerned;
Whereas it is also right that securities forfeited as part of a specific operation should be used to reduce the expenditure relating to that type of operation;
Whereas similar rules already exist in certain sectors; whereas they should be repealed,