COUNCIL REGULATION (EEC) No 1883/78  of 2 August 1978  laying down general rules for the financing of interventions by the European Agricultural Guidance and Guarantee Fund, Guarantee Section
THE COUNCIL OF THE EUROPEAN COMMUNITIES
,
Having regard to the Treaty establishing the European Economic Community,
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 3 (2) thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament (3),
Whereas, in accordance with Article 3 (2) of Regulation (EEC) No 729/70, the general rules for the Community financing of interventions should be laid down;
Whereas, to this end, the list of measures complying with the concept of intervention intended to stabilize the markets should be drawn up;
Whereas it is desirable to lay down that expenditure resulting from intervention measures for which a sum per unit is determined within the framework of a common organization of markets shall be met entirely from Community funds;
Whereas in the case of intervention measures in respect of which a sum per unit is not determined within the framework of the common organization of markets, basic rules should be laid down with regard in particular to the method for determining the amounts to be financed, the financing of expenditure resulting from the tying-up of the funds necessary for intervention purchasing of products, the valuation of stocks to be carried forward from one financial year to the next and the financing of expenditure resulting from storage and, where appropriate, processing operations;
Whereas the various items of expenditure and revenue to be adopted for each sector on the basis of these rules should be the subject of more detailed regulations ; where the financing regulations for each sector should, in the meantime, be maintained in force;
Whereas the general rules for Community financing of interventions should be embodied in a single Regulation ; whereas Council Regulation (EEC) No 2824/72 of 28 December 1972 laying down general rules for the financing of interventions by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (4) should be repealed,
The measures listed in the Annex shall comply with the concept of intervention intended to stabilize the agricultural markets within the meaning of Article 3 (1) of Regulation (EEC) No 729/70.
Where, within the framework of a common organization of the market, a sum per unit is determined for an intervention measure, the resulting expenditure shall be met entirely by Community funds.
Where, within the framework of a common organization of the market, a sum per unit is not determined in respect of an intervention measure, the measure concerned shall be financed by the EAGGF, Guarantee Section, in accordance with the provisions contained in Articles 4 to 8.
1. Where an intervention measure referred to in Article 3 involves the buying-in and storage of products, the amount financed shall be determined by the annual accounts drawn up by the payment  (1)OJ No L 94, 28.4.1970, p. 13. (2)OJ No L 295, 30.12.1972, p. 1. (3)OJ No C 131, 5.6.1978, p. 70. (4)OJ No L 298, 31.12.1972, p. 5.
services or agencies, in which the various items of expenditure and revenue have been respectively debited and credited.
2. The financing of the other intervention measures referred to in Article 3 shall be equal to the expediture, less any revenue, resulting from the intervention measure.
3. The Council, acting by a qualified majority on a proposal from the Commission, shall in respect of the intervention measures referred to in paragraph 1, lay down the rules and conditions governing the annual accounts and, where necessary in respect of the intervention measures referred to in paragraph 2, determine the items to be taken into account for purposes of financing where these have not been determined within the framework of a common organization of the market.
Until these matters are determined, and save any provision to the contrary of this Regulation, Regulations (EEC) No 786/69 (1), (EEC) No 787/69 (2), (EEC) No 788/69 (3), (EEC) No 2334/69 (4), (EEC) No 2305/70 (5), (EEC) No 2306/70 (6), (EEC) No 1697/71 (7), (EEC) No 272/72 (8) and (EEC) No 273/72 (9) relating to the financing of intervention expenditure in the various sectors shall remain in force.
In the case of funds originating in the Member States used for intervention purchasing of products, the amount of the interest charges to be financed by the EAGGF, Guarantee Section, shall be calculated using a method and an interest rate uniform throughout the Community, to be determined in accordance with the procedure laid down in accordance with Article 13 of Regulation (EEC) No 729/70. The interest rate must be representative of the interest rates actually paid.
Material operations arising from the storage and, where appropriate, processing of intervention products shall be financed by the EAGGF, Guarantee Section, by means of standard amounts uniform throughout the Community, to be laid down in accordance with the procedure provided for in Article 13 of Regulation (EEC) No 729/70 and, where necessary, after examination of the matter by the management committee concerned.
Where the products in question have experienced a depreciation as a result of storage, the financial effect thereof shall be recorded and taken into account at the time of entry into intervention. To that end, the coefficients of depreciation and the prices to which they apply shall be determined in accordance with the procedure laid down in Article 26 of Council Regulation (EEC) No 2727/75 of 29 October 1975 on the common organization of the market in cereals (10), as last amended by Regulation (EEC) No 1254/78 (11), or, as the case may be, in the corresponding Article in the other Regulations on the common organization of agricultural markets, and where necessary, after examination by the EAGGF Committee.
In the annual accounts referred to in Article 4 (1), the quantities of products in storage to be carried forward to the following financial year shall, as a rule, be valued at their purchase price. To this end, on the basis of the purchase prices paid by the intervention agencies over a reference period and taking into account the depreciation referred to in Article 7, the price to be applied for quantities to be carried forward to the following financial year shall be determined for the various products in accordance with the procedure laid down in Article 13 of Regulation (EEC) No 729/70.
However, if, for a given product, the estimated price on leaving intervention is substantially lower than the value of stocks to be carried forward as determined in accordance with the first subparagraph, a decision may be taken to replace the purchase prices paid by the intervention agencies by another price. The latter price shall be fixed in accordance with the procedure laid down in Article 13 of Regulation (EEC) No 729/70, and if necessary after examination by the management committee concerned. It may not be below the average of the purchase prices and the prices obtained on disposal of intervention stocks.
Where necessary, detailed implementing rules of this Regulation shall be adopted in accordance with the procedure laid down in Article 13 Regulation (EEC) No 729/70.
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Regulation (EEC) No 2824/72 is hereby repealed.
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This Regulation shall enter into force on the day following its publication in the Official Journal of the European Communities.
It shall apply to expenditure incurred as from 1 January 1978. However, Article 7 shall apply as from 1 January 1979.  (1)OJ No L 105, 2.5.1969, p. 1. (2)OJ No L 105, 2.5.1969, p. 4. (3)OJ No L 105, 2.5.1969, p. 7. (4)OJ No L 298, 27.11.1969, p. 1. (5)OJ No L 249, 17.11.1970, p. 1. (6)OJ No L 249, 17.11.1970, p. 4. (7)OJ No L 175, 4.8.1971, p. 1. (8)OJ No L 35, 9.2.1972, p. 1. (9)OJ No L 35, 9.2.1972, p. 3. (10)OJ No L 281, 1.11.1975, p. 1. (11)OJ No L 156, 14.6.1978, p. 1.
This Regulation shall be binding in its entirety and directly applicable in all Member States.