30. 6. 95 Official Journal of the European Communities No L 148/1 (Acts whose publication is obligatory) COUNCIL REGULATION (EC) No 1527/95 of 29 June 1995 regulating compensation for reductions in the agricultural conversion rates of certain national currencies THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to the proposal from the Commission, Having regard to Council Regulation (EEC) No 3813/92 of 28 December 1992 on the unit of account and the conversion rates to be applied for the purposes of the common agricultural policy (!), and in particular Article 9 thereof, Whereas there is a risk of substantial reductions in the agricultural conversion rates for the Belgian/Luxembourg franc, the Danish krone, the German mark, the Dutch guilder and the Austrian schilling; whereas monetary gaps greater than 5 % have already been recorded for these currencies over several reference periods; whereas it is necessary to take steps at Community level to prevent distortions in the implementation of the common agricultural policy due to monetary causes; Whereas, in order to curtail the risk of distortions to trade flows caused by the monetary gaps of the said currencies, these gaps should be reduced if they prove to be still over 5 % by the end of the reference periods introduced to confirm the monetary situation; Whereas Article 9 of Regulation (EEC) No 3813/92 provides for a Council decision, in the event of an appreciable re-evaluation, primarily to comply with obligations under the GATT agreement and budgetary discipline, on all necessary measures, which may involve derogations from the provisions of the said Regulation () O] No L 387, 31. 12. 1992, p. 1. Regulation as last amended by Regulation (EC) No 150/95 (OJ No L 22, 31. 1. 1995, p. 1. concerning aid and the amount by which the monetary gaps are dismantled, without, however, resulting in the threshold being extended; whereas the measures provided for in Articles 7 and 8 of the said Regulation cannot be applied as they stand; whereas, however, compensation for losses of income caused by a reduction in agricultural conversion rates needs to be provided, while taking into account on a flat-rate basis the effects of the 1993 devaluations, the movements of prices in real terms for products qualifying for compensatory payments as part of the reform of the common agricultural policy, and the acknowledged sensitivity of market prices and incomes to agrimonetary adjustments; Whereas there should be provision for extending the compensatory aid granted over three successive 12-month tranches should the duration of the effects of the reduction in the agricultural conversion rates in forthcoming years so require; Whereas the date set for the third stage for achieving economic and monetary union is 1 January 1999, at the latest; whereas, with regard to the national currencies in question, the agricultural conversion rate applicable to the amounts referred to in Article 7 of Regulation (EEC) No 3813/92 should not be reduced until fixed conversion rates between the currencies of the Member States have been established, HAS ADOPTED THIS REGULATION: Article 1 This Regulation shall apply in the event of significant reductions in agricultural conversion rates in accordance with Article 4 of Regulation (EEC) No 3813/92 introduced between 23 June 1995 and 1 January 1996.