Proposal for a COUNCIL REGULATION (EC) amending Regulation (EC) No 2990/95 regulating compensation for appreciable reductions in the agricultural conversion rates before 1 July 1996
COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 12. 06. 1996 COM(96)267 final Proposal for a COUNCIL REGULATION (EQ amending Regulation (EC) No 2990/95 regulating compensation for appreciable reductions in the agricultural conversion rates before 1 July 1996 (presented by the Commission) EXPLANATORY MEMORANDUM Regulation (EC) No 2990/95 lays down, until 30 June 1996, the measures to be adopted in the event of appreciable revaluations, in particular to prevent the application of Article 7 of Regulation (EEC) No 3813/92 running counter to compliance with the obligations deriving from the GATT Agreement and budgetary discipline. The fundamental reasons behind the adoption of Regulation (EEC) No 2990/95 remain valid and probably will do so for several months to come. Because of the increase in its value, the Swedish krona has recently been at risk of an appreciable revaluation which could occur after 1 July 1996. In accordance with Article 1(e) of Regulation (EEC) No 3813/92, any fall in the agricultural conversion rate resulting from the halving of a monetary gap of more than five points should be regarded as appreciable because it would be greater than the effects of previous devaluations. In order to afford the Swedish krona the same treatment as the other currencies which have found themselves in similar situations in the past, the validity of Regulation (EEC) No 2990/95 should be extended. The measures to be taken will of necessity be at Community level, because this is an area in which the Community has exclusive competence. They pursue the general objective of uniform application of the common agricultural policy and adapt provisions already laid down by the Council to take account of such situations. z Proposal for a COUNCIL REGULATION (EC) No. 796 of amending Regulation (EC) No 2990/95 regulating compensation for appreciable reductions in the agricultural conversion rates before 1 July 1996 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 policy1, and in particular Article 9 thereof, Whereas Council Regulation (EC) No 2990/952 lays down special rules applicable until 30 June 1996 to currencies which experience during that period an appreciable reduction in their agricultural conversion rates and in particular to the Finnish markka and the Swedish krona; whereas the risk of an appreciable reduction has again arisen in the case of the Swedish krona since monetary gaps of more than 5% have occurred for that currency; whereas this situation could lead to an appreciable reduction in an agricultural conversion rate after the period referred to in Regulation (EC) No 2990/95. 1 OJ No L 387, 31. 12. 1992, p. 1. Regulation last amended by Regulation (EC) No 150/95 (OJNoL22, 31. 1. 1995, p. 1. ). OJ No L 312, 23. 12. 1995, p. 7. 3 Whereas A r t i c le 9 of Regulation ( E E C) No 3X13/92 provides lor the Council to take all necessary measures in Ihc event of an appreciable revaluation, w h i e h, primarily to comply w i th obligations under the ( î A TT Agreement and budgetary discipline, may involve derogations f r om the provisions of the said Regulation concerning aid and the amount by w h i ch the monetary gaps are dismantled, w i t h o u t, however, resulting in the threshold being extended; whereas the measures provided for in Articles 7 and X of the said Regulation cannot be applied as they stand; whereas it is necessary lo lake steps at C o m m u n i ty level to prevent distortions of monetary o r i g in affecting the implementation of the c o m m on agricultural p o l i c y; Whereas on the basis ol the information currency available, it is impossible to know what the situation w i ll be after 31 December 1 9 %; whereas application ol the rules and amounts laid d o wn in Regulation ( E E C) No 2990/95 w o u ld be justified in similar cases until that time, H AS A D O P T ED T H IS R E G U L A T I O N: A r t i c le 1 Regulation ( E E C) No 2990/95 is hereby amended as follows: (a), in the title the date "1 July 1996" is replaced by "1 January 1997", (b) In A r t i c le I, the date "30 June 1996" is replaced by "31 December 1996". Ag£kk 2 trais Kciî,uki4ioiv skill enter ink* fence m% the tfciy »>t its puMicsiiion in the (Hlîcuil Journal oi the E-urtvpeiwi: 4 omi$uimtk*s. It stall a©©tv from I. My I**** This Rcgut^Mim. shirfl he Nntftng: m tôs entirety uad directly upgtâeuhle irt aft Member- Slates. EXUM-at Bras»?!*,. Fwi t&*. v t'vwimisHiwB !'«« tÉe t'otjturrl 5 FINANCIAL STATEMENT BUDGE •AD1NG: 390 D AI APPROPRIATIONS: ECU 194m (Item 390) TITLE: Proposal for a Council Regulation amending Regulation (EC) No. 2990/95 regulating compensation for appreciable reductions in the agricultural conversion rates before 1 July 1996 LEGAL BASIS: Regulation 3813/92 - Article 9 AIMS OF PROJECT: Prorogation for 6 months of Regulation 2990/95 fixing in particular for Sweden degressive aid financed by the Community budget to compensate farmers for loss of income as a result of reductions in agricultural conversion rates FINANCIAL IMPLICATIONS PERIOD OF 12 MONTHS CURRENT FINANCIAL YEAR (96) FOLLOWING FINANCIAL YEAR (97) 5. 0. EXPENDITURE - CHARGED TO THE EC BUDGET INTERVENTION - NATIONAL ADMINISTRATION + l: 5. 0. 1 EXPENDITURE PREVISIONS 5. 2. METHOD OF CALCULATION: 1998 + 12 1999 +6 6. 0. 6. 1. 6. 2. 6. 3. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? IS A SUPPLEMENTARY BUDGET NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES OBSERVATIONS: At present it is necessary to make assumptions in order to estimate the proposal's financial impact. The calculations are based on monetary gaps during the reference period from 18 to 27 May 1996 of around 5. 5 points for the SKR. The measure proposed avoids the possible application of Article 7 of Regulation 3813/92 which, for 3% revaluation and for EUR- 15, could have a financial impact of around ECU 750 m, together with DR savings of ECU 3 m on the sectors other than those of Art. 7 of Re* 3813/92. C ISSN 0254-1475 COM(96) 267 final DOCUMENTS EN 113 Catalogue number : CB-CO-96-278-EN-C ISBN 92-78-05336-8 Office for Official Publications of the European Communities L-2985 Luxembourg