Council Regulation (EC) No 2799/98 (repealed)Show full title

Council Regulation (EC) No 2799/98

of 15 December 1998

establishing agrimonetary arrangements for the euro (repealed)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles 42 and 43 thereof,

Having regard to the proposal from the Commission(1),

Having regard to the opinion of the European Parliament(2),

Having regard to the opinion of the Economic and Social Committee(3),

Having regard to the opinion of the Monetary Committee(4),

(1) Whereas Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro(5) provides that from 1 January 1999 the currency of the Member States participating in economic and monetary union shall be the euro; whereas the agrimonetary arrangements provided for on the basis of:

• 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(6);

• Council Regulation (EC) No 1527/95 of 29 June 1995 regulating compensation for reductions in the agricultural conversion rates of certain national currencies(7);

• Council Regulation (EC) No 2990/95 of 18 December 1995 regulating compensation for appreciable reductions in the agricultural conversion rates before 1 January 1997(8);

• Council Regulation (EC) No 724/97 of 22 April 1997 determining measures and compensation relating to appreciable revaluations that affect farm incomes(9)

essentially consist in a system of specific agricultural conversion rates different from the actual exchange rates of the currencies; whereas such a system is incompatible with the introduction of the euro; whereas agrimonetary arrangements adapted to the new situation should therefore be established and the Regulations laying down the former agrimonetary arrangements should be repealed;

(2) Whereas in the present monetary situation, where the gaps between exchange rates and agricultural conversion rates are moderate, it is possible to establish a simpler agrimonetary system closer to the actual monetary situation; whereas consequently the conversion into the national currency of the non-participating Member States prices and amounts fixed in euro in legal instruments relating to the common agricultural policy may be done with the exchange rate of the euro in those currencies; whereas such a provision has the further advantage of considerably simplifying the management of the common agricultural policy;

(3) Whereas the rate of exchange of the euro into national currency may vary in the course of the period during which an operation is carried out; whereas the rate applicable to the amounts concerned must be determined; whereas in general account must be taken of the event through which the economic objective of the operation is attained; whereas the rate of exchange applied should be that of the date on which this event occurs; whereas it may be necessary to specify this operative event or to waive its application, observing certain criteria and in particular the rapidity with which currency movements are passed on;

(4) Whereas, in cases of major currency revaluation with potential effects on prices and amounts other than direct aid, farm incomes may in certain conditions be reduced; whereas as a consequence provision could justifiably be made for temporary, degressive aid to offset the effects of revaluations, and keep pace with the development of agricultural prices in a manner compatible with the rules of the general economy;

(5) Whereas specific rules adapted to the type of aid are required to offset the effects of major currency revaluations on the level of certain direct aids in national currency;

(6) Whereas the arrangements for financing compensatory aid must provide for a financial contribution from the European Union and the Member State;

(7) Whereas in the longer term the agricultural sector must adjust, like other sectors of the economy, to the monetary reality; whereas consequently a cut-off date should be set for the compensation arrangements; whereas the setting of such a cut-off date is part of the budgetary discipline;

(8) Whereas reason dictates that special rules be laid down for dealing with exceptional situations arising either within the European Union or on the world market and requiring immediate action to ensure that the arrangements established under the common agricultural policy operate effectively;

(9) Whereas a Member State that is not participating in economic and monetary union must have the option of making payments for expenditure resulting from legal instruments relating to the common agricultural policy in euro rather than in national currency; whereas steps should be taken to ensure that this option does not lead to any unjustified advantage for parties making or receiving payment;

(10) Whereas provision should be made for the possibility of interim measures to facilitate the introduction of the new agrimonetary arrangements,

HAS ADOPTED THIS REGULATION:

(1)

OJ C 224, 17. 7. 1998, p. 15.

(2)

OJ C 328, 26. 10. 1998.

(3)

Opinion delivered on 9 September 1998 (not yet published in the Official Journal).

(4)

Opinion delivered on 30 September 1998 (not yet published in the Official Journal).

(5)

OJ L 139, 11. 5. 1998, p. 1.

(6)

OJ L 387, 31. 12. 1992, p. 1. Regulation as last amended by Regulation (EC) No 150/95 (OJ L 22, 31. 1. 1995, p. 1).

(7)

OJ L 148, 30. 6. 1995, p. 1.

(8)

OJ L 312, 23. 12. 1995, p. 7. Regulation as amended by Regulation (EC) No 1451/96 (OJ L 187, 26. 7. 1996, p. 1).

(9)

OJ L 108, 25. 4. 1997, p. 9. Regulation as amended by Regulation (EC) No 942/98 (OJ L 132, 6. 5. 1998, p. 1).