91997E3819

WRITTEN QUESTION E-3819/97 by Viviane Reding (PPE) to the Council (28 November 1997)

Subject: Agricultural prices and monetary fluctuations after the introduction of the euro

After the introduction of the single currency in some of the Member States, what will happen to the meaures which compensate for losses caused by monetary fluctuations affecting intra-EU trade in agricultural products?

It is understood that such fluctuations will Longer exist de facto within the euro area. The problem concerns trade between those countries in the euro area and the 'pre-in' countries: will exports of agricultural products from the euro area to the 'pre-ins' still receive this compensation when there are monetary fluctuations outside the euro area?

What is the Council's opinion on this specific aspect of the consequences of the introduction of the euro on the common agricultural policy?

Answer (26 February 1998)

Council Regulation (EEC) No 3813/92 on the unit of account and the conversion rates to be applied for the purposes of the common agricultural policy (CAP), which has no time limit on its application, is the basic Council act governing compensation for losses caused by monetary fluctuations affecting intra-Community trade in agricultural products. However, in the case of compensation for loss of income caused by monetary fluctuations, the Council adopted Regulation (EC) No 724/97, which represents an exception to the aforementioned Regulation, in order to comply with its obligations under the GATT and those of budgetary discipline. That Regulation will remain in force until 30 April 1998.

The Council has not, as yet, received any Commission proposals to adjust the current legislation and shape the future agri-monetary environment. Consequently, the Council does not at the moment have enough information at its disposal to enable it to pronounce on the effects that any future monetary fluctuations might have on trade flows of agricultural products between the 'in' and 'pre-in' Member States, or between Member States which are not in the euro area from the outset.

The time to assess the foreseeable impact of the introduction of the euro on the CAP will be when the Council comes to discuss the adoption of the new legislation to be proposed by the Commission, after consultation of the European Parliament.

In view of the importance of this subject, the Council will devote particular attention to examining these proposals.