title: Recommendation for a COUNCIL DECISION authorizing the Commission to take part in the negotiations for the provisional accessions of Costa Rica, El Salvador, Guatemala and Honduras to the General Agreement on Tariffs and Trade (submitted by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 20
Vol. 1988/0004
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
l'ouverture au public des archives historiques de la Communauté économique européenne et de
la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
lieu par le règlement (UE) 2015/496 du Conseil du 17 mars 2015 (JO L79 du 25. 3.2015, p. 1), ce
dossier est ouvert au public. Le cas échéant, les documents classifiés présents dans ce dossier
ont été déclassifiés conformément à l'article 5 dudit règlement ou sont considérés déclassifiés
conformément aux articles 26(3) et 59(2) de la décision (UE, Euratom) 2015/444 de la
Commission du 13 mars 2015 concernant les règles de sécurité aux fins de la protection des
informations classifiées de l'Union européenne.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
the opening to the public of the historical archives of the European Economic Community and the
European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as last amended by Council
Regulation (EU) 2015/496 of 17 March 2015 (OJ L 79, 27.3.2015, p. 1), this file is open to the
public. Where necessary, classified documents in this file have been declassified in conformity
with Article 5 of the aforementioned regulation or are considered declassified in conformity with
Articles (26.3) and 59(2) of the Commission Decision (EU, Euratom) 2015/444 of 13 March 2015
on the security rules for protecting EU classified information.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in diesem Akt in
Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
sie auf Grundlage von Artikel 26(3) und 59(2) der Entscheidung der Kommission (EU, Euratom)
2015/444 vom      13.   März 2015     über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(88 ) 20 final
                                                  Brussels , 2 February 1988
                                Recommendation for a
                                  COUNCIL DECISION
authorizing the Commission to take part in the negotiations for the provisional
      accessions of Costa Rica , El Salvador , Guatemala and Honduras to the
                     General Agreement on Tariffs and Trade
                          ( submitted by the Commission )
 ---pagebreak---                              EXPLANATORY MEMORANDUM
Provisional accession to the GATT of Costa Rica , El Salvador ,
Guatemala and Honduras
1 . Applications for provisional accession to the General Agreement on
    Tariffs and Trade , pursuant to Article XXXIII thereof , were made by :
    - Costa Rica on the 15 June 1987
    - El Salvador on the 24 April 1987
    - Guatemala on the 14 May 1987
    - Honduras on the 30 April 1987
2 . Working parties for each application , membership of which is open to all
    contracting parties , are in the process of being established by the
    Council of GATT .
3 . The Community intends to enter into negotiations relating to these
    provisional applications for accession in order to ensure that its trade
    is not negatively affected by the rights these applicants will acquire
    through their provisional accession to the GATT .
4 . These countries are long standing beneficiaries of the Community 's
    Generalized System of Preference which offers duty free access to the
    Community for their industrial exports , within certain quantitative
    limits , and reduced tariffs for some processed agricultural exports . In
    addition the Community has signed in November 1985 an Economic
    co-operation Agreement with six countries party to the General treaty of
    Central American Economic Integration of which these countries are
    members . In the chapter on commercial co-operation , the signatories
    grant each other most-favoured nation treatment .
5 . In view of the above , the Commission proposes that the Council authorise
    it to enter into negotiations with Costa Rica , El Salvador , Guatemala
    and Honduras concerning their accession to GATT .
 ---pagebreak---                    Kl COMMI NI)A I I UN IIIK A CHIINI'II DM'IMIIN
THE COUNCIL OF THE EURÜPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 113 thereof ,
Having regard to the Recommendation from the Commission ,
Whereas Costa Rica , El Salvador , Guatemala and Honduras have submitted
applications for provisional accession to the General Agreement on Tariffs
and Trade ,
Whereas these reguests should be given a favourable response ,
HAS DECIDED AS F0LL0WS :
                                      Sole Article
The Commission is hereby authorised to take part in the negotiations for
the provisional accessions of Costa Rica , El Salvador , Guatemala and
Honduras to the General Agreement on Tariffs and Trade .
The Commission shall conduct these negotiations in consultation with the
Special Committee provided for in Article 113 of the Treaty , which will
assist it in this task .
                                                                  Done at Brussels ,
                                                                  For the Council
                                                                  The President


title: RECOMMENDATION FOR A COUNCIL DSCISION accepting the extension of the Long-term Arrangement regarding International Trade in Cotton Textiles (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1568
Vol. 1973/0271
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM(73 ) 1568 final ,
                                                      Brussels . 20 September 1973
                   RECOMMENDATION FOR A COUNCIL DSCISION
          accepting the extension of the Long-term Arrangement
             regarding International 'Trade in Cotton Textiles
                                                                         V
               ( submitted to the Council "by the Commission)
    COM(73 ) 1568 final
 ---pagebreak---                               EXPLANATORY MEKQRAinm
      At its meeting on 23/ 24 July 1?73 , the Council authorized the Commis
 sion to represent ; the Community in the negotiations on the extension of
 the Long-Tern Arrangement concerning the International Trade with
 cotton textiles ( LTA) from 30 September 1973 » "the date on which it is
currently due to expire , until 31 December 1973 *
      These negotiations were held on 31 July 1973 in Geneva within the
Cotton Textiles Committee , which was set up "by the Arrangenent , and re
sulted in a unanimous recommendation from the Committee that the Arrange
ment be extended until 31 December 1973t The Committee also approved
the suggestion by the Director-General of GATT that , in order to simplify
the extension procedure , each party to the LTA should send him a letter
referring to the recommendation from the Cotton Textiles Committee and
informing him that it accepted the extension .
      The Commission considers that this extension of the LTA is in the
Community T s interests , and therefore recommends the Council to accept
it by adopting the annexed Decision *
      It is not necessary for the Member States also to accept this exten
sion of the LTA . It is true that most Member States-although not all -
became at oiie time or another parties to the LTA , which entered into force
on 1 October 1962 . However , all the provisions of this Arrangement come
under the common commercial policy and hence participation therein has
since the end of the transitional period , been the sole responsibility
of the Comniinity .
 ---pagebreak---                     REC GMMENDATI ON FOR A COUNCIL LECISIOIT
            'accepting the extension of the Long-terra Arrangement
                regarding International Trade in Cotton Textiles
 THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic C omnunity ,
 and in particular Article 113 thereof ^
 Having regard to the proposal from the Corxiission ,
 Whereas the negotiations within the Cotton Textiles Committee between the
 European Economic
/Community and the other contracting parties to the Long-term Arrangement
 regarding International Trade in Cotton Textiles resulted in the recommen
 dation that the contracting parties accept the extension until 31 December
 1973 of that Arrangement , and whereas this recommendation should be acted
 uponj
 HAS DECIDED AS FOLLOWS i
                                   Article 1
 The .extension until 31 December 1973 of. "the Long-term Arrangement regarding
 International Trade in Cotton Textiles is hereby accepted on behalf of the
 European Economic Community .
                                   Article 2
 The President of the Council shall designate the person empowered to sign the
 annexed declaration of acceptance , and shall confer on him the powers re
 quired in order to bind the Community .
                                                Done at Brussels ,
                                                For the Council
 ---pagebreak---                                                         AOTJEX
The Director-General ,
Dear Sir ,
     Further to the decision of the Cotton Textiles Committee at its nee-
ting on 31 July 1973 to recommend that the Arrangement of 1 October 1962
regarding International Trade in Cotton Textiles , which is due to expire
on 30 September 1973 in accordance with the provisions of Article 14
thereof , "be extended until 31 December 1973 » I have the honour to inform
you that the European Economic Community accepts this extension .


Important legal notice

|

52006SC0787

Recommendation for a Council Decision abrogating Decision 2005/184/EC on the existence of an excessive deficit in Cyprus  /* SEC/2006/0787 final */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 21.6.2006SEC(2006) 787 finalRecommendation for aCOUNCIL DECISIONabrogating Decision 2005/184/EC on the existence of an excessive deficit in Cyprus(presented by the Commission)EXPLANATORY MEMORANDUM1. INTRODUCTIONArticle 104 of the Treaty establishes that Member States should avoid excessive deficits and lays down a procedure for their identification and correction. This excessive deficit procedure (EDP) is further specified in Council Regulation (EC) No 1467/97 on “speeding up and clarifying the implementation of the excessive deficit procedure”[1], which is part of the Stability and Growth Pact.According to the Protocol on the excessive deficit procedure annexed to the Treaty, the Commission provides the data for the implementation of the EDP. As part of the application of this Protocol, Member States have to notify data on government deficits and debt and other associated variables twice a year, namely before 1 April and before 1 October, in accordance with Article 4 of Council Regulation (EC) No 3605/93[2].On 7 April 2004, the Commission published its forecasts of spring 2004[3]. According to these forecasts, which took into consideration data reported by the Cypriot government in March 2004, the general government deficit in Cyprus increased from above 4½% of GDP in 2002 to about 6¼% of GDP in 2003, thus exceeding the 3% of GDP Treaty reference value. The Commission report also concluded that the debt-to-GDP ratio, which had reached 72¼% of GDP in 2003, would further deviate from the 60% reference value of the Treaty to above 74½% of GDP in 2004. Based on this evidence, the Commission initiated the excessive deficit procedure for Cyprus on 12 May 2004, with the adoption of the report foreseen in Article 104(3) of the Treaty[4]. On 24 May 2004, the Cypriot authorities submitted the Convergence Programme covering the period 2004-2007, which confirmed a deficit figure of about 6¼% of GDP for 2003 and projected a debt-to-GDP ratio of 75¼% of GDP for 2004. Having taken into account all the relevant factors in this report and the opinion of the Economic and Financial Committee in accordance with Article 104(4), the Commission adopted an Opinion (in accordance with Article 104(5)) on 24 June 2004 stating that an excessive deficit existed in Cyprus. On 5 July 2004, the Council adopted a Decision[5] to that effect, in accordance with Article 104(6).At the same time, the Council adopted an Opinion on the Convergence Programme of Cyprus of 24 May in accordance with Council Regulation (EC) No 1466/97[6] of 7 July 1997, and a Recommendation addressed to Cyprus in conformity with Article 104(7) of the Treaty with a view to bringing the situation of an excessive government deficit to an end.2 . RECOMMENDATIONS UNDER THE EDPThe Council recommended the Cypriot government “to put an end to the present deficit situation as rapidly as possible” . Specifically, it was recommended “to implement with vigour the measures envisaged in the May 2004 convergence programme; in particular, to take effective action by 5 November 2004 in order to achieve their objective of bringing the deficit below 3% of GDP in 2005 in a credible and sustainable manner, as specified in the Council Opinion of 5 July 2004 on the convergence programme submitted in May 2004” . The Council also recommended “the Cypriot authorities to ensure that the rise in the debt ratio is brought to a halt in 2004 and reversed thereafter as specified in the Council Opinion on the convergence programme” .In making recommendations for the correction of the excessive deficit, the Council invited the Cypriot authorities "to ensure that budgetary consolidation towards the medium term budgetary position of close to balance or in surplus is sustained after the excessive deficit has been corrected" .On 22 December 2004 the Commission concluded[7] that the Cyprus government had taken effective action regarding the measures envisaged to achieve the 2005 deficit target, by the deadline of 5 November, in response to the Council recommendation, of which the Council took note on 18 January 2005.According to Article 104(12), a Council decision on the existence of an excessive deficit is to be abrogated, on the basis of a Commission recommendation, when the excessive deficit in the Member State concerned has, in the view of the Council, been corrected.3 . DEFICIT DEVELOPMENTS UNTIL 2005The April 2006 EDP notification (which was submitted on 22 March 2006 and published by Eurostat on 24 April 2006) estimated the general government deficit in 2005 at 2.4% of GDP (table 1). This outcome compares with the target of 2.9% of GDP in the Convergence Programme of May 2004, confirmed by the 2005 Budget Law approved by the Parliament in December 2004, and with the 2.5% target of the latest Convergence Programme update which was submitted on 14 December 2005. According to the 2005 budget, the adjustment was to be achieved through both revenue increases and expenditure restraint. Revenue measures were a mix of structural (VAT tax rates were revised upward in line with the acquis in May 2004 having a full year impact in 2005) and one-off measures (a tax amnesty that has allowed for the collection of additional revenues amounting to ¾ of a percentage point in 2004 and almost 1% in 2005). Nominal expenditure growth was restricted through a ceiling on the nominal growth rate of current and capital expenditures, the containment of current transfers and subsidies in line with inflation and an increase in the retirement age of public sector employees. The better-than-expected outcome occurred on the back of a high tax content of growth, which was almost fully based on domestic consumption, and was accompanied by sustained employment growth. Revenues from the tax amnesty also turned out higher than expected. In addition, the 2004 deficit outcome (slightly above 4% of GDP) was below the figure projected by the end of 2004 (about 4¾% of GDP) when the 2005 budget was approved. The deficit outcome could have been even better had part of such base-year effects and additional revenues not been offset by expenditure overruns. Although the cap on wages was broadly respected and capital expenditures actually fell in nominal terms, social transfers increased to 13%.Table 1: Budgetary developments 2003-2005 (as % of GDP) |Outturn | 2003 | 2004 | 2005 |General government balance | -6.3 | -4.1 | -2.4 |- Total revenue | 39.1 | 39.7 | 42.3 |Of which: current taxes | 26.2 | 25.6 | 26.9 |social contributions | 7.1 | 7.8 | 8.4 |- Total expenditure | 45.3 | 43.8 | 44.7 |Of which: collective consumption | 10.9 | 9.9 | 10.0 |transfers in kind | 9.0 | 8.2 | 8.3 |transfers other than in kind | 11.4 | 12.2 | 12.9 |interest expenditure | 3.4 | 3.2 | 3.4 |gross fixed capital formation | 3.4 | 4.1 | 3.2 |Primary balance | -2.8 | -0.9 | 1.0 |Pm Tax burden | 33.2 | 33.4 | 35.3 |Pm Cyclically-adjusted balance (1) 1 | -6.1 | -3.9 | -2.1 |Pm One-offs (2) | 1.8 | 1.0 | 0.9 |Pm Structural balance (1-2)1 | -7.9 | -4.9 | -3.0 |Pm Structural primary balance 1 | -4.4 | -1.7 | 0.4 |Pm Real GDP 1 (annual percentage change) | 1.9 | 3.9 | 3.8 |Interest expenditure and balances include swaps in line with the definitions used in the excessive deficit procedure. Total revenues and total expenditures are in line with the harmonised definitions as in ESA95. 1 Commission services’ spring 2006 economic forecast. Source: Commission services. |Overall, the deficit improved in 2005 by almost 4% points of GDP compared with 2003 and by 1¾% points of GDP compared with 2004. Temporary revenues accounted by around 1% of GDP in both 2004 and 2005. The primary balance was brought into the positive for the first time since 2002. Specifically, the primary surplus of 1% of GDP in 2005 compares with the primary deficits of 3% and 1% in 2003 and 2004, respectively. Measured by the estimated change in the structural balance (the cyclically-adjusted balance net of one-offs and other temporary measures), the improvement in the government balance implied a fiscal effort of almost 5 percentage points of GDP between 2003 and 2005, when the structural deficit attained almost 8% and 3% of GDP respectively.4. BUDGETARY PROSPECTS FOR 2006 AND BEYONDAccording to the Commission services’ spring 2006 forecast, the general government deficit for 2006 is projected to be just above 2% of GDP (table 2), or about ¼ of a percentage point of GDP higher than the official target. The difference is mainly explained by a more optimistic growth scenario in the official projections provided by Cyprus. According to the 2005 convergence programme update, GDP would grow at 4.2% this year, while the Commission services’ spring 2006 forecast project GDP to grow at 3.8%. The primary surplus is projected to remain at 1% of GDP since the reduction in the general government deficit compared with the 2005 outcome (just above ¼% of GDP) would just mirror the projected reduction in interest payments.Table 2: Projections for general government finances (as % of GDP) |2005 | 2006 | 2007 |CP | Comm. | CP | Comm. (1) |General government balance | -2.4 | -1.9 | -2.1 | -1.8 | -2.0 |- Total revenue | 42.3 | 41.9 | 41.8 | 41.9 | 41.8 |Of which: current taxes | 26.9 | 26.9 | 26.9 | 27.0 | 26.8 |social contributions | 8.4 | 8.1 | 8.1 | 8.1 | 8.1 |- Total expenditure | 44.7 | 43.8 | 43.9 | 43.7 | 43.8 |Of which: - collective consumption | 10.0 | 9.5 | 9.8 | 9.0 | 9.8 |- transfers other than in kind | 12.9 | 11.4 | 11.4 | 11.5 | 11.4 |- interest expenditure | 3.4 | 3.1 | 3.1 | 3.0 | 3.0 |- gross fixed capital formation | 3.2 | 3.4 | 3.4 | 3.4 | 3.4 |Primary balance | 1.0 | 1.2 | 1.0 | 1.2 | 1.0 |Pm Cyclically-adjusted balance (1) | -2.1 | -1.8 | -1.9 | -1.8 | -2.0 |Pm One-offs (2) | 0.9 | 0.3 | 0.3 | 0.3 | 0.3 |Pm Structural balance(1-2) | -3.0 | -2.1 | -2.2 | -2.1 | -2.3 |Pm Structural primary balance | 0.4 | 1.0 | 0.9 | 0.9 | 0.7 |Pm Real GDP (annual percentage change) | 3.8 | 4.2 | 3.8 | 4.2 | 3.8 |Sources: April 2006 EDP notification for 2005, the December 2005 update of the convergence programme (CP), and the Commission services’ spring 2006 forecast (Comm.). Cyclically adjusted and structural balances for the CP calculated by Commission services on the basis of inputs given in the programme (difference with Comm. reflects different macro-economic scenarios). Total revenues and total expenditures of the CP have been increased by 1.9% points of GDP, in line with the harmonised definitions as in ESA95. (1) Under the customary no-policy-change scenario. |Once one-offs and other temporary measures are netted out from the cyclically-adjusted balance, the structural improvement would amount to about ¾ of a percentage point of GDP, and situate the structural deficit at around 2¼% in 2006. The projected level of the structural deficit achieves the minimum annual improvement of at least ½% of GDP set by the Stability and Growth Pact, and points to a credible and sustainable correction of the excessive deficit, which is confirmed by the budgetary projections for 2007 in the Commission services’ spring 2006 forecasts. Under the customary no-policy-change scenario, and taking account of one-off revenues of slightly above ¼ of a percentage point of GDP, the structural balance is projected to remain broadly unchanged at around 2¼% of GDP. The lack of improvement in the structural balance in 2007 reflects the anticipated deterioration of Cyprus' net position vis-à-vis the EU budget, as temporary compensating grants associated with accession to the EU are terminated in 2006.According to the Council Opinion[8] on the updated convergence programme of Cyprus for 2005-2009, the measures planned by the Cypriot authorities over the programme period would further consolidate public finances until 2009, when the deficit would approach ½% of GDP. After reaching ¾% of GDP in 2005, the primary surplus is projected to rise gradually to 1¾% of GDP in 2009. The structural deficit would decrease from around 3% of GDP in 2005 to about ½% of GDP by 2009[9], representing an improvement of more than ½% of GDP per year on average. Based on the estimated outturn for 2005 and taking account of the balance of risks to the budgetary targets, the budgetary stance in the programme seems sufficient to ensure that the medium-term objective (MTO) identified by the Cypriot authorities is almost reached by 2009, as envisaged in the programme. In the years following the correction of the excessive deficit, the pace of adjustment towards the programme’s MTO implied by the programme would show progress towards close-to-balance, which in turn would be at an appropriate level[10] as it would lie within the range indicated for euro area and ERM II Member States in the Stability and Growth Pact and its Code of Conduct[11]. Furthermore, it is also the Council’s opinion that the budgetary strategy outlined in the programme would provide a sufficient safety margin against breaching the 3% of GDP threshold with normal macroeconomic fluctuations from 2008 onward.5 . GOVERNMENT DEBTIn 2005, the gross government debt-to-GDP ratio decreased to 70¼%, from 71¾ in 2004, on the back of the recorded primary surplus and high growth, the debt-reducing effects of which were partially offset by the accumulation of financial assets in the form of deposits in sinking funds with the Central Bank (table 3).According to the 2006 Budget Law, the debt-to-GDP ratio is expected to further decline to 67% in 2006. The Commission services’ spring 2006 forecasts also foresee a reduction, though a smaller one, in the debt-to-GDP ratio, from 70¼% of GDP in 2005 to 69% in 2006. The difference between the Commission forecast and the Budget Law can be explained by different projections of the primary balance and nominal GDP growth (different projections of the snow-ball effect), and the fact that the Commission forecasts do not include the debt-reducing effects of the decumulation of sinking funds (if they did, this would bring the projection down to about 68% of GDP). On the basis of known policies, the Commission services project the debt-to-GDP ratio to further decline to 67¾% of GDP in 2007. Mainly on the back of the envisaged decumulation of sinking funds, the 2005 update of the convergence programme projects further reductions of the debt-to-GDP ratio starting from 64% in 2007 to 57% in 2008 and 53½% in 2009. The above-mentioned Council Opinion on the convergence programme concludes that, given the balance of risks in the programme, the debt ratio seems to be sufficiently diminishing towards the 60% of GDP reference value.Table 3: Debt dynamics |2003 | 2004 | 2005 | 2006 | 2007 |6. CONCLUSIONSThe general government deficit decreased from 4.1% of GDP in 2004 to 2.4% in 2005, below the 3% of GDP reference value. The measures underlying the deficit reduction are mainly of a permanent nature. The structural balance, i.e. the cyclically-adjusted balance net of one-off and other temporary measures, is estimated to have improved by almost 2% points of GDP. According to the Commission services’ spring 2006 forecast, the headline deficit is expected to narrow to 2¼% of GDP in 2006 and, on a no-policy-change basis, to 2% in 2007. This suggests that the deficit has been brought below the 3% of GDP ceiling in a credible and sustainable manner.General government gross debt declined from 71¾% of GDP in 2004 to 70¼ % in 2005 and can be considered to be sufficiently diminishing towards the 60% of GDP reference value. According to the Commission services’ spring 2006 forecast, albeit still remaining above the 60% of GDP reference value, the debt ratio is expected to fall further to around 69% and 68% of GDP in 2006 and 2007 respectively (on a no-policy-change basis).From this overall assessment, it can be concluded that the excessive deficit situation in Cyprus has been corrected. Accordingly, the Commission recommends that the Council abrogate its decision on the existence of an excessive deficit in Cyprus.Recommendation for aCOUNCIL DECISIONabrogating Decision 2005/184/EC on the existence of an excessive deficit in CyprusTHE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 104(12) thereof,Having regard to the recommendation from the Commission,Whereas:1.  By Council Decision 2005/184/EC[12], following a recommendation from the Commission in accordance with Article 104(6) of the Treaty, it was decided that an excessive deficit existed in Cyprus.2.  In accordance with Article 104(7) of the Treaty and Article 3(4) of Regulation (EC) No 1467/97, the Council made a Recommendation on 5 July 2004 addressed to Cyprus with a view to bringing the excessive deficit situation to an end by 2005 at the latest. The recommendation was made public. Specifically, it was recommended to implement with vigour the measures envisaged in the May 2004 convergence programme; in particular, to take effective action by 5 November 2004 in order to bring deficit below 3% of GDP in 2005 in a credible and sustainable manner. The Council also recommended ensuring that the rise in the debt ratio is brought to a halt in 2004 and reversed thereafter. The Council invited the Cypriot authorities to ensure that budgetary consolidation towards the MTO is sustained after the excessive deficit has been corrected.3.  In accordance with Article 104(12) of the Treaty, a Council Decision on the existence of an excessive deficit is to be abrogated when the excessive deficit in the Member State concerned has, in the view of the Council, been corrected.4.  According to the Protocol on the excessive deficit procedure annexed to the Treaty, the Commission provides the data for the implementation of the procedure. As part of the application of this Protocol, Member States have to notify data on government deficits and debt and other associated variables twice a year, namely before 1 April and before 1 October, in accordance with Article 4 of Council Regulation (EC) No 3605/93 of 22 November 1993 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community[13].5.  Based on data provided by the Commission (Eurostat) according to Article 8g of Regulation (EC) No 3605/93 following the notification by Cyprus before 1 April 2006 and on the Commission services’ spring 2006 forecast, the following conclusions are warranted:6.  The general government deficit was reduced from 4.1% of GDP in 2004 to 2.4% of GDP in 2005, which is below the 3%-of-GDP deficit reference value. This compares with a target of 2.9% of GDP set in the May 2004 update of the convergence programme and with the 2.5% target of the latest Convergence Programme update of December 2005. The reduction below the reference value in 2005 is in line with the Recommendation under Article 104(7). Fiscal adjustment was pursued in 2005 through both revenue increases and expenditure restraint. Although some one-off measures helped reduce the deficit, the budgetary consolidation in Cyprus was achieved mainly through structural measures. The structural deficit (the cyclically adjusted deficit net of one-off and other temporary measures) fell to 3% of GDP, compared to almost 5% and 8% of GDP in 2004 and 2003 respectively.7.  For 2006, the Commission services’ spring 2006 forecast projects the deficit to be reduced further, to 2¼% of GDP, largely through measures of a structural nature. This is slightly above the official deficit target of 1.9% of GDP set in the December 2005 update of the convergence programme. For 2007, the spring forecast projects, on a no-policy-change basis, a further decline in the deficit to 2% of GDP. This suggests that the deficit has been brought below the 3% of GDP ceiling in a credible and sustainable manner, as required by the Recommendation under Article 104(7);8.  Government debt declined from 71¾% of GDP in 2004 to 70¼% in 2005. According to the Commission services’ spring 2006 forecast, the debt ratio is projected to fall further to around 69% and 68% of GDP in 2006 and 2007 respectively. The pace of debt reduction towards the 60 % of GDP reference value is in line with the Recommendation under Article 104(7);9.  According to the Council Opinion of 14 March 2006 on the updated convergence programme of Cyprus, 2005-2009, the measures planned by the Cypriot authorities over the programme period would bring the structural deficit to about ½% of GDP by 2009, which is considered the medium-term objective chosen by the Cypriot authorities. Based on the estimated outturn for 2005 and taking account of the balance of risks to the budgetary targets, the budgetary stance in the programme seems sufficient to ensure that the programme’s MTO is almost reached by 2009, as envisaged in the programme. In the years following the correction of the excessive deficit, the pace of adjustment towards the programme’s MTO implied by the programme is broadly in line with the Stability and Growth Pact.10.  Decision 2005/184/EC should therefore be abrogatedHAS ADOPTED THIS DECISION:Article 1From an overall assessment it follows that the excessive deficit situation in Cyprus has been corrected.Article 2Decision 2005/184/EC is hereby abrogated.Article 3This Decision is addressed to the Republic of Cyprus.Done at Brussels, 11 July 2006.For the CouncilThe President [1] OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174, 7.7.2005, p. 5).[2] OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regulation (EC) No 2103/2005 (OJ L 337, 22.12.2005, p. 1).[3] The Commission Spring 2004 forecast is available at the following website: http://europa.eu.int/comm/economy_finance/publications/european_economy/2004/ee204en.pdf.[4] The full text of this report is available at the following website: http://europa.eu.int/comm/economy_finance/about/activities/sgp/country/edp/edprep2004_cy.pdf[5] Council Decision 2005/184/EC published on 9.3.2005 in the Official Journal: OJ L062, p.19[6] OJ L 209, 2.8.1997, p.1.Regulationas amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p.1)[7] http://europa.eu.int/comm/economy_finance/about/activities/sgp/edp/comm_comm_22_dec_en.pdf[8] Council Opinion: http://register.consilium.eu.int/pdf/en/06/st07/st07380.en06.pdf. Technical assessment: http://europa.eu.int/comm/economy_finance/about/activities/sgp/country/commwd/cy/com_cy20052006.pdf[9] Council Opinion: http://register.consilium.eu.int/pdf/en/06/st07/st07380.en06.pdf.Technical assessment: http://europa.eu.int/comm/economy_finance/about/activities/sgp/country/commwd/cy/com_cy20052006.pdf[10] The medium-term budgetary objective may diverge from close-to-balance or in surplus for individual Member States. For euro area and ERM2 Member States, there would thus be in range between – 1 % of GDP and balance or surplus, in cyclically adjusted terms, net of one-off and temporary measures.[11] Council Regulations (EC) No 1466/97 - OJ L 209, 2.8.1997, p.1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p.1) - and (EC) No 1467/97 - OJ L 209, 2.8.1997, p.6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174, 7.7.2005, p.5) - and the Resolution of the European Council on the Stability and Growth Pact of 7 July 1997. The Code of conduct can be found athttp://europa.eu.int/comm/economy_finance/about/activities/sgp/codeofconduct_en.pdf[12] OJ L 62, 9.3.2005, p. 19.[13] OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regulation (EC) No 2103/2005 (OJ L 337, 22.12.2005, p. 1).


Recommendation for a Council Decision concerning exchange rate matters relating to the Cape Verde escudo


title: Recommendation for a COUNCIL DECISION concerning the extension of the adaptations to the voluntary restraint agreements between the European Economic Community and Bulgaria, the Czech and Slovak Federal Republic, Hungary, and Poland on trade in mutton, lamb and goatmeat

text:
COMMISSION OF THE EUROPEAN COMMUNITIES
                                           C0M(92) 536 final
                                           Brussels, 7  December 1992
                          Recommendation for a
                            C0UNÇIU PEdStQN
      concerning the extension of the adaptations to the voluntary
      restraint agreements between the European Economic Community
     and Bulgaria, the Czech and Slovak Federal Republic, Hungary,
            and Poland on trade in mutton, lamb and goatmeat.
                     (presented by the Commission)
 ---pagebreak---                                     _ A fc^ -
                          EXPLANATORY   MEMORANDUM
1.  The existing adaptations to the voluntary restraint agreements
    (VRAs) between the European Economic Community and Bulgaria, the
    Czech and Slovak Federal Republic, Hungary and Poland, on trade In
    sheepmeat and goatmeat are due to expire on 31 December 1992. The
    adaptations to the basic VRAs with respect to these countries were
    put in place in 1990. They provide for Import quantities to the
    Community at 0% levy, Instead of 10%, the observance of the
    traditional quantities during the sensitive periods and a price
    survei Nance procedure.
2.  As regards the Czech and Slovak Federal Republic, Hungary and
    Poland the attention is drawn to the changes that were introduced
     In the VRA's by the Interim Agreements on Trade and trade-related
    matters with these countries. By virtue of the latter Agreements
    which entered Into force on 1.3.92, the products and the quantities
     in the VRA's have been amended (See article 14 (4) O.J. Annex Xb of
    the Agreements with Hungary and Poland and article 14 (4) O.J.
    annex XII lb of the Agreement with the Czech and Slovak Federal
    Republic). But the continuing suspension of the levy at 0% is
    dependant upon the prolongation of the adaptations of the VRA's.
3.  As It is now clear that the GATT Uruguay Round Negotiations will
    not be completed in time to permit the application of the new
    multilateral framework for agricultural trade to enter into effect
    before 1 January 1994, It is necessary to provide for interim
    access    arrangements   for   sheepmeat   and  goatmeat  for  1993.
    Therefore,ion the Commission's recommendation, the Council decided
    on ... 19912 to authorise the Commission to open negotiations with
    the third) countries, including Bulgaria, the Czech and Slovak
    Federal Republic, Hungary and Poland, with whom the Community has
    concluded [a voluntary restraint agreement In the sheepmeat and
    goatmeat sector.
4.  Negotiations have been concluded with Bulgaria, Czech and Slovak
    Federal Republic, Hungary and Poland on the extension of the
    adaptations of the VRAs to provide for the extension for one year
    necessary    interim access arrangements for 1993. The proposed
    agreements with these countries for 1993 provide for the extension
    of the current adaptations.
5.  The Council is hereby asked to approve the agreements in the form
    of the exchanges of letters annexed hereto and to designate the
    person empowered to sign the agreements In order to bind the
    Community.
Small and Medium Enterprises : No competitive or cost Impact for small
                                 and medium enterprises.
Financial impact : No financial Impact on Community budget.
 ---pagebreak---                                        4h
                            Recommendation for a
                            COUNCIL  DECISION
                               of
      concerning the extension of the adaptations to the voluntary
      restraint agreements between the European Economic Community
      and Bulgaria, the Czech and Slovak Federal Republic, Hungary
            and Poland on trade in mutton, lamb and goatmeat.
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the          European  Economic
Community, and in particular Article 113 thereof,
Having regard to the recommendation from the Commission,
Whereas the voluntary restraint agreements between the European
Economic Community and Bulgaria, the Czech and Slovak Federal Republic,
Hungary and Poland on trade in mutton, lamb and goatmeat were adapted
in 1990 in the context of measures taken to stabilise the markets in
this sector;
Whereas the said adaptations shall cease to have effect on 31 December
1992;
Whereas it is necessary to provide for interim arrangements for trade
in the sheepmeat and goatmeat sectors pending the conclusion of the
negotiations regarding agricultural trade in the framework of the
General Agreement on Tariffs and Trade;
Whereas it is appropriate in these circumstances to extend the
adaptations to the said voluntary restraint agreements for one year;
Whereas the effect of the implementation of the Single Market from
1 January 1993 should be taken into account;
Whereas the Commission has conducted negotiations in this connection
with Bulgaria, the Czech and Slovak Federal Republic, Hungary and
Poland which have resulted in Agreements;
Whereas the Agreements should be approved;
HAS DECIDED AS FOLLOWS :
                                Article 1
The Agreements in the form of Exchanges of Letters between the European
Economic Community and Bulgaria, the Czech and Slovak Federal Republic,
Hungary and Poland concerning the extension of the adaptations to the
voluntary restraint agreements between the European Economic Community
and Bulgaria, the Czech and Slovak Federal Republic, Hungary and Poland
on trade in mutton, lamb and goatmeat are hereby approved on behalf of
the European Economic Community.
The texts of the Agreements are attached to this Decision.
 ---pagebreak---                                  - 2-
                               Article 2
The President of the Council is hereby authorised to designate the
person empowered to sign the Agreements in order to bind the Community.
This Decision shall be published     in the Official     Journal of the
European Communities.
Done at Brussels,
                                         For the CounciI
                                        The President
 ---pagebreak---                                  AGREEMENT
 in the form of an Exchange of Letters extending the adaptation to the
            Agreement between the European Economic Community
                        and the Republic of Bulgaria
                       on trade in mutton, lamb and goatmeat.
                                LETTER No 1
Sir,
I have the honour to refer to the 1990 Exchange of Letters constituting
an Agreement between the Community and the Republic of Bulgaria
adapting the Principal Agreement concluded in 1982 between the
Community and the Republic of Bulgaria on trade in mutton, lamb and
goatmeat.
Further to recent discussions, I have the honour to propose that the
Agreement set out in the above Exchange of Letters shall continue in
force from 31 December 1992 subject to the following amendment :
     in paragraph 6 of the Agreement the words : "until 31 December
     1993" shall be substituted for the words, "until 31 December 1992".
I have the honour to propose, that if the foregoing is acceptable to
your Government, this letter and your confirmatory reply shall together
constitute an Agreement between the Community and the Government of the
Republic of Bulgaria on the matter.
Please accept, Sir, the assurances of my highest consideration.
                                         On behalf of the
                                 Council of the European Communities
 ---pagebreak---                                LETTER No 2
Sir,
I have the honour to acknowledge receipt of your letter of today's date
which reads as follows :
"I have the honour to refer to the 1990 Exchange of Letters
constituting an Agreement between the Community and the Republic of
Bulgaria adapting the Principal Agreement concluded in 1982 between the
Community and the Republic of Bulgaria on trade in mutton, lamb and
goatmeat.
Further to recent discussions, I have the honour to propose that the
Agreement set out in the above Exchange of Letters shall continue in
force from 31 December 1992 subject to the following amendment :
     in paragraph 6 of the Agreement the words         "until 31 December
     1993" shall be substituted for the words, "until 31 December 1992".
 I have the honour to propose, that if the foregoing is acceptable to
your Government, this letter and your confirmatory reply shall together
constitute an Agreement between the Community and the Government of the
Republic of Bulgaria on the matter."
 I have the honour to confirm that my Government     is in agreement with
the contents of your letter.
Please accept, Sir, the assurances of my highest consideration.
                                        On behalf of
                        the Government of the Republic of Bulgaria
 ---pagebreak---                                         .s
                                 AGREEMENT
 in the form of an Exchange of Letters extending the adaptation to the
            Agreement between the European Economic Community
                 and the Czech and Slovak Federal Republic
                       on trade in mutton, lamb and goatmeat.
                                LETTER No 1
Sir,
I have the honour to refer to the 1990 Exchange of Letters constituting
an Agreement between the Community and the Czech and Slovak Federal
Republic adapting the Principal Agreement concluded in 1982 between the
Community and the Czech and Slovak Federal Republik on trade in mutton,
lamb and goatmeat.
Further to recent discussions, I have the honour to propose that the
Agreement set out in the above Exchange of Letters shall continue in
force from 31 December 1992 subject to the following amendment :
     in paragraph 6 of the Agreement the words : "until 31 December
     1993" shall be substituted for the words, "until 31 December 1992".
I have the honour to propose, that if the foregoing is acceptable to
your Government, this letter and your confirmatory reply shall together
constitute an Agreement between the Community and the Government of the
Czech and Slovak Federal Republic on the matter.
Please accept, Sir, the assurances of my highest consideration.
                                          On behalf of the
                                 Council of the European Communities
 ---pagebreak---                                 LETTER No 2
Sir ,
I have the honour to acknowledge receipt of your letter of today's date
which reads as follows :
"I have the honour to refer to the 1990 Exchange of Letters
constituting an Agreement between the Community and the Czech and
Slovak Federal Republic adapting the Principal Agreement concluded in
1982 between the Community and the Czech and Slovak Federal Republic on
trade in mutton, lamb and goatmeat.
Further to recent discussions, I have the honour to propose that the
Agreement set out in the above Exchange of Letters shall continue in
force from 31 December 1992 subject to the following amendment :
      in paragraph 6 of the Agreement the words : "until 31 December
     1993" shall be substituted for the words, "until 31 December 1992".
I have the honour to propose, that if the foregoing is acceptable to
your Government, this letter and your confirmatory reply shall together
constitute an Agreement between the Community and the Government of the
Czech and Slovak Federal Republic on the matter."
 I have the honour to confirm that my Government     is in agreement with
the contents of your letter.
Please accept, Sir, the assurances of my highest consideration.
                                         On behalf of
              the Government of the Czech and Slovak Federal Republik
 ---pagebreak---                                  AGREEMENT
 in the form of an Exchange of Letters extending the adaptation to the
            Agreement between the European Economic Community
                        and the Republic of Hungary
                      on trade in mutton, lamb and goatmeat.
                                LETTER No 1
Sir,
I have the honour to refer to the 1990 Exchange of Letters constituting
an Agreement between the Community and the Republic of Hungary adapting
the Principal Agreement concluded in 1981 between the Community and the
Republic of Hungary on trade in mutton, lamb and goatmeat.
Further to recent discussions, I have the honour to propose that the
Agreement set out in the above Exchange of Letters shall continue in
force from 31 December 1992 subject to the following amendment :
     in paragraph 6 of the Agreement the words        "until 31 December
     1993" shall be substituted for the words, "until 31 December 1992".
I have the honour to propose, that if the foregoing is acceptable to
your Government, this letter and your confirmatory reply shall together
constitute an Agreement between the Community and the Government of the
Republic of Hungary on the matter.
Please accept, Sir, the assurances of my highest consideration.
                                         On behalf of the
                                 Council of the European Communities
 ---pagebreak---                                LETTER No 2
Sir ,
I have the honour to acknowledge receipt of your letter of today's date
which reads as follows :
"I have the honour to refer to the 1990 Exchange of Letters
constituting an Agreement between the Community and the Republic of
Hungary adapting the Principal Agreement concluded in 1981 between the
Community and the Republic of Hungary on trade in mutton, lamb and
goatmeat.
Further to recent discussions, I have the honour to propose that the
Agreement set out in the above Exchange of Letters shall continue in
force from 31 December 1992 subject to the following amendment :
      in paragraph 6 of the Agreement the words       "until 31 December
     1993" shall be substituted for the words, "until 31 December 1992".
 I have the honour to propose, that if the foregoing is acceptable to
your Government, this letter and your confirmatory reply shall together
constitute an Agreement between the Community and the Government of the
Republic of Hungary on the matter."
 I have the honour to confirm that my Government    is in agreement with
the contents of your letter.
Please accept, Sir, the assurances of my highest consideration.
                                        On behalf of
                     the Government of the Republic of Hungary
 ---pagebreak---                                         3
                                 AGREEMENT
 in the form of an Exchange of Letters extending the adaptation to the
            Agreement between the European Economic Community
                         and the Republic of Poland
                       on trade in mutton, iamb and goatmeat.
                                LETTER No 1
Sir,
I have the honour to refer to the 1990 Exchange of Letters constituting
an Agreement between the Community and the Republic of Poland adapting
the Principal Agreement concluded in 1981 between the Community and the
Republic of Poland on trade in mutton, lamb and goatmeat.
Further to recent discussions, I have the honour to propose that the
Agreement set out in the above Exchange of Letters shall continue in
force from 31 December 1992 subject to the following amendment :
     in paragraph 7 of the Agreement the words        "until 31 December
     1993" shall be substituted for the words, "until 31 December 1992".
I have the honour to propose, that if the foregoing is acceptable to
your Government, this letter and your confirmatory reply shall together
constitute an Agreement between the Community and the Government of the
Republic of Poland on the matter.
Please accept, Sir, the assurances of my highest consideration.
                                         On behalf of the
                                 Council of the European Communities
 ---pagebreak---                                       >
                               LETTER No 2
Sir,
I have the honour to acknowledge receipt of your letter of today's date
which reads as follows :
"I have the honour to refer to the 1990 Exchange of Letters
constituting an Agreement between the Community and the Republic of
Poland adapting the Principal Agreement concluded in 1981 between the
Community and the Republic of Poland on trade in mutton, lamb and
goatmeat.
Further to recent discussions, I have the honour to propose that the
Agreement set out in the above Exchange of Letters shall continue in
force from 31 December 1992 subject to the following amendment :
     in paragraph 7 of the Agreement the words        "until 31 December
     1993" shall be substituted for the words, "until 31 December 1992".
I have the honour to propose, that if the foregoing is acceptable to
your Government, this letter and your confirmatory reply shall together
constitute an Agreement between the Community and the Government of the
Republic of Poland on the matter."
 I have the honour to confirm that my Government    is in agreement with
the contents of your letter.
Please accept, Sir, the assurances of my highest consideration.
                                        On behalf of
                      the Government of the Republic of Poland
 ---pagebreak---                                                ^ '
                                                                       ISSN 0254-1475
                                                                COM(92) 536 final
                                                       DOCUMENTS
EN                                                                                03
                                 Catalogue number : CB-CO-92-555-EN-C
                                                              ISBN 92-77-50529-X
Office for Officiai Publications of tiie European Communities
L-2985 Luxembourg


title: RECOMMANDATION FOR COUNCIL DECISION on the definition and conversion of the unit of account used for expressing amounts in the EEC-ACP Lomé Convention. (submitted by the Commission to the Council)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 102
Vol. 1975/9007
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---                                                       COM(75)102 final
                                                      Brussels , 5 March 1975
                   RECOMMANDATION FOR COUNCIL DECISION
                on the definition and conversion of the unit of account
      used for expressing amounts in the EEC-ACP Lomé Convention .
       ( submitted by the Commission to the Council )
COM/75/102 final
 ---pagebreak---                       EXPLANATORY MEMORANDUM
 In connection with Article 42 of the EEC - ACP Convention signed in Lome
on 28th February 1975 » the Community adopted, a declaration , of which the
ACP States took note , in which it undertook to adopt , as rapidly as pos
sible and certainly before the said Convention came into force , a defi
nition of the European unit of aocount in which all the amounts of aid
mentioned in the Convention would be expressed .
This is the purpose of this Council decision , the content of which is to
be communicated to the ACP States .
In view of the present situation of the international monetary system ,
the choice of a unit of account raises certain problems •    The   system of
gold parities has gradually been abandoned and has given way to a system
of central rates « This system itself has'been partly discontinued by most
 States *
In these circumstances it is no longer possible , as in the previous EDF
to use a unit of account based on a parity grid . The value of the unit of
account must rather be linked to a currency, or the average value of some
set of currencies . The International Monetary Fund was faced with a similar
proMem concerning the valuation of Special Drawing Rights and the solution
was to base their value on a standard    basket of currencies .
A solution of this kind based on a basket of European currencies has proved
feasible in several sectors of Community activity , and» in particular! has
met   the specific requirements of the European Development Fund .
A decision of the Council of Governors of the European Investment Bank
must be made on the l8th March concerning the conversion rates for the unit
of account for the Bank for the various national currencies especially so
that last year 's balance sheet can be established . If the "basket " solution
is adopted for the European Development Fund , it would be appropriate to
adopt the same solution for the EIB in its own procedures .
 ---pagebreak---               RECOMMANDATION FOR
      COUNCIL DECISION EEC No . . . . A 5
on the definition and conversion of the unit of account used for
expressing amounts in the EEC-ACP Lome Convention .
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the recommendation of the Commission}
Having regard to the opinion of the Monetary Committee of 4"th March 1975 »
Whereas at the signing of the EEC-ACP Lome Convention on 28th February
1975 "the Community declared that the Council should have the right to
decide on a definition for a European unit of acoount for application
in the Convention
Whereas the unit of account has been constructed so as to have an inital
value on 28    June 1974 that corresponds to the value fixed "by the
International Monetary Fund for the SDR .
Whereas the unit of account must represent an average value of the evolution
of the currencies of the Community , to assure the ACP state that the
amount of aid will be linked to the average performance of the currencies
of the Member States
 ---pagebreak--- HAS ADOPTED THIS DECISION
Article 1
         The amounts given in the EEC-ACP Lome Convention or used in the
application of this Convention are expressed in units of account which
are made up of a basket of currencies of the Member States of the Euro
pean Communities .
         This unit of account is defined as the sum of the following amounts
in Member States currencies :
        DM           0.828         HF1          0.286
        h ster       0.0885        ®«Fr         3.66
        FF           1.15          Lux Fr       0.I4
         Lit       109             Dkr          0.217
                                   Irish &      O.OO759
Article 2
        The value of the unit of account in a national currency is equal
to the sum of the equivalents in that currency of these amounts . It is
calculated by the Commission using daily market exchange rates .
        Daily values of the unit of account in various national currencies
will be made available , and will be published periodically in the Official
Journal of the' European Communities .


Recommendation for a COUNCIL DECISION concerning the conclusion of an agreement on certain oilseeds between the European Economic Community and the United States of America within the framework of the GATT