Considerations on COM(2005)27 - Amendment of Regulation (EEC) No 1883/78 laying down general rules for the financing of interventions by the European Agricultural Guidance and Guarantee Fund, Guarantee Section - Main contents
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dossier | COM(2005)27 - Amendment of Regulation (EEC) No 1883/78 laying down general rules for the financing of interventions by the European ... |
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document | COM(2005)27 ![]() |
date | April 26, 2005 |
(2) | Article 5 of Regulation (EEC) No 1883/78 provides that the interest charges incurred by Member States for the purchase of intervention products are to be financed by the Community according to a uniform method and a uniform interest rate. |
(3) | It may appear that in a Member State the buying into public intervention of agricultural products can be financed only at interest rates which are substantially higher than the uniform interest rate. |
(4) | Where the difference between interest rates is more than twice the uniform interest rate for a given Member State, provision should be made for a correcting mechanism to be applied. That difference should nevertheless be partially borne by the Member State concerned in order to encourage it to seek the least costly financing method. |
(5) | Application of this mechanism should be temporary and, consequently, be carried out during the financial years 2005 and 2006. It should apply from the beginning of the current financial year, |