B4-0986, 1051, 1052, 1055, 1057 and 1065/95

Resolution on the agrimonetary system

The European Parliament,

-having regard to the Commission's answer of 22 June 1995 to the oral questions on the agrimonetary decisions of the Council,

-having regard to 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 and the Council decision of 22 June 1995,

-having regard to the decision of the Edinburgh European Council concerning action on any increases in expenditure related to the financing of the CAP, including any consequences of the evolution of the ECU/dollar exchange rate,

A.whereas monetary fluctuations can have serious effects on agricultural markets and farmers' incomes, and the reform of the agrimonetary regulation is raising anxieties concerning the future of the CAP in the context of agriculture in the Union,

B.whereas the Council's agrimonetary decisions enable Member States to grant national aids if farmers' incomes are reduced by currency fluctuations,

C.whereas neither farmers nor the CAP are in any way responsible for monetary fluctuations,

1.Takes note of the changes made to the agrimonetary system to safeguard farmers' incomes; calls on the Commission to make a detailed assessment of all the implications of the above Council decision and its financial impact on the Union's budget;

2.Regards the Council decisions of 22 June 1995 as liable to undermine the CAP and eventually renationalize the only Community policy, and stresses the need to preserve its fundamental Community-oriented principles;

3.Notes that the decisions are insufficient to compensate fully for the reduction in farmers' incomes as a result of currency fluctuations;

4.Calls on the Commission to ensure that such national aids do not distort markets and that Member States do not use them to increase their market shares unfairly in other Member States;

5.Calls on the Commission and the Council to ensure for the future that, for as long as the problem of monetary turbulence continues, the cost of monetary fluctuations will be financed by means of a separate budget heading from the one for the CAP, since such costs have nothing to do with agriculture and with farmers;

6.Considers that the problems created by monetary fluctuations cannot be resolved until monetary union is completed, and that a stable and equitable internal market can only be guaranteed if there is a genuine common economic policy;

7.Instructs its President to forward this resolution to the Commission, the Council and the governments of the Member States.