Committee Reports::Report No. 06 - Fixing of Representative Conversion Rates in Agriculture and Use of the European Unit of Account in Common Agricultural Policy::19 April, 1978::Appendix


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Committee Reports > List of Committees > Joint > 1978 > Committee on the Secondary Legislation of the European Communities > Report No. 06 - Fixing of Representative Conversion Rates in Agriculture and Use of the European Unit of Account in Common Agricultural Policy

APPENDIX IV

DISTRIBUTION OF MCAs

Effect of a 10% change in the rates of exchange between snake and other Community currencies

(1) Under existing UA system

			Present MCAs	MCAs following 10% change	Difference
Germany	..	..	+ 7.5%	+ 7.5%	—
Belgium/Lux		..	+ 1.4%	+ 1.4%	—
Netherlands		..	+ 1.4%	+ 1.4%	—
Denmark	..	..	0	0	—
Ireland	..	..	– 2.1%	–13.6%	+11.5%
France	..	..	–19.4%	–32.8%	+13.4%
Italy	..	..	–24.4%	–38.4%	+14%
U.K.	..	..	–29.2%	–43.7%	+14.5%

(2) Under EUA system (hypothesis (ii))

			Present MCAs	MCAs following 10% change	Difference
Germany	..	..	+ 7.7%	+11.9%	+ 4.2%
Belgium/Lux		..	+ 1.1%	+ 5.7%	+ 4.6%
Netherlands		..	+ 0.9%	+ 5.4%	+ 4.5%
Denmark	..	..	– 0.4%	+ 4.2%	+ 4.6%
Ireland	..	..	– 3.6%	– 9.9%	+ 6.3%
France	..	..	–20.3%	–27.6%	+ 7.3%
Italy	..	..	–24.9%	–32.4%	+ 7.5%
U.K.	..	..	–30.7%	–38.5%	+ 7.8%

Note: The effect of the 10% movement under (1) is to increase the MCAs for the non-snake currencies by between 11·5 and 14·5 percentage points, while leaving the MCAs for the snake currencies unchanged. The effect under (2) is to increase the MCAs for the non-snake currencies by about half the movement under (1) while increasing the MCAs for the snake currencies by a little over 4 percentage points. Thus an EUA system spreads the consequences of currency fluctuation more evenly among all Community currencies.