31974L0637
20 . 12 . 74 Official Journal of the European Communities No L 341 /51
II
(Acts whose publication is not obligatory)
COUNCIL
COUNCIL DIRECTIVE of 17 December 1974 granting medium-term financial assistance to the Italian Republic
THE COUNCIL OF THE EUROPEAN Whereas, pursuant to Article 3 of Decision No COMMUNITIES , 71 / 143/EEC, it is necessary to determine the economic policy undertakings to be given by the recipient Member State, to comprise both immediate Having regard to the Treaty establishing the European stabilization measures relating especially to credit Economic Community, and in particular Article policy and public expenditure, and also medium-term 108 (2) thereof ; measures ; whereas the nature of such measures has been discussed in detail in the Monetary Committee ; Having regard to the recommendation submitted by the Commission, following consultation of the Mone Whereas the main objective of these measures must tary Committee ; be to enable the Italian Republic to achieve, in 1975, a surplus of at least US $ 1 000 million on its trade balance, leaving aside net imports of petroleum Whereas Council Decision No 71 / 143 / EEC of 22 products ; March 1971 setting up machinery for medium-term financial assistance, lays down that up to the ceilings specified in that Decision, Member States should Whereas the United Kingdom has declared that its make available medium-term credits in the form of present and foreseeable balance of payments diffi mutual assistance to a Member State in difficulties or culties prevent it from contributing towards financing seriously threatened with difficulties as regards its the assistance to the Italian Republic ; whereas the balance of payments, with the Council determining United Kingdom has declared that it is nevertheless the economic policy undertakings the recipient ready to continue renewable credits in favour of the Member State is required to give ; Banca d'ltalia of the same amount as those which it granted within the system of short-term monetary support, Whereas intensive consultations have been held in the Monetary Committee to discuss the economic situa tion of the Italian Republic ; whereas these consulta tions have shown that this Member State is facing real balance of payments difficulties which , if they HAS ADOPTED THIS DIRECTIVE : continue, could jeopardize the proper functioning of the common market ; whereas, in view of the present economic situation of the Italian Republic and the Article 1 state of its foreign exchange reserves, medium-term financial assistance is a particularly suitable method for countering these difficulties ; In accordance with Decision No 71 / 143/ EEC, the Italian Republic shall be given medium-term financial (') OJ No L 73 , 27. 3 . 1971 , p. 15. assistance on the terms set out below .
No L 341 /52 Official Journal of the European Communities 20 . 12 . 74
Article 2 2. The rate of increase in central government expenditure must not exceed 16% in the 1975 The amount of the financial assistance shall be calendar year. In addition, the central government 1 159-20 million units of account . shall take steps to ensure that other public authorities and the' social security institutions limit the growth of Member States' contributions to this assistance shall their expenditure in 1975 to a similar extent. be as follows : 3 . The deficit on treasury transactions must not million units of account exceed Lit 8 000 000 million in 1975. By treasury tran Germany 403-3 sactions are meant those listed in Annex . France 403-3 Belgium/Luxembourg 134-4 Netherlands 134-4 Article 7 Denmark 60-4 Ireland 23-4 1 . The discrepancy between central government current expenditure and revenue must be gradually eliminated over the next five years by measures to be Article 3 taken immediately by the Italian authorities .
The full amount of the assistance shall be made avail To this end : able to the Italian Republic on 18 December 1974. — the expenditure and number of semi-public bodies The loan shall be repaid in 1978 in four quarterly shall be restricted ; payments, the first falling due on 18 March 1978 . — direct taxation shall be increased and the The Italian Republic may repay all or part of the loan campaign against tax evasion stepped up ; in advance, giving three months' notice. — special efforts shall be made to improve adminis trative organization and to prevent the transfer of powers from central government to regional Article 4 authorities from leading to duplication of tasks . The amount shall be made available to the Italian 2. Over the next five years, monetary financing of Republic in United States dollars at the rate of treasury requirements must be gradually and substan $ 1-20635 per unit of account, applicable for the entire duration of the assistance . tially reduced .
The loan shall be granted at an interest rate of 3 . In public capital spending, priority shall be 7-5625 % . The interest shall be payable every six given to the development of public transport and months in arrears . increased use of national energy resources.
4. Saving shall be made in the consumption of Article 5 petroleum products for domestic use .
The assistance shall be granted subject to the condi 5. The competent authorities shall take the neces tions set out in Articles 6 and 7 relating to the sary steps, where appropriate using available Commu economic and monetary policy measures to be taken nity instruments, in particular the Social Fund , to by the Italian Republic. improve the operation of relocation services and the vocational training of workers .
Article 6 6. Special efforts shall be made to promote foreign investment in Italy, particularly in the Mezzogiorno. 1 . The increase in total lending must be kept below Lit 22 400 000 million in the 12 months to 31 March 7. Detailed plans for implementing the measures 1975. For the period from 1 April 1975 to 31 March 1976, this increase must not exceed Lit 24 700 000 provided for in this Aricle shall be communicated to million . the Commission by 30 June 1975.
By total lending is meant the financing of treasury Article 8 deficits (excluding financial assistance to financial intermediaries), loans granted by aziende di credito (banks) and specialized financial institutions and Acting on a recommendation from the Commission, bonds issued by undertakings and public authorities the Council shall, by 1 December 1975, adapt for the other than the treasury. following year the conditions laid down in Article 6 .
20 . 12 . 74 Official Journal of the European Communities No L 341 / 53
Article9¶
The Commission , in collaboration with the Monetary This Directive is addressed to the Member States . Committee, shall regularly check that the economic policy conditions laid down in Articles 6 and 7 are being respected . For this purpose, the Italian authori ties shall communicate to the Commission all the Done at Brussels, 17 December 1974 . necessary information . For the Council As regards the measures provided for in Article 6, intermediate objectives shall be jointly agreed during The President the year by the Italian authorities and the Commis sion . M. DURAFOUR
ANNEX
Treasury transactions referred to in Article 6
1 . Budgetary receipts 2 . Budgetary expenditure Budgetary deficit (1 — 2) 4. Extra-budgetary operations : — as appear in the balance sheet of the treasury — others 5 . Overall treasury cash deficit (3 4- 4) 6 . Operations of the Cassa Depositi e Prestiti (CDP) and autonomous public undertakings : — main outgoings of the CDP — net financing requirement of autonomous public undertakings 7 . Borrowing requirement (5 + 6)