Introductory text

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EEC) No 1883/78 of 2 August 1978 laying down general rules for the financing of interventions by the European Agricultural Guidance and Guarantee Fund, Guarantee Section^f1, and in particular Article 5 thereof,

Whereas:

The third subparagraph of Article 5 of Regulation (EEC) No 1883/78 provides that, where the average rate of interest costs borne by a Member State in respect of intervention measures is more than twice the uniform interest rate determined for the Community, the Commission may finance those interest costs, during the budget years 2005 and 2006, by applying the uniform rate of interest plus the difference between double that rate and the actual rate borne by that Member State.

In order to determine the interest rate to be taken into consideration for the Member States concerned, the method to be applied during 2005 and 2006 should be specified in Commission Regulation (EEC) No 411/88^f2.

Where a Member State fails to communicate to the Commission the average rate of interest costs that it has borne, the Commission will apply a specific reference rate, determined on the basis of the representative reference interest rates in the Member States.

Following the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia on 1 May 2004, this reference rate should also take account of the representative reference rates for each of them. Those rates should therefore be defined on the same terms as for the other Member States.

Regulation (EEC) No 411/88 should be amended accordingly.

The measures provided for in this Regulation are in accordance with the opinion of the Fund Committee,

HAS ADOPTED THIS REGULATION: