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DOCUMENTS CONCERNING THE ACCESSION OF THE KINGDOM OF SPAIN AND THE PORTUGUESE REPUBLIC TO THE EUROPEAN COMMUNITIES, ACT CONCERNING THE CONDITIONS OF ACCESSION OF THE KINGDOM OF SPAIN AND THE PORTUGUESE REPUBLIC AND THE ADJUSTMENTS TO THE TREATIES, ARTICLE 238
Official Journal L 302 , 15/11/1985 P. 0092
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Article 238
1 . If the application of the provisions of Article 236 in Portugal results in a price level different from that of the common prices , the prices in respect of which , in Section IV , reference is made to this Article shall , subject to paragraph 4 , be aligned on the common prices each year at the beginning of the marketing year in accordance with paragraphs 2 and 3 .
2 . Where the price of a product in Portugal is lower than the common price , the move towards alignment shall be made in seven stages , the price in Portugal , at the time of the first six moves towards alignment , being increased successively , by a seventh , a sixth , a fifth , a quarter , a third and a half of the difference between the price level in that Member State and the common price level which is applicable before each move towards alignment ; the price resulting from that calculation shall be increased or reduced proportionately to any rise or fall in the common price for the next marketing year ; the common price shall be applied in Portugal at the time of the seventh move towards alignment .
3 . ( a ) Where the price of a product in Portugal is higher than the common price , the price in that Member State shall be maintained at the level resulting from the application of Article 236 , the moves towards alignment resulting from the development of common prices during the seven years following accession .
However , the price in Portugal shall be adjusted to the extent necessary to avoid an increase in the variation between that price and the common price .
Furthermore , if the Portuguese prices , expressed in ECU , fixed under the previous national arrangements for the 1985/86 marketing year , lead to the variation existing for the 1984/85 marketing year between the Portuguese prices and the common prices being exceeded , the price in Portugal resulting from the application of the two preceding subparagraphs shall be reduced by an amount to be determined which is equivalent to a part of the excess , in such a way that the excess is absorbed in full at the latest at the beginning of the fifth marketing year following accession .
Without prejudice to point ( b ) , the common price shall be applied in Portugal at the time of the seventh move towards alignment .
( b ) At the end of the fifth year from the date of accession , the Council shall carry out an analysis of the development of moves towards price alignment . To that end , the Commission shall forward to the Council , within the framework of the reports referred to in Article 264 ( 2 ) ( c ) , an opinion together with , where appropriate , adequate proposals .
If this analysis shows :
- that the variation between Portuguese prices and common prices , while being too great to be absorbed over the period still to run for price alignment under paragraph 2 , can , nevertheless , seemingly be made up within a limited timespan , the period for price alignment initially laid down may be extended ; in that case , prices shall be maintained at their previous level in accordance with the rule set out in ( a ) above ,
- that the variation between Portuguese prices and common prices is too great to be made up solely by extending the period for price alignment initially laid down , it may be decided that , in addition to that extension , alignment shall be made by a progressive reduction in Portuguese prices , expressed in real terms , accompanied , if necessary , by indirect , temporary and degressive aid in order to alleviate the degressive effect of those prices . The burden of financing such aid shall fall upon the Portuguese budget .
The Council , acting by a qualified majority and on a proposal from the Commission after consulting the Assembly , shall adopt the measures referred to in the subparagraph .
4 . In the interests of the smooth functioning of the process of integration , it may be decided that , notwithstanding paragraph 2 , the price of one or more products in Portugal shall for one marketing year vary from the prices resulting from the application of that paragraph .
The variation may not exceed 10 % of the amount of the price move to be made .
In that event , the price level for the following marketing year shall be that which would have resulted from applying paragraph 2 if the variation had not been decided upon . A further variation from that price level may , however , be decided upon for that marketing year in accordance with the conditions in the first and second subparagraphs .
The derogation laid down in the first subparagraph shall not apply to the last move towards alignment referred to in paragraph 2 .
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