Over the ERM's 14-year existence, 19 currency realignments have been required, most of these occurring in the early period. Indeed, there were no realignments between January 1987 and mid-1992.

Whereas Article 6 of Regulation (EEC) No 1677/85 provides for the gradual and automatic dismantlement of negative monetary gaps created between two realignments within the European Monetary System; whereas such dismantlement involves, in particular, the adjustment of the agricultural conversion rates in such a way as to eliminate, at the beginning of the marketing year which follows the realignement, 25 % of any newly created transferred monetary gaps; whereas, in accordance with paragraphs 3 and 4 of the said Article, the prices fixed in ecus and, as far as the need arises, the amounts fixed in ecus under the common agricultural polic ...[+++]y are reduced during the dismantling stage in question so as to neutralize the increase in prices in national currency which arises as a result of the adjustment of the agricultural conversion rates;

This substantial rise in agricultural spending is mainly due to the currency realignments of September and November 1992.

Referring to the budgetary situation Mr Steichen pointed out that, while sufficient financial resources were available for the implementation of agricultural policy in 1993, this may not be the case for 1994. This arises principally from the Council's recent decision to maintain the switch-over mechanism, contrary to the Commission's proposal, which directly impacts on agricultural expenditure, each time a currency realignment takes place.