13. 2. 88 Official Journal of the European Communities No L 40/25 COMMISSION REGULATION (EEC) No 411/88 of 12 February 1988 on the method and the rate of interest to be used for calculating the costs of- financing intervention measures comprising buying-in, storage and disposal THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic. Community, Having regard to. Council Regulation (EEC) No 1883/78 of 2 August 1978 laying down general rules for the finan- cing of interventions by the European Agricultural Guidance and Guarantee Fund, Guarantee Section (*), as last amended by Regulation (EEC) No 2095/87 (3, and in particular Article § thereof, Whereas the provisions concerning the calculation of the costs of financing - intervention measures comprising buying-in, storage and disposal, initially laid down in Commission Regulation (EEC) No 467/77 (%), as last amended by Regulation (EEC) No 331/87 (%), have been amended a number of times since their adoption; whereas, by reason of their number, complexity and dispersal among various issues of the Official Journal of the European Communities, the relevant texts are difficult to use and thus lack the clarity which should be an essen- tial feature of all legislation ; whereas they should there- fore be consolidated ; Whereas, under Article 4 (1) of Regulation (EEC) No 1883/78, an account is drawn up for each Member State and for each financial year showing the net losses sustained by the intervention agencies concerned ; Whereas these accounts include financing costs which are to be calculated by a method and at a rate of interest adopted in accordance with the procedure laid down in Article 13 of Council Regulation (EEC) No 729/70 (), as last amended by Regulation (EEC) No 3769/85 (5); Whereas the financing costs should be calculated accor- ding to a method which takes account of the volume of the stocks, of the different ways in which the goods are presented for intervention, of the depreciation of goods in storage since the beginning of the financial year and also of changes in the intervention prices of products during the financial year ; whereas this method should be easy to apply ; () OJ No L 216, 5. 8. 1978, p. 1. () OJ No L 196, 17. 7. 1987. () OJ No L 62, 8. 3. 1977, p. 9. () OJ No L 32, 3. 2. 1987, p. 10. () OJ No L 94, 28. 4. 1970, p. 13. () OF No L 362, 31. 12. 1985, p. 17. Whereas the interest rate must be representative of the cost of money prevailing in the Community ; Whereas, with a view to ensuring that the Community budget continues to be implemented under appropriate conditions, Regulation (EEC) No 1883/78 authorizes the Commission to fix the uniform interest rate at a level below its representative level for the 1986, 1987 and 1988 budget years ; whereas the budget year includes, for this type of expenditure, expenditure on material operations from 1 October of the previous year to 30 September ; whereas, in these circumstances, the interest rate has been reduced to 7 % ; - Whereas the second paragraph of Article 5 of Regulation (EEC) No 1883/78 empowered the Commission to fix the uniform interest rate at a lower level in the case of Member States which have interest costs below those which result from the application of the uniform interest rate for calculating financial costs ; whereas the uniform interest rate has been fixed at 7 % since 1 December 1985 ; whereas in comparison with the situation in 1985 the interest rates in two Member States fell below the uniform interest rate during 1986 ; whereas the specific interest rate to be applied in those Member States should be fixed; ‘ 7 Whereas Article 7 of ‘Council Regulation (EEC) No 1883/78 provides that where the products in quéstion experience a depreciation as a result of storage, the finan- cial effect thereof is to be recorded and taken into account at the time of entry into intervention ; whereas the basis for calculating the financing costs which are used in determining the net losses of the intervention ‘agencies is thereby changed ; whereas the corresponding depreciation must therefore be taken intc account when calculating the average value per tonne of the product ; Whereas, under the rules governing common market organizations, provision may be made for payment for a product bought in by an intervention agency to be effected only after a certain period ; whereas the method used for calculating interest charges should therefore be adjusted to take account of the period for payment where this is stipulated in the rules; Whereas, where payment for a product bought in by an intervention agency is effected after a certain period, the quantities to be used for the calculation of interest charges are to be reduced ; whereas it transpires that, as a