§ Mr. Deakinsasked the Chancellor of the Exchequer (1) what were the factors responsible for the conclusion of the European Economic Community Commissioners, reported to the October meeting of the Economic and Finance Council, that there would be a substantial overrun of agricultural expenditure in 1987; to what extent such extra expenditure would constitute a breach of the budgetary discipline agreement; and if he will make a statement;
(2) to what extent the European Economic Community Council's draft budget for 1987 takes account of the European Economic Community Commission's assessment that there will be a substantial overrun of agricultural expenditure in 1987.
§ Mr. BrookeThe Council's draft budget for 1987 makes provision for agricultural expenditure at the level of the budget discipline guideline; what happened at the October ECOFIN Council was that the Commission warned that, unless action is taken, actual expenditure is likely substantially to exceed the guideline figure. This assessment took a number of factors into account, including a further fall in the value of the United States dollar and recent agrimonetary changes. The next steps are for the Agriculture Council to take decisions on the Commission's existing proposals and for the Commission itself to put forward further proposals. Whether any additional expenditure would involve a breach of budget discipline would depend on whether there were genuinely exceptional circumstances which made such expenditure necessary.