Budgetary discipline

In accordance with Article 10 of Regulation 2040/2000/EC, the Commission is presenting the budgetary authority with this report for the 2002 financial year on the impact on expenditure under Titles 1 to 3 of the EAGGF Guarantee Section of movements in the average euro/dollar exchange rate in the period 1 August 2001 to 31 July 2002 in relation to the rate used in the budget. The report contains information used to assess whether, on account of the impact of these changes, a transfer should be proposed to or from the monetary reserve and, if so, the relevant amount.�