1. As a result of the method for fixing the agricultural conversion rate as from 1 January 1993 and the neutral margin of five points applying to the monetary differential amount, the value of the latter is always zero.
2. The monetary compensatory amounts that are calculated are reduced by a flat rate amount known as the neutral margin. This means that the monetary gap between Member States is not fully covered. Between two Member States, one with positive and other with negative MCA's, the neutral margins are cumulative. The purpose of the neutral margins is to avoid any overcompensation in the calculation of MCA's, although their flat rate nature makes this a rather approximate way of achieving this.
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