31.12.77 OfficialJournaloftheEuropeanCommunities NoL359/1
TREATY
AMENDING CERTAINFINANCIAL PROVISIONS OFTHETREATIES
ESTABLISHING THEEUROPEAN ECONOMIC COMMUNITIES
ANDOFTHETREATYESTABLISHING
ASINGLECOUNCILANDASINGLECOMMISSION
OFTHEEUROPEAN COMMUNITIES

NoL359/2 OfficialJournaloftheEuropeanCommunities 31.12.77
HISMAJESTYTHEKINGOFTHEBELGIANS ,
HERMAJESTYTHEQUEENOFDENMARK ,
THEPRESIDENT OFTHEFEDERALREPUBLICOFGERMANY ,
THEPRESIDENT OFTHEFRENCHREPUBLIC ,
THEPRESIDENT OFIRELAND,
THEPRESIDENT OFTHEITALIANREPUBLIC ,
HISROYALHIGHNESSTHEGRANDDUKEOFLUXEMBOURG ,
HERMAJESTYTHEQUEENOFTHENETHERLANDS ,
HERMAJESTYTHEQUEENOFTHEUNITEDKINGDOMOFGREATBRITAINAND
NORTHERN IRELAND,
HAVINGregardtoArticle96oftheTreatyestablishingtheEuropeanCoalandSteel
Community,
HAVINGregardtoArticle236oftheTreatyestablishingtheEuropeanEconomicCommunity,
HAVINGregardtoArticle204oftheTreatyestablishingtheEuropeanAtomicEnergy
Community,
WHEREAS ^,asof1January1975,thebudgetoftheCommunities isfinancedentirelyfromthe
Communities 'ownresources;
WHEREASthecompletereplacementoffinancialcontributions ofMemberStatesbythe
Communities'ownresourcesrequiresastrengthening ofthebudgetarypowersoftheAssembly;
WHEREAS,forthesamereasons,theimplementation ofthebudgetshouldbemoreclosely
supervised,
HAVEDECIDEDtoamendcertainfinancialprovisionsoftheTreatiesestablishingthe
EuropeanCommunitiesandoftheTreatyestablishingasingleCouncilandasingleCommission
oftheEuropeanCommunities ,andtothisendhavedesignatedastheirPlenipotentiaries :
HisMajestytheKingoftheBelgians:
R.VANELSLANDE ,
MinisterforForeignAffairsandforCooperationwiththeDevelopingCountries;
HerMajestytheQueenofDenmark :
NielsERSB0LL,
AmbassadorExtraordinary andPlenipotentiary ,
PermanentRepresentative totheEuropeanCommunities ;

31.12.77 OfficialJournaloftheEuropeanCommunities NoL359/3
ThePresidentoftheFederalRepublicofGermany:
Hans-Dietrich GENSCHER ,
FederalMinisterforForeignAffairs;
ThePresidentoftheFrenchRepublic:
Jean-MarieSOUTOU,
AmbassadorofFrance,
PermanentRepresentative totheEuropeanCommunities ;
ThePresidentofIreland:
GarretFITZGERALD ,
MinisterforForeignAffairs;
ThePresidentoftheItalianRepublic:
MarianoRUMOR, '
MinisterforForeignAffairs,
President-in-Office oftheCounciloftheEuropeanCommunities ;
HisRoyalHighnesstheGrandDukeofLuxembourg :
JeanDONDELINGER ,
AmbassadorExtraordinary andPlenipotentiary ,
PermanentRepresentative totheEuropeanCommunities ;
HerMajestytheQueenoftheNetherlands :
L.J.BRINKHORST ,
StateSecretaryforForeignAffairs;
HerMajestytheQueenoftheUnitedKingdomofGreatBritainandNorthernIreland:
SirMichaelPALLISER,KCMG,
AmbassadorExtraordinary andPlenipotentiary ,
PermanentRepresentative totheEuropeanCommunities ;
WHO,havingexchangedtheirFullPowers,foundingoodanddueform,
HAVEAGREEDASFOLLOWS :

NoL359/4 OfficialJournaloftheEuropeanCommunities 31.12.77
CHAPTER I
PROVISIONS AMENDING THETREATYESTABLISHING THEEUROPEAN COALAND
STEELCOMMUNITY
Article1
AfterArticle7oftheTreatyestablishingthe
EuropeanCoalandSteelCommunitythefollowing
subparagraph isadded:
'TheauditshallbecarriedoutbyaCourtof
Auditorsactingwithinthelimitsofthepowers
conferreduponitbythisTreaty.'4.Thedraftadministrative budgetshallbe
placedbeforetheAssemblynotlaterthan5
Octoberoftheyearprecedingthatinwhichthe
budgetistobeimplemented .
TheAssemblyshallhavetherighttoamendthe
draftadministrative budget,actingbyamajority
ofitsmembersandtoproposetotheCouncil,
actingbyanabsolutemajorityofthevotescast,
modifications tothedraftbudgetrelatingto
expenditurenecessarilyresultingfromthisTreaty
orfromactsadoptedinaccordancetherewith.
If,within45daysofthedraftadministrative
budgetbeingplacedbeforeit,theAssemblyhas
givenitsapproval,theadministrative budget
shallstandasfinallyadopted.Ifwithinthis
periodtheAssemblyhasnotamendedthedraft
administrative budgetnorproposedany
modifications thereto,theadministrative budget
shallbedeemedtobefinallyadopted.
IfwithinthisperiodtheAssemblyhasadopted
amendmentsorproposedmodifications ,thedraft
administrative budgettogetherwiththe
amendmentsorproposedmodifications shallbe
forwardedtotheCouncil.
5.Afterdiscussingthedraftadministrative
budgetwiththeHighAuthorityand,where
appropriate,withtheotherinstitutionsconcerned,
theCouncilshallactunderthefollowing
conditions :
(a)theCouncilmay,actingbyaqualified
majority,modifyanyoftheamendments
adoptedbytheAssembly;
(b)withregardtotheproposedmodifications :
—whereamodificationproposedbythe
Assemblydoesnothavetheeffectof
increasingthetotalamountofthe
expenditureofaninstitution,owing
inparticulartothefactthattheincrease
inexpenditurewhichitwouldinvolve
wouldbeexpresslycompensatedbyone
ormoreproposedmodifications
correspondingly reducingexpenditure ,the
Councilmay,actingbyaqualified
majority,rejecttheproposedmodifica­
tion.Intheabsenceofadecisiontoreject
it,theproposedmodificationshallstand
asaccepted,Article2
Article78oftheTreatyestablishingtheEuropean
CoalandSteelCommunity isreplacedbythe
following :
'Article78
1.Thefinancialyearshallrunfrom1January
to31December .
Theadministrative expenditure ofthe
Communityshallcomprisetheexpenditureofthe
HighAuthority,includingthatrelatingtothe
functioningoftheConsultativeCommittee,and
thatoftheAssembly,theCouncil,andofthe
CourtofJustice.
2.EachinstitutionoftheCommunityshall,
before1July,drawupestimatesofits
administrative expenditure .TheHighAuthority
shallconsolidatetheseestimatesinapreliminary
draftadministrative budget.Itshallattachthereto
anopinionwhichmaycontaindifferentestimates.
Thepreliminarydraftbudgetshallcontainan
estimateofrevenueandanestimateof
expenditure .
3.TheHighAuthorityshallplacethe
preliminarydraftadministrative budgetbeforethe
Councilnotlaterthan1Septemberoftheyear
precedingthatinwhichthebudgetistobe
implemented .
TheCouncilshallconsulttheHighAuthority
and,whereappropriate,theotherinstitutions
concernedwheneveritintendstodepartfromthe
preliminarydraftbudget.
TheCouncilshall,actingbyaqualifiedmajority,
establishthedraftadministrative budgetand
forwardittotheAssembly.

31.12.77 OfficialJournaloftheEuropeanCommunities NoL359/5
—whereamodificationproposedbythe
Assemblyhastheeffectofincreasingthe
totalamountoftheexpenditureofan
institution,theCouncilmay,actingbya
qualifiedmajority,acceptthisproposed
modification .Intheabsenceofadecision
toacceptit,theproposedmodification
shallstandasrejected,
—where,inpursuanceofoneofthetwo
precedingsubparagraphs ,theCouncilhas
rejectedaproposedmodification ,itmay,
actingbyaqualifiedmajority,either
retaintheamountshowninthedraft
administrative budgetorfixanother
amount .
Thedraftadministrative budgetshallbemodified
onthebasisoftheproposedmodifications
acceptedbytheCouncil.
If,within15daysofthedraftadministrative
budgetbeingplacedbeforeit,theCouncilhasnot
modifiedanyoftheamendmentsadoptedbythe
Assemblyandifthemodifications proposedby
thelatterhavebeenaccepted,theadministrative
budgetshallbedeemedtobefinallyadopted.The
CouncilshallinformtheAssemblythatithasnot
modifiedanyoftheamendmentsandthatthe
proposedmodificationshavebeenaccepted.
IfwithinthisperiodtheCouncilhasmodifiedone
ormoreoftheamendmentsadoptedbythe
Assemblyorifthemodificationsproposedbythe
latterhavebeenrejectedormodified,the
modifieddraftadministrative budgetshallagain
beforwardedtotheAssembly.TheCouncilshall
informtheAssemblyoftheresultsofits
deliberations .
6."Within15daysofthedraftadministrative
budgetbeingplacedbeforeit,theAssembly,
whichshallhavebeennotifiedoftheactiontaken
onitsproposedmodification ,may,actingbya
majorityofitsmembersandthree-fifthsofthe
votescast,amendorrejectthemodificationstoits
amendmentsmadebytheCouncilandshalladopt
theadministrative budgetaccordingly .Ifwithin
thisperiodtheAssemblyhasnotacted,the
administrative budgetshallbedeemedtobe
finallyadopted.
7.Whentheprocedureprovidedforinthis
Articlehasbeencompleted,thePresidentofthe
Assemblyshalldeclarethattheadministrative
budgethasbeenfinallyadopted.
8.However,theAssembly,actingbya
majorityofitsmembersandtwo-thirdsofthe
votescast,may,ifthereareimportantreasons,rejectthedraftadministrative budgetandaskfor
anewdrafttobesubmittedtoit.
9.Amaximumrateofincreaseinrelationto
theexpenditureofthesametypetobeincurred
duringthecurrentyearshallbefixedannuallyfor
thetotalexpenditureotherthanthatnecessarily
resultingfromthisTreatyorfromactsadoptedin
accordancetherewith .
TheHighAuthorityshall,afterconsultingthe
EconomicPolicyCommittee,declarewhatthis
maximumisasitresultsfrom:
—thetrend,intermsofvolume,ofthegross
nationalproductwithintheCommunity ,
—theaveragevariationinthebudgetsofthe
MemberStates,
and
—thetrendofthecostoflivingduringthe
precedingfinancialyear.
Themaximumrateshallbecommunicated ,
before1May,toalltheinstitutionsofthe
Community .Thelattershallberequiredto
conformtothisduringthebudgetaryprocedure,
subjecttotheprovisionsofthefourthandfifth
subparagraphs ofthisparagraph.
If,inrespectofexpenditureotherthanthat
necessarilyresultingfromthisTreatyorfromacts
adoptedinaccordancetherewith,theactualrate
ofincreaseinthedraftadministrative budget
establishedbytheCouncilisoverhalfthe
maximumrate,theAssemblymay,exercisingits
rightofamendment,furtherincreasethetotal
amountofthatexpendituretoalimitnot
exceedinghalfthemaximumrate.
WheretheAssembly,theCouncilortheHigh
Authorityconsidersthattheactivitiesofthe
Communities requirethattheratedetermined
accordingtotheprocedurelaiddowninthis
paragraphshouldbeexceeded,anotherratemay
befixedbyagreementbetweentheCouncil,
actingbyaqualifiedmajority,andtheAssembly,
actingbyamajorityofitsmembersand
three-fifthsofthevotescast.
10.Eachinstitutionshallexercisethepowers
conferreduponitbythisArticle,withdueregard
fortheprovisionsofthisTreatyandforacts
adoptedinaccordancetherewith,inparticular
thoserelatingtotheCommunities'ownresources
andtothebalancebetweenrevenueand
expenditure .
11.Finaladoptionoftheadministrative budget
shallhavetheeffectofauthorizingandrequiring
theHighAuthoritytocollectthecorresponding
revenueinaccordancewiththeprovisionsof
Article49.'

NoL359/6 OfficialJournaloftheEuropeanCommunities 31.12.77
Article3
InArticle78aoftheTreatyestablishingtheEuropean
CoalandSteelCommunity ,'78f'isreplacedby'78h\
Article4
Article78boftheTreatyestablishingtheEuropean
CoalandSteelCommunity isreplacedbythe
following :Article5
InArticle78coftheTreatyestablishingtheEuropean
CoalandSteelCommunity ,'78f'isreplacedby'78h'.
Article6
Article78doftheTreatyestablishingtheEuropean
CoalandSteelCommunity isreplacedbythe
following:
'Article78d
TheHighAuthorityshallsubmitannuallytothe
CouncilandtotheAssemblytheaccountsofthe
precedingfinancialyearrelatingtothe
implementation oftheadministrativebudget.The
HighAuthorityshallalsoforwardtothema
financialstatementoftheassetsandliabilitiesof
theCommunityinthefieldcoveredbythat
budget.'
Article7
Article78eoftheTreatyestablishingtheEuropean
CoalandSteelCommunity isreplacedbythe
following:
'Article78e
1.ACourtofAuditorsisherebyestablished .
2.TheCourtofAuditorsshallconsistofnine
members.
3.ThemembersoftheCourtofAuditorsshall
bechosenfromamongpersonswhobelongor
havebelongedintheirrespectivecountriesto
externalauditbodiesorwhoareespecially
qualifiedforthisoffice.Theirindependencemust
bebeyonddoubt.
4.ThemembersoftheCourtofAuditorsshall
beappointedforatermofsixyearsbythe
Council,actingunanimouslyafterconsultingthe
Assembly.
However,whenthefirstappointments aremade,
fourmembersoftheCourtofAuditors,chosen
bylot,shallbeappointedforatermofofficeof
fouryearsonly.
ThemembersoftheCourtofAuditorsshallbe
eligibleforreappointment .
TheyshallelectthePresidentoftheCourtof
Auditorsfromamongtheirnumberforatermof
threeyears.ThePresidentmaybere-elected.
5.ThemembersoftheCourtofAuditorsshall,
inthegeneralinterestoftheCommunity ,be
completelyindependentintheperformanceof
theirduties.'Article78b
1.If,atthebeginningofafinancialyear,the
administrative budgethasnotyetbeenvoted,a
sumequivalenttonotmorethanone-twelfthof
thebudgetappropriations forthepreceding
financialyearmaybespenteachmonthinrespect
ofanychapterorothersubdivisionofthe
administrative budgetinaccordancewiththe
provisionsoftheRegulationsmadepursuantto
Article78h;thisarrangementshallnot,however,
havetheeffectofplacingatthedisposalofthe
HighAuthorityappropriations inexcessofone
twelfthofthoseprovidedforinthedraft
administrative budgetincourseofpreparation .
TheHighAutorityisauthorizedandrequiredto
imposetheleviesuptotheamountofthe
appropriations fortheprecedingfinancialyear,
butshallnottherebyexceedtheamountwhich
wouldhaveresultedfromtheadoptionofthe
draftadministrative budget.
2.TheCouncilmay,actingbyaqualified
majority,providedthattheotherconditionslaid
downinparagraph 1areobserved,authorize
expenditure inexcessofone-twelfth .The
authorization andrequirementtoimposethe
leviesmaybeadjustedaccordingly .
Ifthedecisionrelatestoexpenditurewhichdoes
notnecessarilyresultfromthisTreatyorfrom
actsadoptedinaccordancetherewith,theCouncil
shallforwarditimmediatelytotheAssembly;
within30daystheAssembly,actingbyamajority
ofitsmembersandthree-fifthsofthevotescast,
mayadoptadifferentdecisionontheexpenditure
inexcessoftheone-twelfth referredtoin
paragraph1.Thispartofthedecisionofthe
CouncilshallbesuspendeduntiltheAssemblyhas
takenitsdecision.Ifwithinthesaidperiodthe
Assemblyhasnottakenadecisionwhichdiffers
fromthedecisionoftheCouncil,thelattershall
bedeemedtobefinallyadopted.'

31.12.77 OfficialJournaloftheEuropeanCommunities NoL359/7
Intheperformanceoftheseduties,theyshall
neitherseeknortakeinstructionsfromany
governmentorfromanyotherbody.Theyshall
refrainfromanyactionincompatiblewiththeir
duties.
6.ThemembersoftheCourtofAuditorsmay
not,duringtheirtermofoffice,engageinany
otheroccupation,whethergainfulornot.When
enteringupontheirdutiestheyshallgiveasolemn
undertakingthat,bothduringandaftertheirterm
ofoffice,theywillrespecttheobligationsarising
therefromandinparticulartheirdutytobehave
withintegrityanddiscretionasregardsthe
acceptance,aftertheyhaveceasedtoholdoffice,
ofcertainappointmentsorbenefits.
7.Apartfromnormalreplacement ,ordeath,
thedutiesofamemberoftheCourtofAuditors
shallendwhenheresigns,oriscompulsorily
retiredbyarulingoftheCourtofJusticepursuant
toparagraph8.
Thevacancythuscausedshallbefilledforthe
remainderofthemember'stermofoffice.
Saveinthecaseofcompulsoryretirement,
membersoftheCourtofAuditorsshallremainin
officeuntiltheyhavebeenreplaced.
8.AmemberoftheCourtofAuditorsmaybe
deprivedofhisofficeorofhisrighttoapension
orotherbenefitsinitssteadonlyiftheCourtof
Justice,attherequestoftheCourtofAuditors,
findsthathenolongerfulfilstherequisite
conditionsormeetstheobligationsarisingfrom
hisoffice.
9.TheCouncil,actingbyaqualifiedmajority,
shalldeterminetheconditionsofemploymentof
thePresidentandthemembersoftheCourtof
Auditorsandinparticulartheirsalaries,
allowancesandpensions.Itshallalso,bythe
samemajority,determineanypaymenttobe
madeinsteadofremuneration .
10.TheprovisionsoftheProtocolonthe
privilegesandimmunitiesoftheEuropean
Communities applicabletotheJudgesofthe
CourtofJusticeshallalsoapplytothemembers
oftheCourtofAuditors.'
Article8
Article78foftheTreatyestablishingtheEuropean
CoalandSteelCommunity isreplacedbythe
following:
'Article78f
1.TheCourtofAuditorsshallexaminethe
accountofalladministrative expenditureandadministrative revenueoftheCommunity ,
includingtherevenuefromthetaxforthebenefit
oftheCommunityleviedonthesalaries,wages
andemoluments ofofficialsandotherservantsof
thelatter.Itshallalsoexaminetheaccountsofall
revenueandexpenditureofallbodiessetupby
theCommunity insofarastherelevant
constituentinstrumentdoesnotprecludesuch
examination .
2.TheCourtofAuditorsshallexamine
whetherallrevenuereferredtoinparagraph1has
beenreceivedandallexpenditurereferredtoin
thatparagraphhasbeenincurredinalawfuland
regularmannerandwhetherthefinancial
managementhasbeensound.
Theauditofrevenueshallbecarriedoutonthe
basisbothoftheamountsestablishedasdueand
theamountsactuallypaidtotheCommunity .
Theauditofexpenditureshallbecarriedouton
thebasisbothofcommitments undertakenand
paymentsmade.
Theseauditsmaybecarriedoutbeforethe
closureofaccountsforthefinancialyearin
question.
3.Theauditshallbebasedonrecordsand,if
necessary,performedonthespotintheinstitutions
oftheCommunityandintheMemberStates.In
theMemberStatestheauditshallbecarriedout
inliaisonwiththenationalauditbodiesor,if
thesedonothavethenecessarypowers,withthe
competentnationaldepartments .Thesebodiesor
departmentsshallinformtheCourtofAuditors
whethertheyintendtotakepartintheaudit.
TheinstitutionsoftheCommunityandthe
nationalauditbodiesor,ifthesedonothavethe
necessarypowers,thecompetentnational
departments ,shallforwardtotheCourtof
Auditors,atitsrequest,anydocumentor
informationnecessarytocarryoutitstask.
4.TheCourtofAuditorsshalldrawupan
annualreportafterthecloseofeachfinancial
year.Itshallbeforwardedtotheinstitutionsof
theCommunityandshallbepublished,together
withtherepliesoftheseinstitutionstothe
observations oftheCourtofAuditors,inthe
OfficialJournaloftheEuropeanCommunities .
TheCourtofAuditorsmayalso,atanytime,
submitobservationsonspecificquestionsand
deliveropinionsattherequestofoneofthe
intitutionsoftheCommunity .
Itshalladoptitsannualreportsoropinionsbya
majorityofitsmembers.

NoL359/8 OfficialJournaloftheEuropeanCommunities 31.12.77
ItshallassisttheAssemblyandtheCouncilin
exercisingtheirpowersofcontroloverthe
implemention ofthebudget.
5.TheCourtofAuditorsshallalsodrawup
aseparateannualreportstatingwhetherthe
accountingotherthanthatfortheexpenditure
andrevenuereferredtoinparagraph1andthe
financialmanagement bytheHighAuthority
relatingtheretohavebeeneffectedinaregular
manner.Itshalldrawupthisreportwithinsix
monthsoftheendofthefinancialyeartowhich
theaccountsreferandshallsubmitittotheHigh
AuthorityandtheCouncil.TheHighAuthority
shallforwardittotheAssembly.'
Article9
Thefollowingprovisionsshallbeaddedtothe
TreatyestablishingtheEuropeanCoalandSteel
Community :
'Article78g
TheAssembly,actingonarecommendation from
theCouncilwhichshallactbyaqualified
majority,shallgiveadischargetotheHigh
Authorityinrespectoftheimplementation ofthe
administrative budget.Tothisend,theCouncilandtheAssemblyinturnshallexaminethe
accountsandthefinancialstatementreferredtoin
Article78d,andtheannualreportbytheCourt
ofAuditorstogetherwiththerepliesofthe
institutionsunderaudittotheobservations ofthe
CourtofAuditors.'
Article10
Thefollowingprovisionsshallbeaddedtothe
TreatyestablishingtheEuropeanCoalandSteel
Community :
'Article78h
TheCouncil,actingunanimouslyonaproposal
fromtheHighAuthorityandafterconsultingthe
AssemblyandobtainingtheopinionoftheCourt
ofAuditors,shall:
(a)makeFinancialRegulationsspecifyingin
particulartheproceduretobeadoptedfor
establishingandimplementingtheadministra­
tivebudgetandforpresentingandauditing
accounts;
(b)laydownrulesconcerningtheresponsibility
ofauthorizingofficersandaccountingofficers
andconcerningappropriatearrangementsfor
inspection.'
CHAPTER II
PROVISIONS AMENDING THETREATYESTABLISHING THEEUROPEAN ECONOMIC
COMMUNITY
Article11
AfterArticle4oftheTreatyestablishingthe
EuropeanEconomicCommunitythefollowing
paragraphisadded:
'3.TheauditshallbecarriedoutbyaCourtof
Auditorsactingwithinthelimitsofthepowers
conferreduponitbythisTreaty.''Article203
1.Thefinancialyearshallrunfrom1January
to31December.
2.EachinstitutionoftheCommunityshall,
before1July,drawupestimatesofits
expenditureTheCommissionshallconsolidate
theseestimatesinapreliminarydraftbudget.It
shallattachtheretoanopinionwhichmaycontain
differentestimates.
Thepreliminarydraftbudgetshallcontainan
estimateofrevenueandanestimateof
expenditure .
3.TheCommissionshallplacethepreliminary
draftbudgetbeforetheCouncilnotlaterthan1
Septemberoftheyearprecedingthatinwhichthe
budgetistobeimplemented .Article12
Article203oftheTreatyestablishingtheEuropean
EconomicCommunityisreplacedbythefollowing:

31.12.77 OfficialJournaloftheEuropeanCommunities NoL359/9
TheCouncilshallconsulttheCommissionand,
whereappropriate,theotherinstitutions
concernedwheneveritintendstodepartfromthe
preliminarydraftbudget.
TheCouncilactingbyaqualifiedmajority,
establishthedraftbudgetandforwardittothe
Assembly.
4.Thedraftbudgetshallbeplacedbeforethe
Assemblynotlaterthan5Octoberoftheyear
precedingthatinwhichthebudgetistobe
implemented .
TheAssemblyshallhavetherighttoamendthe
draftbudget,actingbyamajorityofitsmembers,
andtoproposetotheCouncil,actingbyan
absolutemajorityofthevotescast,modifications
tothedraftbudgetrelatingtoexpenditure
necessarilyresultingfromthisTreatyorfromacts
adoptedinaccordancetherewith.
If,within45daysofthedraftbudgetbeingplaced
beforeit,theAssemblyhasgivenitsapproval,the
budgetshallstandasfinallyadopted.Ifwithin
thisperiodtheAssemblyhasnotamendedthe
draftbudgetnorproposedanymodifications
thereto,thebudgetshallbedeemedtobefinally
adopted.
IfwithinthisperiodtheAssemblyhasadopted
amendmentsorproposedmodifications ,thedraft
budgettogetherwiththeamendments or
proposedmodifications shallbeforwardedtothe
Council.
5.Afterdiscussingthedraftbudgetwiththe
Commissionand,whereappropriate,withthe
otherinstitutionsconcerned,theCouncilshallact
underthefollowingconditions :
(a)theCouncilmay,actingbyaqualified
majority,modifyanyoftheamendments
adoptedbytheAssembly;
(b)withregardtotheproposedmodifications :
—whereamodificationproposedbythe
Assemblydoesnothavetheeffectof
increasingthetotalamountofthe
expenditureofaninstitution,owingin
particulartothefactthattheincreasein
expenditurewhichitwouldinvolvewould
beexpresslycompensatedbyoneormore
proposedmodifications correspondingly
reducingexpenditure,theCouncilmay,
actingbyaqualifiedmajority,rejectthe
proposedmodification .Intheabsenceof
adecisiontorejectit,theproposed
modificationshallstandasaccepted,—whereamodificationproposedbythe
Assemblyhastheeffectofincreasingthe
totalamountoftheexpenditureofan
institution,theCouncilmay,actingbya
qualifiedmajority,acceptthisproposed
modification .Intheabsenceofadecision
toacceptit,theproposedmodification
shallstandasrejected,
—where,inpursuanceofoneofthetwo
precedingsubparagraphs ,theCouncil
hasrejectedaproposedmodification ,it
may,actingbyaqualifiedmajority,either
retaintheamountshowninthedraft
budgetorfixanotheramount.
Thedraftbudgetshallbemodifiedonthebasisof
theproposedmodifications acceptedbythe
Council.
If,within15daysofthedraftbudgetbeingplaced
beforeit,theCouncilhasnotmodifiedanyofthe
amendmentsadoptedbytheAssemblyandifthe
modifications proposedbythelatterhavebeen
accepted,thebudgetshallbedeemedtobefinally
adopted.TheCouncilshallinformtheAssembly
thatithasnotmodifiedanyoftheamendments
andthattheproposedmodifications havebeen
accepted.
IfwithinthisperiodtheCouncilhasmodifiedone
ormoreoftheamendmentsadoptedbythe
Assemblyorifthemodificationsproposedbythe
latterhavebeenrejectedormodified,the
modifieddraftbudgetshallagainbeforwardedto
theAssembly.TheCouncilshallinformthe
Assemblyoftheresultsofitsdeliberations .
6.Within15daysofthedraftbudgetbeing
placedbeforeit,theAssembly,whichshallhave
beennotifiedoftheactiontakenonitsproposed
modifications ,may,actingbyamajorityofits
membersandthree-fifthsofthevotescast,amend
orrejectthemodifications toitsamendments
madebytheCouncilandshalladoptthebudget
accordingly .IfwithinthisperiodtheAssembly
hasnotacted,thebudgetshallbedeemedtobe
finallyadopted.
7.Whentheprocedureprovidedforinthis
Articlehasbeencompleted,thePresidentofthe
Assemblyshalldeclarethatthebudgethasbeen
finallyadopted.
8.However,theAssembly,actingbya
majorityofitsmembersandtwo-thirdsofthe
votescast,mayifthereareimportantreasons
rejectthedraftbudgetandaskforanewdraftto
besubmittedtoit.

NoL359/10 OfficialJournaloftheEuropeanCommunities 31.12.77
9.Amaximumrateofincreaseinrelationto
theexpenditureofthesametypetobeincurred
duringthecurrentyearshallbefixedannuallyfor
thetotalexpenditureotherthanthatnecessarily
resultingfromthisTreatyorfromactsadoptedin
accordancetherewith .
TheCommission shall,afterconsultingthe
EconomicPolicyCommittee ,declarewhatthis
maximumrateisasitresultsfrom:
—thetrend,intermsofvolume,ofthegross
nationalproductwithintheCommunity ,
—theaveragevariationinthebudgetsofthe
MemberStates,
and
—thetrendofthecostoflivingduringthe
precedingfinancialyear.
Themaximumrateshallbecommunicated ,
before1May,toalltheinstitutionsofthe
Community .Thelattershallberequiredto
conformtothisduringthebudgetaryprocedure,
subjecttotheprovisionsofthefourthandfifth
subparagraphs ofthisparagraph.
If,inrespectofexpenditureotherthanthat
necessarilyresultingfromthisTreatyorfromacts
adoptedinaccordancetherewith,theactualrate
ofincreaseinthedraftbudgetestablishedbythe
Councilisoverhalfthemaximumrate,the
Assemblymay,exercisingitsrightofamendment ,
furtherincreasethetotalamountofthat
expendituretoalimitnotexceedinghalfthe
maximumrate.
WheretheAssembly,theCouncilorthe
Commission considerthattheactivitiesofthe
Communities requirethattheratedetermined
accordingtotheprocedurelaiddowninthis
paragraphshouldbeexceeded,anotherratemay
befixedbyagreementbetweentheCouncil,
actingbyaqualifiedmajority,andtheAssembly,
actingbyamajorityofitsmembersand
three-fifthsofthevotescast.
10.Eachinstitutionshallexercisethepowers
conferreduponitbythisArticle,withdueregard
fortheprovisionsoftheTreatyandforacts
adoptedinaccordancetherewith,inparticular
thoserelatingtotheCommunities 'ownresources
andtothebalancebetweenrevenueand
expenditure.'
Article13
Article204oftheTreatyestablishingtheEuropean
EconomicCommunityisreplacedbythefollowing:'Article204
Ifatthebeginningofafinancialyear,thebudget
hasnotyetbeenvoted,asumequivalenttonot
morethanone-twelfth ofthebudget
appropriations fortheprecedingfinancialyear
maybespenteachmonthinrespectofany
chapterorothersubdivisionofthebudgetin
accordancewiththeprovisionsoftheRegulations
madepursuanttoArticle209;thisarrangement
shallnot,however,havetheeffectofplacingat
thedisposaloftheCommissionappropriations in
excessofone-twelfthofthoseprovidedforinthe
draftbudgetincourseofpreparation .
TheCouncilmay,actingbyaqualifiedmajority,
providedthattheotherconditionslaiddownin
thefirstsubparagraph areobserved,authorize
expenditureinexcessofone-twelfth .
Ifthedecisionrelatestoexpenditurewhichdoes
notnecessarilyresultfromthisTreatyorfrom
actsadoptedinaccordancetherewith,theCouncil
shallforwarditimmediatelytotheAssembly;
within30daystheAssembly,actingbyamajority
ofitsmembersandthree-fifthsofthevotescast,
mayadoptadifferentdecisionontheexpenditure
inexcessoftheone-twelfthreferredtointhefirst
subparagraph .Thispartofthedecisionofthe
CouncilshallbesuspendeduntiltheAssembly
hastakenitsdecision.Ifwithintheperiodthe
Assemblyhasnottakenadecisionwhichdiffers
fromthedecisionoftheCouncil,thelattershall
bedeemedtobefinallyadopted.
Thedecisionsreferredtointhesecondandthird
subparagraphs shalllaydownthenecessary
measuresrelatingtoresourcestoensure
applicationofthisArticle.'
Article14
Thefollowingprovisionsshallbeaddedtothe
Treatyestablishing theEuropeanEconomic
Community :
'Article205a
TheCommissionshallsubmitannuallytothe
CouncilandtotheAssemblytheaccountsofthe
precedingfinancialyearrelatingtothe
implementation ofthebudget.TheCommission
shallalsoforyvardtothemafinancialstatement
oftheassetsandliabilitiesoftheCommunity.'
Article15
Article206oftheTreatyestablishingtheEuropean
EconomicCommunityshallbereplacedbythe
following:

31.12.77 OfficialJournaloftheEuropeanCommunities NoL359/11
'Article206
1.ACourtofAuditorsisherebyestablished .
2.TheCourtofAuditorsshallconsistofnine
members.
3.ThemembersoftheCourtofAuditorsshall
bechosenfromamongpersonswhobelongor
havebelongedintheirrespectivecountriesto
externalauditbodiesorwhoareespecially
qualifiedforthisoffice.Theirindependencemust
bebeyonddoubt.
4.ThemembersoftheCourtofAuditorsshall
beappointedforatermofsixyearsbythe
Council,actingunanimouslyafterconsultingthe
Assembly.
However,whenthefirstappointments aremade,
fourmembersoftheCourtofAuditors,
chosenbylot,shallbeappointedforatermof
officeoffouryearsonly.
ThemembersoftheCourtofAuditorsshallbe
eligibleforreapointment .
TheyshallelectthePresidentoftheCourtof
Auditorsfromamongtheirnumberforatermof
threeyears.ThePresidentmaybere-elected.
5.ThemembersoftheCourtofAuditorsshall,
inthegeneralinterestoftheCommunity,be
completelyindependentintheperformanceof
theirduties.
Intheperformanceoftheseduties,theyshall
neitherseeknortakeinstructionsfromany
governmentorfromanyotherbody.Theyshall
refrainfromanyactionincompatiblewiththeir
duties.
6.ThemembersoftheCourtofAuditorsmay
not,duringtheirtermofoffice,engageinany
otheroccupation,whethergainfulornot.When
enteringupontheirdutiestheyshallgiveasolemn
undertakingthat,bothduringandaftertheirterm
ofoffice,theywillrespecttheobligationsarising
therefromandinparticulartheirdutytobehave
withintegrityanddiscretionasregardsthe
acceptance,aftertheyhaveceasedtoholdoffice,
ofcertainappointmentsorbenefits.
7.Apartfromnormalreplacement ,ordeath,
thedutiesofamemberoftheCourtofAuditors
shallendwhenheresigns,oriscompulsorily
retiredbyarulingoftheCourtofJusticepur­
suanttoparagraph8.
Thevacancythuscausedshallbefilledforthe
remainderofthemember'stermofoffice.
Saveinthecaseofcompulsoryretirement,
membersoftheCourtofAuditorsshallremainin
officeuntiltheyhavebeenreplaced.
8.AmemberoftheCourtofAuditorsmaybe
deprivedofhisofficeorofhisrighttoapensionorotherbenefitsinitssteadonlyiftheCourtof
Justice,attherequestoftheCourtofAuditors
findsthathenolongerfulfilstherequisite
conditionsormeetstheobligationsarisingfrom
hisoffice.
9.TheCouncil,actingbyaqualifiedmajority,
shalldeterminetheconditionsofemploymentof
thePresidentandthemembersoftheCourtof
Auditorsandinparticulartheirsalaries,
allowancesandpensions.Itshallalso,bythe
samemajority,determineanypaymenttobe
madeinsteadofremuneration .
10.TheprovisionsoftheProtocolonthe
privilegesandimmunitiesoftheEuropean
Communities applicabletotheJudgesofthe
CourtofJusticeshallalsoapplytothemembers
oftheCourtofAuditors.'
Article16
Thefollowingprovisionsshallbeaddedtothe
Treatyestablishing theEuropeanEconomic
Community :
'Article206a
1.TheCourtofAuditorsshallexaminethe
accountsofallrevenueandexpenditureofthe
Community .Itshallalsoexaminetheaccountsof
allrevenueandexpenditureofallbodiessetup
bytheCommunityinsofarastherelevant
constituentinstrumentdoesnotprecludesuch
examination .
2.TheCourtofAuditorsshallexamine
whetherallrevenuehasbeenreceivedandall
expenditureincurredinalawfulandregular
mannerandwhetherthefinancialmanagement
hasbeensound.
Theauditofrevenueshallbecarriedoutonthe
basisbothoftheamountsestablishedasdueand
theamountsactuallypaidtotheCommunity .
Theauditofexpenditureshallbecarriedouton
thebasisbothofcommitments undertakenand
paymentsmade.
Theseauditsmaybecarriedoutbeforethe
closureofaccountsforthefinancialyearin
question.
3.Theauditshallbebasedonrecordsand,if
necessary,performedonthespotinthe
institutionsoftheCommunityandintheMember
States.IntheMemberStatestheauditshallbe
carriedoutinliaisonwiththenationalaudit
bodiesor,ifthesedonothavethenecessary
powers,withthecompetentnationaldepartments .
Thesebodiesordepartmentsshallinformthe
CourtofAuditorswhethertheyintendtotake
partintheaudit.

NoL359/12 OfficialJournaloftheEuropeanCommunities 31.12.77
TheinstitutionsoftheCommunityandthe
nationalauditbodiesor,ifthesedonothavethe
necessarypowers,thecompetentnational
departments ,shallforwardtotheCourtof
Auditors,atitsrequest,anydocumentor
informationnecessarytocarryoutitstask.
4.TheCourtofAuditorsshalldrawupan
annualreportafterthecloseofeachfinancial
year.Itshallbeforwardedtotheinstitutionsof
theCommunityandshallbepublished,together
withtherepliesoftheseinstitutionstothe
observations oftheCourtofAuditors,inthe
OfficialJournaloftheEuropeanCommunities .
THeCourtofAuditorsmayalso,atanytime,
submitobservationsonspecificquestionsand
deliveropinionsattherequestofoneofthe
institutionsoftheCommunity .
Itshalladoptitsannualreportsoropinionsbya
majorityofitsmembers.
ItshallassisttheAssemblyandtheCouncilin
exercisingtheirpowersofcontroloverthe
implementation ofthebudget.'
Article17
Thefollowingprovisionsshallbeaddedtothe
Treatyestablishing theEuropeanEconomic
Community :
'Article206b
TheAssembly,actingonarecommendation from
theCouncilwhichshallactbyaqualifiedmajority,shallgiveadischargetothe
Commissioninrespectoftheimplementation of
thebudget.Tothisend,theCouncilandthe
Assemblyinturnshallexaminetheaccountsand
thefinancialstatementreferredtoinArticle205
andtheannualreportbytheCourtofAuditors
togetherwiththerepliesoftheinstitutionsunder
audittotheobservations oftheCourtof
Auditors.'
Article18
Article209oftheTreatyestablishingtheEuropean
Communityshallbereplacedbythefollowing:
'Article209
TheCouncil,actingunanimouslyonaproposal
fromtheCommissionandafterconsultingthe
AssemblyandobtainingtheopinionoftheCourt
ofAuditors,shall:
(a)makeFinancialRegulationsspecifyingin
particulartheproceduretobeadoptedfor
establishingandimplementingthebudgetand
forpresentingandauditingaccounts;
(b)determinethemethodsandprocedure
wherebythebudgetrevenueprovidedunder
thearrangements relatingtotheCommuni­
ties'ownresourcesshallbemadeavailableto
theCommission ,anddeterminethemeasures
tobeapplied,ifneedbe,tomeetcash
requirements ;
(c)laydownrulesconcerningtheresponsibility
ofauthorizingofficersandaccountingofficers
andconcerningappropriatearrangementsfor
inspection.'
CHAPTER III
PROVISIONS AMENDING THETREATYESTABLISHING THEEUROPEAN ATOMIC
ENERGYCOMMUNITY
Article19
AfterArticle3oftheTreatyestablishingthe
EuropeanAtomicEnergyCommunitythefollowing
paragraphisadded:
'3.TheauditshallbecarriedoutbyaCourtof
Auditorsactingwithinthelimitsofthepowers
conferreduponitbythisTreaty.'Article20
Article177oftheTreatyestablishingtheEuropean
AtomicEnergyCommunity isreplacedbythe
following:
'Article177
1.Thefinancialyearshallrunfrom1January
to31December .

31.12.77 OfficialJournaloftheEuropeanCommunities NoL359/13
WithinthemeaningofthisArticle,"budget"shall
includetheoperatingbudgetandtheresearchand
investmentbudget.
2.EachinstitutionoftheCommunityshall,
before1July,drawupestimatesofits
expenditure .TheCommissionshallconsolidate
theseestimatesinapreliminarydraftbudget.It
shallattachtheretoanopinionwhichmay
containdifferentestimates.
Thepreliminarydraftbudgetshallincludean
estimateofrevenueandanestimateof
expenditure .
3.TheCommissionshallplacethepreliminary
draftbudgetbeforetheCouncilnotlaterthan
1Septemberoftheyearprecedingthatinwhich
thebudgetistobeimplemented .
TheCouncilshallconsulttheCommissionand,
whereappropriate,theotherinstitutions
concernedwheneveritintendstodepartfromthe
preliminarydraftbudget.
TheCouncilshall,actingbyaqualifiedmajority,
establishthedraftbudgetandforwardittothe
Assembly.
4.Thedraftbudgetshallbeplacedbeforethe
Assemblynotlaterthan5Octoberoftheyear
precedingthatinwhichthebudgetistobe
implemented .
TheAssemblyshallhavetherighttoamendthe
draftbudgetactingbyamajorityofitsmembers,
andtoproposetotheCouncil,actingbyan
absolutemajorityofthevotescast,modifications
tothedraftbudgetrelatingtoexpenditure
necessarilyresultingfromthisTreatyorfromacts
adoptedinaccordancetherewith.
If,within45daysofthedraftbudgetbeingplaced
beforeit,theAssemblyhasgivenitsapproval,the
budgetshallstandasfinallyadopted.Ifwithin
thisperiodtheAssemblyhasnotamendedthe
draftbudgetorproposedanymodifications
thereto,thebudgetshallbedeemedtobefinally
adopted.
IfwithinthisperiodtheAssemblyhasadopted
amendmentsorproposedmodifications ,thedraft
budgettogetherwiththeamendments or
proposedmodifications shallbeforwardedtothe
Council.
5.Afterdiscussingthedraftbudgetwiththe
Commissionand,whereappropriate,withthe
otherinstitutionsconcerned,theCouncilshallact
underthefollowingconditions :
(a)theCouncilmay,actingbyaqualified
majority,modifyanyoftheamendments
adoptedbytheAssembly;(b)withregardtotheproposedmodifications :
—whereamodificationproposedbythe
Assemblydoesnothavetheeffectof
increasingthetotalamountofthe
expenditureofaninstitution,owingin
particulartothefactthattheincreasein
expenditurewhichitwouldinvolvewould
beexpresslycompensatedbyoneormore
proposedmodifications correspondingly
reducingexpenditure ,theCouncilmay,
actingbyaqualifiedmajority,rejectthe
proposedmodification .Intheabsenceof
adecisiontorejectit,theproposed
modificationshallstandasaccepted,
—whereamodificationproposedbythe
Assemblyhastheeffectofincreasingthe
totalamountoftheexpenditureonan
institution,theCouncilmay,actingbya
qualifiedmajority,acceptthisproposed
modification .Intheabsenceofadecision
toacceptit,theproposedmodification
shallstandasrejected,
—where,inpursuanceofoneoftlietwo
precedingsubparagraphs ,theCouncilhas
rejectedaproposedmodification ,itmay,
actingbyaqualifiedmajority,either
retaintheamountshowninthedraft
budgetorfixanotheramount.
Thedraftbudgetshallbemodifiedonthebasisof
theproposedmodifications acceptedbythe
Council.
If,within15daysofthedraftbudgetbeingplaced
beforeit,theCouncilhasnotmodifiedanyofthe
amendmentsadoptedbytheAssemblyandifthe
modifications proposedbythelatterhavebeen
accepted,thebudgetshallbedeemedtobefinally
adopted.TheCouncilshallinformtheAssembly
thatithasnotmodifiedanyoftheamendements
andthattheproposedmodifications havebeen
accepted.
IfwithinthisperiodtheCouncilhasmodifiedone
ormoreoftheamendements adoptedbythe
Assemblyorifthemodificationsproposedbythe
latterhavebeenrejectedormodified,the
modifieddraftbudgetshallagainbeforwardedto
theAssembly.TheCouncilshallinformthe
Assemblyoftheresultsofitsdeliberations .
6.Within15daysofthedraftbudgetbeing
placedbeforeit,theAssembly,whichshallhave
beennotifiedoftheactiontakenonitsproposed
modifications may,actingbyamajorityofits
membersandthree-fifthsofthevotescast,amend
orrejectthemodifications toitsamendments
madebytheCouncilandshalladoptthebudget

NoL359/14 OfficialJournaloftheEuropeanCommunities 31.12.77
accordingly .IfwithinthisperiodtheAssembly
hasnotacted,thebudgetshallbedeemedtobe
finallyadopted.
7.Whentheprocedureprovidedforinthis
Articlehasbeencompleted,thePresidentofthe
Assemblyshalldeclarethatthebudgethasbeen
finallyadopted.
8.However,theAssembly,actingbya
majorityofitsmembersandtwo-thirdsofthe
votescastmay,ifthereareimportantreasons,
rejectthedraftbudgetandaskforanewdraftto
besubmittedtoit.
9.Amaximumrateofincreaseinrelationto
theexpenditureofthesametypetobeincurred
duringthecurrentyearshallbefixedannuallyfor
thetotalexpenditureotherthanthatnecessarily
resultingfromthisTreatyorfromactsadoptedin
accordancetherewith .
TheCommission shall,afterconsultingthe
EconomicPolicyCommittee,declarewhatthis
maximumrateis,asitresultsfrom:
—thetrend,intermsofvolume,ofthegross
nationalproductwithintheCommunity ,
—theaveragevariationinthebudgetsofthe
MemberStates,
and
—thetrendofthecostoflivingduringthe
precedingfinancialyear.
Themaximumrateshallbecommunicated ,
before1May,toalltheinstitutionsofthe
Community .Thelattershallberequiredto
conformtothisduringthebudgetaryprocedure,
subjecttotheprovisionsofthefourthandfifth
subparagraphs ofthisparagraph.
If,inrespectofexpenditureotherthanthat
necessarilyresultingfromthisTreatyorfromacts
adoptedinaccordancetherewith,theactualrate
ofincreaseinthedraftbudgetestablishedbythe
Councilisoverhalfthemaximumrate,the
Assemblymay,exercisingitsrightofamendment,
furtherincreasethetotalamountofthat
expendituretoalimitnotexceedinghalfthe
maximumrate.
WheretheAssembly,theCouncilorthe
Commission considersthattheactivitiesofthe
Communities requirethattheratedetermined
accordingtotheprocedurelaiddowninthis
paragraphshouldbeexceeded,anotherratemay
befixedbyagreementbetweentheCouncil,
actingbyaqualifiedmajority,andtheAssembly,
actingbyamajorityofitsmembersandthree­
fifthsofthevotescast.10.Eachinstitutionshallexercisethepowers
conferreduponitbythisArticle,withdueregard
fortheprovisionsofthisTreatyandforacts
adoptedinaccordancetherewith,inparticular
thoserelatingtotheCommunities 'ownresources
andtothebalancebetweenrevenueand
expenditure.'
Article21
Article178oftheTreatyestablishingtheEuropean
AtomicEnergyCommunity isreplacedbythe
following:
'Article178
If,atthebeginningofafinancialyear,thebudget
hasnotyetbeenvoted,asumequivalenttonot
morethanone-twelfthofthebudgetappropri­
ationsfortheprecedingfinancialyearmaybe
spenteachmonthinrespectofanychapteror
othersubdivisionofthebudgetinaccordancewith
theprovisionsoftheRegulationsmadepursuant
toArticle183;thisarrangementshallnot,how­
ever,havetheeffectofplacingatthedisposalof
theCommissionappropriations inexcessofone­
twelfthofthoseprovidedforinthedraftbudget
inthecourseofpreparation .
TheCouncilmay,actingbyaqualifiedmajority,
providedthattheotherconditionslaiddownin
thefirstsubparagraph areobserved,authorize
expenditureinexcessofone-twelfth .
Ifthedecisionrelatestoexpenditurewhichdoes
notnecessarilyresultfromthisTreatyorfrom
actsadoptedinaccordancetherewith,theCouncil
shallforwarditimmediatelytotheAssembly;
within30daystheAssembly,actingbyamajority
ofitsmembersandthree-fifthsofthevotescast,
mayadoptadifferentdecisionontheexpenditure
inexcessoftheone-twelfthreferredtointhefirst
subparagraph .Thispartofthedecisionofthe
CouncilshallbesuspendeduntiltheAssemblyhas
takenitsdecision.If,withinthisperiod,the
Assemblyhasnottakenadecisionwhichdiffers
fromthedecisionoftheCouncil,thelattershall
bedeemedtobefinallyadopted.
Thedecisionsreferredtointhesecondandthird
subparagraphs shalllaydownthenecessary
measuresrelatingtoresourcestoensureap­
plicationofthisArticle.'
Article22
Thefollowingprovisionsshallbeaddedtothe
TreatyestablishingtheEuropeanAtomicEnergy
Community :

31.12.77 OfficialJournaloftheEuropeanCommunities NoL359/15
therefromandinparticulartheirdutytobehave
withintegrityanddiscretionasregardsthe
acceptance,aftertheyhaveceasedtoholdoffice,
ofcertainappointmentsorbenefits.
7.Apartfromnormalreplacement ,ordeath,
thedutiesofamemberoftheCourtofAuditors
shallendwhenheresigns,oriscompulsorily
retiredbyarulingoftheCourtofJustice
pursuanttoparagraph8.
Thevacancythuscausedshallbefilledforthe
remainderofthemember'stermofoffice.
Saveinthecaseofcompulsoryretirementunder
theprovisionsofparagraph8,membersofthe
CourtofAuditorsshallremaininofficeuntilthey
havebeenreplaced.
8.AmemberoftheCourtofAuditorsmaybe
deprivedofhisofficeorofhisrighttoapension
orotherbenefitsinitssteadonlyiftheCourtof
Justice,attherequestoftheCourtofAuditors
findsthathenolongerfulfilstherequisite
conditionsormeetstheobligationsarisingfrom
hisoffice.
9.TheCouncil,actingbyaqualifiedmarjority,
shalldeterminetheconditionsofemploymentof
thePresidentandthemembersoftheCourtof
Auditorsandinparticulartheirsalaries,
allowancesandpensions.Itshallalso,bythe
samemajority,determineanypaymenttobe
madeinsteadofremuneration .
10.TheprovisionsoftheProtocolonthe
privilegesandimmunitiesoftheEuropean
Communities applicabletotheJudgesofthe
CourtofJusticeshallalsoapplytothemembers
oftheCourtofAuditors.'
Article24
Thefollowingprovisionsshallbeaddedtothe
TreatyestablishingtheEuropeanAtomicEnergy
Community :
'Article180a
1.TheCourtofAuditorsshallexaminethe
accountsofallrevenueandexpenditureofthe
Community .Itshallalsoexaminetheaccountsof
allrevenueandexpenditureofallbodiessetup
bytheCommunityinsofarastherelevant
constituentinstrumentdoesnotprecludesuch
examination .
2.TheCourtofAuditorsshallexamine
whetherallrevenuehasbeenreceivedandall
expenditureincurredinalawfulandregular
mannerandwhetherthefinancialmanagement
hasbeensound.'Article179a
TheCommissionshallsubmitannuallytothe
CouncilandtotheAssemblytheaccountsofthe
precedingfinancialyearrelatingtothe
implementation ofthebudget.TheCommission
shallalsoforwardtothemafinancialstatement
oftheassetsandliabilitiesoftheCommunity.'
Article23
Article180oftheTreatyestablishingtheEuropean
AtomicEnergyCommunity isreplacedbythe
following:
'Article180
1.ACourtofAuditorsisherebyestablished .
2.TheCourtofAuditorsshallconsistofnine
members.
3.ThemembersoftheCourtofAuditorsshall
bechosenfromamongpersonswhobelongor
havebelongedintheirrespectivecountriesto
externalauditbodiesorwhoareespecially
qualifiedforthisoffice.Theirindependencemust
bebeyonddoubt.
4.ThemembersoftheCourtofAuditorsshall
beappointedforatermofsixyearsbythe
Council,actingunanimouslyafterconsultingthe
Assembly.
However,whenthefirstappointments aremade,
fourmembersoftheCourtofAuditors,chosen
bylot,shallbeappointedforatermofofficeof
fouryearsonly.
ThemembersoftheCourtofAuditorsshallbe
eligibleforreappointment .
TheyshallelectthePresidentoftheCourtof
Auditorsfromamongtheirnumberforatermof
threeyears.ThePresidentmaybere-elected.
5.ThemembersoftheCourtofAuditorsshall,
inthegeneralinterestoftheCommunity ,be
completelyindependentintheperformanceof
theirduties.
Intheperformanceoftheseduties,theyshall
neitherseeknortakeinstructionsfromany
government,orfromanyotherbody.Theyshall
refrainfromanyactionincompatiblewiththeir
duties.
6.ThemembersoftheCourtofAuditorsmay
not,duringtheirtermofoffice,engageinany
otheroccupation,whethergainfulornot.When
enteringupontheirdutiestheyshallgiveasolemn
undertakingthat,bothduringandaftertheirterm
ofoffice,theywillrespecttheobligationsarising

NoL359/16 OfficialJournaloftheEuropeanCommunities 31.12.77
Theauditofrevenueshallbecarriedoutonthe
basisbothoftheamountsestablishedasdueand
theamountsactuallypaidtotheCommunities .
Theauditofexpenditureshallbecarriedouton
thebasisbothofcommitments undertakenand
paymentsmade.
Theseauditsmaybecarriedoutbeforethe
closureofaccountsforthefinancialyearin
question.
3.Theauditshallbebasedonrecordsand,if
necessary,performedonthespotinthe
institutionsoftheCommunityandintheMember
States.IntheMemberStatestheauditshallbe
carriedoutinliaisonwiththenationalaudit
bodiesor,ifthesedonothavethenecessary
powers,withthecompetentnationaldepartments .
Thesebodiesordepartmentsshallinformthe
CourtofAuditorswhethertheyintendtotake
partintheaudit.
TheinstitutionsoftheCommunityandthe
nationalauditbodiesor,ifthelatterdonothave
thenecessarypowers,thecompetentnational
departments ,shallforwardtotheCourtof
Auditors,atitsrequest,anydocumentor
informationnecessarytocarryoutitstask.
4.TheCourtofAuditorsshalldrawupan
annualreportafterthecloseofeachfinancial
year.Itshallbeforwardedtotheinstitutionsof
theCommunityandshallbepublished,together
withtherepliesoftheseinstitutionstothe
observations oftheCourtofAuditors,inthe
OfficialJournaloftheEuropeanCommunities .
TheCourtofAuditorsmayalso,atanytime,
submitobservations onspecificquestionsand
deliveropinionsattherequestofoneofthe
institutionsoftheCommunity .
Itshalladoptitsannualreportsoropinionsbya
majorityofitsmembers.
ItshallassisttheAssemblyandtheCouncilin
exercisingtheirpowersofcontroloverthe
implementation ofthebudget.'Article25
Thefollowingprovisionsshallbeaddedtothe
TreatyestablishingtheEuropeanAtomicEnergy
Community :
'Article180b
TheAssembly,actingonarecommendation from
theCouncilwhichshallactbyaqualified
majority,shallgiveadischargetothe
Commissioninrespectoftheimplementation of
thebudget.Tothisend,theCouncilandthe
Assemblyinturnshallexaminetheaccountsand
thefinancialstatementreferredtoinArticle179a,
andtheannualreportbytheCourtofAuditors
togetherwiththerepliesoftheinstitutionsunder
audittotheobservations oftheCourtof
Auditors.'
Article26
Thefollowingprovisionsshallbesubstitutedfor
Article183oftheTreatyestablishingtheEuropean
AtomicEnergyCommunity :
'Article183
TheCouncil,actingunanimouslyonaproposal
fromtheCommissionandafterconsultingthe
AssemblyandobtainingtheopinionoftheCourt
ofAuditors,shall:
(a)makeFinancialRegulationsspecifyingin
particulartheproceduretobeadoptedfor
establishingandimplementingthebudgetand
forpresentingandauditingaccounts;
(b)determinethemethodsandprocedure
wherebythebudgetrevenueprovidedfor
underthearrangements relatingtothe
Communities 'ownresources,shallbemade
availabletotheCommission ,anddetermine
themeasurestobeapplied,ifneedbe,to
meetcashrequirements ;
(c)laydownrulesconcerningtheresponsiblity
ofauthorizingofficersandaccountingofficers
andconcerningappropriatearrangementsfor
inspection.'
CHAPTER IV
PROVISIONS AMENDING THETREATYESTABLISHING ASINGLECOUNCILANDA
SINGLECOMMISSION OFTHEEUROPEAN COMMUNITIES
Article27 'Article22
1.Thepowersandjurisdictionconferredupon
theCourtofAuditorsestablishedbyArticle78e
oftheTreatyestablishingtheEuropeanCoaland
SteelCommunity ,byArticle206oftheTreatyArticle22oftheTreatyestablishingasingleCouncil
andasingleCommission oftheEuropean
Communitiesshallbereplacedbythefollowing:

31.12.77 OfficialJournaloftheEuropeanCommunities NoL359/17
establishingtheEuropeanEconomicCommunity ,
andbyArticle180oftheTreatyestablishingthe
EuropeanAtomicEnergyCommunityshallbe
exercisedinaccordancewiththoseTreatiesbya
singleCourtofAuditorsoftheEuropean
Communities constitutedasprovidedinthese
Articles.ofAuditorsoftheEuropeanCommunities shall
exercisethepowersandjurisdictionconferred,
beforetheentryintoforceofthisTreaty,upon
theAuditBoardoftheEuropeanCommunities
andupontheAuditoroftheEuropean
CoalandSteelCommunityundertheconditions
laiddowninthevariousinstrumentsreferringto
theAuditBoardandtotheAuditor.Inallthese
instruments thewords"AuditBoard"and
"Auditor"shallbereplacedbythewords"Court
ofAuditors".'2.Withoutprejudicetothepowersand
jurisdictionreferredtoinparagraph1,theCourt
CHAPTER V
FINALPROVISIONS
Article28
1.ThemembersoftheCourtofAuditorsshallbe
appointedupontheentryintoforceofthisTreaty.
2.ThetermsofofficeofthemembersoftheAudit
Boardandthatoftheauditorshallexpireontheday
theysubmittheirreportonthefinancialyear
precedingthatinwhichthemembersoftheCourtof
Auditorsareappointed;theirpowersofauditshall
beconfinedtooperationsrelatingtothatfinancial
year.
Article29
ThisTreatyshallberatifiedbytheHighContracting
Partiesinaccordancewiththeirrespectiveconsti­
tutionalrequirements .Theinstrumentsofratification
shallbedepositedwiththeGovernmentoftheItalian
Republic.Article30
ThisTreatyshallenterintoforceonthefirstdayof
themonthfollowingthedepositoftheinstrumentof
ratificationbythelastsignatoryStatetotakethis
step.
IfthisTreatyentersintoforceduringthebudgetary
procedure,theCouncilshall,afterconsultingthe
AssemblyandtheCommission ,adoptthemeasures
requiredinordertofacilitatetheapplicationofthis
Treatytotheremainderofthebudgetaryprocedure.
Article31
ThisTreaty,drawnupinasingleoriginalinthe
Danish,Dutch,English,French,German,Irishand
Italianlanguages,allseventextsbeingauthentic,
shallbedepositedinthearchivesoftheGovernment
oftheItalianRepublic,whichshalltransmita
certifiedcopytoeachoftheGovernments ofthe
othersignatoryStates.
Tilbekræftelseherafharundertegnedebefuldmægtigede underskrevetdennetraktat.
ZuUrkunddessenhabendieunterzeichneten Bevollmächtigten ihreUnterschriften unter
diesenVertraggesetzt.
Inwitnesswhereof,theundersignedPlenipotentiaries haveaffixedtheirsignaturesbelow
thisTreaty.
Enfoidequoi,lesplénipotentiaires soussignésontapposéleurssignaturesaubasdu
présenttraité.
Dafhianusin,chuirnaLanchumhachtaigh thios-sinithealamhleisangConradhseo.
Infedediche,iplenipotenziari sottoscrittihannoappostolelorofirmeincalceal
presentetrattato.
Tenblijkewaarvandeondergetekende gevolmachtigden hunhandtekeningonderdeze
Verdraghebbengesteld.

NoL359/18 OfficialJournaloftheEuropeanCommunities 31.12.77
UdfærdigetiBruxelles,dentoogtyvendejulinittenhundredeogfemoghalvfjerds .
GeschehenzuBrüsselamzweiundzwanzigsten Julineunzehnhundertfünfundsiebzig .
DoneatBrusselsonthetwenty-second dayofJulyintheyearonethousandnine
hundredandseventy-five .
FaitàBruxelles,levingt-deuxjuilletmilneufcentsoixante-quinze .
ArnadhéanamhsaBhruiséil,andóúlaisfichedemhíIúil,milenaoigcéadseachtó
acuig.
FattoaBruxelles,addìventiduelugliomillenovecentosettantacinque .
GedaanteBrussel,detweeëntwintigste julinegentienhonderd vijfenzeventig .
PourSaMajestéleroidesBelges
VoorZijneMajesteitdeKoningderBelgen
ForHendesMajestætDanmarksDronning
FürdenPräsidentenderBundesrepublik Deutschland

31.12.77 OfficialJournaloftheEuropeanCommunities NoL359/19
PourleprésidentdelaRépubliquefrançaise
TharceannUachtarannahEireann
PerilpresidentedellaRepubblicaitaliana
PourSonAltesseRoyalelegrand-ducdeLuxembourg
VoorHareMajesteitdeKoniginderNederlanden
ForHerMajestytheQueenoftheUnitedKingdomofGreatBritain
andNorthernIreland