DECISION OF THE EUROPEAN PARLIAMENT of 21 April 1994 giving discharge to the Commission in respect of the management of the ECSC for the financial year 1992 (94/350/ECSC)

THE EUROPEAN PARLIAMENT,

- having regard to the following amounts contained in the accounts of the ECSC as at 31 December 1992 (1), the report of the Court of Auditors of 30 June 1993, confirming that the accounts present a true picture of the financial situation of the European Coal and Steel Community at 31 December 1992, and the results of ECSC operations in the financial year ending on the same date,

1. Grants the Commission discharge in respect of the management of the ECSC for the 1992 financial year (attaching, by way of information, the figures relating to the implementation of the operating budget for the 1992 financial year);

2. Instructs its President to forward this decision and the resolution containing its comments to the Commission, the Council, the Court of Auditors and the ECSC Consultative Committee and to have them published in the Official Journal of the European Communities (L series).

Done at Strasbourg, 21 April 1994.

The Secretary-General

Enrico VINCI The President

Dr Egon KLEPSCH

(1) The relevant tables are included after this Decision (source: OJ No C 220, 14. 8. 1993, p. 3).

Balance sheets at 31 December 1992 and 31 December 1991

"(amounts in ecus)""" ID="2">530 675> ID="4">1 081 028"> ID="1">56 203 772> ID="3">34 036 866"> ID="1">651 975 632> ID="3">803 286 645"> ID="1">3 433 388 311> ID="3">3 239 875 489"> ID="2">4 141 567 715> ID="4">4 077 199 000"> ID="1">4 267 090 339> ID="3">4 276 210 661"> ID="1">14 719 767> ID="3">13 845 058"> ID="1">1 615 162> ID="3">1 754 070"> ID="2">4 283 425 268> ID="4">4 291 809 789"> ID="1">1 220 874 572> ID="3">1 069 105 622"> ID="1">267 724 137> ID="3">244 402 965"> ID="2">1 488 598 709> ID="4">1 313 508 587"> ID="2">6 523 098> ID="4">6 021 801"> ID="2">7 696 871> ID="4">10 722 601"> ID="2">342 872 269> ID="4">335 432 183"> ID="2">10 271 214 605> ID="4">10 035 774 989">

""" ID="1">5 840 231> ID="3">0"> ID="1">-> ID="3">85 978 663"> ID="1">2 985 338 811> ID="3">2 936 886 431"> ID="2">2 991 179 042> ID="4">3 022 865 094"> ID="2">4 341 279 392> ID="4">4 202 296 133"> ID="2">365 986 897> ID="4">107 922 528"> ID="2">284 938 605> ID="4">284 484 893"> ID="2">5 805 666> ID="4">7 084 687"> ID="2">1 283 153 200> ID="4">1 288 934 244

"> ID="2">9 272 342 802

> ID="4">8 913 587 579"> ID="2">307 348 557> ID="4">385 058 170"> ID="1">429 885 000> ID="3">482 885 000"> ID="1">188 980 000> ID="3">188 980 000"> ID="1">57 469 977> ID="3">56 150 435"> ID="2">676 334 977> ID="4">728 015 435"> ID="2">13 294 511> ID="4">7 773 845"> ID="2">20 418> ID="4">166 085"> ID="2">1 873 340

> ID="4">1 173 875

"> ID="2">998 871 803

> ID="4">1 122 187 410

"> ID="2">10 271 214 605> ID="4">10 035 774 989">

Profit-and-loss accounts for the years ending 31 December 1992 and 31 December 1991

"(amounts in ecus)""" ID="1">942 239 470> ID="3">853 945 655"> ID="1">11 540 426

> ID="3">16 185 304"> ID="2">953 779 896> ID="4">870 130 959"> ID="2">2 243 917> ID="4">2 419 396"> ID="1">217 196> ID="3">0"> ID="1">3 514 185> ID="3">3 163 224"> ID="1">0> ID="3">0"> ID="2">3 731 381> ID="4">3 163 224"> ID="2">5 000 000> ID="4">5 000 000"> ID="2">782 977> ID="4">895 511"> ID="2">572 287> ID="4">751 705"> ID="1">92 673 296> ID="3">1 000 069"> ID="1">355 166

> ID="3">1 946 642"> ID="2">93 028 462> ID="4">2 946 711"> ID="2">1 059 138 920> ID="4">885 307 506"> ID="2">277 845> ID="4">444 491"> ID="2">5 520 666> ID="4">633 848"> ID="2">477 217 432> ID="4">454 375 588"> ID="2">235 733 395

> ID="4">313 304 101

"> ID="2">1 777 888 258> ID="4">1 654 065 534"> ID="2">1 873 340

> ID="4">1 173 875

"> ID="2">1 779 761 598> ID="4">1 655 239 409">

""" ID="1">1 162 894 880> ID="3">1 081 577 404"> ID="1">8 824 756> ID="3">12 670 676"> ID="2">1 171 719 636> ID="4">1 094 248 080"> ID="1">10> ID="3">23 286"> ID="1">8 986 656> ID="3">8 931 669"> ID="1">318 420> ID="3">20 110 244"> ID="2">9 305 086> ID="4">29 065 199"> ID="1">1 534 081> ID="3">10 676 489"> ID="1">1 789 949> ID="3">324 254"> ID="2">3 324 030> ID="4">11 000 743"> ID="2">1 197 236> ID="4">720 849

"> ID="2">1 185 545 988

> ID="4">1 135 034 871"> ID="2">5 520 666> ID="4">633 848"> ID="2">222 251 936> ID="4">207 401 206"> ID="2">313 304 101> ID="4">311 851 569"> ID="2">138 907> ID="4">317 915"> ID="2">53 000 000

> ID="4">-

"> ID="2">1 779 761 598> ID="4">1 655 239 409">

Implementation of the ECSC Operating Budget

"(in ecus)""" ID="1">5 000 000> ID="2">5 000 000"> ID="1">477 217 432> ID="2">454 375 588"> ID="1">243 505> ID="2">73 086"> ID="1">482 460 937> ID="2">459 448 674"> ID="1">146 473 186> ID="2">175 054 804"> ID="1">-> ID="2">-"> ID="1">8> ID="2">18 348"> ID="1">75 768 132> ID="2">32 311 852"> ID="1">11 937> ID="2">16 202"> ID="1">59 804 101> ID="2">91 351 569"> ID="1">253 500 000> ID="2">220 500 000"> ID="1">535 557 364> ID="2">519 252 775"> ID="1">53 096 427> ID="2">59 804 101">

"(in ecus)""" ID="1">131 510 308> ID="2">254 673 875"> ID="1">53 096 427> ID="2">59 804 101"> ID="1">53 000 000> ID="2">-"> ID="1">237 606 735> ID="2">314 477 976"> ID="1">53 096 427> ID="2">59 804 101"> ID="1">131 636 968> ID="2">-"> ID="1">-> ID="2">253 500 000"> ID="1">51 000 000> ID="2">-"> ID="1">1 873 340> ID="2">1 173 875">

RESOLUTION on the report of the Court of Auditors on the accounts of the European Coal and Steel Community at 31 December 1992 and on the report (annexed to the annual ECSC report for the 1992 financial year) of the Court of Auditors on the management of the accounts and the financial management of the ECSC

THE EUROPEAN PARLIAMENT,

- having regard to the ECSC financial report for the 1992 financial year, submitted by the Commission, and in particular the balance sheet and profit and loss accounts of the ECSC at 31 December 1992,

- having regard to the report of the Court of Auditors on the accounts of the ECSC at 31 December 1992 and the annex containing the report on the management of the accounts and the financial management of the European Coal and Steel Community (C3-0153/94),

- having regard to the report of the Committee on Budgetary Control (A3-0178/94),

A. whereas the Court of Auditors has found that the financial statements of the ECSC at 31 December 1992 give a true and fair view of the results of its operations for the year then ended,

General matters

1. Welcomes the new positive attitude on the part of the Commission to the provision of information for the rapporteur responsible for the ECSC discharge report;

Security of lendings

2. Notes with concern the 'value adjustments' in the ECSC 1992 accounts, totalling approximately ECU 90 million, relating to bad debts in the steel sector;

3. Observes that the financial ratios of the ECSC relating to its reserves neared the lower end of the recommended range at the end of 1992 as a result of value adjustments for bad debts; considers however that, on the basis of its accounts, the ECSC remains, for the time being, financially sound;

4. Calls on the Commission to take immediate action to reinstate its financial ratios at least to their current level in case it is required to absorb any further bad debts;

5. Calls on the Commission to study the possibility of reinstating a non-specific provision for bad debts in its balance sheet, along the lines suggested by the Court of Auditors, and to inform Parliament of its considerations by 30 June 1994;

6. Considers that problems of non-repayment of loans are probably inevitable in a period of crisis such as the present; believes that the Commission has so far managed ECSC risk in a generally satisfactory manner;

7. Stresses that where political considerations influence decisions on recovery of debts, the matter should be one of open political debate in the final decision taken by a democratically mandated body;

Research policy

8. Notes extensive and direct contradiction between the positions of the Court of Auditors and the Commission on the subject of ECSC research policy; invites both institutions to examine the position of the other in an open-minded fashion;

9. Finds that the Commission's diffusion of technical information resulting from ECSC research projects is satisfactory;

10. Calls on the Commission to report to it by 30 September 1994 on the effectiveness of ECSC policy in achieving the objectives set for it in the ECSC Treaty and providing an assessment of its successes and failures in layman's terms;

11. Expresses its concern at the Court of Auditors' finding that there has been an excessive and unnecessary proliferation of small but similar research projects funded by the ECSC; reminds the Commission of its duty to ensure maximum value for money for the European taxpayer and its consequent obligation to streamline and rationalize research programmes as much as possible;

12. Notes with concern the Court of Auditors' opinion that the distribution of research subsidies corresponds more to a need to ensure 'fair shares for all' rather than objective research needs, a view corroborated by a close correlation between relative shares between levy contributions and research funding between Member States; asks the Commission to confirm categorically that project selection is completely free of such considerations;

13. Calls upon the Commission to report to its relevant committees on the future of ECSC research in view of the forthcoming expiry of the ECSC Treaty;

Investments in buildings

14. Believes that it is appropriate for the ECSC to invest a small proportion of its reserves in real estate where the return on the investment is in line with comparable financial investments and where the ECSC does not bear the risk of losses in the capital value of property, subject to the existing limitations placed by the Commission on such investments;

15. Is concerned at the lack of budgetary transparency connected with the current technique whereby ECSC property investments are on-sold to the EC by way of rent payments made from the general EC budget to the ECSC budget; believes that the nature of the transaction is not immediately apparent to the EC budgetary authority and the taxpayer at large in the current presentation of the budget; calls upon the Commission to make appropriate changes;

Bagnoli

16. Deplores the fact that the Commission has not yet recovered any of the interest rate subsidies inappropriately paid out to the Bagnoli project; renews its insistence that the Commission take urgent steps to recover the funds due as soon as possible; asks the Commission to report on progress on this matter to its Committee on Budgetary Control by 30 June 1994.