7.9.77 OfficialJournaloftheEuropeanCommunities NoL229/1
II
(Actswhosepublicationisnotobligatory)
EUROPEAN PARLIAMENT
DECISIONOFTHEEUROPEAN PARLIAMENT
of7July1977
onthedischargetobegrantedtotheCommissioninrespectoftheimplementation of
thebudgetoftheEuropeanCommunitiesforthe1975financialyearandonthereport
oftheAuditBoard
THEEUROPEAN PARLIAMENT , 3.Grantsadischargeinrespectofthefollowing
amountsshownintheaccountsforthe1975financial
year:
(a)Revenue(entitlement):6213709210-10u.a.,
(b)Expenditure (paymentseffectedduringthe
financialyear):6411227569-24u.a.,
brokendownasfollows:—havingregardtotherevenueandexpenditure
accountsandthestatementsofassetsand
liabilitiesoftheCommunitiesfortheaccountancy
proceduresinrespectofthe1975budgetandthe
accountsoftheEuratomSupplyAgency(Doc.
523/76),
—havingregardtothereportoftheAuditBoardon
theaccountsforthefinancialyear1975andthe
answersoftheinstitutionstothereport(Doc.
523/76),
—havingregardtotheCouncilDecisionof25April
1977onthegrantingofadischargetothe
Commission (Doc.97/77),
—havingregardtothereportoftheCommitteeon
Budgets(Doc.165/77),
1.Notesthatexpendituretobemetfromrevenue
forthefinancialyeartotalled6213608628-64u.a.;
2.Notesthatappropriations utilizedduringthe
yeartotalled6242846173-01u.a.,brokendownas
follows:—paymentsfromappropriations forthe1975
financialyear:5004669618-40u.a.,
—paymentsfromappropriations brought
forwardfrompreviousfinancialyears:
1406557950-84u.a.;
4.Reservesjudgmentonthemanagementofthe
EuropeanCentrefortheDevelopmentofVocational
Training;
5.Drawsattentiontoitsresolutionembodyingthe
commentsaccompanying thedecisiongrantinga
dischargeandrequeststheInstitutionstoreporton
themeasurestakenfollowingthosecommentsin
accordancewithArticle92oftheFinancial
Regulation.Payments :5004669618-40u.a.,
Carriedforwardtothe1976financialyear:
1238176554-61u.a.;
DoneatLuxembourg ,7July1977.
TheSecretary-General
H.R.NORDThePresident
EmilioCOLOMBO

NoL229/2 OfficialJournaloftheEuropeanCommunities 7.9.77
RESOLUTION
embodyingthecommentsaccompanying thedecisionsgrantingadischargeinrespectof
theimplementation ofthebudgetoftheEuropeanCommunitiesforthe1975financial
yeari1)
THEEUROPEAN PARLIAMENT , 7.CallsontheCourtofAuditorstoexamine
jointlywithParliamenttheproblemsinvolvedinthe
extensionandimprovement ofexternalCommunity
control;
8.Takestheviewthatrelationsbetween
Communityandnationalexternalcontrolbodies
shouldbebasedontheprovisionsoftheTreatyof22
July1975andthatthedevelopmentoftheserelations
couldleadtointegratedexternalCommunitycontrol;
Implementation ofthe1975budget1.Callsonalltheinstitutionstotakeappropriate
actiononthecommentsmadebytheAuditBoardin
itsreportandrequeststhemtogiveanaccountofthe
relevantmeasurestakenpursuanttoArticle92,third
paragraphoftheFinancialRegulation ;
2.Isoftheopinionthattheinstitutionsshould,
pursuanttothesecondparagraphofArticle90ofthe
FinancialRegulation,forwardtheirrepliestothe
commentscontainedinitsreporttotheCourtof
Auditorsandproposesthatthelattershouldpublish
theserepliesundertherelevantchaptersofthe
report;
Parliamentary controloftheimplementation ofthe
budget
3.Believesthatthepoliticalresponsibility ofthe
Commission findsitsclearestexpressioninthe
implementation ofthebudgetandthatParliament's
budgetarycontrolconstitutestheappropriatemeans
fortheexerciseofthisresponsibility ;
TransitionfromtheAuditBoardtotheCourtof
Auditors
4.Drawsattentiontothefactthat,accordingto
theprovisionsoftheTreatyof22July1975,oneof
thetasksoftheCourtofAuditorsistoassist
Parliamentinexercisingitspowerofcontroloverthe
implementation ofthebudgetandtosubmittoitnot
onlytheannualreportbutalso,onrequest,adhoc
reportsonspecificquestions;
5.Consequently intends—inordertofacilitate
permanentcontrolandclosecooperationwiththe
CourtofAuditors—toorganizeitsstructure
accordingly ;
6.Drawsattentiononcemoretotheneedfor
continuityinexternalcontrol,whichmustnotbe
interruptedbythesettingupoftheCourtof
Auditors;9.NotesthatmostCommunitypoliciesstagnated
inthe1975financialyearbutwelcomestheswiftstart
madebytheRegionalFund;
10.Believesthattheexperienceofrecentfinancial
yearshasprovidedsufficientproofofthefactthat
thesupplementary budgetspolicywasnotonlyharm­
fulbutavoidable;
11.Suggestsoncemorethatsupplementary
budgetsshouldbeavoidedbymakingthefullest
possibleuseoftechniqueswhichenhancethe
budget'sroleasaforecastinginstrument,inorderto
ensuresoundbudgetarypolicywhilesafeguarding
completefinancialautonomy;
12.ReaffirmsthattheCommission'sresponsibility
asregardstheimplementation ofthebudgetrequires
ittouseallthemeansatitsdisposaltoachievethe
politicalobjectivesunderlyingthebudgetestimate,
andexpectstheCommissiontoadoptaclearposition
onthismatter;
13.Formallydisapprovesofthe'opentransfer'
procedure,whichentailsafundamentalmodification
ofthebudgetasadoptedbythebudgetaryauthority
andenablestheCommission toreallocate
appropriations withouttheapprovalorknowledgeof
Parliament ;
14.Proposesclosercooperationwiththeother
institutions asregardsstaffpolicyandthe
administration ofbuildingsandequipment;(x)ThesecondparagraphofArticle92oftheFinancial
Regulationof25April1973:'Theinstitutionsshall
takeallappropriatestepstotakeactiononthe
commentsappearinginthedecisionsgivingdischarge'.

7.9.77 OfficialJournaloftheEuropeanCommunities NoL229/3
15.Disapprovesofthesettingupofdecentralized
institutionsininstanceswheresuchanadministrative
structureisnotfullyjustifiedbythefunctionstobe
performedbytheseinstitutionsandrejectsthesystem
of'operatingsubsidies'which,withoutcreating
autonomyvis-a-vistheCommission ,precludesany
controlbythebudgetaryauthority;
Managementofthefunds24.Stressestheurgencyofadoptingthe
long-overdue revisionofthelawrelatingtocivil
servants;
25.InsiststhatthecurrencysituationinEurope
mustnotbeallowedtoleadtounjustifiedadvantages
anddisadvantagesforEuropeanofficials;
26.Considersitessentialforinstitutions to
introduceamedium-term policyonbuildingsin
ordertoreduceexpenditureonbuildingsand
equipment;
27.CallsontheCommission toforwardtoit
systematically infuturethespecialreportofthe
CourtofAuditorsontheEuratomSupplyAgency;
28.Isnotableatpresenttograntadischargeto
theManagementBoardoftheEuropeanCentrefor
theDevelopmentofVocationalTrainingandasksthe
lattertomeetthejustifieddemandsmadebythe
AuditBoard;16.CallsontheCommissiontoputforward
concreteproposalsfortherevisionofthecurrent
structureofthebudget,whichisbasedona
classificationbyfund,sincethisstructureconstitutes
anobstacletothecoordinationoftheCommunity's
variousrolesandtobudgetarytransparency ,and
proposesthatitsstructureshouldgiveaclearerpicture
ofthevariousareasofCommunitypolicy;
17.BelievesthattheCouncil'sinterferenceinthe
implementation ofthebudgetmustbestopped,
irrespectiveofwhethersuchinterferenceoccurs
directlyorthroughcommittees;
Researchandinvestment
Revenue
18.AskstheControlsub-Committee toreporton
theadequacyofthepresentmeansofauditingand
controllingCommunityrevenue;
19.AlsoaskstheControlsub-Committee to
examinethedifferentsystemsapplyingCommunity
legislationinthesphereofresourceswithaviewto
determining whethertheyaresufficiently
standardized toensurethatthereisnoriskoftrade
beingdivertedfromoneplacetoanotherorof
Communityrevenuebeinglostbecauseoflackof
uniformityinadministration ;
20.CallsontheCommission toapply
macroeconomic ratiosinitscalculationofestimated
ownresourcesandinitscheckingofreceipts
patterns;
21.UrgestheAuditBoardtocontinuetopay
particularattentiontotheaspectofverificationof
certificatesoforigin,invoicesandstatementsof
account;
22.CallsontheCommissiontoestablishasystem
forcombatingirregularitiesandfortherecoveryof
fundsoutstandingsimilartothatlaiddown,in
Regulation (EEC)No283/72;29.RequeststheCommissiontokeeptheresearch
andinvestmentpartofthebudgetunderconstant
reviewsoasto(i)simplifypresentationandlayout
and(ii)facilitateeffectiveauditandcontrol;
30.UrgestheCommissiontousethetendering
system(*)onthewidestpossiblescalewhen
purchasingorprocuringequipmentandsupplies;
31.Stressestheimportanceofeffectingarapid
cut-backofunproductivelinesofresearchandasks
theCommissiontokeepthisfactorconstantlyin
mind;
32.CallsontheCounciltogiveeffect,inthe
revisionoftheFinancialRegulation,tothechangesin
theArticlesdealingwiththeresearchandinvestment
appropriations whichwereendorsedbytheEuropean
Parliamentinitsresolutionof14December1976(2);
33.AskstheCommission tosimplifyand
standardizetherulesonfinancingofresearch
performedundercontract;
34.BelievesthattheCommissionshouldseekto
ensurethat,assoughtbyParliament,anoptimum
balanceismaintainedbetweenoperationalresearch
costs,andstaffexpenditure ;
Operatingexpenditure
23.Considersitessentialtopushaheadwiththe
reorganization oftheadministrative departmentsin
ordertoachieveoptimaluseofstaff;f1)'Appeld'offre'.
(2)OJNoC6,10.1.1977,p.18.

NoL229/4 OfficialJournaloftheEuropeanCommunities 7.9.77
SocialFund RegionalFund
38.RequeststheCommissiontoreconsiderits
proceduressothattheyensurethatthedifferent
instrumentsofCommunitypolicyarecoordinatedto
enableeverypossiblebenefittobedrawnfroma
globalregionalpolicyandbudgetaryresourcestobe
utilizedinthebestpossibleway;
39.CallsontheCommission toensurethatthe
functioningoftheRegionalFundinnoway
diminishestheroleoftheCommissioninregardto
implementation ofthegeneralbudgetofthe
EuropeanCommunities ;
40.AnxioustosafeguardCommunityresources,
callsontheCommissiontoarrangefornational
fundsreleasedbythegrantingofRegionalFund
appropriations tobetreatedassupplementary
resourcesforregionaldevelopment sothatthe
principleofadditionalityisrespected;
41.Considersthatthesubmissionofglobal
applicationsforRegionalFundaidcouldresultin
adequatecontrolofCommunityexpenditureand
reducebudgetarytransparency ,andthereforecallson
theCommissiontogiveprioritywheneverpossibleto
applicationsotherthanthoseofaglobalnature;
42.Awareoftheimportanceifappropriate
publicityforaidgrantedbytheRegionalFund,
requeststhatprojectsreceivingaidfromtheFundin
futurebegivenpublicityassoonaftertheyare
approvedaspossiblesothattheprovisionsofArticle
14(2)ofthebasicRegulationcanbecompliedwith
infull;35.TakesnoteoftheCommission'seffortsduring
1976toensurethemorerapiduseofSocialFund
appropriations buttakestheviewthatanumberof
difficultiesstillexistedin1975whichpreventedthe
implementation ofagenuinecommonsocialpolicy,
forwhichinanycaseinsufficientresourceswere
availabletosolvetheserioussocialproblemsinthe
Community .
36.Notesthatinsufficientcooperationbetween
theMemberStateswasoneofthemainreasonsfor
thedelayinusingtheresourcesoftheSocialFund;
37.Isoftheopinionthatthedeficienciesobserved
inrespectof1975mustbeeliminatedwhentheFund
isreformed,especiallyinviewofthefactthat,
despitetheeffortsoftheCommission ,theycontinued
tohamperbudgetarymanagementin1976.These
deficienciesmaybesummarizedasfollows:
(a)delaysindecisionsonthefinancingofprojects
andonapplicationsforreimbursements of
expenditureincurred;
(b)theinadequacyoftheremedyofgranting
part-payments higher(upto85%)thanthose
providedforinrespectofaidfromtheoldSocial
Fund;
(c)thesystematiccancellation ofsubstantial
appropriations asaresultoftheslownessofthe
paymentsprocedure;
(d)thedilatorinessofMemberStatesinsubmitting
applications ;
(e)theinfrequencyofthemeetingsoftheSocial
FundCommittee,whichmustgiveitsopinionon
thefinancingofprojects;
(f)thefactthattheformsusedforthesubmissionof
applicationsandtheinstructionstheycontainas
totheimplementation ofprojectsaremuchtoo
complicated ;
(g)theexcessivecomplexityoftheimplementation
andauditmachineryarisingfromtheapplication
oftheprincipleofpaymentonthebasisofactual
costs;
(h)theadverseeffectofthesettlementofearlier
operationsonthepromotionofnewprojects;
(i)finallyandmostseriously,thedisregardfor
regularityandsoundmanagementofCommunity
financesandtherequirements ofarigorous
auditingprocedurereflectedinthedelaysin
financingandimplementingprojects.43.CallsontheCommission onceagainto
establishdirectcontactswithlocalandregional
authoritiesinregionsreceivingRegionalFundaidin
ordertoensurecloseliaisonwiththem;
44.Deploresthefactthattheimpactofthefund
couldbeweakenedasaresultofexcessivedispersal
ofaidforprojectsofminorimportance,andrequests
thatinfuturethereshouldbegreaterconcentration
ofexpenditureonspecificregionsandprojectsin
ordertoincreasetheimpactofCommunitysolidarity
inthisarea;
45.Proposes,inordertoavoidgivingthe
impressionthatgrantsofRegionalFundaidare
approvedbytheMemberStatesthemselvesrather

7.9.77 OfficialJournaloftheEuropeanCommunities NoL229/5
thanbytheCommunity,thatrecipientsbefully
informedofthesourceoftheaidtheyreceive;
46.RequeststheCommission toanalyzethe
resultscarefullyeachyearinordertodrawthe
maximumbenefitfrompastexperience;
47.NotesthattheCommission hasintroduceda
seriesofproceduresforcontrollingtheuseoffund
resourcesinordertoensurethatthemostefficient
useismadeofCommunityaid,andrequeststhe
Commissiontopursueand,ifnecessary,intensify
thoseprocedures ;
48.Intendstokeepaparticularlyclosecheckon
themanagement oftheRegionalFundinthe
frameworkofthereportonthedischargeincoming
yearsinordertoeliminateanyirregularities ;Statestointensifythecampaignagainstthese
breachesofCommunitylegislation;
54.Inparticular,urgesMemberStatestoreinforce
mutualaidmeasuresinthestruggleagainst
irregularities ,usedataprocessingonamuchwider
scale,harmonizeauditingtechniques,andgive
maximumtrainingandassistancetonationalofficials
engagedinthiswork;
55.Concernedlesttheveryhighlevelofnational
aidtoagriculturemight,inpart,runcounterto
overallCommunitypolicyinregardtoagriculture
andweakentheimpactofCommunitybudgetary
outlay,callsontheCommissiontowatchthetrend
anddirectionofnationalaidverycarefully,
reporting,ifnecessary,toParliamentonthesituation;
56.Alsoconcernedabouttheeffectoftechnical
obstaclestotradewhichmightdetractfromthe
effectivenessofthecommonagriculturalpolicy,asks
theCommission tocheckcontinuallyonsuch
potentialobstaclesandreport,ifnecessary,to
Parliamentonthem;
57.Insiststhataccountsforpastyearsmustbe
closedwithinreasonabletimelimitsandthat,in
future,theprovisionsofArticle5(2)(b)of
Regulation (EEC)No729/70becompliedwithina
regularmanner;
58.BelievingthatcodificationofCommunity
legislationrelatingtotheEAGGFwouldfacilitatethe
workofallconcernedwithitsmanagement ,callson
theCommissiontomakeavailablealoose-leafbinder,
tobekeptup-to-datebyaregularsystemof
amendments ,ofthislegislation;EAGGF,GuaranteeSection
49.UrgestheCounciltorefrain,infuture,from
usingsowidearangeoftechniques—carryovers,
transfers,supplementary andamendingbudgets—to
assembleappropriations thatshouldproperlyhave
beenprovidedintheinitialbudget;
50.AskstheCouncilnottohaverecourseagainto
theso-called'opentransfer'mechanismwhichresults
inappropriations thathavebeenbroughtforward
beingdiverted,inalateryear,tofinanceexpenditures
whichareradicallydifferentfromthoseforwhich
theywereinitiallyauthorizedbyParliament;
51.Fearsthatthegrowingcostofthe
agri-monetary measuresmighthampertheevolution
ofthecommonagriculturalpolicy,andcallsonthe
Counciltopressahead,asamatterofthegreatest
urgency,withthebroadeconomicandmonetary
measuresneededtobringaboutasituationinwhich
monetarycompensatory amountswillconstitutea
much-diminished shareofthebudget;
52.Believesthatastrengthening ofthepositionof
Parliamentinrelationtothebudgetarydecisionsin
thesphereofthecommonagriculturalpolicyrenders
essentialtheamendments toArticles107and113of
theFinancialRegulationwhichwereproposedon14
December1976andaskstheCounciltogiveeffectto
theseproposalsintheamendedversionofthe
FinancialRegulation ;
53.Notingtheriseinthenumberoffraudsand
irregularitiesthathavebeendisclosed,urgesthe
Commission ,theAuditBoard,CouncilandMember59.Asksthatthetenderingsystembeusedas
muchaspossibletoensurethatmarketforcesoperate
asfullyaspossibleintheagriculturalsector;
60.CallsontheAuditBoardtoreport,in
particular,onthesubjectofstoragewithspecial
referencetomovementsbetweenregionsof
commoditiesforstorage;
61.AlsoaskstheAuditBoardtodevotespecial
attentiontocooperationbetweenMemberStates
themselvesandbetweenMemberStatesandthe
Commissioninthematterofeffortstorepressfrauds
andirregularities .

NoL229/6 OfficialJournaloftheEuropeanCommunities 7.9.77
thatmeetarealneedcanbemaintained ifits
functioningisimproved;
68.Feelsthatthosemeasuresfinancedbythe
GuidanceSectionthathaveagreatereffectonthe
economicsituationthanonagriculturalstructures
shouldbeconsideredascomingwithinthescopeof
theGuaranteeSection;
Foodaid
69.Considersthattheerraticbudgetary
managementoffoodaidisclearevidenceofthelack
ofanoverallCommunitypolicyinthisarea;
70.StronglysupportstheCommission'spresent
effortstoremedythisstateofaffairs;willopposeany
Communityfoodaidmeasuresconsistingofthe
financingofindividualprojects;
71.RequeststheCourtofAuditorstoreporttoit
ontheeffectivenessofCommunitycontrolinthis
areaandontheeffectivenessofproceduresforthe
allocationoffunds;EAGGF,GuidanceSection
62.DeplorestheCouncil'sinabilitytointroducea
genuineCommunityagriculturalstructurespolicy;
feelsinparticularthatneitherexistingappropriations
norcurrentRegulationsmakeitpossibletoenvisage
therestorationofbalancebetweenCommunityand
nationalprojectsinthisfield;
63.RequeststheCommission ,therefore,todraw
upproposalsfor:
—theintroductionofasimplerandmoreefficient
financingsystemthatwillprovidemoreofan
incentivetoMemberStatesandrecipients,
—determiningtheappropriations tobeallocatedto
suchprojectsinkeepingwithrequirementsandas
partofthebudgetaryprocedure;
64.RequeststheCommissionandtheCouncilto
statetheobjectivesoftheRegulationsinorderto
ensurethatappropriations areusedforthose
objectivesandtomakepossiblegreatercoordination
ofthoseobjectives,sothattheEAGGFGuidance
Sectiondoesnotbecomeademagogicsystemof
mutualsocialaid;
65.Reiteratesitsdisapprovalofmovementsof
appropriations thatresultinappropriations allocated
fortheimprovement ofagriculturalstructuresnot
beingusedfortheirintendedpurpose;
66.Isoftheopinionthataconsiderableincrease
inthefinancingofjointschemesforminganintegral
partofacoherentagriculturalstructurespolicy
shouldnotnecessarilyresultintheabolitionofthe
systemforfinancingindividualprojects;
67.CallsontheCommission toconsidertowhat
extentthesystemforfinancingindividualprojectsDevelopmentFund
72.Emphasizesitsintentiontoexercisetothefull
thecontrolresponsibilities inrespectoftheEDF
assignedtoitbytheimplementing textsofthe
ConventionofLome,pointingoutthatthese
responsibilities implythebudgetizationoftheEDFat
anearlydate;
73.InstructsitsControlSubcommittee toconsider
jointlywiththepartiesconcernedtheconditions
necessaryforensuringeffectivecontroloftheeffects
ofCommunityfinancingonthedevelopmentofthe
recipientcountries.

7.9.77 OfficialJournaloftheEuropeanCommunities NoL229/7
RESOLUTION
embodyingtheopinionoftheEuropeanParliamentonthegrantingofadischargetothe
CommissionoftheEuropeanCommunitiesinrespectoftheactivitiesofthefirst,second
andthirdEuropeanDevelopmentFundsin1975
THEEUROPEAN PARLIAMENT ,
—havingregardtothereportoftheAuditBoardontheaccountsforthefinancial
year1975andtheinstitutions'repliestothatreport(Doc.523/76),
—havingregardtothereportoftheCommitteeonBudgetsandtheopinionofthe
CommitteeonDevelopmentandCooperation (Doc.165/77),
1.RequeststheCounciltogiveadischargetotheCommissioninrespectofthe
financialmanagementofthefirst,secondandthirdEDF'sduringthefinancialyear1975;
2.NotestheinadequacyofCommunitycontrol,whichfailstoallowaprecise
assessmentoftheeffectsofCommunityfinancingonthedevelopmentoftherecipient
countries,ortoprovidedetailedinformationontheextentandimplicationsofthe
shortcomings revealed;
3.RequeststheCommissiontosuspendalldecisionsonfinancingfromthesecortd
EDFandtotransfertheunusedbalancestothethirdEDF;
4.CallsupontheCommissiontopreparetheincorporation oftheEuropeanAgency
forCooperationintothecentraladministrative andbudgetarystructuresoftheCom­
munity.