15.7.88 OfficialJournaloftheEuropeanCommunities NoL185/33
INTERINSTITUTIONAL AGREEMENT
ONBUDGETARY DISCIPLINE
ANDIMPROVEMENT OFTHEBUDGETARY PROCEDURE
I.BASICPRINCIPLES OFTHEAGREEMENT
1.ThemainpurposeoftheInterinstitutional AgreementistoachievetheobjectivesoftheSingle
EuropeanAct,togiveeffecttotheconclusionsoftheBrusselsEuropeanCouncilonbudgetary
disciplineandaccordinglytoimprovethefunctioningoftheannualbudgetaryprocedure.
2.BudgetarydisciplineundertheInterinstitutional Agreementcoversallexpenditureandisbinding
onalltheinstitutionsinvolvedforaslongastheAgreementisinforce.
3.ThisAgreementdoesnotaltertherespectivebudgetarypowersofthevariousinstitutionsaslaid
downintheTreaty.
4.ThecontentsoftheInterinstitutional Agreementmaynotbechangedwithouttheconsentofall
theinstitutionswhicharepartytoit.
II.BUDGETFORECASTS :FINANCIALPERSPECTIVE 1988to1992
A.Contents
5..Thefinancialperspective1988to1992constitutesthereferenceframeworkfor
interinstitutional budgetarydiscipline.Itscontentsareconsistentwiththeconclusionsofthe
BrusselsEuropeanCouncil;itformsanintegralpartoftheAgreement.
6.Thefinancialperspective1988to1992indicates,incommitmentappropriations ,thevolume
andbreakdownofforeseeableCommunityexpenditure,includingthatforthedevelopmentof
newpolicies.
Theoverallannualtotalsofcompulsoryexpenditureandnon-compulsory expenditurearealso
showninbothcommitmentappropriationsandpaymentappropriations .
B.Nature
7.TheEuropeanParliament,theCouncilandtheCommissionrecognizethateachofthefinancial
objectiveslaiddownintheperspective1988to1992representsanannualexpenditureceilingfor
theCommunity .Theyundertaketoobservethedifferentceilingsduringthecorresponding
budgetaryprocedure.
8.TheEuropeanParliament,theCouncilandtheCommissionwilljoinintheeffortundertakenby
theCommunitygraduallytoachieveabetterbalancebetweenthevariouscategoriesof
expenditure .
Theygiveanundertakingthatanyrevisionofthecompulsoryexpenditurefiguregiveninthe
financialperspectivewillnotcausetheamountofnon-compulsory expenditureshowninthe
perspectivetobereduced.
C.Annualadjustment
—Technicaladjustments
9.Eachyear,theCommissionwillupdatetheperspectiveaheadofthebudgetaryprocedurefor
yeart+1,makingtechnicaladjustmentstothefiguresinlinewithmovementsingrossnational
product(GNP)andprices.

15.7.88 NoL185/34 OfficialJournaloftheEuropeanCommunities
—Adjustmentsconnectedwiththeconditionsforimplementation
10.Whennotifyingthetwoarmsofthebudgetaryauthorityofthetechnicaladjustmentstothe
financialperspective,theCommissionwillpresentanyproposalsforadjustmentsitconsiders
necessarytotakeaccountoftheconditionsforimplementation onthebasisoftheschedulesof
utilizationofcommitmentappropriations andpaymentappropriations .
TheEuropeanParliamentandtheCouncilwilltakedecisionsontheseproposals,before1May
ofyeart,inaccordancewiththemajorityrulesspecifiedinArticle203(9)oftheTreaty.
11.Iftheallocationsprovidedinthefinancialperspectiveformultiannualprogrammescannotbe
usedinfullduringagivenyear,theinstitutionspartytotheAgreementundertaketoauthorize
thetransferoftheremainingallocations.
D.Revision
12.Inadditiontotheregulartechnicaladjustmentsandadjustmentsinlinewiththeconditionsfor
implementation ,thefinancialperspectivemayberevisedbyajointdecisionofthetwoarmsof
thebudgetaryauthority,actingonaproposalfromtheCommission .
ThejointdecisionwillbetakeninaccordancewiththemajorityrulesspecifiedinArticle203(9)
oftheTreaty.
Therevisionofthefinancialperspectivemaynotraisetheoverallexpenditureceiling,assetby
thisperspectiveaftertheannualtechnicaladjustment,aboveamarginforunforeseen
expenditureof0,03%ofGNP.
Itmustalsorespecttheprovisionsofpoint8ofthisInterinstitutional Agreement .
E.Consequencesoftheabsenceofajointdecisionbytheinstitutionsontheadjustmentorrevisionof
thefinancialperspective
13.Intheabsenceofajointdecisionbytheinstitutionsonanyadjustmentorrevisionofthefinancial
perspectiveproposedbytheCommission ,thefinancialobjectivesalreadydeterminedwill,after
theannualtechnicaladjustment,remainapplicableastheexpenditureceilingsforthefinancial
yearinquestion.
III.BUDGETARY DISCIPLINE FORCOMPULSORY EXPENDITURE
14.(a)TheEueopeanParliament,theCouncilandtheCommissionareinagreementonthe
conclusionsoftheEuropeanCouncilconcerningbudgetarydisciplineforcompulsory
expenditureintheEAGGFGuaranteeSection.
Thethreeinstitutionsundertake,withinthisAgreement,torespecttheseconclusions .
(b)TheEuropeanParliament,theCouncilandtheCommissionconfirmtheprinciplesandthe
mechanismsfortheagriculturalguidelineandthemonetaryreserve.
(c)Asregardstheothercompulsoryexpenditure,thethreeinstitutionsundertaketohonourthe
Community'slegalobligationsinamannerconsistentwiththefinancialperspective .

15.7.88OfficialJournaloftheEuropeanCommunities NoL185/35
IV.BUDGETARY DISCIPLINEFORNON-COMPULSORY EXPENDITURE ANDIMPROVEMENT OF
THEBUDGETARY PROCEDURE
15.Thetwoarmsofthebudgetaryauthorityagreetoaccept,forthefinancialyears1988to1992,
themaximumratesofincreasefornon-compulsory expenditurederivingfromthebudgets
establishedwithintheceilingssetbythefinancialperspective.
16.TheCommissionwillpresenteachyear,withinthelimitsofthefinancialperspective,a
preliminarydraftbudgetbasedontheCommunity'sactualfinancingrequirements .
Itwilltakeintoaccount:
thecapacityforutilizingappropriations ,endeavouringtomaintainastrictrelationship
betweencommitmentappropriationsandpaymentappropriations ;
thepossibilitiesforstartingupnewpoliciesorcontinuingmultiannualoperationswhichare
comingtoanend,afterassessingwhetheritwillbepossibletosecureaproperlegalbase.
17.Withinthemaximumratesofincreasefornon-compulsoryexpenditurespecifiedinparagraph
15ofthisAgreement,theEuropeanParliamentandtheCouncilundertaketorespectthe
allocationsofcommitmentappropriationsprovidedinthefinancialperspectiveforthe
StructuralFunds,theSpecificIndustrialDevelopmentProgrammeforPortugal(PEDIP),the
IntegratedMediterraneanProgrammes (IMPs)andtheResearch-Technology-Development
(RTD)frameworkprogramme .
Theyalsoundertaketobearinmindtheassessmentofthepossibilitiesforexecutingthebudget
madebytheCommissioninitspreliminarydrafts.
V.EQUIVALENCE BETWEENANNUALEXPENDITURE CEILINGSANDANNUALCEILINGSFOR
CALLINGINCOMMUNITY OWNRESOURCES
18.ThethreeinstitutionspartytotheAgreementagreethattheoverallexpenditureceilingforeach
yearalsorepresentstheannualownresourcescall-inceilingforthecorrespondingbudgetyear.
ThiswillbeexpressedasapercentageofCommunityGNP.
VI.FINALPROVISIONS
19.ThisInterinstitutional Agreementfor1988to1992willenterintoforceon1July1988.
Beforetheendof1991theCommissionwillpresentareportontheapplicationofthisAgreement
andontheamendmentswhichneedtobemadetoitinthelightofexperience.

15.7.88NoL185/36 OfficialJournaloftheEuropeanCommunities
FINANCIAL PERSPECTIVE
Commitmentappropriations
(millionECUat1988prices)
1988 1989 1990 1991 1992
1.EAGGFGuarantee
2.Structuraloperations
3.Policieswithmultiannualallocations
(IMPs,research)0)27500
7790
121027700
9200
165028400
10600
190029000
12100
215029000
13450
2400
4.Otherpolicies
ofwhichnon-compulsory
5.Repaymentsandadministration
(includingfinancingofstockdisposal)
6.Monetaryreserve(2)2103
1646
5700
1240
10002385
1801
4950
1400
10002500
1860
4500
1400
10002700
1910
4000
1400
10002800
1970
3550
1400
1000
TOTAL
ofwhich(3)compulsory
non-compulsory45303
33698
1160546885
32607
1427848900
32810
1609050950
32980
1797052800
33400
19400
Paymentappropriations required
ofwhich(3)compulsory
non-compulsory43779
33640
1013945300
32604
1269646900
32740
1416048600
32910
1569050100
33110
16990
Paymentappropriations as%ofGNP
Marginforunforeseenexpenditure1,12
0,031,14
0,031,15
0,031,16
0,031,17
0,03
Ownresourcesrequiredas%ofGNP 1,15 1,17 1,18 1,19 1,20
(')ChapterFonbudgetestimatesoftheEuropeanCouncilindicatesafigureof2400million(1988prices)forpolicieswithmultiannualallocationsin1992.The
policiesinquestionareResearchandDevelopmentandIntegratedMediterraneanProgrammes .Onlyexpenditureforwhichalegalbasisexistsmaybefinanced
underthisheading.ThepresentframeworkprogrammeprovidesalegalbasisforResearchexpenditureof863millionECU(currentprices)for1992.
TheregulationonIntegratedMediterraneanProgrammesprovidesalegalbasisforanestimatedamountof300millionECUin1992(currentprices).
ThetwoarmsoftheBudgetaryAuthorityundertaketorespecttheprinciplethatfurtherbudgetappropriationswithinthisceilingfor1990,1991and1992will
requirearevisionoftheexistingframeworkprogrammeor,beforetheendof1991,adecisiononanewframeworkprogrammebasedonaproposalfromthe
CommissioninaccordancewiththelegislativeprovisionsinArticle130QoftheSEA.
(2)Atcurrentprices.
(3)BasedontheclassificationproposedbytheCommissioninthe1989preliminarydraftbudget.Therequireddecisionbythebudgetaryauthoritywillbe
implementedasatechnicaladjustment,underpoint9oftheAgreement .

15.7.88 OfficialJournaloftheEuropeanCommunities NoL185/37
HechoenBruselas,el29dejuniode1988.
UdfærdigetiBruxelles,den29.juni1988.
GeschehenzuBrüsselam29.Juni1988.
ΈγινεστιςΒρυξέλλες,στις29Ιουνίου1988.
DoneatBrusselsonthe29June1988.
FaitàBruxelles,le29juin1988.
FattoaBruxelles,addì29giugno1988.
GedaanteBrussel,29juni1988.
FeitoemBruxelas,em29deJunhode1988.
PorelParlamentoEuropeo .
ForEuropa-Parlamentet
FürdasEuropäischeParlament
ΓιατοΕυρωπαϊκόΚοινοβούλιο
FortheEuropeanParliament
PourleParlementeuropéen
PerilParlamentoeuropeo
VoorhetEuropeseParlement
ParaoParlamentoEuropeuPorelConsejodelasComunidadesEuropeas
ForRådetforDeEuropæiskeFællesskaber
FürdenRatderEuropäischenGemeinschaften
ΓιατοΣυμβούλιοτωνΕυρωπαϊκώνΚοινοτήτων
FortheCounciloftheEuropeanCommunities
PourleConseildesCommunautéseuropéennes
PerilConsigliodelleComunitàéuropee
VoordeRaadvandeEuropeseGemeenschappen
PeloConselhodasComunidadesEuropeias
LordHenryPLUMB GerhardSTOLTENBERG
PorlaComisióndelasComunidadesEuropeas
ForKommissionenforDeeuropæiskeFællesskaber
FürdieKommissionderEuropäischenGemeinschaften
ΓιατηνΕπιτροπήτωνΕυρωπαϊκώνΚοινοτήτων
FortheCommissionoftheEuropeanCommunities
PourlaCommissiondesCommunautéseuropéennes
PerlaCommissionedelleComunitàéuropee
VoordeCommissievandeEuropeseGemeenschappen
ParaaComissãociasComunidadesEuropeias
JacquesDELORS