Opinion No 7/2003

on a proposal for a Council regulation amending Regulation (EC, Euratom) No 1150/2000 implementing Decision 2000/597/EC, Euratom on the system of the Communities' own resources

(pursuant to Article 248(4), second subparagraph, EC)

(2003/C 318/01)

THE COURT OF AUDITORS OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community, and in particular Article 248(4), second subparagraph, and Article 279(2) thereof,

Having regard to Council Decision 2000/597/EC, Euratom of 29 September 2000 on the system of the European Communities' own resources(1),

Having regard to Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources(2),

Having regard to the Commission proposal of 1 July 2003(3),

Having regard to the Council decision of 16 July 2003 to consult the Court of Auditors on this proposal, received by the Court on 17 July 2003, in accordance with Article 279(2) of the Treaty,

HAS ADOPTED THE FOLLOWING OPINION:

INTRODUCTION

1. The Commission's proposal, which takes on board some content of earlier such proposals, includes the following main elements:

- adjustment to the B-account procedures to require Member States to write off amounts of traditional own resources that are not recovered by a specific deadline (five years) following the date on which the demand for payment became definitively enforceable, together with improved reporting requirements,

- changes in accordance with the Council decision on own resources of 29 September 2000, particularly the amount (namely 25 % instead of 10 %) that Member States can retain by way of collection costs for traditional own resources,

- simpler definition of the method of interest calculation for own resources made available late.

GENERAL REMARKS

2. In general the Court welcomes the amendments proposed by the Commission, several of which respond to concerns expressed by the Court in annual reports(4).

3. The Court believes that use could be made of this opportunity to improve the regulation in respect of the scope of inspection work related to gross national income (Article 19 of Regulation (EC, Euratom) No 1150/2000), and of the information to be provided by Member States about their control activities related to the annual VAT base and gross national income.

SPECIFIC REMARKS

4. There are differences between the French and English versions of the Commission proposal, and the Court suggests that modifications should be made so that both versions refer to Member States' central banks in Article 11(3), and to ensure that entitlements that are deemed irrecoverable by applying the five-year time limit should be submitted to the reporting procedure set out in the proposed new Article 17(3) and (4).

5. References throughout Regulation (EC, Euratom) No 1150/2000 and this proposed amendment are to gross national product (GNP). The Court notes that Article 2(7) of the Council decision on own resources of 29 September 2000 specifies that GNP shall mean GNI (gross national income), and reiterates the view expressed in its Opinion No 8/1999(5) that it would be beneficial to adjust all such references to gross national income (GNI).

6. In the table shown below the Court sets out those proposed amendments to the regulation on which it has an observation to make.

This opinion was adopted by the Court of Auditors in Luxembourg at the Court meeting of 15 and 16 October 2003.

For the Court of Auditors

Juan Manuel Fabra Vallés

President

(1) OJ L 253, 7.10.2000, p. 42.

(2) OJ L 130, 31.5.2000, p. 1.

(3) Proposal for a Council Regulation amending Regulation (EC, Euratom) No 1150/2000 implementing Decision 2000/597/EC, Euratom on the system of the Communities' own resources (COM(2003) 366 final - 2003/0131 (CNS)).

(4) See particularly the annual report concerning the financial year 2001, paragraph 1.26, and the annual report concerning the financial year 1999, paragraph 1.16.

(5) Opinion No 8/1999 on a Council proposal for a decision concerning the European Union's system of own resources (OJ C 310, 28.10.1999, p. 1), paragraphs 9 and 10.

ANNEX

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