Proposal for a Council Regulation (EC, ECSC, Euratom) amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (98/C 149/11) COM(1998) 206 final - 98/0130(CNS)

(Submitted by the Commission on 3 April 1998)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 78h thereof,

Having regard to the Treaty establishing the European Community, and in particular Article 209 thereof,

Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 183 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the Court of Auditors,

Having regard to the opinion of Parliament,

Having regard to the opinion of the Economic and Social Committee,

Having regard to the opinion of the Committee of the Regions,

Whereas the conciliation provided for by the Joint Declaration of 4 March 1975 by Parliament, the Council and the Commission has taken place in a conciliation committee;

Whereas it is necessary to amend the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (1), hereinafter 'Financial Regulation`, in order to take account of the entry into force of the Treaty of Amsterdam of 2 October 1997, the implementation of the third phase of economic and monetary union and the adoption of Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (2);

Whereas the Treaty of Amsterdam provides for the repeal of Protocol No 16 of the Treaty on European Union on the common organisational structure for the Economic and Social Committee and the Committee of the Regions;

Whereas, in accordance with Regulation (EC) No 1103/97 on certain provisions relating to the introduction of the euro (3) all references to the ecu are replaced by references to the euro at the rate of one euro to one ecu; whereas, in accordance with Regulation . . ./97 of . . . 1998 (4) on the introduction of the euro, the euro will be the currency of the participating Member States starting from 1 January 1999;

Whereas, during the transition period (from 1.1.1999 to 31.12.2001), any reference in this regulation to the euro must, as a general rule, also be read as a reference to the euro as a currency unit as specified in the second sentence of Article 2 of Regulation . . ./97 of . . . 1998 (5);

Whereas, following the adoption by the Council of the abovementioned Regulation (EC) No 1467/97, a mechanism must be provided for ensuring that the revenue from payment by the Member States of fines imposed by the Council is allocated for distribution of the amounts in question between the Member States participating in the system which do not have an excessive deficit, while guaranteeing that the requirements of budgetary transparency in those operations are met,

HAS ADOPTED THIS REGULATION:

Article 1

The Financial Regulation is amended as follows:

1. After the first indent in the second subparagraph of Article 4(2), the following new indent is inserted:

'- interest on the deposits and fines referred to in Section 4 of Council Regulation (EC) No 1467/97 (1)(1) OJ L 209, 2.8.1997, p. 6., in accordance with Article 126a`.

2. Article 11 is replaced by the following:

'Article 11

1. The budget shall be drawn up in euros.

2. The euro shall be the single currency as defined in Regulation (EC) No . . ./97 of . . . 1998 on the introduction of the euro (²).

3. Without prejudice to specific provisions deriving from the application of sector-specific rules governing either revenue or expenditure, the rights and obligations of the Communities shall be expressed and executed in euros.

4. Conversions between the euro and the currencies of the Member States which have not adopted the euro shall be made at the exchange rate applicable on the day of the operation; derogations from this principle may be permitted in exceptional cases, in accordance with the implementing rules referred to in Article 139.

(²) [OJ C 236, 2.8.1997, p. 7.]`

3. Article 19(1) is amended as follows:

a) in the first subparagraph, the second indent is replaced by the following:

'- separate sections subdivided into statements of revenue and expenditure of the European Parliament, the Council, the Commission, the Court of Justice, the Court of Auditors, the Economic and Social Committee and the Committee of the Regions.`

b) the third subparagraph is deleted.

4. In paragraph 5 of Article 19, 'ECU` is replaced by 'EUR`.

5. In the first indent of Article 20(3), 'the staff of the Economic and Social Committee, the Committee of the Regions and their common organisational structure shall be shown separately in their specific section` is deleted.

6. Article 22 is amended as follows:

a) in paragraph 2, the second subparagraph is deleted;

b) in paragraph 5, the second subparagraph is deleted.

7. In the first paragraph of Article 24, 'The Economic and Social Committee and the Committee of the Regions shall appoint a financial controller by common agreement` is deleted.

8. In the second paragraph of Article 25, 'The Economic and Social Committee and the Committee of the Regions shall appoint an accounting officer by common agreement` is deleted.

9. In the second subparagraph of Article 26(2), '- the two latter each with regard to the part which relates to it and by common agreement with regard to the common organisational structure -` is deleted.

10. In the first subparagraph of Article 28a, after 'imposed by the Commission`, the words 'or the Council` are added.

11. In Article 31, 'ecus` is replaced by 'euros`.

12. In Article 35(5), 'ecu` is replaced by 'euro`.

13. Article 35 is replaced by the following:

'Article 35

The Commission shall, every three months, send each Member State which has not adopted the euro a statement indicating the transfers effected in that Member State's national currency into another currency and vice versa.`

14. In the third indent of Article 44, 'ecus` is replaced by 'euros`.

15. In Article 69, 'ecus` is replaced by 'euros`.

16. In Article 111(2) and (3), 'ecus` is replaced by 'euros`.

17. Under Title XI, the following new section Ia is inserted:

'SECTION Ia

PROVISIONS APPLICABLE TO THE SANCTIONS REFERRED TO IN SECTION 4 OF COUNCIL REGULATION (EC) No 1467/97(*)

Article 126a

The budgetary structure for the proceeds of the sanctions referred to in Section 4 of Council Regulation (EC) No 1467/97 is as follows:

(a) the statement of revenue shall carry a budget heading to receive the amounts of each sanction imposed by the Council on a Member State in accordance with Section 4 of Council Regulation (EC) No 1467/97;

(b) in parallel, and without prejudice to Article 28a, commitment and payment appropriations shall be entered in a heading in the statement of expenditure to match these amounts in the statement of revenue. These appropriations shall cover the repayments provided for in Article 16 of Council Regulation (EC) No 1467/97.

(*) OJ L 209, 2.8.1997, p. 6.`

Article 2

This Regulation shall enter into force on 1 January 1999.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

(1) OJ L 356, 31.12.1977, p. 1. Regulation last amended by Council Regulation 2444/97 (EC) of 22 September 1997 (OJ L 340, 11.12.1997, p. 1).

(2) OJ L 209, 2.8.1997, p. 6.

(3) OJ L 162, 19.6.1997, p. 1.

(4) [OJ C 236, 2.8.1997, p. 7.]

(5) [OJ C 236, 2.8.1997, p. 7.]