A4-0086/96

Resolution on the Commission report on action taken in response to the observations contained in the resolution accompanying the decision giving discharge in respect of the general budget of the European Communities for the 1992 financial year

The European Parliament,

- having regard to Article 206 of the Treaty establishing the European Community,

- having regard to its resolution of 5 April 1995 containing the comments which form an integral part of the decision giving discharge to the Commission in respect of the implementation of the general budget of the European Communities for the 1992 financial year ((OJ L 141, 24.6.1995, p. 54.)),

- having regard to the Commission report on action taken in response to the observations contained in the resolution accompanying the decision giving discharge in respect of the general budget of the European Communities for the 1992 financial year (COM(95)0666),

- having regard to the report of the Committee on Budgetary Control (A4- 0086/96),

1. Notes that, following the revision of the clearance of accounts decisions for 1989 and 1990 and the publication of the decision for 1991, the first tranche of monies due from three Member States in respect of non-application of milk quotas has now been received; also takes note of the Commission's assurance that the milk quota regime is now being applied correctly in the Member States concerned;

2. Observes that the Commission has made no attempt to respect Parliament's request to recover a further ECU 340 m, in spite of the fact that it does not deny (i) having operated a milk quota buy-back scheme without any legal basis, and (ii) treating differently the same contravention of Community legislation in different Member States;

3. Deplores the fact that the Commission does not even seek to justify its inaction in respect of Parliament's demand that ECU 340 m should be recovered from some Member States; therefore, in the absence of any such explanation, repeats its demand that this sum, which was spent in a manner not in conformity with prevailing legislation, be recovered for the Community budget from the Member States concerned;

4. Believes that the milk quotas episode illustrates a fundamental weakness in the clearance of accounts procedure, which has not been eliminated in the recent reform, this being the possibility for the Commission to apply financial corrections to Member States on grounds other than an objective assessment of ineligible expenditure carried out and the consequent loss to the Community budget;

5. Welcomes therefore the new procedure whereby the European Parliament examines clearance of accounts decisions with a view to discharge, but also demands that financial corrections based on criteria other than an objective assessment of the loss to the Community budget be referred in advance to the budgetary authority for approval;

6. Observes also that the milk quotas episode highlights weaknesses in the way the Commission's Financial Controller carried out his task, in particular in approving a commitment identical to one for which he had refused approval, but where he had been overruled; insists that the granting or refusal of approval for a commitment should depend solely on the conformity of that commitment with the Financial Regulation, rather than on any prior knowledge of the intention of a superior authority to overrule a refusal of approval;

7. Asks the Commission to ensure, within the context of its current 'SEM 2000" initiative to improve financial management, that the Financial Controller operates in complete independence and reaches decisions on whether to grant or refuse approval for any operation exclusively in terms of its conformity with the Financial Regulation;

8. Asks the Commission to report by 30 June 1996 on the progress of enquiries in the Member States into the suspected case of fraud in the tobacco sector, and to give an estimate of the likely final loss to the Community budget arising from this case;

9. Discerns a recent improvement in the way the Commission handles cases of suspected fraud within its own services, and in the quality of information made available to the European Parliament; reiterates nonetheless its expectation that all such cases will be referred to UCLAF, which shall be independent vis-à-vis other Commission services to deal with them as it sees fit, and that the European Parliament will be informed of all significant developments as they occur;

10. Instructs its president to forward this resolution to the Commission, the Council and the Court of Auditors.