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 (94/C 237/03) COM(94) 338 final - 94/0192(CNS)

(Submitted by the Commission on 25 July 1994)

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 European Parliament,

Having regard to the opinion of the Court of Auditors,

Whereas conciliation has taken place in a conciliation committee as provided in the Joint Declaration of the European Parliament, the Council and the Commission of 4 March 1975 (1);

Whereas the fourth framework programme of European Community activities in the field of research and technological development and demonstration (1994 to 1998) (2) adopted by decision of the Council and Parliament of 26 April 1994 introduced a new competitive approach for the Joint Research Centre, which implies, amongst other things, that the JRC will gradually have to enter into competition with other bodies for certain projects financed by means of appropriations in the general budget, whether inside or outside the particular subsection referred to in Article 92 (1) of the Financial Regulation of 21 December 1977 applicable to the general budget (3); whereas it is necessary to adapt the Financial Regulation in order to take account of this competitive approach;

Whereas this new competitive approach implies changes to certain terms of the Financial Regulation so as to afford the JRC greater flexibility in the management of its appropriations and thus enable its to compete effectively with other similar bodies;

Whereas, in this connection, the Commission should be given greater autonomy in this area for transferring appropriations, including appropriations for staff;

Whereas appropriations obtained on a competitive basis should be treated as revenue from services for third parties so as to ensure total transparency in the accounts pertaining to these operations,

HAS ADOPTED THIS REGULATION:

Article 1

The Financial Regulation is amended as follows:

1. Article 92 is amended as follows:

(a) in the second subparagraph of paragraph 1, point (a) is replaced by the following:

'(a) direct action consisting of research programmes and exploratory research and scientific and technical support activities of an institutional nature carried out by the establishments of the Joint Research Centre (JRC) and in principle entirely financed from the general budget of the European Communities;`;

(b) in the second subparagraph of paragraph 1, point (b) is replaced by the following:

'(b) indirect action consisting of programmes carried out under contracts to be concluded with third parties. The JRC may participate in these activities on the same basis as third parties. These activities shall in principle be partially financed from the general budget of the European Communities (shared-cost action projects);`;

(c) in the second subparagraph of paragraph 1, point (e) is replaced by the following:

'(e) other activities of a competitive nature carried out by the JRC:

- scientific and technical support activities under the R & TD framework programmes in principle entirely financed from the general budget,

- services for third parties.`;

(d) the following paragraph is inserted after paragraph 2:

'3. Notwithstanding paragraph 1, the JRC may receive appropriations entered elsewhere than in the subsection referred to in that paragraph in respect of its participation on a competitive basis in activities implemented under Community policies financed, in principle, entirely from the general budget.`;

2. Article 95 is hereby amended as follows:

(a) the first subparagraph is replaced by the following:

'Notwithstanding Article 26 and without prejudice to paragraph 7 thereof, the Commission may, within the subsection referred to in Article 92, transfer appropriations from one title to another and from one chapter to another in respect of the activities referred to in Article 92 (1) (a).`;

(b) the second subparagraph is replaced by the following:

'These transfers may not have the effect of increasing or decreasing by more than 22 % in commitment appropriations the initial allocation entered in the budget for each of the programmes referred to in Article 92 (1) (a) excluding exploratory research. They may not have the effect of increasing the appropriations earmarked for exploratory research by more than 6 % in commitment appropriations of the initial allocation for the total of the programmes referred to above.`;

(c) the third subparagraph is deleted;

(d) the fourth subparagraph is replaced by the following:

'For the purposes of the application of Article 26, the budget headings relating to the activities referred to in Article 92 (1) (b) (excluding JRC participation), (c) and (d) shall be regarded as chapters.`;

3. the following paragraph is added after Article 96 (3):

'4. The appropriations relating to the activities referred to in Article 92 (1) (b), as regards the participation of the JRC on a competitive basis, and (e) and (3) shall be treated as revenue from services to third parties provided for in paragraphs 1 and 2.`

Article 2

This Regulation shall enter into force on the third day following that of its publicaiton in the Official Journal of the European Communities.

It shall apply from . . .

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

(1) OJ No C 89, 2. 4. 1975, p. 1.

(2) OJ No L 126, 19. 5. 1994, p. 1.

(3) OJ No L 356, 31. 12. 1977, as last amended by Council Regulation (Euratom, ECSC, EEC) No 610/90 of 13 March 1990 (OJ No L 70, 16. 3. 1990).