3. Budgetary discipline *
A5-0055/1999
Proposal for a Council Regulation on budgetary discipline (COM(1999) 364 Edash C5-0141/1999 Edash
1999/0151(CNS))
The proposal was amended as follows:
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
(Amendment 1)
Title
Proposal for a Council Regulation on budgetary discipline Proposal for a Council Decision on budgetary discipline
(Amendment 2)
Recital 1
(1) Whereas, at its meeting in Berlin on 24 and 25 March
1999, the European Council decided to retain and strengthen the
budgetary discipline introduced by Decision 94/0729/EC and
confirmed that all Community expenditure should be subject to theprinciples of sound public finance and budgetary discipline;(1) Whereas, at its meeting in Berlin on 24 and 25 March
1999, the European Council proposed retaining and
strengthening the budgetary discipline introduced by Decision
94/0729/EC; whereas, moreover, the European Council
suggested that the Union’s expenditure must respect boththe imperative of budgetary discipline and efficient expen-diture, and the need to ensure that the Union has suffi-cient resources at its disposal to ensure the orderly devel-opment of its policies for the benefit of its citizens and tocope effectively with the process of enlargement;
(Amendment 3)
Recital 5
(5) Whereas , on the basis of the European Council’s conclusions,
the institutions also agreed to maintain unchanged the refer-
ence framework and the rate of increase of the agricultural
guideline and to extend the guideline to all expenditure underthe reformed common agricultural policy, to the new ruraldevelopment measures, to veterinary and plant-health mea-sures, to expenditure connected with the agricultural pre-acces-sion instrument and to the amounts available for accession relating
to agriculture ;(5) Whereas the institutions also agreed to maintain
unchanged the reference framework and the rate of increase
of the agricultural guideline and to extend the guideline to all
expenditure under the reformed common agricultural policy, tothe new rural development measures, to veterinary and plant-health measures and to expenditure connected with the agri-
cultural pre-accession instrument;
(Amendment 4)
Recital 9
(9) Whereas, as a result, savings may have to be made; whereas,
in the absence of a decision by the Council, acting on a proposal fromthe Commission, measures could be taken during a special Councilmeeting held as part of the budget discussions before 15 September ;(9) Whereas, as a result, measures may have to be taken to
enable the ceilings on expenditure to be complied with,for which the Commission should submit appropriate pro-posals; whereas the two arms of the budgetary authorityshould try to reach agreement on these measures duringthe consultations among the institutions for whichAnnex III to the Interinstitutional Agreement of 6 May
1999 on budgetary discipline and improvement of the
budgetary procedure (
1) provides;
(1) OJ C 172, 18.6.1999, p. 1.C 189/80 EN 7.7.2000 Official Journal of the European Communities
Wednesday 17 November 1999
(Amendment 5)
Recital 10
(10) Whereas urgent measures must be taken to safeguard the
Union’s financial interests; whereas, as a result, the Commis-
sion’s management powers must be increased;Deleted
(Amendment 6)
Recital 11
(11) Whereas, with regard to this objective, it is essential that
consideration be given to proposing appropriate measures in
the medium term;(11) Whereas, according to the Interinstitutional Agree-
ment, the financial perspective is intended to ensure that,in the medium term, Community expenditure, brokendown by broad category, develops in an orderly mannerand within the limits of the own resources assigned tothe Community; whereas it is essential that consideration be
given to proposing any measures in the medium term that
may be necessary;
(Amendment 7)
Recital 12
(12) Whereas savings may have to be made in the very short term
to achieve the objective of ensuring compliance with the ceilings laiddown for heading 1; whereas the parties interested should be informedof this aspect so that they can adjust their expectations accordingly;whereas, in taking these measures, the need for legal security must betaken into account as far as possible;(12) Whereas measures which are taken in order to make
savings should not place in doubt the principles on whichthe CAP is based; whereas the reform of the CAP shouldfacilitate the stabilisation of agricultural expenditure;
(Amendment 8)
Recital 12a (new)
(12a) Whereas any measures which may prove necessary
in relation to agricultural expenditure should be taken insuch a way that the respective powers of the institutionsin budgetary matters, as defined in the Treaties, arerespected;
(Amendment 9)
Recital 12b (new)
(12b) Whereas the Interinstitutional Agreement offers
the Commission the possibility of proposing a revision ofthe financial perspective in the event of unforeseen cir-cumstances; whereas, in that case, the institutions willfirst examine the scope for re-allocating expenditure cov-ered by the heading concerned by the revision;
(Amendment 10)
Recital 16
(16) Whereas provision should be made for the possibility of
reducing or temporarily suspending the monthly advanceswhen the information communicated by the Member Statesdoes not enable the Commission to confirm that the Commun-ity rules applicable have been observed or indicates a clear mis-use of Community funds;(16) Whereas in order to protect the financial interests of
the Union precautionary measures may need to beadopted; whereas, consequently, provision should be made
for the possibility of reducing or temporarily suspending themonthly advances when the information communicated bythe Member States does not enable the Commission to confirm7.7.2000 EN C 189/81 Official Journal of the European Communities
Wednesday 17 November 1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
that the Community rules applicable have been observed or
indicates a clear misuse of Community funds; whereas for
reasons of transparency, the Commission should submit a
report every year to the budgetary authority concerning
any cases in which it has reduced or suspended themonthly advances referred to above;
(Amendment 11)
Recital 20
(20) Whereas, for reasons of clarity, Decision 94/0729/EC
should be repealed and replaced by this Regulation ,(20) Whereas, for reasons of clarity, Decision 94/0729/EC
should be repealed and replaced by this Decision ,
(Amendment 12)
Article 1
Budgetary discipline shall apply to all expenditure. Such disci-
pline shall be applied, as appropriate , by the Financial Regula-
tion, this Regulation and the Interinstitutional Agreement of
6 May 1999.Budgetary discipline shall apply to all expenditure covered by
Annex I to the Interinstitutional Agreement of 6 May1999 (‘Financial perspective (EU-15)’) . Such discipline shall
be applied, in accordance with the Treaty , by the Financial
Regulation, this Decision and the abovementioned Interinsti-
tutional Agreement.
(Amendment 31)
Article 3(2), 1st indent
9dash 74 % of the rate of increase in GNP between 1995
(base year) and the year in question,9dash 74 % of the rate of increase in GNP between 1988
(base year) and the year in question,
(Amendments 32 and 13)
Article 4(1)
1. The agricultural guideline shall cover expenditure charge-
able to Titles 1 to 4 of Sub-section B1 of Section III of thebudget in the nomenclature adopted for the 2000 budget ,the
expenditure connected with the agricultural pre-accessioninstrument under heading 7 of the financial perspective and
the amounts relating to agriculture which are available for accessionunder the financial perspective .1. The agricultural guideline shall cover expenditure charge-
able to Titles 1 to 4 of Sub-section B1 of Section III of thebudget in the nomenclature adopted for the 2000 budget and
the expenditure connected with the agricultural pre-accessioninstrument under heading 7 of the financial perspective.The agricultural guideline shall be reviewed on the basisof a report which the Commission shall submit to theCouncil and to the European Parliament before the firstenlargement of the Union so that any necessary adjust-ments can be made .
(Amendment 14)
Article 5(1)
1.All the legislative measures proposed by the Commission or
adopted by the Council or the Commission under the common agri-cultural policy shall comply with the amounts laid down in the
financial perspective under the sub-heading for expenditure onthe CAP (‘sub-heading 1a’) and under the sub-heading for ruraldevelopment and accompanying measures (‘sub-heading 1b’).1.The Commission shall not present any legislative
proposal, or alter its proposals, or adopt any implement-ing measure, which does not comply with the amounts laid
down in the financial perspective under the sub-heading forexpenditure on the CAP (‘sub-heading 1a’) and under the sub-heading for rural development and accompanying measures(‘sub-heading 1b’) , whichever is applicable. All such propo-
sals and measures adopted by the Council shall complywith the amounts laid down in the same sub-headings,whichever is applicable.C 189/82 EN 7.7.2000 Official Journal of the European Communities
Wednesday 17 November 1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
(Amendment 15)
Article 5(2)
2. The Commission shall examine the medium-term budget
situation when the preliminary draft budget is established for agiven year. If it appears that there is a risk of sub-headings 1aand1b of the financial perspective being exceeded for that year
and the following financial year, the Commission shall proposeappropriate measures to the Council to ensure that these
amounts are respected.2. The Commission shall examine the medium-term budget
situation when the preliminary draft budget is established for agiven year. If it appears that there is a risk of sub-headings 1aand/or 1b of the financial perspective being exceeded for that
year and the following financial year, the Commission shallpropose appropriate measures to the budgetary authority to
ensure that these amounts are respected.
(Amendment 16)
Article 5(4)
4. If, when the preliminary draft budget is established, it
appears that the appropriations required for the financial yearin question exceed the amounts referred to in paragraph 3, theCommission shall take appropriate measures to remedy the
situationunder the management powers at its disposal. If this
is not possible, or if the measures taken prove insufficient, the
Commission shall propose other measures, where applicable aspart of the prices package and related measures, to ensure thatthese amounts are observed. The Council shall take a decisionon these measures by 1 July of the year preceding the financialyear covered by the preliminary draft budget in question.4. If, when the preliminary draft budget is established, it
appears that the appropriations required for the financial yearin question exceed the amounts referred to in paragraph 3, theCommission shall take appropriate measures to remedy the
situation using the management powers at its disposal under
the provisions of Treaty and of the relevant regulations.The Commission shall inform both arms of the budgetaryauthority of the measures taken. If the situation cannot beremedied in this way , or if the measures taken prove insuffi-
cient, the Commission shall propose other measures, whereapplicable as part of the prices package and related measures,to ensure that these amounts are observed , and the institu-
tions shall use the procedures foreseen in the Interinstitu-tional Agreement to reach an agreement on the budgetaryimplications of the measures proposed . The Council shall
take a decision on these measures by 1 July of the year preced-ing the financial year covered by the preliminary draft budgetin question.
(Amendment 17)
Article 5(5)
5. In the absence of a Council decision before the deadline
referred to in paragraph 4 , or if the Commission considers that
the outcome of the Council’s discussions on these proposals is
likely to exceed the costs put forward in its original proposals,
the Council shall take a decision on the measures required at a
special meeting held as part of its budget discussions before15 September of the year preceding the financial year coveredby the preliminary draft budget in question.5. In the absence of an agreement between the two arms
of the budgetary authority , or if the Commission considers
that the outcome of the budgetary authority’s discussions on
these proposals is likely to exceed the costs put forward in its
original proposals, the Council shall take a decision on the
measures required at a special meeting held as part of its bud-get discussions before 15 September of the year preceding thefinancial year covered by the preliminary draft budget in ques-tion.The institutions shall make every effort to secure an
agreement on the measures to be taken on the basis of theprocedures foreseen in the Interinstitutional Agreement.In particular, if there is a risk of the amounts referred toin paragraph 3 being exceeded, the rules for the revisionof the financial perspective shall apply.
(Amendment 18)
Article 5(6)
6. The European Parliament is invited to deliver its opinion
within six weeks of receiving any Commission proposal toensure compliance with the amounts referred to in paragraph 3.6. The European Parliament is invited to take a decision
within six weeks of receiving any Commission proposal toensure compliance with the amounts referred to in paragraph 3.7.7.2000 EN C 189/83 Official Journal of the European Communities
Wednesday 17 November 1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
(Amendment 19)
Article 5(7)
7. If, on establishment of the letter of amendment to the
preliminary draft budget for a given year, it appears thatthe amount fixed for sub-heading 1a cannot be respected, theCommission shall, as a precautionary measure, reducethe amount for re-imbursement of direct aid to farmers forthe financial year covered by the letter of amendment. If apositive margin emerges during implementation of the budget
for that financial year or the following year, the amount of
reimbursement of direct aid shall be adjusted accordingly. TheCommission shall take the measures which are necessary as aresult of this adjustment, in particular proposals for transfers.At all events, the financial costs undertaken by the MemberStatesshall be re-paid from the Community budget by, as a
priority and entirely during the financial year following the year
covered by the letter of amendment.7. If, on establishment of the letter of amendment to the
preliminary draft budget for a given year, it appears thatthe amount fixed for sub-heading 1a cannot be respected and
if it also appears that the amount cannot be revisedaccording to the procedures foreseen in the Interinstitu-tional Agreement , the Commission shall, as a precautionary
measure, reduce the amount for re-imbursement of direct aid
to farmers for the financial year covered by the letter of
amendment. If a positive margin emerges during implementa-tion of the budget for that financial year or the following year,the amount of reimbursement of direct aid shall be adjustedaccordingly. The Commission shall take the measures whichare necessary as a result of this adjustment, in particular pro-posals for transfers. At all events, the financial costs undertakenby the Member States maybe re-paid from the Community
budget within the limit of the appropriations available dur-
ing the financial year following the year covered by the letterof amendment.
(Amendment 34)
Article 5(7), 2nd subparagraph (new)
The Commission shall submit appropriate proposals for
preventing a cycle arising from suspended payableamounts, which lead to the suspension of other amounts,which then have to be paid out, resulting in fresh suspen-sions, etc. The Commission shall also ensure that sus-pended amounts from year x−1 are not paid out at theexpense of actual requirements in year x.
(Amendment 20)
Article 5(8)
8. For the implementation of this article, the support mea-
sures and institutional prices provided for under the commonagricultural policy shall apply without prejudice to the adoption,
whenever appropriate, of measures to ensure compliance with the
amounts referred to in paragraph 3.8. For the implementation of this article, care shall be
taken when adopting the support measures and the institu-
tional prices provided for under the common agricultural pol-icytoensure compliance with the amounts referred to in para-
graph 3.
(Amendment 21)
Article 6(5)
5. If it concludes from the examination that there is a risk of
the appropriations for sub-heading 1a being exceeded at theend of the year, the Commission shall take action to remedythe situation under the management powers at its disposal.
If these measures prove to be insufficient, the Commission
shall evaluate the impact of the measures to be proposed totheCouncil with respect to both the savings which they are
likely to produce and the time required for them to have theirfirst economic and budgetary effects. The budgetary authorityshall be informed of this evaluation. If effective measures arefound to control expenditure, the Commission shall proposethemto the Council .The European Parliament is invited to deliver
its opinion within six weeks and the Council shall act within twomonths of receiving the Commission’s proposal in order to bringexpenditure back into line with the allocation provided.5. If it concludes from the examination that there is a risk of
the appropriations for sub-heading 1a being exceeded at theend of the year, the Commission shall take action to remedythe situation under the management powers at its disposal.
The Commission shall inform the budgetary authority of
the measures taken . If these measures prove to be insufficient,
the Commission shall evaluate the impact of the measures tobe proposed to the budgetary authority with respect to both
the savings which they are likely to produce and the timerequired for them to have their first economic and budgetaryeffects. The budgetary authority shall be informed of this evalu-ation. If effective measures are found to control expenditure,the institutions shall use the procedures foreseen in theInterinstitutional Agreement to reach an agreement onthe budgetary implications of the necessary measures andC 189/84 EN 7.7.2000 Official Journal of the European Communities
Wednesday 17 November 1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
the Commission shall propose them to the budgetary authori-
ty.The two arms of the budgetary authority shall try to
reach agreement on these measures during the consulta-
tions among the institutions for which Annex III to the
Interinstitutional Agreement of 6 May 1999 on budgetarydiscipline and improvement of the budgetary procedureprovides .
(Amendment 22)
Article 6(6)
6. If it proves impossible to remedy the situation before the
end of the budget year or if the Council does not take a deci-sion within the time limit laid down, the Commission shall, asa precaution, suspend the payment of the monthly advancesmade to the Member States under the EAGGF Guarantee Sec-tion. This suspension shall be in proportion to the total over-run for the subheading concerned. The amounts suspendedshall be charged as a priority and entirely to the budget for the
following year.6. If it proves impossible to remedy the situation before the
end of the budget year or to complete the procedure for the
revision of the financial perspective, or if the Council does
not take a decision within the time limit laid down, the Com-mission shall, as a precaution, suspend the payment of themonthly advances made to the Member States under theEAGGF Guarantee Section. This suspension shall be in propor-tion to the total overrun for the subheading concerned. The
amounts suspended may be charged to the budget for the fol-
lowing year within the limit of the appropriations avail-
able.
(Amendment 23)
Article 6a (new)
Article 6a
If at any point in the procedures laid down in Articles 5
or 6 there should appear a risk that the amounts fixed forsub-heading 1a or for sub-heading 1b of the financial per-spective were to be exceeded, despite the possible mea-
sures to be taken, the Commission may avail itself of the
possibility offered by the Interinstitutional Agreement topropose an appropriate revision of the financial perspec-tive.
(Amendments 24 and 36)
Article 6b (new)
Article 6b
The Commission may propose to the Council and to the
European Parliament the necessary measures to allow thetransfer of resources in Chapters B1-1 to B1-3 and B1-4which are not utilised in one budgetary year to the fol-
lowing budgetary year in order to ease the burden on
the budget in the following year. Unused resourcesentered in Chapters B1-1 to B1-3 and B1-4 may therebybe transferred to the following year and shall not bereturned to the Member States.
The Commission may make use of this power when draw-
ing up the preliminary draft budget.7.7.2000 EN C 189/85 Official Journal of the European Communities
Wednesday 17 November 1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
(Amendment 25)
Article 8, 1st paragraph
€ 500 million shall be entered in a reserve in the general bud-
get of the European Communities, as a provision to cover thedevelopments caused by movements in the euro/dollar marketrate in relation to the rate used in the budget referred to inArticle 10.€ 500 million shall be entered in a reserve in the general bud-
get of the European Communities, as a provision to cover thedevelopments caused by movements in the euro/dollar marketrate in relation to the rate used in the budget referred to inArticle 10 as well as by unforeseen developments in the
agricultural markets.
(Amendment 26)
Article 9
By no later than the end of October each year, the Commission
shall report to the budgetary authority on the impact of move-ments in the average euro/dollar rate on expenditure underTitles 1 to 3 (heading 1).By no later than the end of October each year, and before it
presents a letter of amendment to the preliminary draftbudget, the Commission shall report to the budgetary authori-
ty on the impact of movements in the average euro/dollar rateon expenditure under Titles 1 to 3 of sub-section B1 of the
budget (heading 1 of the financial perspective ).
(Amendment 27)
Article 13(3a) (new)
3a. The Commission shall present an annual report to
the budgetary authority on the application of this Articleduring the previous financial year.
(Amendment 28)
Article 18
No act adopted under the codecision procedure by the European Par-
liament and the Council nor any act adopted by the Council
which involves exceeding the appropriations available in thebudget or the allocations available in the financial perspectivemay be implemented in financial terms until the budget has been
amended and, if necessary, the financial perspective has beenappropriately revised in accordance with the relevant procedurefor each of these cases.The financial implementation of any act of the European
Parliament and the Council or of any act of the Council
which involves exceeding the appropriations available in thebudget or the allocations available in the financial perspectivemay not take place until the budget has been amended and, if
necessary, the financial perspective has been appropriatelyrevised in accordance with the relevant procedure for each ofthese cases.
(Amendment 29)
Article 18a (new)
Article 18a
Any act amending or replacing this Decision shall only be
adopted after recourse to the conciliation procedurereferred to in the Interinstitutional Agreement and afterthat procedure has resulted in an agreement between theEuropean Parliament and the Council on the amendmentsto be made.C 189/86 EN 7.7.2000 Official Journal of the European Communities
Wednesday 17 November 1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
(Amendment 30)
Article 20
ThisRegulation shall enter into force on the seventh day following its
publication in the Official Journal of the European Communities.
It shall apply from …
This Regulation shall be binding in its entirety and directly applicable
in all Member States.ThisDecision is addressed to the Member States and to
the Commission.
European Parliament legislative resolution on the proposal for a Council Regulation on budgetary
discipline (COM(1999) 364 Edash C5-0141/1999 Edash 1999/0151(CNS))
(Consultation procedure)
The European Parliament,
9dash having regard to the Commission proposal to the Council (COM(1999) 364),
9dash having been consulted by the Council pursuant to Articles 37, 279 and 308 of the EC Treaty
(C5-0141/1999),
9dash having regard to Rule 67 of its Rules of Procedure,
9dash having regard to the report of the Committee on Budgets and the opinion of the Committee on
Agriculture and Rural Development (A5-0055/1999),
1. Approves the Commission proposal as amended;
2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC
Treaty;
3. Calls for the conciliation procedure to be initiated should the Council intend to depart from the text
approved by Parliament;
4. Asks to be consulted again if the Council intends to amend the Commission proposal substantially;
5. Instructs its President to forward its position to the Council and Commission.7.7.2000 EN C 189/87 Official Journal of the European Communities
Wednesday 17 November 1999
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT