A4-0296/95

Joint guideline established by the Council with a view to adopting a Council Regulation on the protection of the European Communities' financial interests (7522/95 - C4-0292/95 - 94/0146(CNS))

The proposal was approved subject to the following amendments:

Council text Amendments by Parliament

(Amendment 1)

Recital 12

>Original text>

Whereas this Regulation will apply without prejudice to the application of the Member States' criminal law;

>Text following EP vote>

Deleted

(Amendment 2)

Article 1(2)

>Original text>

2. 'Irregularity' shall mean any infringement of a provision of Community law resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the Communities or budgets managed by them, either by reducing or losing revenue accruing from own resources collected directly on behalf of the Communities, or by an unjustified item of expenditure.

>Text following EP vote>

2. 'Irregularity' shall mean any infringement of a provision of Community law resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the Communities or budgets managed by them, either by reducing or losing revenue accruing from own resources collected directly on behalf of the Communities, or by an unjustified item of expenditure, or by the misappropriation of funds for purposes other than those for which they were originally granted.

(Amendment 3)

Article 2(2)

>Original text>

2. No administrative penalty may be imposed unless a Community act prior to the irregularity has made provision for it. In the event of a subsequent amendment of the provisions which impose administrative penalties and are contained in Community rules, the less severe provisions shall apply retroactively.

>Text following EP vote>

2. No administrative penalty may be imposed unless a Community act prior to the irregularity has made provision for it. In the event of a subsequent amendment of the provisions which impose administrative penalties and are contained in Community rules, the less severe provisions shall apply retroactively, unless it is explicitly provided in those new provisions that they shall not apply retroactively.

(Amendment 4)

Article 3(1), first subparagraph

>Original text>

1. The limitation period for proceedings shall be four years as from the time when the irregularity referred to in Article 1(1) was committed. However, the sectoral rules may make provision for a shorter period which may not be less than three years.

>Text following EP vote>

1. The limitation period for proceedings shall be five years as from the time when the irregularity referred to in Article 1(1) was committed. However, the sectoral rules may make provision for a shorter period which may not be less than three years.

(Amendment 5)

Article 3(2), first subparagraph

>Original text>

2. The period for implementing the decision establishing the administrative penalty shall be three years. That period shall run from the day on which the decision becomes final.

>Text following EP vote>

2. The period for implementing the decision establishing the administrative penalty shall be five years. That period shall run from the day on which the decision becomes final.

(Amendment 6)

Article 4(1), introduction

>Original text>

1. As a general rule any irregularity shall involve withdrawal of the wrongly obtained advantage:

>Text following EP vote>

1. Any irregularity shall involve withdrawal of the wrongly obtained advantage:

(Amendment 7)

Article 4(1), first indent

>Original text>

- by an obligation to pay or repay the amounts due or wrongly received;

>Text following EP vote>

- by an obligation to pay or repay the amounts due or wrongly received, where appropriate with the addition of interest, which may be determined on a flat-rate basis;

(Amendment 8)

Article 4(2)

>Original text>

2. Application of the measures referred to in paragraph 1 shall be limited to the withdrawal of the advantage obtained plus, where so provided for, interest which may be determined on a flat-rate basis.

>Text following EP vote>

Deleted

(Amendment 9)

Article 4(3)

>Original text>

3. Acts which are established to have as their purpose the obtaining of an advantage contrary to the objectives of the Community law applicable in the case by artificially creating the conditions required for obtaining that advantage shall result, as the case shall be, either in failure to obtain the advantage or in its withdrawal.

>Text following EP vote>

3. Acts which are established to have as their purpose the obtaining of an advantage contrary to the objectives of the Community law applicable in the case by artificially creating the conditions required for obtaining that advantage shall result, as the case shall be, either in failure to obtain the advantage or in its withdrawal, without prejudice to the application of the penalties provided for in Article 5(1)(d) and (e).

(Amendment 10)

Article 5(1)(e)

>Original text>

(e) temporary withdrawal of the approval or recognition necessary for participation in a Community aid scheme;

>Text following EP vote>

(e) temporary or definitive withdrawal of the approval or recognition necessary for participation in a Community aid scheme;

(Amendment 12)

Article 7

>Original text>

Community administrative measures and penalties may be applied to the economic operators referred to in Article 1, namely the natural or legal persons and the other entities on which national law confers legal capacity who have committed the irregularity. They may also apply to persons who have taken part in the irregularity and to those who are under a duty to take responsibility for the irregularity or to ensure that it is not committed.

>Text following EP vote>

Community administrative measures and penalties may be applied to the economic operators referred to in Article 1, namely the natural or legal persons and the other entities on which national law confers legal capacity who have committed the irregularity through natural persons acting on their behalf and exercising legal, delegated or de facto decision-making power. They may also apply to persons, legal persons or other entities on which national law confers legal capacity which have taken part in the irregularity and to those who are under a duty to take responsibility for the irregularity or to ensure that it is not committed.

(Amendment 13)

Article 8(1)

>Original text>

1. In accordance with their national laws, regulations and administrative provisions, the Member States shall take the measures necessary to ensure the regularity and reality of transactions involving the Communities' financial interests.

>Text following EP vote>

1. In accordance with their national laws, regulations and administrative provisions, the Member States shall take the measures necessary to ensure the regularity and reality of transactions involving the Communities' financial interests. The Member States shall inform the Commission of the nature of such measures and the regularity with which they are to be carried out.

(Amendment 14)

Article 9(2), second subparagraph

>Original text>

Before carrying out such checks and inspections, in accordance with the rules in force, the Commission shall inform the Member State concerned accordingly in order to obtain any assistance necessary.

>Text following EP vote>

Before carrying out such checks and inspections, in accordance with the rules in force, without prejudice to any sectoral rules involving surprise on-the-spot checks, the Commission shall inform the Member State concerned which shall provide the Commission with whatever assistance deemed necessary in the circumstances by the Commission. The Commission shall report annually to the European Parliament on the application of Articles 8 and 9 of this Regulation.

Legislative resolution embodying Parliament's opinion on the joint guideline established by the Council with a view to adopting a Regulation on the protection of the Communities' financial interests (7522/95 - C4-0292/95 - 94/0146(CNS))

(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council, COM(94)0214 - 94/0146(CNS) ((OJ C 216, 6.8.1994, p. 14.)),

- having regard to its opinion of 15 March 1995 ((OJ C 89, 10.4.1995, p. 83.)),

- having regard to the Council's joint guideline (7522/95),

- having been reconsulted by the Council pursuant to Article 235 of the EC Treaty and Article 203 of the Euratom Treaty (C4-0292/95),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Budgetary Control and the opinions of the Committee on Civil Liberties and Internal Affairs and the Committee on Legal Affairs and Citizens' Rights (A4-0296/95),

1. Approves the Council's joint guideline subject to Parliament's amendments;

2. Calls on the Council to amend its joint guideline accordingly;

3. Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

4. Instructs its President to forward this opinion to the Council and Commission.