ARCHIVES HISTORIQUES
DELACOMMISSION
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DOCUMENTS "COM"
COM(77)396
Vol.1977/0130

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COMMISSION OFTHEEUROPEAN COMMUNITIES
A ,COM(77)396 final/V/\,/n/-ci-A
Brussels^29thJuly1977
i~fII--.:-/^» //
i^-r... JV\duu,ki,::i
V//
» Vv:,.
PROPOSAL FORAREGULATION (EEC.EURATOM,ESCS),IMPLEMENTING THE
DECISION OF21APRIL1970ONTHEREMPLACEMENT OFFINANCIAL CONTRIA
BUTTONS FROMMEMBERSTATESBYTHECOMMUNITIES *OWNRESOURCES
r
SECONDAMENDED PROPOSAL UNDERARTICLES 149OFTHEEECTREATYAND
119OFTHEEAECTREATYFORACOUNCILREGULATION (ECSC,EEC,EURATOM)
AMENDING THEFINANCIAL REGULATION OF25APRIL1973APPLICABLE TO
THEGENERAL BUDGETOFTHEEUROPEAN COMMUNITIES
AMENDEDPROPOSAL FORACOUNCILREGULATION IMPLEMENTING ,INRESPECT
OFTHEOWNRESOURCES FROMV.A.T.,THEDECISION OF21APRIL1970ON
THEREPLACEMENT OFFINANCIAL CONTRIBUTIONS FROMMEMBERSTATESBYTHE
COMMUNITIES' OWNRESOURCES

SUMMARY
Page
1.Communication bytheCommission totheCouncil
andtheParliament
2.Explanatory memorandum
3.Preamble
4.TextoftheRegulation :
TITLEI-Generalprovisions
TITLEII-Provisions formakingavai­
lableandpayingoverthe
Communities' ownresources
TITLEIII-Management ofcashresources
TITLEIV-Procedure forapplication
ofthefinancial participation
ofthenewMemberStatesand,
whereappropriate ,theprovisions
ofArticle 4(2)and(3)ofthe
Decision of21April1970.
TITLEV-Procedure fortheapplication of
Article 4(5)oftheDecision of
21April1970
TITLEVI-Provisions concerning measures
ofcontrol
TITLEVII-Provisions relating tothe
Advisory Committee onthe
Communities' OwnResources ;
finalprovisions
5.Amendments tobemadetotheFinancial Regu­
lation (versioncontained inwrittenprocedure
No317/77of2March1977)
6.Amendments tobemadetotheproposal for
aVATFinancial Regulation (C0M(77)120 final)
7.Secondamendedproposal underarticles 149ofthe
EECTreatyand119oftheEAECTreatyforaCouncil
regulation (ECSC,EEC,EURATOM )amending thefinancial
regulation of25.4.70applicable tothegeneralbudget
oftheEuropean Communities .
8.AmendedproposalforaCouncilregulation implementing ,
inrespectoftheownresources fromV.A.T.,thedecision
of21.4.70onthereplacement offinancial contributions
frommemberstratesbytheCommunities' ownresources .3
7
15
17
17
20
24
28
30
32
35
37
39
41
47

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PROPOSAL FORAREGULATION (EEC,EURATOM,ECSC),IMPLEMENTING THE
DECISION OF21APRIL1970ONTHEREPLACEMENT OFFINANCIAL CONTRI­
BUTIONS FROMMEMBERSTATESBYTHECOMMUNITIES' OWNRESOURCES

Modification tothree draft regulations caused "bythenecessity tomake
changes inthe methods offinancing theBudget ,
Communication "bythe Commission tothe Council and the Parliament
SUMMARY
1.This communication "brings together ,forapproval "bythe "budgetary auth­
orities ,proposed changes inthefollowing three draft Regulations already
submitted "bytheCommission
(a)thedraft regulation modifying Regulation 2/71which implements the
Decision of21April 1970 onthe replacement offinancial contributions
from Member States "bytheCommunities' OwnResources ;
(b)theDraft Regulation introducing VATasanOwnResource following approval
oftheSixth Directive ;
(c)theDraft Regulation amending theFinancial Regulation of25April 1973 *
2.The "budgetary authorities areasked toconsider these changes asone
package "because they are linked together "bythefact that they allinfluence
themethods offinancing theBudget ,They result from thefollowing situations
which will arise forthefirst time on1stJanuary 1978 .
(a)Theendoftherelative share system offinancing theBudget "butthecon­
tinuation fortwoyears ,byArticle 131oftheTreaty ofAccession ,of
limits tothe financial burdens ofthe three new Member States ,
(b)Thepossibility that ,atleast in1978 ,thepart oftheBudget not
covered bycustoms duties ,agricultural levies andmiscellaneous income
will have tobefinanced "byamixture ofownresources arising from VAT
and ofGNP contributions ,
(c)Theneed toremove an .inequity among Member States which would result in
1978 from theapplication oftheVATRegulation asatpresent drafted .
(d)Theneed tofind asolution totheproblem of"cash flow' *resulting from
theendoftherelative share system andtheintroduction ofVATasan
Own Resource ,
Regulation 2/71
3,On2ndJune 197^theCommission adopted andsent totheCouncil andto
Parliament adraft modification ofRegulation 2/7Iwhich mainly took account
oftheintroduction on1stJanuary 1978 ofthefull OwnResources system ,of
thenewEuropean Unit ofAccount andofthechanges proposed intheFinancial
Regulation ,TheParliament decided on17December 1976 topostpone its
opinion onthe draft modifications until the Council hadadopted the Sixth
Directive onVAT ,TheCouncil hasnotyetconcluded itsdiscussion ofthe
Commission 'sproposal ,
4.Itisnownecessary toamend theCommission 'soriginal proposal inthe
light ofevents which have since taken place and inorder tofind asolution
tothe "cash flow "problems referred toinparagraphs 8 "to11below .The
main modifications ,which have been incorporated into anewdraft regulation ,
are asfollows

-4-
(a)Anewproposal -that theMember States should payonetwelfth each month
(from January toDecember )oftheamount arrived at "byapplying the
Community VATrate totheforecast amount ofitstax "base .Thereasons
for this are set out inparagraphs 5and 6'below .
(b)Anewproposal that temporary difficulties of"cash flow "should "be
covered "byoverdrafts ;seeparagraphs 8to11below .
(c)Initsoriginal proposal in197^theCommission proposed that thetwo-
fifths rule ofArticle 131should beapplied atthe time oftheprepar­
ation ofthe1978 Budget andthat theresulting effect should nothe
changed inthelight oftheactual out–turn ofthe1978 accounts .The
further study ofArticle 131 ,which has "been necessary because ofthe
disagreement among theMember States ontheCommission 'sinterpretation ,
has convinced theCommission that this proposal should bechanged .
Firstly ,because Article 131starts bysaying that with effect from 1st
January 1978 theOwnResources shall bedueinfull bythenewMember
States ,subject tothe2/5ths rule ;ittherefore seems tobemore correct
toapply theOwnResources system fully intheBudget and tocorrect the
results after theactual out-turn of1978 isknown .Secondly ,anapplic­
ation ofthe2/5ths rule atthetime oftheestablishment oftheBudget
would result inonerate ofCommunity VATfortheSixandoneforeach of
theThree –i.e. four rates ofCommunity VAT ;Article 4oftheDecision
of1970 envisaged asimilar situation ifVAThadbeen applied during the
relative share eraandprovided fortheapplication ofonly oneVATrate
andforcorrections attheendoftheyear bilaterally between Member
States .This latter method isnow thought tobecorrect and ithasbeen
incorporated inthenewtext ofRegulation 2/fl.This does not,however ,
imply anychange intheCommission 'sinterpretation ofArticle 131»
5.TheRegulation onVAT
Thedraft Regulation applying VAT asanOwnResource provides that the
"establishment "ofVATmade during abudgetary year should beimputed to
that year ,asisatpresent thecase with customs duties andagricultural
levies ;an "establishment "is,broadly speaking ,defined asthereceipt by
thenational administration ofadeclaration byataxpayer ofhis inputs
andoutputs foraprior period .TheCommission wasaware that this would
mean that inthefirst year (1978 )aproportion oftheyear 'sVATwould
becredited tothefollowing year (because declarations bytaxpayers are
necessarily inarrears )andthat theproportions might bemarginally dif­
ferent fordifferent Member States .Ithas ,however ,recently been estab­
lished that theproportions are sodifferent astoproduce anunacceptable
inequity between Member States .
6.TheCommission hasreconsidered this question andnowproposes that each
Member State should payonetwelfth each month (from January toDecember )
oftheamount arrived atbyapplying theCommunity VAT rate tothefore­
cast amount ofitstaxbase .Inthefollowing year theactual amount of
theVATOwnResources ofthefirst year would beestablished andanadjust­
ment would bemade which would becredited ordebited tothe accounts ofthe
second year 0This method would preserve theprinciple that itistheOwn
Resources which are established which should betransferred tothe Community ;
itwould remove theinequity which would otherwise exist inthefirst year ;
and ,very importantly ,itwould goalong tvaytowards solving theproblem of
'cash flow' ,which ismentioned inparagraphs 8 "to 11 ,because the
Community would receive twelve months ofVAT inthefirst year .
7.Thedraft VATRegulation hastherefore been amended .soastoexclude reference
tothebudgetary andaccounting aspects andtodeal only with theprinciples

-5-
ofestablishing VATasanOwn .Besourca endof -themethods of .control ofthis*■
establishment bytheCommission .Theopportunity hasalso beerv taken ofincor -
pcvr£.tmg modifications proposed bytheParliament which canbeaccepted bythe
Commission .Thenewproposals referred toinparagraph 6above have been '
incorporated intherevised version ofRegulation 2/71.
Theproblems of"cash flow "
8.Initscommunication totheJoint Council meeting of5April 1977 theCommission
referred totheproblem ofthe "gap"ofabout 2000 m.u.a .which would occur at
thebeginning of1978–corresponding toabout three months ofpayments which
would notbecovered bytheflow ofrevenue from customs duties ,agricultural
levies andVATestablished in1978 .TheCommission said that this could be
solved byanadvance from theMember States orbyborrowing onthecapital
market .TheCommission also referred tothecontinuing possibility that the
flow ofrevenue from OwnResources would temporarily notmatch theexpenditure
flow andthat short –term borrowings would beneeded .
9.TheCommission hasbeen considering various solutions tothis problem .Itis
now oftheopinion that the *gap' istoolarge tobecovered byborrowing and
that tocover itbyanadvance from theMember States would notbeconsistent
with theprinciple ofthefinancial autonomy oftheCommunity .
10.Thebest solution totheproblem ofthe 'gap *seems tobetoproceed asfollows ;–
(a)Adopt theproposal referred toinparagraph 6above which would have the
effect that VATpayments would start inJanuary 1978 .
(b)Revert totheCommission 'soriginal proposal inthemodifications tothe
Financial Regulation that thereceipts side oftheBudget andoftheannual
accounts should berelated totheactual cash received between 1stJanuary
and 31December .This would have theeffect that customs duties andagric­
ultural levies received in1978 butrelating to1977 would becredited to
1978 ;this would reduce bythesame amount theOwnResources of1977 but
thedifference could becovered byGNPcontributions tinder theexisting
system andwith the limits oftherelative share ofeach Member State .The
original proposal waswithdrawn because ofobjections ofprinciple bythe
Parliament but ,inagreeing todoso,Mr.CHEYSSCN explained the "cash flow "
difficulties which this would involve ;since noother solution tothe "cash
flow "problem canbefound theCommission feels obliged torepeat itsorig­
inal proposal .This means that amodification must bemade tothedraft (
Financial Regulation asitnowstands ;this isshown inthedocument annexed
tothis communication .
11.There aretwoother problems of"cash flow ":–
(a)Even ifthetotal receipts forayear correspond with theforecasts inthe
Budget andthere isnosurplus ordeficit attheendoftheyear ,they are
not likely tocoincide month bymonth with theflow ofpayments andthere
maytherefore betemporary cash deficits .
(b)Ifthereceipts written into theBudget areoverestimated there will bea
structural deficit which will becarried over tothefollowing year 's
Budget ;this also would oroduce acash deficit but itwould beoflonger
duration –perhaps ,onaverage ,asmuch as12months .
Resolution ofthis problem byasystem ofadvances byMember States aswassaid
above ,would notconform with theprinciple ofthefinancial autonomy ofthe
Community .Itseems tobebest ,therefore ,tomake anaddition toRegulation
2/7Iproviding that theCommission begiven thepower toarrange overdrafts .
ThenewRegulation 2/7Iattached tothis communication makes this proposal .

-6-
12.TheBudgetary Authorities aretherefore askedtoapprove
(a)thenewtext(attached )ofadraftRegulation replacing Regulation 2/71;
(b)theattacheddraftregulation modifying theoriginaldraftregulation on
VAT(alistofthemodifications isattached asanaide-memoire );
(c)theattacheddraftregulation modifying theoriginaldraftFinancial Regulation
(alistofthemodifications isattached asanaide-memoire ).

-7-
Brussels ,5July 1977
Proposal for aRegulation implementing theDecision of21April 1970
onthereplacement offinancial contributions from Member States by
the Communities *ownresources
Explanatory memorandum
1.As1978 will beaturnings-point inthehistory oftheBudget
oftheEuropean Communities ,itwill inevitably seechanges to
Regulation No2/71concerning theoperation oftheownresources
arrangement s•
Theentry into force oftheSixth VAT Directive entails thelaying
down ofprocedures fortheaccounting ,making available andadministration
ofthis newownresource ,since itismarkedly different from theresources
accruing from customs duties and agricultural levies .Rules must also
belaid down concerning the principles governing thedetermination and
control ofVAT ownresources :these provisions have been incorporated
inanother Regulation ,separate from Regulation No2/71,inorder to
avoid aseries ofcross references orexceptions which would benecessary
inorder todistinguish between customs resources andfiscal resources .
Although Regulation No2/71concerns resources which bydefinition are
established ,collected andpaid over bytheMember States intheir
respective national currencies ,theuseoftheEUAintheCommunity
Budget asfrom 1January 1978 necessitates certain provisions :although
theSixth VATDirective istoapply from 1January 1978 ,provision
must also bemade for aMember State *sinability tofulfil this obligation .
Themethod ofcalculating theGNPscale forVATpurposes must therefore
belaid down ;itseemed appropriate tochange therules inorder to
bring thecalculation method more uptodate asregards thevalue of
the various currencies .
Fortheoriginal Member States ,1978 will mark thebeginning ofthe
final period ,inwhich thespecial provisions on"relative shares "
(which donotapply tothenewMember States )arenolonger appropriate
andmust berepealed .

>-8-
ForthenewMember States ,ontheother hand ,1978 marks the
"beginning ofthepenultimate stage inwhich there arestill limits
totheir financial contributions under certain conditions .The
procedures forcalculating thelimits ,entailing theapplication
ofArticle 131oftheActofAccession ,arediscussed elsewhere ,
"butRegulation No2/71governs howthey aretobeintroduced into
the accounting process .
Lastly ,thefinancing oftheCommunity Budget from theCommunities'
ownresources ,andcertain provisions such asArticle 4(5)ofthe
Decision of21April 1970 concerning the carrying-over ofsurpluses
tothefollowing financial year ,usher inafinancial autonomy such
that plans must bemade forabandoning thepresent system ofadvances
asfrom 1978 andintoducing provisions enabling there tobe
autonomous and effective administration ofthese resources . This
new approach does ofcourse present cash-flow problems ;itis
self-evident that even with abudget which isperfectly balanced
(notonly asregards revenue andexpenditure butalso forecasts
andresults )theassets available maynotbeenough tocover
expenditure atcertain times during theyear .If,inaddition ,
theabovementioned balance isnotachieved ,itseems inevitable
that overdraft facilities ,with their legal basis in
Article 18oftheTreaty of10July 1975t would beneeded .However ,
with theprovisions inforce atpresent ,themain cash-flow problem
would betheexistence ofavery biggapduetothetime lag
between thecollection ofrevenue (twomonths after establishment
forcustoms duties andagricultural levies ,andlonger forVATif
thesame principles areapplied )andtheeffecting ofexpenditure .
Theamendment toRegulation Ho2/71therefore entails recasting the
arrangements inforce inorder toreduce this gapandproposes the
introduction ofacashbudget forrevenue' "necessitating anamendment
tocertain provisions ofthedraft Financial Regulation applicable
totheBudget oftheEuropean Communities andthedraft VAT
Financial Regulation which areboth before theBudgetary Authority ,
This gapwould befilled completely asresult ofanamendment tothe
draft VATRegulation tomake provision foramonthly payment (from
January toDecember )ofone–twelfth oftheVATownresources forecast
intheBudget .Provision isalso made forcalling each month for
.theadvance payment ofownresources other than those accruing from VAT .

2, Inview of "themagnitude oftne amendments envisajod ,itBQOI ..2d
wise towithdraw theproposal foranamendment toRegulation Ivo2/71
presented inJune 1976 »which ,through theforce ofcircumstances ,could
not incorporate allthese amendments ,and putforward anew "Regulation
implementing theDecision of21April 1970 onthereplacement of
financial contributions from Member States bythe Communities' own
resources "embodying asmany oftheprovisions oftheexisting Regulation
aspossible and ,initslast Article ,repealing Regulation No2/71.
Thenew text ofthe Regulation isaccompanied bytwopapers setting out
theamendments tobemade totheFinancial Regulation applicable tothe
General Budget oftheEuropean Communities and totheVAT Regulation .
The latter also incorporates the amendments proposed byParliament on
16June 1977 which theCommission canaccept .
3.The text ofthenew proposal has thefollowing structure :
Title I-General provisions
Articles 1to5take over virtually all the original text apart from
anamendment ,forpractical reasons ,totwotime limits inArticles 3
and 5*and ."t^-ereference totheVATRegulation inArticle 1totake into
account itsscope .Article 6hasbeen retained ,apart from paragraphs 3
and4which are superfluous' inacash budget system .Fresh provisions
have been introduced inparagraph 2andinthenewparagraph 3which
concern VAT establishments .These nev ;provisions arenecessary because ,
unlike theownresources from customs duties andagricultural levies ,
the ownresources accruing from VAT canlegitimately beestablished long
after theendofthefinancial year inquestion .Forreasons of
presentation ,Article 10hasbeen switched toArticle 7»
Title II.–Making available andpaying over the ownresources
Article 8corresponds toArticle 7ofRegulation No2/71.Thenew
Article 9defines themethod ofcalculating theVATrate ,highlighting
the automatic nature ofthis calculation .
Article 10derives from Article 8oftheFinancial Regulation .The
fact ofembarking onthefinal period ,when thedynamic brakes will be
taken off ,entails thedeletion ofthereferences toArticle 3(3)and .
Article 4(1 )ontheDecision of21April 1970 *

-10-
Article 11,anewArticle ,istheheart ofthesystem proposed ,asystem •
which isbased onhaving acash budget forrevenue (hence theproposal for
anamendment toArticle 5of "theFinancial Regulation applicable tothe *
General Budget oftheEuropean Communities );moreover ,itflows from the
need toamend theproposal foraVATRegulation asregards thebudgetary
booking ofestablishments .Theinformation given bytheMember States
indicates that thepattern ofdeclaration bytaxable persons differs
considerably from Member State toMember State ,generating -with the
arrangements envisaged initially -distortions ,directly proportional to
these differences ,inthemaking available oftheresources accruing
from VAT .TheCommission therefore proposes todelete Article 5(3)ofthe
VATRegulation which provides forVATownresources tobeincluded inthe
Community accounts onthebasis ofmonthly establishments ,andtoadopt
asystem based ontwelths asexplained above .(1)
Asalready mentioned ,thecash budget forrevenue bridges only part ofthe
cash-flow gap :inayear 'sbudget this gaprepresents three months of
theCommunity 'sexistence –two ofwhich arise because the revenue is
paid over twomonths after collection andthethird because theCommunity
institutions need their operating funds foreach month ,particularly for
theEAGGP ,inthemonth before .
Consequently ,Article 11provides fortheadvance payment ofonemonth of
ownresources accruing from customs duties andagricultural levies in
order that theCommission should receive ,by20December ofeach year ,
these ownresources forJanuary oftheensuing year (inacash budget these
resources would therefore match the amounts established bytheMember
States inNovember ).Theadjustment will bemade inthefollowing month
within thetime limit of45days (which isincreased to50)laid down at
present forthemaking available ofownresources totheCommission ;the
advance payment ofownresources forFebruary will bemade simultaneously
andinthesame conditions ,and so-on.
(1)This solution involves areductton inthe rate ofVATsince from thefirst
year itwill bepossible tocalculate thelatter byreference tothewhole
tax-base .

Provision isalsomadeforVATresources or,whereappropriate ,
_.,;»,cupcontributionsto bepaidintwelfthsoftheamountsbudgetedfor,,in??'
ordertoobtainaregularpatternofthepayment.Assuming abudgetwhere
expenditure andrevenuefollowthesamemonthlyrhythmandrevenueconsists
halfofVATresources andhalfofcustomsandagricultural resources ,the
Commission wouldhaveatitsdisposal onthetwentieth dayofeachmonth
asumenablingittomakeanappropriate downpayment ontheEAGGFadvances ,
orevenpaythemintheirentirety ,thefollowing month.Onthefirst
dayofthefollowing monthitwouldreceivetheremainder neededtopaythe
balance,ifany,oftheEAGGFadvances andtofinancetheotherexpenditure ,
thecash-flow gapbeingcompletely closedinthismanner.
Theproposedprovisions alsoincludetheprocedures forthesettlement of
thesepayments :therewouldbeanadjustment towardsthemiddleofthe
following financial yearbased,asregards VAT,ontheamountsactually
established forthepreceding financial yearand,asregardsany
GUPcontributions ,onthedistribution forecastinthebudgetinquestion
betweenthelatterandtheVATresources .Theadjustment inquestion
represents amodification oftherevenueforthefinancial yearinwhich
theadjustment ismade,insuchawayasnottointerfere withtheclosing
oftheaccountsforthefinancial yearjustended.
Article 12contains thesameprovisions oninterest ondefaulted payments
asthoseofRegulation No2/j1,withmorespecificdetailsconcerning time
limits.
Article 13isvirtually asynthesis oftheprovisions ofArticles 11and12
ofRegulation No2/71andArticle38oftheFinancial Regulation of
25April1973,themaindifferences beingasfollows:
(a)Thetexthasbeenmademoreflexibletoallowofthefullapplication
offinancial autonomy.
(b)Inviewofthenewarrangements ,theadvances onfutureownresources
havebeendeleted .
(c)Provisions ismadeforcovering exchangeraterisksbyspreading the
Commission'sholdingsinthevariouscurrencies insuchawayasto
reflectthestructure oftheEuropean currency basket.

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Title III–Management ofCash Resources
Asregards thecash position ,itwasnecessary toenvisage twoother
deficit-producing situations :
1.Where expenditure exceeds revenue inagiven month .
2.Where theownresources collected are "below theinitial forecasts ,
producing adeficit forthefinancial year ("structural deficit ").
Article 14makes provision notonly forthefirst eventuality ,a
_purely cash problem ,hutalso forthesecond ,a"budgetary problem which
also hasanimpact oncash flow ,"byallowing recourse tooverdrafts .
Budgetary provisions tocover this type ofdeficit arecontained in
-Article 18.Articles 15to17laydown theconditions forrepaying the -
a"bovementioned advances ,andthepossibility ofplacing sums which
"become available inthetreasury accounts jthese articled also lay
down theaccounting criteria forinterests ,andprovide fortheinforming
oftheMember States . _ - -
Article 18hasbeen worded inanattempt tobring forward asmuch as
possible thetime when a"structural "deficit orsurplus canbecorrected
inbudgetary terms . ■Under Article 29oftheFinancial Begulation
applicable totheGeneral Budget oftheEuropean Communities ,thebalance
forafinancial year "n"iscarried over tothefinancial year "n"+2,
since this balance isnotcalculated until thefinancial year "n"+1.
Article 18lays down that ,forownresources only ,anestimate isto
bemade inNovember ofthetotal amounts collected inthefinancial year ,
anestimate based therefore ondata for 11months andthus fairly close
tothe ultimate result .
Bymaking acomparison with theforecasts forthefinancial year ,it
would beasimple matter toevaluate theprobable difference ,which ,
pursuant tothesame Article ,would becharged totheBudget forthe
following financial year which will beintheprocess ofadoption at
the time ofthe abovementioned evaluation .The text ofArticles 14to
18isnew .

-13-
TitleIVProcédure forapplication nf
thenet,Memberstate,and.wh.r....oropriat.. ,
ofArticle4(2)and(3)oftheDecisionr,fpiAnri11Q70
ThisTitle,consistingoftooarticles,laysdo„nrulesfortheapplication
ofArticles131and132oftheActofAccessionandthemethodof
calculating theGNPscalewhentheprovisionsofArticle4(2)and(3)
oftheDecisionof21April1970aretoheapplied.
IntheproposalforanamendmenttoRegulation No2/71,presentedin
June1976.thefirstproblemwastackleddifferently fromtheapproach
nowenvisaged,sinceatthattimesomeoftheaspectshadnot"beenfully-
appreciated .Inthemeantime,asaresultofthedisagreement between
theMemberStatesontheinterpretation ofArticle131oftheActof
Accession,theprovisions inquestionhavebeenanalysedingreater
depthandthelogicalconclusion hasbeentoapplythemsubsequently
bydirectcompensation betweentheMemberStates,leavingunchanged
thetotalamountscollectedfortheBudgetoftheEuropeanCommunities#
Thisconclusion isimposedbythefollowingfactors:
(i)iftheceilingonthesharesofthenewMemberStatesin1978
wastobeappliedintheprocessofadoptingtheBudget,this
couldonlybeaprovisional arrangement ,sincetheceilingmust
becalculated fromdatafor1977whicharenotknownatthistime;
(■*■!)evenifthisapproachhadtobeadopted,itwouldbenecessary
toapplydifferent VATrates,whichdoesnotseemcompatible with
theprovisions oftheDecisionof21April1970onownresources ;
(iii)thesituationofthenewMemberStatesissimilartothatofthe
original MemberStatesbetween1975and1977 whichsimilar
provisions wereadopted.
Article20,whichconcerns GUP,reproduces "theexistingtextofArticle22
ofRegulation No2/71,merelyamendingthemethodofcalculating the
GNPscale.Itseemedfairer,inafinancialyearusingtheEUA,to
updatethedatausedforcalculating thisscalebyusingtheCTPfor

-14-
ayearclosertothai:inquestion("n"–2insteadoftheaveragefor
theyears"n»-5/»n»-3)and.byapplyingthedatainproportion to
theaverageoftheEUAratesforthesameyear,
gitleV•Procedurefortheapplication ofArticle4(5)oftheDecision
of21April1970
Article21corresponds toArticle24ofRegulation Ho2/71;theamendments
madeareallofatechnicalnaturetotakeintoaccountthedistinction
betweenappropriations forcommitment andappropriations forpayment,
thecreationofacashbudgetforrevenueandtheuseoftheEUAinthat
budget *
Title .VI:Provisions concerning measuresofcontrol
Articles22to24correspond totheexistingArticles 13to15of
Regulation Bo2/71towhichsomeminortechnicaladjustments havebeen
madeandwhichhavebeenamendedtotakeinthecreationoftheEuropean
CourtofAuditors .
TitleVII:Provisions relatingtotheAdvisoryCommittee onOwnResources :
finalprovisions
Articles25and26correspondtoArticles25and26ofRegulation Bo2/71;
Article27isanewonewhich,amongotherthings,repealsRegulation Bo2/71.
Article12andArticles16to22ofRegulation Bo2/71havebeendeleted,
thefirstbecauseoftheprincipleoffinancial autonomy,theothers
becausethe"relativeshares"laiddownintheDecisionof21April1970
willceasetoapplyfromI978.

REGULATION (EEC,EURATOM,ECSC)oftheCouncil
implementing theDecisionof21April1970onthereplacement of
financialcontributions fromMemberStatesbytheCommunities'
ownresources .
THECOUNCILOFTHEEUROPEAN COMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanCoalandSteel
Community,andinparticular 78fthereof,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle209thereof.
HavingregardtotheTreatyestablishing theEuropeanAtomicEnergy
Community,andinparticularArticle183thereof,
HavingregardtotheTreatyestablishing asingleCouncilandasingle
CommissionoftheEuropeanCommunities andinparticularArticle20
thereof,
HavingregardtotheTreatyamendingcertainfinancialprovisionsofthe
Treatiesestablishing theEuropeanCommunities andoftheTreatyesta­
blishingasingleCouncilandasingleCommissionoftheEuropean
Communities,
HavingregardstotheCouncilDecisionof21April1970onthereplacement
offinancialcontributions fromMemberStatesbytheCommunities' own
resources(1),henceforthreferredtoastheDecisionof21April1970,
andparticularly Article6thereof.
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropeanParliament,
WhereastheprincipleofthefinancialautonomyoftheCommunitiesis
thefundamental elementofthesystemofownresources,andwhereasthis
system v/i11befullyappliedasfrom1978,
WhereastheCommunities aretohavefulldisposaloftheirresources
asreferredtoinArticle4oftheDecisionof21April1970,the
enteringasrevenueofwhichnecessarilyfollowsfromtheamountsesta-
blished,
(1)J.O.L.94of28.4.70p.19

-16-
WhereassofarasownresourcesderivedfromVATareconcerned the
provisionsofArticle22oftheSixthDirectiveoftheCouncilrelative
toVATcancreateinequalities betweentheMemberStatesinthemaking
availableofthesaidresources andthatitisnecessarytoeliminate
theseinequalities ,
Whereasanewunitofaccount,calledtheEuropeanunitofaccount(EUA)
willbeappliedtothebudgetasfrom1978,
WhereasinordertoguaranteethefinancingoftheCommunities' budget
underalLconditionsitisnecessarytoenvisagethepossibility of
thepaymentoffinancialcontributions basedonGNPandtobringinto
forcethecorresponding keytotakeaccountbothofitscomparability
withtheeffectivelevelofVATownresources andoftheintroduction
oftheaboveEUA.
WhereastheTreatyof10July1975envisagesthetakingofappropriate
measurestomeetcashrequirements shouldtheneedarise.
WhereasthefinancingoftheCommunities' budgetentirelyfromown
resourcescreatesnewcashproblemsthesizeofwhichimposestheneed
toanticipate appropriate provisions.
Whereasitisanadvantagetobeabletoanticipate theparticular provi
sionsfortheimplementation ofArticlei$ioftheTreatyofAccession
inrespectofthenewMemberStatesandfortheperiodoftimelaid
downbythesaidarticle,
Whereasthefullapplication ofthecriteriasetoutaboveimpliesa
generalamendmentofRegulation 2/71andthatconsequentlyitisdeemed
necessarytorepealit,
HASADOPTEDTHISREGULATION .

PROPOSAL FOR A-17-
Regulation No (EEC ,Euratom ,ECSC )
implementing theDecision of21April 1970 onthereplacement offinancial
contributions from Member States bytheCommunities *ownresources
HASADOPTED THIS REGULATION :
TITLE I
General provisions
Article 1
TheCommunities *ownresources within themeaning oftheDecision of21April 1970
(hereinafter called *ownresources' )shall beestablished byMember States in
accordance with their ownprovisions laid down bylaw ,regulation oradministrative
action andshall bemade available totheCommission asspecified inthis
Regulation ,without prejudice totheprovisions concerning revenue derived from
value added taxadopted byCouncil Regulation (EEC ,Euratom ,ECSC )of
(hereinafter called the «VATRegulation 1).XIX/354/77-E
Proposal which replaces theproposal
foramendment ofRegulation 2/71of
2June 1976 ,
Original text amended toinclude
reference totheVATRegulation .
Article 2
1.Forthepurposes ofapplication ofthis Regulation ,anentitlement shall be
deemed tobeestablished assoon asthecorresponding claim hasbeen duly
determined bytheappropriate department oragency oftheMember State .Unchanged .

-18-
2.The competent department oragency oftheMember State shall make anew
establishment where itbecomes necessary torectify anentitlement
established inaccordance with paragraph 1.
» Article 3
Member States shall take allrequisite measures toensure that thesupporting
documents concerning established entitlements andthemaking available ofown
resources arekept forfive years .
Article 4
Each Member State shall inform theCommission ,atthelattei% request :
(a)ofthenames ofthedepartments oragencies responsible forestablishing
ownresources and ,where appropriate ,their status ;
(b)ofthegeneral provisions laid down bylaw ,regulation ,administrative
action relating toaccounting procedure concerning theestablishment
ofownresources andtheir being made available totheCommission .
2.TheCommission shall pass such information toother Member States at
their request .Proposal foramendment of2June 1976 ,
Unchanged ,

-19-
i Article ^
EachMemberStateshalldrawupyearlyaclosingstatementofaccounttogether!»!.+T?l°rn°nJ?establishm Qntandcontrolofownresourcesandshallforward
inwatiM.0n° °ftheyear th0
Article 6
1.AccountsforownresourcesshallbekeptbytheTreasuryofeachMemberStateandbrokendownbytypeofresouroe.
2.Theestablished entitlements shallbeenteredintheseaccountsatthe
*wentiethdayoftb®secondmonthfollowingthemonthduringwhichtheentitlements wereestablished .However,withrespecttoownresources
accruingfromVATentitlements established after31Decemberofeachfinancial
"fkopora"tlonscarriedoutinthesamefinancialyearshallbeincludedintheseaocountsatthelatestby/foJuni7ofthefollowingfinancial
M!f!rStJteforward110"to®Commission ,withinthesameperiod,•rvH+fllil! ^600011111:8showingthepositionasregardstheentitlements established forthemonthinquestion.
Anannualsummarystatementofamountsestablished ineachfinancialyearin
accordance withtheprovisions ofArticle5oftheVATRegulationshallbe
senttotheCommissionatthelatestby/2QJune/7ofthefollowingyear.Originaltextwithdatechangedto30June
tobringitinlinewiththetimelimitsinArticle 11.
Unchanged ,
Originaltextapartfromthetimelimitand
inclusionofspecialwordingforVAT.
Originaltextdeleted.
Para.3reworded .
Para.4deleted.

-20-
1Article 7
1.Theentitlements established underArticle2(2)shallbeenteredinthe
monthlyreturncorresponding tothedateofthenewestablishment andshallbe
addedtoorsubtracted fromt.'ctotalamountofestablished entitlements .
TITLEII
Provisions iurmakingavailable andpayingoverthe
Communities *ownresources
Article 8
1.!'-amountofownresources established shallbecredited byeachMember
Sta*totheaccountopenedwiththeTreasuryforthispurposeinthenameof
,'T'iRSSion .
However,theownresources accruing fromVATshallbeenteredinaccordance
withtheprocedurelaiddowninArticle11(3)and(4).Thisaccountshallbe
keptfreeofcharge.
2.Eachamountshallbeenteredgross.Inthethirtydaysfollowingnotification
ofanyentry,theCommission shallissueatransfer orderinfavour
oftheMemberStatefortheamountscorresponding tothestandardrefundfor
Uieexpensesincurredincollection asreferredtointhefifthsubparagraphofArticle3(1)oftheDecisionof21April1970.Corresponds toArticle10(1)oforiginaltext,
Thelastsubparagraph ofpara.1andpara.2ofthisArticlehavebeendeleted.
Corresponds toArticle7oforiginaltext.
Secondsubparagraph ofpara.1rewordedto
takeaccountofVATresources .
RefertoArticleadjusting VATcontribution .

-21-
3.Biepayments shall beconverted into ,andentered intheaccounts in,units of
account asdefined inArticle 10oftheFinancial Regulation onthebasis ofthe
EUAquotations obtaining onthedaycorresponding tothefinal time limit forentry
oronfirst preceding dayforwhich such quotation isavailable .
Article 9
Therate referred toinArticle 2oftheVATRegulation ,expressed asafigure tofour
decimal places ,islaiddown inthebudget .Itiscalculated asapercentage ofthe
estimated VATassessment base insuch amanner that itfully covers that part ofthe
Communities' budget notfinanced from customs duties ,agricultural levies ,miscellaneous
revenue and,where appropriate ,financial contributions based onGNP.
Article 10
1.Anestimate oftheownresources tobepaid overbyeach Member State ,where \«
applicable ,together withtheir contributions referred toinArticle 4(2)andU)of
theDecision of21April 1970 ,shall beentered inthebudget .
2.Payment oftheamount actually established bytheMember State forthekind ofown
resources inquestion pursuant toArticle 11shall beobligatory .
Article 11
1#Theownresources established referred toinArticle 8(1)shall beentered atthe
latest bythetwentieth dayofthesecond month following themonth during which the
entitlement was established .
2.TheMember States shall make payment ofthese resources onemonth inadvance onthe
basis oftheinformation available tothem onthefifteenth dayofthesame month .
Eachpayment shall beadjusted inthefollowing month when theentry referred toin
para .1ismade .Thisadjustment consists inmaking anegative entry ofanamount
equal tothat oftheadvance payment .New text concerning themethod of
calculating therate ofVAT .
Corresponds toArticle 8oftheproposal
foramendment of2June 1976
Para .1unchanged
Para .2amended inorder todelete the
reference tocontributions (explained in
Art .11)andtoinclude areference to
VAT .
Article 11;Replaces Article 9ofthe
proposal foramendment of2June 1976
Para .1deleted -Para .2becomes new
Para .1
Para .3transferred toArticle 12.
New paragraphs
Para .2refers totheprocedure for
making anadvance entry ofcustoms duties
andagricultural levies .

-22-
3.Nevertheless ,theownresources accruing from VATor,where appropriate ,the Para .3-procedure forpaying "twelfths "of
financial contributions "based onGNP ,shall beentered onthefirst dayofeach VATorGNP .
month ,theamount being one-twelfth ofthetotal entered under this heading in
thebudget .
Calculation ofthe one-tv.t xfth forthemonth ofJanuary ofeach financial year
shall bebased ontheamounts entered inthedraft budget ;this amount shall be
adjusted when thenext month 1sinstalment ispaid .Ifthebudget hasnotbeen
adopted before thebeginning ofthefinancial year ,thetwelfths shall similarly
becalculated from theamounts entered inthedraft budget ;theadjustment
shall bemade onthefirst duedate following theadoption ofthebudget to
?"lowtheresponsible authorities oneclear calendar month .
4.Each Member State shall ,inthelight oftheannual summary statement provided
forinArticle 6(3)»bedebited with theamount ofhisestablishment calcLfcated
_jnthebasis oftherate fixed fortheprev.ious financial year
andcredited with thetwelve payments made during that previous financial year .
TheCommission works outthebalance andinforms theMember States ingood time
inorder that the latter may :
-intheevent ofadebit balance ,paythedifference onthefirst of " Para .4&5-final settlement ofVATand
£ka.gas^J ofthesameyear ,or GNPpayments .
-intheevent ofacredit balance ,deduct thedifference from the twelfths
payable inrespect ofthecurrent financial year ,beginning with thepayment
scheduled forthefirst of ^Augusi^of thesameyear .
5.With effect from 1January 1979 »those Member States having paid financial
contributions based onGNPduring theprevious financial year shall ,onthedue
dates given inpara .4andbythesame method ,adjust thesaid financial
contributions soastorestore ,onthebasis oftheactual yield from own
resources accruing from VAT ,theoriginal distribution inthebudget between *
the latter and the financial contributions based onGNP .

-23-
Anychange intherate ofVATor^ifappropriate ,inthefinancial contributions
onGNP foccasioned "bytheadoption ofasupplementary oramending budget shall
rise toareadjustment ofthetwelfths which have fallen duesince the6.
based onGNP foccasioned bythe
give rise toareadjustment of
beginning ofthefinancial year
This adjustment operation shall becarried outonthefirst duedate following the
adoption ofthesupplementary oramending budget inorder togive theresponsible
authorities aclear calendar month .
'(, Theoperations referred toinparagraphs 4and 5constitute modifications to
revenue inrespect ofthefinancial year inwhich they occur .
Article 12
Anydelay Inmaking theentry intheaccount referred toinArticle 8shall give
rise tothepayment ofinterest bytheMember State concerned atarate equal to
thehighest rate ofdiscount ruling intheMember States ontheduedate .That
rate shall beincreased by0.25 ofapercentage point foreach month ofdelay .
Theincreased rate shall beapplied totheentire period ofdelay .Para .6:Supplementary or
amending budgets .
Para . Incorporation offinal
settlements .
Corresponds toArticle 9fpara .3
oftheproposal foramendment of
2June 1976 .

TITLEIII-24-
MANAGEMENT OFCASHRESOURCES
.Article 13
1.TheCommission shallhavei,titsdisposaltheamountscreditedto
theaccountreferredtoinArticle8ofthisRegulation inorderto
replenish theaccountsviawhic jmakespaymentsarisingfromthe
implementation ofthebud~->-:.idthetransfers intended,asregards
fundsheldintheformjurrency ,torestorethestructure oftheEUA
"basketsoastocoverexchangerisks,inaccordance withtheprovisions
ofArticle 16ofthoRegulation ontheapplication oftheEUA.
Theordf.-sandinstructions whichtheCommission sendstotheTreasury
orto,neappropriate department ofeachMemberStateshall "becarried
outssoonaspossible .
2.T"eadjustments providedforinArticle11(6),occasioned bya
supplementary oramendingbudgetraisingtherateofVATorofthecontributions providedforinArticle4(2)and(3)oftheDecisionof
21April1970,maybemadeinadvancewiththeauthorization ofthe
Council,actingbyaqualified majority.
Reservations expressed byLegalServiceonArticle16
oftheEUARegulation .ReplacesArticle 11oftheproposalforamendment of
2June1976«
Paragraph 1incorporates certainprovisions of
Article 38oftheFinancial Regulation of25April1973.
Paragraph 2hasbeenmodifiedtoexcludeadvances on
ownresources (paymentofwhichisalwaysinadvance-Article11)andalsotoprovidetheoptionof
obtaining advances onVATorGNP.

Article 1A
1.Inorder "tomeetpossible liquidity difficulties arising from :
(a)adifference between revenue andexpenditure inagiven month or
ownresources *receipts lower thantheoriginal estimates .
theCommission may,having taken anyappropriate steps todefer the
expenditure ,negotiate overdrafts .
2»_..Thegeographical distribution oftheoverdrafts shall take account
.ofthelocal requirements oftheEuropean Communities aswell asthe
distribution oftheownresources provided forinthebudget orofthe""
actual amounts collected when these areknown inrespect ofatleast three
months , --Newtext allowing recourse tooverdrafts
toovercome temporary liquidity difficulties .

Article 15-26-
Asfaraspossible ,anymoniesaccruing'totheCommission's
treasuryaccountsshall,asamatterofpriority,beusedtoreducetheoverdrafts .
.Anymoniessurplustotheserepaymentsshallheinvested "by
theCommission onthemostfavourable termsoffered "bythemarketsoftheMemberStates.
Article 16
Thedebtororcreditorinterestarisingfromthebankingoperations referredtoinArticles 14and15shallbe
respectively debitedorcreditedtoasuspenseaocount;atthe
endofthefinancial yearthebalanceofthisaccountshallbe
directlyincorporated inthecalculation onoftheend-of-year
balancewithinthemeaningofArticle21ofthisRegulation .NewtextprovidingfortherepaymentofoperationsunderArticle 14.
Newtextrelatingtotheentryintotheaccountsofthe
operations inquestion.

Article 17
Attheendofeach quarter ,theCommission shall sendtheMember States
acashresources statement showing debts andplacings .
This statement shall also showthe "balance ofthesuspense account
referred toinArticle 16.
Article 18
TheCommission shall ,before theendofNovember ineachfinancial year ,
makeanestimate oftheownresources collected fortheentire year on
thebasis oftheinformation atitsdisposal atthat time . '
Ifthisestimate differs appreciably from theoriginal estimates thelatter
shall ,after areview ofthecashsituation ,bethesubject ofaletter of
amendment relating tothedraft budget forthefollowing financial yearwhich isinprocess ofapproval .
Thebalance tobecarried forward tothesecond financial yearfollowing
1^^es"t:Lon »aslaiddown inArticle 29oftheFinancial Regulation
of25April 1973 shall take this entry into account .New text .
Newtext introducing provisions for
correcting anyimbalance between estimates
andoutturn inagiven financial year during
thefollowing financial year .

''V^V V,í;,;Á
*"*/·,.··:*ιλΜ"■'+·*"■*' -*~""?·«*.'λ...,,".;* ->*>'■»·.·-·,·,;■ ..... -·**η.γ· *'4'ν<Λί»·^ -ι-4ν>.·»'.:*Λκ 'ΤΗ'ΧΡ*#.^" ·'-,·*>■Γ',^' 'Λ"Τ**"ΊΛΤ"Τ...]*■<**.**'»» :~Λν"*ν;**·.>-ν^"-βΜΤ.ί'" 'ι'·'°^·'·ν.α.;...-*-■*, ·-ΤΤ·,-'·Λχ,'..1^·· ,ΪΓΤΤΠ Λ.■.'■'-~-■>■■■■·■*
-28-
TITLEIV
Procedureforapplication ofthefinancial
participation ofthenewMemberStatesand,
whereappropriate ,theprovisions ofArticle4(2)and(3)oftheDecisionof
21April1970*
Article 19
<^n.lrelationsreferredtoinArticles131and132oftheActofAccession
Sdehy,theCo-issionatthetimeofclosingtheaccountsforthe
financialyears1978and3-979-
•^,^-p+h«provisions ofArticle27oftheFinancialRegulation of
2.Inview^Pgeemulations andtheresultantdistribution shallinclude
allrevenueenteredintheaccountsduringthefinancialyear.
Anyrequisiteadjustmentsshallgiverisetofinancialcompensation betweenthe
MemberStatesconcerned.
:>fh#>Commissionshall,inthemonthfollowingtheestablishment of"the3.The...accountsendtotheMemberStatesastatementofthe
revenue inEUA,shoringthecreditordebit
positionofeachMemberStateandtheclearingoperationsrequiredforthe
finalsettlement ofthebalances.
m_6ffectthisfinalsettlement,eachdebtorMemberStateshallpaytoeachj-iMom-hP-rq-tateaproportion oftheamountshownonhisdebitaccount,SKSgPropJrWoPnalP?otheshareofthecreditor«e»herStateinthe
overallamountshowninthecreditaccount.
T\edebtorMemberStatesshall,inthemonthfollowingthenotification ,paytothecreditorMemberStatestheamountdue,applyingtheaverageEUAratesfor
thefinancialyearinquestion.ReplacesArticle23oftheproposalfor
amendment of2July1976;contraryto
theaboveproposal,thisArticleprovides
forthesubsequent application of
Articles 131and132oftheActof
Accession ,forvariousreasons,i.e.toavoiddifferent VATrates;toavoid
recalculation inthelightoftheresults
ofthe1977financialyear-similarity
withsituation envisaged fortheSix
between 1975and1977*

-29-
Article 20
1.This Article shall "beapplicable where itmay "benecessary totake provisional
measures inderogation under Article 4(2)and (3)oftheDecision of21April 1970 «
2.Thegross national product atmarket prices shall "becalculated onthe "basis
ofstatistics compiled "bytheStatistical Office oftheEuropean Communities and
ofthedata forthefinancial year preceding theyear inwhich thepreliminary
draft "budget isdrawn up.
3.Thegross national product shall "becalculated interms oftheEuropean Unit
ofAccount defined inArticle 10oftheFinancial Regulation ,applying theaverage
oftherates fortheEUAinthefinancial year taken asthe "basis forthe
calculation referred toinparagraph (2)above .
4.Aslong asthederogation provided forinArticle 4(2)oftheDecision of
21April 1970 isapplied tooneormore Member States ,theCommission shall ,inits
preliminary draft budget ,fixtheestimated percentage ofthebudget tobecovered
bythefinancial contribution(s )oftheMember State orStates concerned onthe
basis oftheproportion oftheir gross national product tothesumtotal ofthe
gross national products oftheMember States ,andshall fixtherate ofvalue added
taxcorresponding totheremainder ofthebudget tobecovered bytheother Member
States .These figures shall beapproved inaccordance with budgetary procedure .Corresponds toArticle 22ofthe
proposal foramendment of2June 1976

-30-
5.Forthepurposes ofthis Regulation :
(a)thegross national product atmarket prices isequivalent to
thegross domestic product atmarket prices plus compensation
ofemployees ,property andentrepreneurial income from the
rest oftheworld less thecorresponding flows towards therest
oftheworld ;
(t>)thegross domestic product atmarket prices ,which represents
thefinal result oftheproduction activity atresident
producer units ,isequivalent tothetotal production ofgoods
andservices "bytheeconomy ,less total intermediate consumption ,
plus taxes linked toimports .
TITLE V
Procedure fortheapplication ofArticle 4(5)oftheDecision of
21April 1970 .
Article 21
Forthepurposes oftheapplication ofArticle 4(5) "the
Decision of21April 1970 ,thebalance ofagiven financial year
shall consist ofthedifference "between :
-alltherevenue collected inrespect ofthefinancial year
inquestion ,andCorresponds toArticle 24oftheproposal for
amendment of2June 1976"butwith fuller
explanat ions .

-31-
thetotalamountofpayments madeagainstappropriations forthat
financial yeartogetherwiththeappropriations carriedover
pursuanttoArticles 6and95oftheFinancial Regulation .
Thisdifference shall "beadjustedtotakeaccountofthenetamount
resulting fromcancellations ofappropriations carriedforwardfrom
previousfinancial years,andofsumspaidinexcessofthese
appropriations asaresultofexchangerateadjustments madebetween
thetimewhentheamountofcarryover wasdetermined andthetimeit
wasused.
Furthermore ,thebalanceofthe1978financialyearshall "beadjustedto
takeaccountofthesurplusordeficitestablished when,on1January1978,thebalancesheetdrawnupinunitsofaccounton31DecemberI977isrevalued inEuropeanunitsofaccount.

-32-
TITLE VI
Provisions concerning measures ofcontrol
Article 22
1.Member States shall take allrequisite measures toensure that
theamounts corresponding totheentitlements established under
Articles 1and2aremade available totheCommission asspecified
inthis Regulation#
2.Member States shall befree from theobligation toplace at
thedisposal oftheCommission theamounts corresponding to
established entitlements solely where ,forreasons offorce majeure ,
these amounts have notbeen collected .
3.Every sixmonths ,Member States shall report totheCommssion ,
where appropriate within theframework ofexisting procedures ,
comprehensive information andquestions ofprinciple concerning
themost important problems arising outoftheapplication of
thisRegulation andinparticular matters mdispute .
Article 23
1.Member States shall carry outtheverifications andinquiries
concerning established entitlements andthemaking available of
ownresources .TheCommission shall makeuseofitspowers as
specified inthis Article .
2.Accordingly ,Member States shall s
-carry outanyadditional measures ofcontrol theCommission may
askforinareasoned request ;
-associate theCommission ,atitsrequest ,withthemeasures of
control which they carry out.Corresponds toArticle 13ofthe
proposal foramendment of2June 1976 .
Corresponds toArticle 14ofthe
proposal foramendment of2June 1976 .

-33-
MemberStatesshalltakeallstepsrequired tofacilitate thesemeasures
ofcontrol.WheretheCommission isassociated withthesemeasures .
MemberStatesshallplaceatitsdisposal thesupporting documents
referred toinArticle 3«Inordertorestrict additional measures
ofcontroltotheminimumtheCommission may,inspecificcases,
requestthatcertaindocuments beputatitsdisposal .
3.Themeasures ofcontrolreferred toinparagraphs 1and2shall
notprejudice thefollowing measures :
(a)themeasuresofcontrolundertaken byMemberStatesinaccordance
withtheirownprovisions laiddownbylaw,regulation or
administrative action;
(b)themeasuresprovidedforinArticles206,206(a)and206(b)
oftheTreatyestablishing theEuropean Economic Community and
Articles 180,180(a)and180(b)oftheTreatyestablishing
theEuropean AtomicEnergyCommunity ;
(c)theinspection arrangements madepursuanttoArticle209(c)
oftheTreatyestablishing theEuropean Economic Community and
Article183(c)oftheTreatyestablishing theEuropeanAtomic
EnergyCommunity .
4.TheCommission shallfromtimetotimereporttotheEuropean
Parliament andtotheCouncilonthefunctioning ofthesystem.

-34-
5.TheCouncil,actingonaproposalfromtheCommission ,shall
determine :
(a)theconditions whichofficialsappointed bytheCommission
mustsatisfywhentheycarryouttheverifications provided
forinthisArticle,inparticular withregardtoprofessional
secrecyandtheprocedure wherebytheyexercisetheirpowers
ofinvestigation ;
(b)whererequired,otherprovisions forapplyingthisArticle.
Article 24
Theprovisions ofCommunity lawapplicable tothematters
referredtointhefirstparagraph ofArticle 2oftheDecision
of21April1970,inparticular regarding nomenclature ,origin,
valueforcustomspurposes,Communitytransitandinwardprocessing ,shallbeappliedbytheappropriate authorities ofMemberStates
whenestablishing ownresources#Corresponds toArticle 15ofthe
proposalforamendment of2June1976#

TITLEVU
Provisions relatingtotheAdvisory Committee ontheCommunities 1
OwnResources :finalprovisions
Article 25
1.AnAdvisory Committee ontheCommunities' OwnResources
(hereinafter calledthe'Committee 1)isherebysetup.
2.TheCommittee shallconsistofrepresentatives oftheMember Corresponds toArticle 25ofthe
StatesandoftheCommission .EachMemberStateshallbe proposalforamendment of2June1976.
represented ontheCommittee bynotmorethanfiveofficials .
TheChairman oftheCommittee shallbearepresentative of
theCommission .
Thesecretarial servicesfortheCommittee shallbeprovided by
theCommission .
3.TheCommittee shalladoptitsownrulesofprocedure .
Article 26
TheCommittee shallexaminethequestions raisedbyitsChairman Corresponds toArticle26ofthe
onhisowninitiative orattherequestoftherepresentative proposalforamendment of2June1976.
ofaMember .State,whichconcerntheapplication ofthisRegulation ,
andinparticular :
(a)theinformation providedforinArticles4(l)(b),5and
22(3);
(b)casesofforcemajeurereferredtoinArticle22(2);
(c)measuresofcontrolandinspection providedforinArticle23(2).

-36-
Article 27
TheCouncil Regulation Efo2/71of2April 1973implementing the
Decision of21April 1970 onthereplacement offinancial
contributions from theMember States bytheCommunities 4own
resources shall berepealed on31December 1977 ,
Thepresent Regulation shall enter intoforce onthedayfollowing
itspublication intheOfficial Journal oftheEuropean
Communities .
Itshall have effect from 1January 1978 .
ThisRegulation shall bebinding initsentirety anddirectly
applicable inallMember States .

JtaendnentstobemadetotheFinancialKegulation (version
conainedinwrittenprocedure Ho317/770f2Maroh .
Article6(page5)
-paragraph 2.Replace "by:
»erevenueofafinancialyearshallbeenteredintheaccountsforrr year°nthews°fthe «-
Dancialyear,withtheexceptionoftheo™resourcesforthemonth
Januaryofthenextfinancialyear,inrespectofwhichadvance
paymentlsmadeon20Decemberoftheprecedingfinancialyear
pursuanttoArticlelife)oftheRegulationimplementing thealcision
of21April1970.
Article26(page18)
Deletepara.2andamendreferencestoRegulation 2/71.
Article2J(page19)
Deleted
Article 28
Deletedf
î
ï
i'
I
l
V
Article29(page19)
\\
Deletesecondsubparagraph andamendreferencestoReg.2/71. h
Article ^0 I
AmendreferencestoReg.2/71. y'
i
Article ^1 ;'
Retain

-38-
Article 32
Deleteandreplace "by:
Thecontributions referredtoinArticle4(2),(3)and("b)ofthe
Decision of21April1970shall "beexpressed inEuropean unitsof
account,asdefinedinArticle 10oftheFinancial Regulation .They
shall "beconverted intotherespective national currencies onthe "basis
oftheEUArateobtaining onthefirstworking dayfollowing the
^""fifteenthJdayofthe'monthprecedingthepayment.
Article 33
Retain

-39-
Amendments tobemadetotheproposalforaVATFinancial
Regulation (C0M(77)l20final)inthelightoftheproposalforaRegulation
implementing theDecisionof21April1970onthereplacement offinancial
contributions fromMemberStatesbytheCommunities' ownresources ,and.to
takeintoaccounttheResolution embodying theopinionoftheEuropean
Parliament .
Article 4.P.14
"P"Para.2(b)-Addattheend:
"suchas:othertaxdeclarations ,professional accounts andcomplete
statistical series".
Para.3,firstsubparagraph –Addattheend:
"andanestimate ofthevalueoftheassessment baseforeachofthese
categories oftransaction ".
"P"Para.4-Addattheend:
"andshalldecideonthedatatobeusedasspecified inArticle 12of
thisRegulation ".
Article 5
Para.1-Antepenultimate line:
Replace"monthlystatement "by"annualsummarystatement".
Penultimate line:
ReplaceRegulation No2/71byRegulation (EEC)No anddelete
therestofthesentence :"for inquestion".
Para.2-Add:
"Anycorrection madetoolatetobeincorporated intheannualsummary
statementreferredtoinArticle6(4)ofRegulation (EEC)No
shallbeaddedtoordeducted fromtheamountofentitlements established
inthemonthinwhichthecorrection ismade."

-40-
Para .-3-Delete the entire paragraph .
Article 7
Para .1-Amend thereferences toRegulation Ko2/71•
Para .2-Replace "themonthly statement "by"themonthly statements
andannual summary statements ".
Delete the last sentence :"Themonthly statement ...financial
year ."
Fewparagraph 3
IftheCommunity rate isamended during thefinancial year ,theamount
ofownresources entered intheaccount kept "bytheMember State shall be
corrected accordingly .
Article 8
Delete this Article .
Article 10
"p" Para .1,second sentence .
Replace "They shall associate theCommission the
appropriate data have been used ",by:
"TheCommission maytake part inthem onrequest .Durir.j these checks
theCommission shall ascertain inparticular that theoperations involved
inthe centralization ofthe assessment base have been conducted ina
proper manner ,andthat theappropriate data have been used ."
"P" Para .2-Replace thesecond sentence :"Itmaybeassociated inthem on
request "bythefoL_.owing sentence :**Itmaytake part inthem onrequest ".
Article 11
"P" Para .1-Add ,after Committee onVATownresources ,thewords "having
advisory capacity ".
N.B. :Themodifications preceded b.a"P"arethose suggestec bytheEuropean Parliarr.on
which canbeaccepted bythe C'~ic.-"^n ;astrict Legal definition oftheVATtax
base seems torule outthepropo~ tbat Member' States whoestablish incertai
sectors astatistical taxbase she abepenalised bya10%surcharge .Forthis
andother reasons Mr. -TUGENDHAT op >~edthis proposition intheParliament .

-1-41-
SECOHD MEHEED PROPOSAL
underArticles 149of"theEECTreatyand119oftheEAECTreatyfor
aCouncilRegulation (ECSC,EEC,Euratom)amendingtheFinancial
Regulation of25April1973applicable totheCeneral Budgetof
theEuropean Communities
presented totheCouncilcytheCommission

-42-
EXPLAZTATCRY ÎSMORAIHÎUM
Intlieexplanatory memorandum "toitsproposalforanamendment oftheFinancial Regulation dated.19May1976(C0M(76)210 final),"the
Commission statedthatitwasnotaquestion ofageneralrevision ,
"becausefurtherproposals foramendment wouldhaveto"bepresented
laterwhentheprinciples had"beenagreeduponforthesolution of
certainproblems .TheCommission addedthatoneoftheseproblems
wasthatofreplacing national contributions bythevalueadded
tax(VAT).AstheSixthDirective onVAThasbeenadopted
meanwhile ,itisnowpossible toproposetheamendments tothe
Financial Regulation necessitated bythefullsystemofown
resources .
WhenitsenttotheEuropean Parliament thetextofitscommon
guidelines ontheFinancial Regulation ,theCouncilsaidthatit
wasunabletotakeadecision astoArticles 26to39onown
resources .TheCounciladdedthattheCommission wouldshortly
submittotheCouncilanewproposal ontheseArticles whichwould
takeintoaccounttheadoption oftheSixthVATDirective .
TheCommission ispresenting aproposal foraRegulation implementing
theDecision of21April1970onthereplacement offinancial
contributions fromMemberStatesbytheCommunities' ownresources ,
andanamendedproposal fortheVATfinancial regulation .
Theamendments tobemadetotheFinancial Regulation ,inthe
amendedversionproposed bytheCommission on10March1977
(C0M(77)59final),havebeenharmonized withtheprovisions of
thesetwoRegulations .Theiressential purposeistoreplace
theprovisions fortheentryintoaccounts ofrevenueforthe
financial yearbasedontheentitlements established at
31December byentryintoaccounts onthebasisofamounts
collected duringthefinancial year.Thisproposal returnsto
theoriginalproposal madeon19Kay1976,whichwasdroppedin
response totheOpinionoftheEuropean Parliament .Theamendment
istotheeffectthattherevenuesectionoftheEudgetandthe
annualaccounts shouldreflect theactualamounts collected between
1January and31December .Theresultwillbethatthecustoms
dutiesandagricultural leviescollected in197°butrelating to
1977vri.llbecreditedtothe1978financial year;thiswill
reducebythesameamounttheownresources for1977>butthe
difference maybemadeupbyG1JPcontributions underthepresent
systemanduptothelimitsoftherelative shareofeachMember
State.-Inthiswayasolutionisfoundtothecashmanagement "
difficulties which ,wouldresultifthetextbasedonentitlements
established werepreserved .
*
*

Theapplication oftheEUAasfrom1January197°necessitates two
proposals foramendment :
(i)fixingoftheratefortheconversion ofcontributions expressed
inEUAintonational currencies ;
(ii)increasing thefiguresofcertainamountsinthearticles on
contracts forsupplies ,workandservices .
Asmostoftheoperations whichmustremainbelowthethresholds
fixedbytheseamountsaretransacted inBelgianfrancs,maintenance
oftherealvalueofthesethresholds requires anincreaseof25/^
beforeconversion intoSUA,according totherate1u.a.=1EUA.
TheamountsinquestionarethosesetcutinArticles 60,62and65.
*
Thesecondamendedproposal annexedheretocontains onlythosearticles
intheamendedproposalof10March1977(C0M(77)59final)whichhave
beenfurtheramended.Thechangesareunderlined .
Theworkingpaperwhichsumsupthevarioustextsproposedwillbesent
underseparate cover.

-44-
SECOND AI.-Sl-TDSDPROPOSAL
underArticles 149oftheEECTreatyand119 "theEA2CTreatyfor
aCouncilregulation (ECSC,ESC,Euratom)amendingtheFinancial Regulation
of25April1973applicable totheGeneralBudgetoftheEuropean Communities
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreaty
HASADOPTED THISREGULATION :
Article 1
1.Thefollowing articles shallbewordedasfollows :
Article 6
1.Thefinancial yearshallrunfrom1Januaryto31December .
2.Therevenueo_f_a_fj Lnan£ia;l_year ishallhe_entere_d_in the_^accounts_f£r_th_o.t _
financi_al _^ear_onthe_^f_the_ano\^t_s_co_ll_ec_t ied_<_duri>n£the_f,ir:anci_al_
.year,withthe_GXjcejDtion o_f_th9_o^_re^sourc£s^f£r^the_m£nth_.of Jaiuar^
£_f_the__next financial ^earAi.n_r£3£.e£^_°£ ,2£^:LcILadvance£a^ent i_s__made
on2_0_Dc_ce_3iber io_f_t^e^r ie£eding_fina^i^ia.!_ye»£>_j?^rsuant toArticle1l7*2)
o>f_>the_Retgulati;ionimplementing theDecisionof21April
3.(
4-(nochange
5-(
Article 26
1.Estimates oftheownresources and,ifappropriate ,ofthecontributions
referredtoinArticle4(2)and(3)oftheDecisionof21April1970to
bepaidbyeachMemberStateshallbeenteredintheBudget,expressx :
inunitsofaccountasdefinedinArticle 10.Theyshallbemade
available andpaidoverinaccordance withthe_£rovisions_o .?_Ccuncil _
Rela£-_••^«_(S3C., ECS_C_]_^Tn^l^r^n^ing^he^e^c^isi^on of
21April2219-.°£ .replacement ^£f_f^n^c_i^l_C£n^ributi_ons_f iroi£
Member^tat2s__bj£ _the_Communities' ownresources .
2.Deleted .

-45-
Article 29
The "balance from each financial year ,calculated inaccordance with
Council Regulation ^EEC^Euratcm ,JEGCjjLmpljBmentin ^the .Decision
of~21~Apri l""_1^"7 0~£_£% ,re£Tac£~£irt –£7_f^nan£ial_C£n^ri^ut^ons_f£on
Kembcr StaTes by"~theCommunities ^,ownre£our£e_s ,shall "beentered
asrevenue inthecase ofasurplus orexpenditure inthecase ofa
deficit intheBudget ofthesecond subsequent financial year .
Article 30
1.Thecontributions provided forinArticle 4(6)oftheDecision
of21April 1970 shall "bepaid over asfollows :
ι
-seven-twelths oftheamount shown intheBudget not later tnan
31January ;
–theremaining five-twelths notlater than 15July .
2.Anycontribution oradditional payment duetotheBudget from the
Member States must "beentered intheaccount(s )oftheCommission
within thirty days from thedate onwhich funds arecalled for .
3.Those various payments shall "beentered intheaccount provided for
inArticle _8_(£)__of £ounci_l Ro£ul_a tion__.^ £uratom «SCSC )
implementing thisDecision^o ^2_1_A£ril_1 2,70 ,£.n_^ile_r£j?ia£Gii;2E0i.
n^£L£i al_C£n^r ilo^t i_ons_fronI>C£b£r_G tates _^_the_C£ri£unit ii£3j _
ov<nrc£our£C£ andshall besubject totheprovisions of
Ar_ti£l£ £20£that Regulation .
Article 32
Thecontributions provided for ^i_n_A_rt i_cl_e_4_(_2£ ,^ )_ofthe
–e£^ii^£ n_0;L2_1_A£ri 1_1270shall bee;corocs£d_in th£2u£°£ean u^it
£f£U£C£unt__a£ defined £n_A£ tic_le_J0_£f_thi£ Plnanci^al ^Kc^ula^tirara ^
They £hall b,e_c£nvc£t£d_in't£ th£respe cti^e_nat_i onal _curr£:i£i£3__on
theba£i_s £f_>the_r£t£ fc£theSUAap£l^ing_on thefirst _wo£lcin£ £a
fo^lwin ^the f^i,ft£Gnth da^ofthemonth .preceding the_;
Article 60
Contracts maybemade byprivate treaty :
(a)where thecontract forthepurchase orhiring ofgoods ,forthe
provision ofservices orforbuilding works involves anamount
notexceeding _6£00imit£ £f_a£C£unt itheInstitution being bound ,
however ,asfaraspossible andbyallappropriate means ,to
enable suppliers whoarelikely tobeable tosupply thegoods
andservices inquestion tocompete ;
Subparagraphs (b),(c),(d)and (e):nochange .

-46-
Article 62
IneachInstitution ,"beforetheauthorizing officertakesadecision ,
contracts involving amountsexceeding j3_000_uni^ts__of accountshall
"besubmitted fortheopinionofanadvisory committee onprocurements
andcontracts whoserulesofprocedure shallhelaiddowninthe
measures ofimplementation referredtoinArticle 118.
Article 65
Contracts mayhemadeagainstinvoiceorhillofcostsonlywherethe
expected valueofthegoodsandservices supplied doesnotexceed
300unitsofaccount.Thislimitshallheincreased to750unitsof
accountforexpenditure toheenteredintooutsidetheprovisional
placesofworkoftheInstitution .
Article 2
ThisRegulation shallenterintoforceon
ThisFinancial Regulation shallhebindinginitsentirety and
directly applicable inallMemberStates.

-47-
AMENDED PROPOSAL
for a
Council Regulation implementing ,inrespect of
theownresources from VAT ,theDecision of
21April 1970 onthereplacement offinancial
contributions from Member States tythe
Communities 'own resources
presented totheCouncil bythe Commission

-48-
EXPLANATORY MEMORA1TOUK
1.Theapplication infull from 1978 oftheownresources system "based .
onthefinancial autonomy oftheCommunities hasnecessitated recasting
thelegislation onthis subject ,andthecorresponding proposal fora
2Regulation means that changes must "bemade totheproposal fora
1Regulation onownresources from VAT ,already sent totheCouncil .
These changes areembodied intheproposed amendments annexed hereto ,
towhich have been added those suggested intheResolution ofthe
European Parliament "^which theCommission wasable toaccept .
2.Theamendments resulting from therecasting ofthelegislation on
ownresources arethefollowing :
–request -foran .estimate oftheappropriate data tofacilitate the
estimating ofthe -amounts which theMember States will beasked to
pay (Article 4(3))*
–introduction ofanannual summary statement ofentitlements established ;
asaresult ofthesystem ofownresources from VAT ,this statement
could beproduced after theclosure ofthefinancial year towhich it
refers (Article 5(l))»
–deletion from theCommission Tsoriginal proposal ofallreferences to
theprovisions onthepayment ofownresources (Articles 5and .8),as
these provisions areincorporated intheregulation replacing
Regulation Ho2/jl.
10JHoC-110,6May1977 ,p.2.
2Primarily theproposal foraRegulation No.... (EEC ,Euratom ,ECSC )
implementing theDecision of21April 1970 onthereplacement of
financial contributions from Member States bytheCommunities *own
resources .
Doc.759/71(AS3479),20June 1977-

-49-
3.Theamendments proposed tytheEuropean Parliament mitsResolution
(embodying anOpinion)of16June1977alltendtostrengthen the
Commissions original proposal ;withoneexception theCommission can
acceptthemandthqyhavetherefore "beenincorporated inthisproposal .
However,theParliament'sproposaltoincrease by10%theownresources
established onthebasisofappropriate datacannotbeaccepted ,for
majorlegalreasons.Althoughitisanincentive inthedirection of
theharmonization provided forintheSixthDirective ,thispenalty
systemdoesnotcomplywiththeprinciples laiddownintheDecision
of21April1970asregardstheuniformassessment baseandthesingle
ratethroughout theCommunity .
Itsinclusion could,moreover ,causeconsiderable delaysinthe
adoption oftheRegulation .
Thisamendment hastherefore notbeenincorporated inthisproposal .
*
* *
Theamendedproposal annexedheretoincorporates onlythetextof
thosearticlesoftheCommission 'soriginalproposal whichhavebeen
amended.Thechangesareunderlined .

AMEÏÏDED FROPOSAL
for a
Council Regulation implementing ,mrespect oftheownresources
from VAT ,theDecision of21April 1970 onthereplacement of
financial contributions from Member States bythe Communities *
1own resources
Introduction ,recitals andArticles 1to3:nochange
Article 4
1.nochange
2(a)nochange
2(b)transactions assetoutinAnnex FtotheSixth VATDirective
which theMember States exempt inaccordance with theoption
provided forinArticle 28(3 )(b)ofthat Directive ;
shall bethe added value asestablished from declarations to
bemade bythetaxable persons or,failing these ,from
appropriate data ,such astaxdeclarations ,business accounts and
complete statistical series .
3. TheMember States shall inform theCommission ,before the
beginning ofeach financial year andprior toitspresenting the
Preliminary Draft Budget ,ofthesolutions they propose toadopt to
determine theassessment base foreach ofthecategories oftransaction
referred toinparagraph 2,indicating ,where applicable ,thenature of
thedata wh:chthey consider appropriate ,andanestimate ofthevalue
ofthe asser ;lentbase corresponding toeach ofthese categories of
operations .
Complete text :seeOJHoC110 ,6May1977 »p.2.

Thisinformation forthefinancial year197oshallbesentassoonas
possible andnotlaterthan1October1977-
4.Eitheronitsowninitiative orattherequestofaMemberState,
theCommission shallexamine,onthespotifneedbe,problemsarisin
fromtheimplementation oftheprovisions ofparagraph 2,andshall
decidewhichdatatota2ceintoconsideration tradertheconditions set
outinArticle 12ofthisReflation .
Article 5
1.VATresources shallbedetermined :
–inthecasesreferredtoinArticle3(l)and(2)ofthis
Regulation ,whenthedeclaration islodgedbythetaxable
person,inaccordance withtheprovisions ofArticle22(4)
oftheSixthVATDirective ,orbythepersonliablefor
paymentofthetaxonimportation ,inaccordance with
Article 23ofthatDirective ,or,intheabsenceofsuch
declaration ,whentheyareestablished officially bythe
competent authority oftheMemberState,
–inthecasesreferredtoinArticle4(l)and(2),as
soonastheassessment basehasbeendetermined bythe
competent authority oftheMemberState.Suchdetermination
mustbymadeassoonaspossible andinanyeventingoodtime
forinclusion ofthecorresponding VATresources intheannual
summarystatement underArticle6(4)ofRegulation (EEC,Eurato
ECSC)No...
2.Correction bythecompetent authority oftheMemberStateofan
incorrect orincomplete establishment shallberegarded asafresh
establishment .

-52-
3.Frervestablishment orcorrection madetoolateto"beincluded
intheannualsummarystatement referredtoinArticle6(4)of
Reflation 1'To...shall "beaddedtoordeducted fromtheamount
ofentitlements established duringthemonthinwhichthe
establishment orcorrection itselfwasmade.
Former 3:deleted
Article 6
nochange
Article 7
ι
x.-Theaccounting ofVATresources shallbegoverned bythe
provisions ofArticle 5»6and7ofRégulation (EEC,Euratom,
ECSC)Bo...
-themakingavailable ofVATresources shallbegoverned bythe
provisions ofArticles 8(1)and(3)»9*10*11and12of
Regulation (EECtBuratom,ECSC)Ho...
2.Theclosingstatement ofaccount,andthemonthlystatements and
theannualsummarystatement senttotheCommission inaccordance
withArticles 56(2)ofRegulation (EEC,Euratom,ECSC)No...
shalldistinguish between VATresources established inaccordance with
thefirstindentofArticle5(l)andeachcategoryestablished in
accordance withthesecondindentofthesaidArticle5(l)«
3.IftheCommunity rateischangedduringthefinancial year,the
amount->fownresources enteredintheaccountheldbytheMemberState
shall'v"Tcrectedaccordingly asfromthedateofthechangeinthe
Comrunix ^rate.
Article 8
deleted
Article 9
Theprovisions ofArticles3T4»22and23(3)ofRegulation (EEC,Euraton,
ECSC)Mo...shallappijto'Tresources .

Article 10
1.TheMemberStatesshallconducttheverifications and.enquiries
concerning theestablishment andmakingavailable ofVATresources .
TheCommission shalltakepartthereinatitsoimrequest.During
thesecheckstheCommission shallascertain thattheassessment base
centralizing operations havebeenperformed correctly ,andthatthe
appropriate datahavebeenusedandthatthecalculations madeto
determine theamountofownresources inthecasesprovided forin
Article4(1)and(2)complywiththeprovisions ofthisRegulation .
2.TheCommission mayrequesttheMemberStatestoconductadditional
checks.ItshalltakeDartthereinatitsownreouest .
3.ïïochange
Article 11
1.ACommittee onownresources fromVAT(hereinafter called"the
Committee"),consultative innature,isherebysetup.
2.Nochange
3.Nochange
Article 12
1.TheCommittee shallexaminequestions raised "byitschairman,
onhisowninitiative orattherequestoftherepresentative ofa
MemberState,whichconcerntheapplication ofthisRegulation ,
andinparticular thefollowing :
(a)theinformation andcommunications providedforin
Article4(l)(b),5and22(3)ofRegulation (EEC,Euratom,ECSC)3To...

-54-
(TD)oasesofforcerna.leuroasrefarred "boinArtiole22(2)of
Regulation fEEC.Euratom.ECSC^No.«.t
(c)measuresofcontrolandinspection asprovidedforinArticle10;
(d)thedetermination ToytheMemberStatesoftheaddedvalue
established inaccordance withtheprovisions ofArticle4(1)•
Article 13
Nochangé
V