No C 88/4 Official Journal of the European Communities 4. 4. 79 
on Community territory which are consistent with 
priority Community objectives in the infrastructure 
and energy sectors. 
The infrastructure investments shall involve mainly 
transports, telecommunications, agricultural 
improvements, hydraulic constructions and environ­
mental protection. 
The energy investments shall contribute to greater 
independence and to security and diversification of 
the Community's energy supply; they shall contribute 
to the development, exploitation, use, transport and 
stocking of energy resources and to energy-saving. 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to Decision 70/243/ECSC, EEC, 
Euratom of 21 April 1970 on the replacement of 
financial contributions from Member States by the 
Communities' own resources ('), hereinafter referred 
to as the 'Decision of 21 April 1970', and in 
particular Article 6 (2) thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Court of 
Auditors, 
Whereas the full implementation of the own resources 
arrangements should be accompanied by improved 
methods for informing the Commission of irregu-
(*) OJ No L 94, 28. 4. 1970, p. 19. Article 3 
The Commission shall decide whether or not projects 
are eligible in accordance with the following 
guidelines: 
— the investment shall be consistent with the 
Community and national rules applicable in the 
relevant sector, 
— the investment shall make an effective contri­
bution to increasing gross fixed asset formation in 
the Member State concerned, 
— the investment shall contribute to solving the 
Community's main structural problems, and in 
particular to reducing regional imbalance in the 
Community and to improving the employment 
situation. 
larities in this field, since the Commission has the 
obligation to see that own resources are established in 
the correct manner; 
Whereas, in order to know the nature of irregular 
practices and their financial effects, it is necessary to 
make provision for supplying the Commission with a 
quarterly statement of irregularities; whereas this 
statement should be supplemented by information on 
the progress of legal or administrative procedures to 
establish the own resources evaded; 
Whereas, because of the special nature of revenue 
from VAT, it is also necessary to set up an infor­
mation system, classified by economic activities 
pertaining to this revenue, based on the transmission 
by the Member States of provisional half-yearly 
reports and a final'annual report, since the nature of 
the irregular practices and their financial effects must 
be known in the case of revenue from VAT also; 
Whereas the overall findings should regularly be 
brought to the notice of the Advisory Committee on 
Own Resources under a procedure which takes 
account of their confidentiality, Proposal for a Council Regulation on the measures to be taken in the event of irregu­
larities affecting the own resources referred to in the Decision of 21 April 1970 and the 
organization of an information system for the Commission in this field 
(Submitted by the Commission to the Council on 19 March 1979) 
4. 4. 79 Official Journal of the 
HAS ADOPTED THIS REGULATION: 
TITLE I: 
General provisions 
Article 1 
The provisions of this Regulation concern the revenue 
referred to in Article 2 (a) and (b) of the Decision of 
21 April 1970 and the revenue from value added tax 
(VAT) referred to in Article 4 (1) of that Decision, 
both hereinafter called 'own resources'. 
Article 2 
The Member States shall inform the Commission of 
measures which they take in accordance with national 
and Community laws, regulations and administrative 
provisions to: 
— prevent, and take proceedings against, irregu­
larities relating to own resources, 
— establish, within the meaning of Regulation (EEC) 
No 2891/77 (!), sums evaded as a result of irregu­
larities relating to own resources. 
Article 3 
1. Member States shall notify the Commission, at 
its request, of: 
— the national laws, regulations and administrative 
provisions under which the measures referred to 
in Article 2 have been taken, 
— a list of the departments and bodies responsible 
for applying these measures and the main 
provisions relating to the role and functioning of 
these departments and bodies and to the pro­
cedures which they are responsible for applying. 
2. Amendments concerning the information 
provided under paragraph 1 shall be notified to the 
Commission without delay. 
Article 4 
The competent national and Community authorities 
shall take all the requisite security measures to ensure 
that the information exchanged between them 
remains confidential. 
(') OJ No L 336, 27. 12. 1977, p. 1. European Communities No C 88/5 
TITLE II: 
Irregularities affecting own resources from customs 
duties and agricultural levies within the meaning of 
Article 2 (a) of the Decision of 21 April 1970 
Article 5 
During the month following the end of each quarter, 
Member States shall supply the Commission with a 
statement on customs duties and agricultural levies 
and shall list irregularities which have been the 
subject of an initial official record of an 
administrative or legal nature. 
To this end, they shall provide all the available parti­
culars of: 
— the provisions which have been infringed, 
— the type of own resources concerned and the 
estimated amount, 
— the operation in question, 
— the period during which or the time at which the 
irregularity was committed, 
— the practices used to commit the irregularity, 
— how the irregularity was detected, 
— the national departments or bodies which 
established the irregularity. 
Where some of these facts, particularly those 
concerning the practices used to commit the irregu­
larity and how it was detected, are not available at 
the time of the original notification, Member States 
shall supply them, as far as they are able, in sub­
sequent quarterly reports to the Commission. 
Article 6 
1. During the month following the end of each 
quarter, Member States shall inform the Commission 
of the legal or administrative procedures which have 
been initiated following discovery of an irregularity 
and shall provide it with all relevant information 
thereon. 
2. The Commission shall be informed, at its 
request, of the progress of the procedures referred to 
in paragraph 1 and the amount established or 
expected to be established. 
No C 88/6 Official Journal of the European Communities 4. 4. 79 
3. Where a legal or administrative decision is taken 
as a result of the procedures referred to in paragraph 
1, Member States shall inform the Commission of this 
decision. 
TITLE III: 
Irregularities affecting own resources from VAT 
Article 7 
1. Without prejudice to the provisions of Article 9, 
Member States shall present a provisional half-yearly 
report on irregularities involving own resources from 
VAT. 
2. This report, presented in the course of the 
month following the end of each six-monthly period, 
shall record for each economic activity, if possible 
broken down by size of turnover, cases of irregularity 
according to the following pattern: 
— the number of cases recorded, 
— a breakdown by category of infringement relating 
to these cases (omission of declaration, false 
declaration, declaration without payment of the 
tax due, etc.), 
— a breakdown according to the nature of the pro­
cedures set in motion (administrative procedure, 
legal procedure, compulsory collection, etc.), 
— the year in which the infringements recorded took 
place, 
— an overall assessment of the own resources 
evaded. 
3. Four months after presentation of the second 
provisional half-yearly report, Member States shall 
send the Commission a final annual report informing 
it of all the VAT own resources evaded which have 
been or will be established and the number of irregu­
larities revealed in a financial year, following the 
same breakdown as the provisional report. 
4. Member States shall also inform the 
Commission of the cases of irregularity concerning 
matters of principle which could have serious 
financial consequences. 
Article 8 
The presentation by economic activity referred to in 
Article 7 (2) shall include at least the following 
subdivisions: — agriculture and fisheries, 
-r— mining industry, 
— manufacturing industry, 
— construction industry, 
— electricity, gas and water distribution, 
— retail trade, 
— wholesale trade, 
— transport, 
— services. 
The Commission may, where necessary, request a 
more detailed breakdown within the abovementioned 
subdivisions. 
TITLE IV 
Common and final provisions 
Article 9 
In cases where the irregularity concerns a sum less 
than 1 000 EUA and, as regards revenue from VAT, 
if the irregularity concerns a basis of assessment less 
than 100 000 EUA, Member States shall furnish the 
information provided for in this Regulation only at 
the express request of the Commission. 
Article 10 
Each Member State shall without delay inform the 
other Member States concerned and the Commission 
of irregularities established or presumed where there 
is reason to fear that they will have repercussions 
outside its own territory and of irregularities 
revealing the use of a new irregular practice. 
Article 11 
1. The Commission shall maintain appropriate 
contacts with the Member States concerned for the 
purpose of supplementing the information provided 
about the irregularities, the resulting procedures and, 
in particular, the facts and amounts established. 
2. In addition, it shall keep the Advisory 
Committee on Own Resources informed, as far as 
necessary, about these contacts by holding special 
meetings in order to safeguard the confidentiality of 
the information in question. 
4. 4. 79 Official Journal of the European Communities No C 88/7 
3. Furthermore, the Advisory Committee on Own 
Resources shall be periodically informed by the 
Commission of the order of magnitude of the own 
resources affected by the irregularities detected, and 
the various categories of irregularity. 
4. Should the application of certain provisions in 
force reveal a deficiency detrimental to the financial 
interests of the Community, Member States shall 
immediately alert the Commission, which shall take 
the measures necessary to remedy the deficiency. 
Article 12 
The information referred to in Articles 5 and 6 and 
the reports referred to in Article 7 shall enable the 
Commission to take the necessary steps as part of its 
activities to prevent and monitor irregularities in the 
own resources sector, such as: 
— conducting on-the-spot examination of the 
documents held by administrations concerning the 
cases revealed, conducting any additional checks which prove 
necessary within the meaning of Article 18 (2) of 
Regulation (EEC) No 2891/77, following exami­
nation of the documents and the information 
received as a result, I 
adopting any regulatory provision^ which may 
prove necessary to prevent or check ^sases of irre­
gularity revealed. """---.._---• 
Article 13 
The Commission shall each year, on the basis of the 
information and final reports provided by the 
Member States, compile a summary document, which 
shall be submitted to the Advisory Committee on 
Own Resources, and shall report to the Council and 
European Parliament on the application of this Regu­
lation. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
Proposal for a Council Regulation allocating catch quotas between Member States for 
vessels fishing in Faroese waters 
(Submitted by the Commission to the Council on 19 March 1979) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES; 
Having regard to the Treaty establishing the 
European Economic Community and in particular 
Article 43 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Par­
liament, Whereas the Community on the one hand and the 
Government of Denmark and the Home Government 
of the Faroe Islands on the other hand have signed a 
Framework Agreement on fisheries; 
Whereas the Community and the Faroe Islands have 
held consultations concerning their mutual fishing 
allocations for 1979; 
Whereas during the consultations the delegations 
agreed to recommend to their authorities that they fix 
certain catch quotas for 1979 for vessels of the other 
party; 
Whereas on 3 November 1976 the Council adopted a 
set of resolutions concerning certain external and 
internal aspects of the common fisheries policy; Whereas it is the responsibility of the Community to 
allocate the catch quotas in the Faroese fishery zone 
among its own fishermen;