A4-0308/95

Resolution on the Commission's communication to the budgetary authority concerning legal bases and maximum amounts

The European Parliament,

- having regard to the Treaty establishing the European Community and in particular the financial provisions thereof (Articles 199 to 209),

- having regard to the Commission's communication to the budgetary authority concerning legal bases and maximum amounts (SEC(94)1106 - C4-0139/94),

- having regard to the provisions of the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities concerning sound management, the financial statement and the implementation of the budget, as amended and currently applicable,

- having regard to the Joint Declaration by the European Parliament, the Council and the Commission of 4 March 1975 on the institution of a conciliation procedure,

- having regard to the Joint Declaration by the European Parliament, the Council and the Commission of 30 June 1982 on various measures to improve the budgetary procedure, in particular the provisions of section IV(3)(b) and (c),

- having regard to the interinstitutional agreement of 29 October 1993 on budgetary discipline and improvement of the budgetary procedure and, in particular, the statement on the second subparagraph of paragraph 7 on maximum amounts and the need for a legal basis,

- having regard to the Joint Declaration of 6 March 1995 on the incorporation of financial provisions into legislative acts ((OJ C 293, 8.11.1995, p. 4.)) which clarifies the conditions for entering the 'amount deemed necessary' in legislative acts concerning multiannual programmes adopted under the codecision procedure and those not subject to that procedure,

- having regard to its resolution of 17 May 1995 on the functioning of the Treaty on European Union with a view to the 1996 Intergovernmental Conference - implementation and development of the Union ((OJ C 151, 19.6.1995, p. 56.)),

- having regard to the report of the Committee on Budgets and the opinion of the Committee on Social Affairs and Employment (A4-0308/95),

A. whereas the Commission's communication is a follow-up to the provisions laid down in the Joint Declaration of 30 June 1982, which have not been satisfactorily implemented hitherto,

B. whereas the communication proposes 'new procedures for the creation of a legal basis' with regard to legislative acts with financial implications,

C. recalling that, at the Trialogue on 4 April 1995, the Council stressed the need to reach agreement on the legal bases and at the same time laid down the general principles and proposed a flow chart both for the adoption of the legal bases of new lines and for the clearance of past accounts,

D. whereas the framework for the 'new procedures' consists of a combination of the provisions currently governing the respective rights of initiative of the institutions, the powers of the budgetary authority and the procedures for adopting legislative acts; whereas it is also delimited by the current financial perspective,

E. whereas the proposed procedures do not eliminate the substantive shortcomings of the previous provisions in that there continue to be gaps and institutional shortcomings which mean that they cannot provide a definitive solution to the problem,

F. whereas a definitive solution can only be achieved by revising the financial provisions of the Treaty; whereas such a step is inevitably linked to the outcome of the Intergovernmental Conference on the revision of the Treaty,

G. whereas the lack of clear and uniform application of the legal basis requirement does not guarantee that the budget is drawn up and operates without hindrance,

H. whereas, on the other hand, the establishment of legal bases for embarking on Community actions funded by the Community budget reinforces a sense of responsibility in the management of the Union's finances and increases the budgetary authority's credibility,

I. whereas, however, it should not be overlooked that the Community budget was the starting point for launching, developing and implementing a large number of policies and actions within and outside the Community,

J. whereas it is also up to the Council, in discharging its responsibilities, to take more account of the budgetary priorities defined by Parliament,

K. whereas in this context, over-zealous use of legal procedure should be avoided so as not to impede the operation of the budget; whereas, consequently, there is a need for a legal basis for significant Community actions; whereas those actions may be undertaken as a continuation of pilot or preparatory projects which do not require a legal basis,

1. Stresses the obligation to ensure that the budget is drawn up and operates without hindrance;

2. Expects a viable long-term solution to be reached based on an improvement in the budgetary procedure through the Treaty, an enhancement of the role of the budgetary authority as a whole and equal participation by Parliament in legislative procedures;

3. Considers that there is also a need to confront the problem in the short term in a spirit of budgetary discipline and political responsibility;

4. Considers, therefore, that the question of the legal basis cannot be resolved without, at the same time, greater acceptance by the Council and Commission of Parliament's priorities adopted in its resolution before presentation of the preliminary draft budget by the Commission;

5. Believes that, in this context, the Commission's communication will provide the impetus for devising an acceptable, short-term operational framework for drawing up and implementing the budget;

6. Calls, on its own initiative, on the Council and the Commission, to meet for tripartite talks to formulate such a framework as a follow-up to the Joint Declaration of 6 March 1995 concerning the 'amount deemed necessary'; points out, however, that the quest for such a 'provisional' solution does nothing to prejudice the definitive and effective solution of the problem in the terms set out in paragraph 2 above and that Parliament is not bound to continue unless, ultimately, the desired institutional improvements ensue;

7. Stresses, moreover, that in the absence of a comprehensive settlement of that kind, any disputes between the two arms of the budgetary authority will have to be resolved using an ad hoc trialogue procedure;

8. Takes the view that the scope of the framework referred to in paragraph 6 should not be restricted but should cover every possible action that contributes to implementing the Treaty;

9. Considers that the pilot or preparatory projects should aim at developing multiannual programmes and not be an end in themselves;

10. Considers that it is essential in this respect to specify a period of time and a non-uniform indicative amount;

11. Believes that:

(a) the period of time should take account of the type of legislative procedure required for the adoption of the legal basis but should not exceed a period of three financial years in total,

(b) that the indicative amount is contingent on the scope afforded by the financial perspective and is justified by the conditions prevailing in the field in which the proposed action is to be undertaken;

12. Stresses that entering appropriations without a legal basis under the above conditions is conditional, both within the Commission and between the Commission and the budgetary authority, on the creation of a mechanism to ensure that the necessary measures can be taken without delay or hindrance to establish the legal basis, constantly monitor procedures and keep the budgetary authority fully informed while the budget is being drawn up and implemented;

13. Stresses, in connection therewith, that failure to implement approved appropriations must be duly justified and not simply be automatically used in other fields by means of transferring appropriations;

14. Instructs its President to forward this resolution to the Council, the Commission, the governments and parliaments of the Member States and the Reflection Group.