COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 01.12.1997 
COM(97) 607 final 
97/0317 (CNS) 
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COUNCIL REGULATION (EC) 
on the financing of the common agricultural policy 
(consolidated version) 
(presented by the Commission) 
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EXPLANATORY MEMORANDUM 
1. In the context of a people's Europe, the Commission attaches great importance to 
simplifying and clarifying Community law so as to make it clearer and more accessible 
to the ordinary citizen, thus giving him new opportunities and the chance to make use 
of the specific rights it gives him. 
This aim cannot be achieved so long as numerous provisions that have been amended 
several times, often quite substantially, remain scattered, so that they must be sought 
partly in the original instrument and partly in later amending ones. Considerable 
research work, comparing many different instruments, is thus needed to identify the 
current rules. 
« 
For this reason a consolidation of rules that have frequently been amended is also 
essential if Community law is to be clear and transparent. 
2. On 1 April 1987, the Commission therefore decided to instruct its staff that all legis­
lative measures should be consolidated after no more than ten amendments, stressing 
that this was a minimum requirement and that departments should endeavour to con­
solidate at even shorter intervals the texts for which they were responsible, to ensure 
that the Community rules were clear and readily understandable. 
3. The Conclusions of the Presidency of the Edinburgh European Council (December 
1992) confirmed this, stressing the importance of legislative consolidation as it offers 
certainty as to the law applicable to a given matter at a given time. 
It must be undertaken in full compliance with the normal Community legislative pro­
cedure. 
Given that no changes of substance may be made to the instruments affected by 
legislative consolidation. Parliament, the Council and the Commission have agreed, by 
an interinstitutional agreement dated 20 December 1994, that an accelerated proce­
dure may be used for the fast-track adoption of codification instruments. 
4. The purpose of this proposal (2) for legislative consolidation of Council Regulation 
(EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural 
policy prepared by the Legal Service in conjunction with the Directorate-General VI, 
is to undertake official codification of this type. The new regulation will supersede 
the various regulations incorporated in it (2); their content is fully preserved, and 
they arc brought together with only such formal amendments as arc required by the 
codification exercise itself. 
4a. Articles 6, 6a, 6b, 6c and 7 of the abovcracntioned Regulation (EEC) No 729/70, 
which specifically concern the EAGGF Guidance Section, have not been included in 
the present proposal for consolidation, since they have become obsolete for the follo­
wing reasons: 
(a) Article 11 of Regulation (EEC) No 4256/88 (3) as amended by Regulation 
(EEC) No 2085/93 states that 'Regulation (EEC) No 729/70, with the exception 
of Article 1 (1), (2) and (3), shall not apply as regards the Fund, subject to the 
implementation of Article 15 of Regulation (EEC) No 2052/88 and Article 33 of 
Regulation (EEC) No 4253/88'. 
(*) Entered in the legislative programme for 1996. 
(2) Sec Part B of the Annex. 
(3) Council Regulation of 19 December 198S laying down provisions for implementing Regulation 
(EEC) No 2052/88 as regards the EAGGF Guidance Section. 
I 2 
(b) Article 15 of Regulation (EEC) No 2052/88 (•) and Article 33 of Regulation 
(EEC) No 4253/88 (2) are transitional provisions relating to the rules for the 
Structural Funds which applied before the entry into force of the abovementio-
ncd Regulations. These provisions set two 'cut-off' dates: 1 January 1989 and 30 
September 1995 (3). As these dates have now passed, the transitional period is 
over. 
(c) Certain projects are still 'subject to suspension for judicial reasons' and a num­
ber of projects decided on by the Commission prior to 1 January 1989 have not 
yet been wound up (cf. Article 10 of Regulation (EEC) No 4256/88 as amended 
by Regulation (EEC) No 2085/93) but these considerations do not affect the 
above approach, since: 
— the court concerned may, in accordance with general principles of law, rule 
on the facts in dispute in the light of the legislation in force at the time the 
legal situation in question arose, even if the said legislation has in the 
meantime become obsolete or even been specifically repealed at a later 
date; 
— for any measure for the reduction or cancellation of assistance from the 
Fund (EAGGF Guidance Section), the Commission has been required since 
3 August 1993 to use only Article 24 of Regulation (EEC) No 4253/88, 
since Regulation (EEC) No 355/77 (4) was repealed in its entirety on that 
date (date of entry into force of Regulation (EEC) No 20S5/93 amending 
Regulation (EEC) No 4256/88) without any provision having been made for 
exceptions. 
It should be noted that, although the original version of Article 10 (3) of 
Regulation (EEC) No 4256/88 stated that 'By way of derogation from para­
graph 2 (5), Articles 6 to 15 and 17 to 23 of Regulation (EEC) No 355/77 
shall continue to apply to projects submitted by the date of entry into force 
of the Council Decision referred to in paragraph 1 (6) (...)', the said Article 
10 of Regulation (EEC) No 4256/88 as amended by Regulation (EEC) No 
2085/93 no longer refers to the continued applicability of certain provisions 
of Regulation (EEC) No 355/77 to 'projects submitted by the date of entry 
into force' of the above mentioned Council Decision (6). 
5. This legislative consolidation proposal was drawn up on the basis of a preliminary 
consolidation, in all the official languages, of Regulation (EEC) No 729/70 and the 
instruments amending it, carried out by the Office for Official Publications of the 
European Communities, by means of the data-processing system referred to in the 
conclusions of the European Council meeting at Edinburgh. Although the articles 
have been given new numbers, the old numbering has been retained in the margin for 
ease of reference; the correlation between the old and new numbers is shown in a 
table set out in the Annex, Part A to the consolidated Regulation. 
(*) Council Regulation of 24 June 1988 on the tasks of the Structural Funds and their effectiveness 
and on coordination of their activities between themselves and with the operations of the European 
Investment Bank and the other existing financial instruments. 
(2) Council Regulation of 19 December 1988 laying down provisions for implementing Regulation 
(EEC) No 2052/88 as regards coordination of the activities of the different Structural Funds bet­
ween themselves and with the operations of the European Investment Bank and the other existing 
financial instruments. 
(3) Article 15 (3) of Regulation (EEC) No 2052/88 as amended by Regulation (EEC) No 2081/93 
states that 'the provisions referred to in Article 3 (4) and (5) shall lay down specific transitional 
provisions relating to the implementation of this Article, including provisions to ensure (...) that 
the grant of assistance for projects granted assistance before 1 January 1989 shall be finally con-
" eluded no later than 30 September 1995'. 
(4) Council Regulation of 1 February 1977 on common measures to improve the conditions under 
which agricultural products are processed and marketed. 
(5) Paragraph 2 reads 'With effect from the date of entry into force of the Council Decision referred 
to in paragraph 1, Council Regulation (EEC) No 355/77 is hereby repealed'. 
(6) Regulation (EEC) No 866/90, which entered into force on 1 January 1990. 
2a 
Proposal for a 
COUNdL REGULATION (EC) No .J... 
of... 
on the financing of the common agricultural policy 
1) 
2) 
3) THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European 
Community, and in particular Article 43 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parlia­
ment (!), 
Having regard to the opinion of the Court of Audi­
tors (2), 
Having regard to the opinion of the Economic and So­
cial Committee (3), 
Whereas Council Regulation (EEC) No 729/70 of 21 
April 1970 on the financing of the common agricultural 
policy (4) has been frequently and substantially amen­
ded (5); whereas for reasons of clarity and rationality the 
said Regulation should be consolidated; 
Whereas by means of Regulation No 25 (6) on the fi­
nancing of the common agricultural policy, the Council 
established the European Agricultural Guidance and 
Guarantee Fund (EAGGF), hereinafter referred to as 
'the Fund', which forms part of the general budget of 
the European Union; whereas that Regulation laid down 
under Title I the principles which should apply after the 
transitional period; 
Whereas at the single market stage, in view of the fact 
that price systems are standardised and the agricultural 
policy is a Community policy, the financial consequences 
devolve upon the Community; whereas, in accordance 
with that principle as laid down in Article 2 (2) of Re­
gulation No 25, refunds on exports to third countries, 
intervention aimed at stabilising agricultural markets, 
and common measures adopted in order to achieve the 
objectives set out in Article 39 (1) (a) of the Treaty, 
including structural adaptation required for the proper 
working of the common market, are financed by the 
Fund; 729/70 
(adapted) 
729/70 
(adapted) 
0 () 
() 
(4) 
(6) OJ No C... 
OJ No C... 
OJ No C... 
OJ No L 94, 28. 4.1970, p. 13. Regulation as last amended by 
Regulation (EC) No 1287/95 (OJ No L 125,8. 6.1995, p. 1). 
See Part B of the Annex. 
O J No 30,24.4.1962, p. 992/62. Regulation as last amended by 
Regulation (EEC) No 728/70 (OJ No L 94, 28. 4. 1970, p. 9). 
4) Whereas, in particular, the principle should be main­
tained that the Fund should include a Guarantee Section 
for the expenditure of the: common organisation of the 
agricultural markets and a Guidance Section for com­
mon expenditure relating to agricultural structure; 
whereas the Commission is responsible for the adminis­
tration of the Fund and whereas close co-operation be­
tween Member States and the Commission is provided 
for within a Committee for the European Agricultural 
Guidance and Guarantee Fund; 
5) Whereas the responsibility for checking the Fund's 
Guarantee Section expenditure lies, in the first place, 
with the Member States, which designate the authorities 
and bodies empowered to effect expenditure; whereas 
the Member States must carry out this task fully and 
effectively; whereas the Commission, being responsible 
for implementing the Community budget, must verify the 
conditions under which payments and checks have been 
made; whereas the Commission can only finance ex­
penditure where those conditions offer all necessary 
guarantees regarding compliance with Community 
rules; whereas, in a decentralized system of management 
of Community expenditure, it is essential that the Com­
mission, as the institution responsible for funding, is en­
titled and enabled to carry out all checks on the man­
agement of expenditure it considers necessary and that 
there should be full and effective transparency and mu­
tual assistance between the Member States and the 
Commission; 
6) Whereas, during the clearance of accounts, the Commis­
sion is able to determine within a reasonable time the 
total expenditure to be entered against the Guarantee 
Section in the general account only if it has satisfactory 
assurance that the national controls are adequate and. 
transparent and that the paying agencies verify the legal­
ity and regularity of the payment requests which they 
execute; whereas provision should therefore be made for 
the accreditation of paying agencies by Member States; 
whereas in order to ensure consistency in the standards 
required for accreditation in the Member States, the 
Commission provides guidance on the criteria to be ap­
plied; whereas, for that purpose, it should be stipulated 
that only expenditure effected by paying agencies ac­
credited by the Member States should be financed; 
whereas, moreover, in order to ensure the transparency 
of national controls, in particular as regards authoriz­
ation, validation and payment procedures, the number of 
authorities and bodies to which these responsibilities are 
delegated should, where appropriate, be restricted taking 
account of the constitutional arrangements of each 
Member State; 3. 729/70 
1287/95 
(adapted) 
1287/95 
(adapted) 
7) Whereas decentralized management of Community 
funds, in particular following reform of the common 
agricultural policy, leads to the designation of several 
paying agencies; whereas, therefore, where a Member 
State accredits more than one paying agency, it must 
designate a single contact body to ensure consistency in 
the management of the funds, to provide liaison between 
the Commission and the various accredited paying 
agencies and to ensure that the information requested by 
the Commission concerning the operations of several 
paying agencies is made rapidly available; 
8) Whereas financial resources must be mobilized by the 
Member States in accordance with the needs of their 
disbursing agencies, while the Commission makes ad­
vance payments against the booking of the expenditure 
effected by the disbursing agencies; 
9) Whereas two types of decision should be established, 
one concerning the clearance of the accounts of the 
Guarantee Section of the Fund, the other determining 
the consequences, including financial corrections, to be 
drawn from the results of the checks on conformity, with 
Community rules, of the expenditures; 
10) Whereas the checks on 'conformity and the ensuing 
clearance decisions will therefore no longer be linked to 
the implementation of the budget in a particular finan­
cial year; whereas the maximum period to which the 
consequences to be drawn from the checks on conform­
ity may be applied must be determined; 
11) Whereas the financing costs which might arise from the 
mobilization of financial resources by the Member States 
could be shared between some Member States and the 
Community; 
12) Whereas measures must be taken to prevent and deal 
with any irregularities and to recover the amounts lost as 
a result of such irregularities or negligence; whereas the 
financial responsibility for such irregularities or negli­
gence must be determined; 
13) Whereas Community expenditure must be made subject 
to close supervision; whereas, in addition to supervision 
carried out by Member States on their own initiative, 
which remains essential, provision should be made for 
verification by officials of the Commission and for it to 
have the right to enlist the help of Member States; 1287/95 
3183/87 
(adapted) 
1287/95 
(adapted) 
1287/95 
(adapted) 
3183/87 
729/70 
729/70 
14) Whereas information technology needs to be used as 
fully as possible for producing the information to be sent 
to the Commission; whereas, when carrying out checks, 
the Commission must have full and immediate access to 
information on expenditure held in both documents and 
electronic files; 
15) Whereas the extent of Community financing makes it 
necessary for the European Parliament and the Council 
to be kept regularly informed by means of financial re­
ports, 1287/95 
(adapted) 
729/70 
(adapted) 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. The European Agricultural Guidance and Guarantee 
Fund (hereinafter called the 'Fund') shall form part of the 
general budget of the European Union. 
It shall comprise two sections: 
— the Guarantee Section; 
— the Guidance Section. 
2. The Guarantee Section shall finance: 
(a) refunds on exports to third countries; 
(b) intervention intended to stabilise the agricultural 
markets. 
3. The Guidance Section shall finance common measures 
adopted in order to achieve the objectives set out in Ar­
ticle 39 (1) (a) of the Treaty, including structural adapta­
tion necessary for the proper working of the common 
market. However, such measures shall not take the place 
of the activities of the European Investment Bank and the 
European Social Fund. 
4. Expenditure relating to administrative costs and per­
sonnel borne by Member States and by recipients of aid 
from the Fund shall not be taken over by the Fund. 
Article 2 
1. Refunds on exports to third countries, granted in ac­
cordance with the Community rules within the framework 
of the common organisation of agricultural markets, shall 
be financed under the terms of Article 1 (2) (a). 
2. The Council, acting by a qualified majority on a pro­
posal from the Commission, shall, as far as is necessary, 
adopt the procedure for financing the refunds referred to 
in paragraph 1. 
Article 3 
1. Intervention intended to stabilise the agricultural 
markets, undertaken according to Community rules within 
the framework of the common organisation of agricultural 
markets, shall be financed under Article 1 (2) (b). 
2. The Council, acting by a qualified majority on a pro­
posal from the Commission, shall before 1 January 1972 
lay down the general rules for financing such intervention 
which are necessary for the application of paragraph 1. 729/70 
(adapted) Article 1 
Article 2 
(adapted) 
(adapted) Article 3 
Article 4 
1. Each Member State shall communicate to the Com­
mission: 
(a) details of the authorities and bodies it accredits to 
pay the expenditure referred to in Articles 2 and 3, 
hereinafter referred to as 'paying agencies'; 1287/95 Art. 1 (1) 
(adapted) Article 4 
(b) where more than one paying agency is accredited, de­
tails of the authority or body it charges, first, with 
bringing together the information to be supplied to 
the Commission and sending it the same, and, second, 
with promoting the harmonized application of Com­
munity rules, hereinafter referred to as the 'coordi­
nating body'. 
2. Paying agencies shall be authorities and bodies of the 
Member States, which, as regards payments in the areas 
for which they are responsible, offer sufficient guarantees 
that: 
(a) the admissibility of claims and compliance with Com­
munity rules are checked before payment is autho­
rized, 
(b) the payments effected are correctly and fully recorded 
in the accounts, and 
(c) the necessary documents are submitted within the 
time and in the form laid down in Community rules. 
3. The paying agencies must hold documents justifying 
the payments effected and documents concerning the 
carrying out of the prescribed administrative and physical 
controls. Where the relevant documents arc kept by the 
bodies responsible for authorizing the expenditure, those 
bodies must transmit reports to the paying agency on the 
number of checks carried out, their content and the mea­
sures taken in the light of the results. 
4. Only expenditure effected by accredited paying 
agencies may be the subject of Community financing. 
5. Each Member State shall, taking into account its con­
stitutional and institutional structures, limit the number of 
accredited paying agencies to the minimum necessary in 
order to effect the expenditure referred to in Articles 2 
and 3 under satisfactory administrative and accounting 
conditions. 
6. Each Member State shall communicate to the Com­
mission the following particulars concerning those paying 
agencies: 
(a) their name and their statutes, 
(b) the administrative, accounting and internal control 
conditions under which payments are made relating to 
the implementation of Community rules within the 
framework of the common agricultural policy, 
(c) the act of accreditation. 
The Commission shall be informed forthwith of any 
change in those particulars. 1287/95 Art. 1 (1) 
7. Where one or more of the conditions for accredit­
ation are not, or are no longer, fulfilled by an accredited 
paying agency, accreditation shall be withdrawn ufilcss the 
paying agency makes the necessary adjustments within a 
time limit to be fixed in relation to the seriousness of the 
problem. The Member State concerned shall inform the 
Commission. 
8. The Commission shall make available to Member 
States, by means of advances on the provision for expendi­
ture effected in a reference period, the financial resources 
.required to cover the expenditure referred to in paragraph 
1 (a). Until the advances are paid, the resources necessary 
to meet that expenditure shall be mobilized by the 
Member States in accordance with the needs of their ac­
credited paying agencies. 
9. Detailed rules for the application of this Article 
shall be adopted in accordance with the procedure laid 
down in Article 12. 1287/95 Art. 1(1) 
Article 5 
1. Member States shall at regular intervals transmit to 
the Commission the following information concerning the 
accredited paying agencies and coordinating bodies and re­
lating to transactions financed by the Guarantee Section of 
the Fund: 
(a) statements of expenditure and estimates of financial 
needs; 
(b) annual accounts, accompanied by the information re­
quired for clearance and an attestation regarding the 
integrality, exactitude and veracity of the accounts 
transmitted. 
2. The Commission, after consulting the Fund Commit­
tee referred to in Article 10, shall adopt the decisions set 
out in paragraphs 3, 4 and 5. 
3. The Commission shall decide on monthly advances 
against the allocations of expenditure effected by the ac­
credited paying agencies. Expenditure for October shall be 
attributed to October if it is effected from 1 to 15 October 
and to November if it is effected from 16 to 31 October. 
Advance payments shall be made to the Member State not 
later than the third working day of the second month fol­
lowing that in which the expenditure is effected. 
Additional advances may be made, the Fund Committee 
being informed at the next consultation; 
4. The Commission shall, before 30 April of the year 
following the financial year concerned, on the basis of the 
information referred to in point (b) of paragraph 1, clear 
the accounts of the paying agencies. 1287/95 Art. 1 (2) 
(adapted) Article 5 
The accounts clearance decision shall cover the integrality, 
exactitude and veracity of the accounts submitted. The 
decision shall not prejudice the adoption of a subsequent 
decision pursuant to paragraph 5. 
5. The Commission shall decide on the expenditure to 
be excluded from the Community financing referred to in 
Articles 2 and 3 where it finds that expenditure has not 
been effected in compliance with Community rules. 
Before a decision to refuse financing is taken, the results 
of the Commission's checks and the replies of the Member 
State concerned shall be notified in writing, after which the 
two parties shall endeavour to reach agreement on the ac­
tion to be taken. 
If no agreement is reached, the Member State may ask for 
a procedure to be initiated with a view to mediating be­
tween the respective positions within a period of four 
months, the results of which shall be set out in a report 
sent to and examined by the Commission, before a deci­
sion to refuse financing is taken. 
The Commission shall evaluate the amounts to be excluded 
having regard in particular to the degree of non-com­
pliance found. The Commission shall take into account the 
nature and gravity of the infringement and the financial 
loss suffered by the Community. 
A refusal to finance may not involve expenditure effected 
prior to twenty-four months preceding the Commission's 
written communication of the results of those checks to 
the Member State concerned. However, the fifth subpara­
graph shall not apply to the financial consequences: 
(a) of irregularities as referred to in Article 7 (2); 
(b) concerning national aids, or infringements, for which 
the procedures referred to in Articles 93 and 169 of 
the Treaty have been initiated. 
6. Detailed rules for the application of this Article shall 
be adopted in accordance with the procedure laid down in 
Article 12. Those rules shall cover in particular the attesta­
tion of the accounts referred to in paragraph 1 and the 
procedures relating to the decisions referred to in para­
graphs 3, 4 and 5. 1287/95 Art. 1 (2) 
(adapted) 
Article 6 
To accommodate any difficulties which certain Member 
States might encounter in setting up the system provided 
for in Article 4 (8), appropriate measures enabling some 
or all of the interest to be charged to the Community may 
be adopted in accordance with the procedure laid down in 
Article 12. 1287/95 Art. 1 (3) Article 5a 
10 
Article 7 
1. The Member States shall, in accordance with national 
provisions laid down by law, regulation or administrative 
action, take the measures necessary to: 
(a) satisfy themselves that transactions financed by the 
Fund are actually carried out and are executed cor­
rectly, 
(b) prevent and deal with irregularities; 
(c) recover suras lost as a result of irregularities or negli­
gence. 
The Member States shall inform the Commission of the 
measures taken for those purposes and in particular of the 
state of the administrative and judicial procedures. 
2. In the absence of total recovery, the financial conse­
quences of irregularities or negligence shall be borne by 
the Community, with the exception of the consequences of 
irregularities or negligence attributable to administrative 
authorities or other bodies of the Member States. 
The suras recovered shall be paid to the accredited paying 
agencies and deducted by them from the expenditure fi­
nanced by the Fund. The interest on sums recovered or 
paid late shall be paid into the Fund. 
3. The Council, acting by a qualified majority on a pro­
posal from the Commission, shall lay down general rules 
for the application of this Article. 
Article 8 
1. Member States shall make available to the Commis­
sion all information required for the proper working of the 
Fund and shall take all suitable measures to facilitate the 
supervision which the Commission may consider it necess­
ary to undertake within the framework of the management 
of Community financing, including inspections on the spot. 
Member States shall communicate to the Commission 
provisions laid down by law, regulation or administrative 
action which they have adopted for the application of legal 
acts of the Community relating to the common agricultural 
policy insofar as those acts have financial consequences for 
the Fund. 
2. Without prejudice to the supervision effected bv 
Member States in accordance with national provisions laid 
down by law, regulation or administrative action and with­
out prejudice to Article 188c of the Treaty, or to any in­
spection organized on the basis of point (c) of Article 209 
of the Treaty, authorized representatives appointed bv the 
Commission to carry out inspections on the spot shall have 
access to the books and all other documents, including in­
formation created or stored in electronic form, relating to 
expenditure financed by the Fund. 
They may in particular check: 
(a) whether administrative practices are in accordance 
with Community rules; 729/70 
(adapted) Article 8 
1287/95 Art. 1 (4) 
729/70 
Article 9 
1287/95 Art. 1 (5) 
(adapted) 
11 
O 
(b) whether the requisite supporting documents exist and 
tally with the transactions financed by the Fund; 
(c) the conditions under which transactions financed by 
the Fund are carried out and checked. 
The Commission shall give due notice before the inspec­
tion is carried out to the Member State concerned or to 
the Member State on whose territory it is to take place. 
Officials of the Member State concerned may take part in 
the inspection. 
At the request of the Commission and with the agreement 
of the Member State, inspections or inquiries concerning 
the transactions referred to in this Regulation shall be car­
ried out by the competent authorities of that Member 
State. Officials of the Commission may also participate. 
To make verification more effective the Commission may, 
with the agreement of the Member States concerned, ar­
range for administrative authorities of those States to par­
ticipate in certain inspections or inquiries. 
3. The Council, acting by a qualified majority on a pro­
posal from the Commission, shall, as far as is necessary, 
lay down general rules for the application of this Article. 729/70 
Article 9 
Before 1 July of each year, the Commission shall submit to 
the European Parliament and to the Council a financial 
report on the administration of the Fund during the pre­
ceding financial year and, in particular, on the state of its 
resources and the nature of its expenditure and the condi­
tions for achieving Community financing. Article 10 
(adapted) 
Article 10 
The Committee for the European Agricultural Guidance 
and Guarantee Fund (hereinafter called the 'Fund Com­
mittee') shall assist the Commission in administering the 
Fund, as laid down in Articles 11 to 14. 
Article 11 
The Fund Committee shall consist of representatives of the 
Member States and of the Commission. Each Member 
State shall be represented on the Fund Committee by not 
more than five officials. 
The Fund Committee shall have a representative of the 
Commission as Chairman. Article U 
Article 12 
(adapted) 
Article 12 
1. Where the procedure laid down in this Article is to 
be followed, the matter shall be referred to the Fund 
Committee by the Chairman, either on his own initiative 
or at the request of the representative of a Member Sate. Article 13 
2. The representative of the Commission shall submit to 
the Committee a draft of the measures to be taken. The 
Committee shall deliver its opinion on the draft within a 
time which the Chairman may lay down according to the 
urgency of the matter. The opinion shall be delivered by 
the majority laid down in Article 148 (2) of the Treaty in 
the case of decisions which the Council is required to 
adopt on a proposal from the Commission. The votes of 
the representatives of the Member States within the Com­
mittee shall be weighted in the manner set out in that Ar­
ticle. The Chairman shall not vote. 
The Commission shall adopt measures which shall be im­
mediately applicable. However, if such measures arc not in 
accordance with the Opinion delivered by the Fund Com­
mittee, they shall at once be communicated by the Cora-
mission to the Council. In that case, the Commission may 
defer for not more than one month from the date of such 
communication, application of the measures which it has 
adopted. 
The Council, acting by a qualified majority, may adopt a 
different decision within one month. 
Article 13 
1. The Fund Committee shall be consulted: 
(a) in cases where provision is made for it to be con­
sulted; 
(b) for the assessment of the Fund's credits to be entered 
in the Commission's estimate for the coming financial 
year and, if necessary, in additional estimates; 
(c) on draft proposals from the Commission to the Coun­
cil concerning the application of this Regulation and 
draft reports on the Fund to be submitted to the 
Council. 
2. The Fund Committee may examine any other ques­
tion referred to it by its Chairman either on his own initi­
ative or at the request of a representative of a Member 
State. 
It shall be informed regularly of the activities of the Fund. 
Article 14 
The Chairman shall convene the Fund Committee. 
Secretarial services shall be provided for the Fund Com­
mittee by the Commission. 
The Fund Committee shall lay down its own rules of pro­
cedure. 95/1/EC, Euratom, ECSC 
729/70 
(adapted) 
Article 14 
Article 15 
13 
Article 15 
1. The provisions of. Articles 4, 5, 6, 7 (2), second sub­
paragraph and 8 (2), first subparagraph, shall apply from 
the financial year beginning on 16 October 1995. 
2. Refusal to grant financing as referred to in Article 
5 (5) may not relate to expenditure claimed against a fi­
nancial year prior to 16 October 1992, but without preju­
dice to decisions regarding the clearance of the financial 
years prior to 15 June 1995. 729/70 
1287/95 Art. 2 
(adapted) Article 16 
Article 16 
Regulation- (EEC) No 729/70 is hereby repealed. 
References to the repealed Regulation shall be construed 
as references to this Regulation and should be read in ac­
cordance with the correlation table set out in Part A of the 
Annex. 
Article 17 
This Regulation enters into force on the day of its publica­
tion in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Done at Brussels ... 
For the Council 
Vie President 
14 
ANNEX 
Part A 
CORRELATION TABLE 
Regulation <EEC) No 729/70 This Regulation 
Article 1 
Article 2 
Article 3(1) 
Article 3 (2) 
Article 3 (3) 
Article 4 (1), first subparagraph, point (a), first subpara­
graph 
Article 4 (1), first subparagraph, point (a), second subpara­
graph, first indent 
Article 4 (1), first subparagraph, point (a), second subpara­
graph, second indent 
Article 4 (1), first subparagraph, point (a), second subpara­
graph, third indent 
Article 4 (1), first subparagraph, point (a), third subpara­
graph 
Article 4 (1), first subparagraph, point (b) 
Article 4 (1), second subparagraph 
Article 4 (2) 
Article 4 (3), first subparagraph, first indent 
Article 4 (3), first subparagraph, second indent 
Article 4 (3), first subparagraph, third indent 
Article 4 (3), second subparagraph 
Article 4 (4) 
Article 4 (5) 
Article 4 (6) 
Article 5(1) 
Article 5 (2), introductory wording 
Article 5 (2), point (a) 
Article 5 (2), point (b), first subparagraph 
Article 5 (2), point (b), second subparagraph 
Article 5 (2), point (b), third subparagraph 
Article 5 (2), point (c), first subparagraph 
Article 5 (2), point (c), second subparagraph 
Article 5 (2), point (c), third subparagraph 
Article 5 (2), point (c), fourth subparagraph 
Article 5 (2), point (c), fifth subparagraph, first sentence 
Article 5 (2), point (c), fifth subparagraph, second sentence 
Article 5 (2), point (c), fifth subparagraph, second sentence, 
first indent Article 1 
Article 2 
Article 3(1) 
Article 3 (2) 
Article 4 (1), point (a) 
Article 4 (2), point (a) 
Article 4 (2), point (b) 
Article 4 (2), point (c) 
Article 4 (3) 
* ' 
Article 4 (1), point (b) 
Article 4 (4) 
Article 4 (5) 
Article 4 (6), first subparagraph, point (a) 
Article 4 (6), first subparagraph, point (b) 
Article 4 (6), first subparagraph, point (c) 
Article 4 (6), second subparagraph 
Article 4 (7) 
Article 4 (8) 
Article 4 (9) 
Article 5 (1) 
Article 5 (2) 
Article 5 (3) 
Article 5 (4), first subparagraph 
Article 5 (4), second subparagraph, first sentence 
Article 5 (4), second subparagraph, second sentence 
Article 5 (5), first subparagraph 
Article 5 (5), second subparagraph 
Article 5 (5), third subparagraph 
Article 5 (5), fourth subparagraph 
Article 5 (5), fifth subparagraph 
Article 5 (5), sixth subparagraph 
Article 5 (5), sixth subparagraph, point (a) 
15 
Regulation (EEC) No 729/70 This Regulation 
Article 5 (2), point (c), fifth subparagraph, second sentence, 
second indent 
Article 5 (3) 
Article 5a 
Article 6 
Article 6a 
Article 6b 
Article 6c 
Article 7 
Article 8 (1), first subparagraph, first indent 
Article 8 (1), first subparagraph, second indent 
Article 8 (1), first subparagraph, third indent 
Article 8(1), second subparagraph 
Article 8 (2) 
Article 8 (3) 
Article 9 (1) 
Article 9 (2), first subparagraph, first sentence 
Article 9 (2), first subparagraph, second sentence 
Article 9 (2), first subparagraph, second sentence, point (a) 
Article 9 (2), first subparagraph, second sentence, point (b) 
Article 9 (2), first subparagraph, second sentence, point (c) 
Article 9 (2), second subparagraph 
Article 9 (2), third subparagraph 
Article 9 (2), fourth subparagraph 
Article 9 (3) 
Article 10 
Article 11 
Article 12 (1) 
Article 12 (2) 
Article 13 (1) 
Article 13 (2) 
Article 13 (3), first subparagraph 
Article 13 (3), second subparagraph 
Article 14 
Article 15 
Article 16 (1) 
Article 16 (2) Article 5 (5), sixth subparagraph, point (b) 
Article 5 (6) 
Article 6 
Article 7 (1), first subparagraph, point (a) 
Article 7 (1), first subparagraph, point (b) 
Article 7 (1), first subparagraph, point (c) 
Article 7(1), second subparagraph 
Article 7 (2) 
Article 7 (3) 
Article 8 (1) 
Article 8 (2), first subparagraph 
Article 8 (2), second subparagraph 
Article 8 (2), second subparagraph, point (a) 
Article 8 (2), second subparagraph, point (b) 
Article 8 (2), second subparagraph, point (c) 
Article 8 (2), third subparagraph 
Article 8 (2), fourth subparagraph 
Article 8.(2), fifth subparagraph 
Article 8 (3) 
Article 9 
Article 10 
Article 11 
Article 12 (1) 
Article 12 (2), first subparagraph 
Article 12 (2), second subparagraph 
Article 12 (2), third subparagraph 
Article 13 
Article 14 
Article 15 
Article 16 
Article 17 
ANNEX 
16 
Part B 
Regulations amending Regulation (EEC) No 729/70 
Official Journal 
No page date 
Council Regulation (EEC) No 1566/72 of 20 July 1972 
Council Regulation (EEC) No 2788/72 of 28 December 1972 
Council Regulation (EEC) No 929/79 of 8 May 1979 
Council Regulation (EEC) No 3509/80 of 22 December 1980 
Council Regulation (EEC) No 870/85 of 26 March 1985 
Council Regulation (EEC) No 3768/85 of 20 December 1985 
Council Regulation (EEC) No 3769/85 of 20 December 1985 
Council Regulation (EEC) No 3183/87of 19 October 1987 
Council Regulation (EEC) No 2048/88 of 24 June 1988 
Council Regulation (EC) No 1287/95 of 22 May 1995 L167 
L295 
L117 
L367 
L95 
L362 
L362 
L304 
L185 
L125 5 
1 
4 
87 
1 
8 
17 
1 
1 
1 25. 7.1972 
30.12.1972 
12. 5.1979 
31.12. 1980 
2. 4.1985 
31. 12. 1985 
31. 12. 1985 
27.10.1987 
15. 7.1988 
8. 6. 1995 
17 
ISSN 0254-1475 
COM(97) 607 final 
DOCUMENTS 
EN 03 01 06 
Catalogue number : CB-CO-97-619-EN-C 
ISBN 92-78-27605-7 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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