No C 346/22 Official Journal of the European Communities 22.12.87 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Decision on the correction of budgetary imbalances 
(The proposed Decision is designed to accompany COM(87) 100 and COM(87) 101) 
COM(87) 600 final 
(Submitted by the Commission to the Council on 11 November 1987) 
(87/C 346/05) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 201 and 
235 thereof, 
Having regard to the Treaty establishing the European 
Atomic Energy Community, and in particular Articles 
173 and 203 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Whereas the fact that the economy of a Member State 
which is in a special situation has to bear a dispro­
portionate share of the financing of the Community 
budget can give rise to a situation which is incompatible 
with the smooth functioning of the Community; 
Whereas the European Council which met in Fontaine-
bleau on 25 and 26 June 1984 reached certain 
conclusions; 
Whereas there is still an imbalance in the United 
Kingdom's budgetary position resulting from the 
relatively small amount of agricultural spending by the 
Community in the United Kingdom; whereas this 
imbalance may be gauged in relation to gross national 
product at market prices, hereinafter referred to as 
GNP; whereas compensation should be paid to offset 
part of this imbalance; whereas the Treaties do not 
provide any specific powers to cover this compensation; 
whereas recourse should therefore be had to Article 235 
of the EEC Treaty and Article 203 of the Euratom 
Treaty; 
Whereas the compensation to be granted to the United 
Kingdom should be financed by other Member States by 
reference to their ability to pay and their contribution to 
the budget; Whereas a timetable has to be drawn up for carrying out 
the obligations arising from this Regulation; 
Whereas Article 8 A of the Treaty establishing the 
European Community, as amended by Article 13 of the 
Single European Act, provides for the completion of the 
internal market by 31 December 1992, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Financial compensation shall be granted to the United 
Kingdom in accordance with the following provisions. 
Article 2 
The amount of compensation to be granted in respect of 
each financial year shall correspond to the difference in 
that financial year between: 
— the United Kingdom's percentage share of total GNP 
in the Member States 
and 
— the United Kingdom's percentage share of total 
European Agricultural Guarantee and Guidance 
Fund (EAGGF), Guarantee section payments, 
including the monetary compensatory amounts paid 
on its behalf by other Member States 
multiplied by 50 % of total EAGGF Guarantee Section 
payments. 
Article 3 
1. The compensation due in respect of a financial year 
shall be paid during the following financial year; an 
estimate of this compensation shall therefore be entered 
in the statement of expenditure of the general budget of 
the European Communities. 
2. Corrections to these estimates may be entered in 
subsequent budgets or amending budgets. 
22.12.87 Official Journal of the European Communities No C 346/23 
3. The final amount of compensation shall be 
determined by reference to the GNP of the Member 
States used for making the final adjustment to the 
definitive additional base provided for in Article 6 of 
Regulation (EEC, Euratom, ECSC) No 0000/88 of 
1988. The adjustment of the compensation 
resulting from comparison between the estimate and the 
final amount shall be entered in the budget of the 
following financial year. 
Article 4 
The compensation shall be financed by Belgium, 
Denmark, the Federal Republic of Germany, France, 
Italy, Luxembourg and the Netherlands in accordance 
with the following rules: 
(a) The GNP of the seven Member States concerned 
shall be multiplied by the index of per capita gross 
national product in purchasing power parities 
established on the basis of the twelve-nation 
Community as available when the estimate is 
prepared and when the final amounts of 
compensation are determined; 
(b) The results shall be added together and expressed as 
a percentage of the total; 
(c) The percentage obtained for the Federal Republic of 
Germany shall be reduced by 75 %; 
(d) The 75 % deducted from the share of the Federal 
Republic of Germany shall be divided between the 
six other Member States in accordance with their 
share in the scale referred to at (b). 
The amounts to be paid shall be entered as negative 
expenditure in the statement of expenditure of the 
general budget of the European Communities. 
Article 5 
1. On the first working day of each month the 
Member States shall enter in the account provided for in 
Article 9 (1) of Regulation (EEC, Euratom, E^CSC) No 2891/77 and the Commission shall pay the United 
Kingdom one twelfth of the relevant amounts in the 
budget. Any change in the amounts shall require the final 
adoption of a supplementary or amending budget and 
shall give rise to the readjustment of the twelfths entered 
since the beginning of the financial year. 
2. If the budget has not been adopted at the beginning 
of the financial year, the twelfths to be entered or paid 
on the first working day of each month shall be twelfths 
of the relevant amounts in the last budget adopted or of 
the relevant amounts in the draft budget, whichever are 
the lower; if no draft budget has been established, 
reference shall be made to the relevant amounts in the 
preliminary draft budget. The adjustment of these 
operations shall be made on the first due date following 
final adoption of the budget if it is adopted before the 
sixteenth of the month. Otherwise, the adjustment shall 
be made on the second due date following final adoption 
of the budget. 
3. The amounts entered in the budget in ECU in 
respect of the correction of budgetary imbalances shall 
be converted at the ECU rate applying on the first 
working day after the fifteenth day of the month which 
precedes the due date. 
Article 6 
Member States shall be notified of this Decision by the 
Secretary-General of the Council of the European 
Communities; it shall be published in the Official Journal 
of the European Communities. 
Member States shall notify the Secretary-General of the 
Council of the European Communities without delay of 
the completion of the procedures for the adoption of 
this Decision in accordance with their respective 
constitutional requirements. 
This Decision shall enter into force on the first day of 
the month following receipt of the last of the 
notifications referred to in the second paragraph. 
It shall take effect on 1 January 1988.