16. 7. 87 Official Journal of the European Communities No C 186/7 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation amending the Financial Regulation of 21 December 1977 
applicable to the general budget of the European Communities 
(COM(87) 284 final) 
(Submitted by the Commission to the Council on 29 June 1987) 
(87/C 186/09) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Coal and Steel Community, and in particular Article 78f 
thereof, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 209 
thereof, 
Having regard to the Treaty establishing the European 
Atomic Energy Community, and in particular Article 183 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parlia­
ment, 
Having regard to the opinions of the Court of Auditors, 
Whereas Article 107 of the Financial Regulation of 21 
December 1977 ('), as amended by Regulations (ECSC, 
EEC, Euratom) No 1252/79 (2) and 80/1176/EEC, 
Euratom, ECSC ('), provides that the European Parlia­
ment and the Council shall examine the Financial Regu­
lation in the light of a proposal from the Commission; 
Whereas a meeting of the Conciliation Committee 
provided for in the Joint Declaration of 4 June 1975 by 
the European Parliament, the Council and the 
Commission (4) has taken place; 
Whereas provision should be made for an appropriate 
structure to accommodate all staff and administrative 
expenditure relating to the Commission's tasks outside 
the Community in order to enhance budget transparency 
and create the conditions essential for management pro­
cedures to satisfy the specific requirements in this field; 
(') OJNoL356, 31. 12. 1977, p. 1. 
O OJNoL 160, 28.6. 1979. 
(3) OJ No L 345, 20. 12. 1980, p. 23. 
(4) OJNoC 89, 22. 4. 1975, p. 1. Whereas experience has shown the need for a single 
separate section in the budget for expenditure of an 
interinstitutional nature in order to ensure clarity and 
objectivity in the presentation of the appropriations for 
each institution; whereas this is provided for in the last 
paragraph of Article 202 of the EEC Treaty, 
HAS ADOPTED THIS REGULATION: 
Article 1 
The Financial Regulation of 21 December 1977 is hereby 
amended as follows: 
1. The second indent of Article 15 (1) is replaced by 
the following: 
'— separate sections subdivided into statements of 
revenue of the European Parliament, the 
Council, the Commission, the Court of Justice 
and the Court of Auditors, and an interin­
stitutional section. The revenue and expenditure 
of the Economic and Social Committee shall be 
entered in the section dealing with the Council 
and presented in the form of a statement of 
revenue and expenditure, subdivided in the same 
way as the sections of the budget and subject to 
the same rules.' 
2. The following new paragraph 5 is inserted in Article 
15: 
'5. The Commission section shall include an 
Annex containing the statement of revenue and 
expenditure relating to staff serving outside the 
Community, implemented in accordance with Article 
102a. The statement of expenditure in this Annex 
shall comprise a Title 1 (Staff expenditure) and a 
Title 2 (Administrative expenditure), with a 
nomenclature reflecting the specific requirements in 
this field. The total appropriations in each of these 
Titles shall be entered under a separate heading in 
Titles 1 and 2 respectively of the Commission 
section.' 
No C 186/8 Official Journal of the European Communities 16.7.87 
3. The first subparagraph of the existing paragraph 5 of 
Article 15 is renumbered paragraph 6 and replaced 
by the following: 
'6. The statement of revenue and expenditure of 
the Office for Official Publications of the European 
Communities, drawn up in accordance with Article 
103 (2), shall be attached to the interinstitutional 
section.' 
4. The second subparagraph of the existing paragraph 5 
of Article 15 becomes paragraph 7. 
5. The first line of Article 16 (2) is replaced by the 
following: 
'2. in the section for each institution and in the 
interinstitutional section:' 
6. Article 18 (2) is replaced by the following: 
'2. The requisite powers for the implementation of 
the sections of the budget relating to the European 
Parliament, the Council, the Court of Justice and the 
Court of Auditors, and, as appropriate, of the 
interinstitutional section, shall be conferred upon the 
other institutions by the Commission.' 
7. The following paragraph 9 is added to Article 21: 
'9. The following provisions shall apply to the 
interinstitutional section: 
— The European Parliament and the Council may 
transfer appropriations from one chapter to 
another and from one article to another where 
these appropriations relate solely to them. The 
Commission shall be informed of such transfers. 
— The Commission may transfer appropriations 
from one chapter to another and from one article 
to another where these appropriations relate 
solely to itself or where it has sole responsibility 
for managing them on behalf of all the 
institutions. It shall inform the budgetary authority 
two weeks before making such transfers. 
— The Court of Justice and the Court of Auditors 
may transfer appropriations from one chapter to 
another and from one article to another where 
these appropriations relate solely to them. They 
shall inform the budgetary authority and the 
Commission two weeks before making such 
transfers. — Any transfers between appropriations relating 
solely to one institution and appropriations 
relating solely to the other institutions shall, on a 
proposal from the Commission, be submitted to 
the budgetary authority, which shall decide in 
accordance with paragraph 2.' 
8. The following new Title IXa is inserted: 
'TITLE IXa 
Special provisions applicable to the statement of 
revenue and expenditure relating to staff serving 
outside the Community and to their administration 
Article 102a 
The provisions of Titles I to VI and XI shall apply 
to the statement of revenue and expenditure relating 
to staff serving outside the Community insofar as 
they do not conflict with the specific provisions of 
this Title. 
Article 102b 
The expenditure of a financial year shall be entered 
in the accounts for that year on the basis of the 
expenditure for which authorization reaches the 
Financial Controller not later than 31 December and 
in respect of which payment is made before 15 
January. However, expenditure involving payments 
made not later than 31 December under the imprest 
accounts may still be entered in the accounts for that 
year up to 1 March of the following year. 
Article 102c 
Within the Annex containing the statement of 
revenue and the statement of expenditure relating to 
staff serving outside the Community, the 
Commission may transfer appropriations: 
— between the titles relating to staff expenditure 
and administrative expenditure respectively, in 
which case it shall inform the budgetary 
authority two weeks before doing so; 
— from one chapter to another within the titles 
relating to staff expenditure and administrative 
expenditure. 
Article 102d 
In accordance with Article 106 the Commission shall 
adopt implementing rules relating, in particular, to: 
— the award of contracts; 
— the keeping of inventories; 
— the system of accounts; 
— imprest accounts. 
16.7.87 Official Journal of the European Communities No C 186/9 
9. The first subparagraph of Article 103 (2) is replaced 
by the following: 
'The appropriations for the Office, the total amount 
of which shall be entered under a special budget 
heading within the interinstitutional section, shall be 
set out in detail in an Annex to that section. The 
appropriations shown under this specific budget 
heading may be transferred in accordance with the 
conditions set out in Article 21.' 
10. Article 103 (4) is deleted. 
11. Paragraphs 5, 6, 7, 8, 9 and 10 of Article 103 are 
renumebered 4, 5, 6. 7, 8 and 9. 
12. The second subparagraph of the existing paragraph 8 
(renumbered 7) of Article 103 is replaced by the 
following: 
'The accounts shall be financed regularly by 
payments effected by the Commission upon receipt 
of calls for funds from the Office. Such payments 
may not exceed the total amount of the appro­
priations entered for this purpose in the specific 
heading in the interinstitutional section setting out 
the total appropriations for the Office.' 13. The following Article 108a is added: 
'Article 108 a 
During the transitional period when some of the 
appropriations relating to staff serving outside the 
Community are still entered in Chapter 98 of Title 9 
of the budget pending fulfilment of the conditions 
necessary for them to be entered in the new 
statement of revenue and expenditure provided for 
in Article 15 (5), the Commission is authorized, 
notwithstanding Article 21 (2), to make any transfers 
that may be required in the course of the financial 
year between Chapter 98 and that new statement.' 
Article 2 
This Regulation shall enter into force on the day of its 
publication in the Official Journal of the European 
Communities. 
It shall apply for the first time to the drawing up of the 
1988 budget. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.