ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)279
Vol.1978/0104

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)279 final
.Brussels ,23June 1978
Proposal for a
COUNCIL DECISION (EEC )
.V
ontheutilization oftheunexpended balances of
the first and second European development funds
(submitted tothe Council bythe Commission )
C0M(78 )279 final

■:••COMMISSIOFPROPOSAL TOTHECOUNCIL
CONCERNING THETRANSFER'ANDUTILIZATION OFTHISUNEXPENDED BALANCESOFTHE
FIRSTANDSECOND'EDFs ~
I.INTRODUCTION
InitsreportsontheaccountsoftheEuropeanDevelopment Fundsforthe
financialyears19752nd1976,theAuditBoarddrewtheCommission'sattention
totheneedtotransfertheunexpendedbalancestothethirdEDFandtohalt
allnewcommitmentdecisionsunderthe.secondEDF. •
Initsresolution/onthegrantingofadischargetotheCommissioninrespect .
oftheactivitiesoftheEuropeanDevelopment Fundforthefinancialyear
1975,theEuropeanParliamentrequestedtheCommission"tosuspendall
decisionsonfinancingfromthesecondEDF.andtotransfertheunused "balances
tothethirdEDF".
Theserecommendations are"basedonasimilardecisiontaken "bytheCouncil
on30Kay1972forthepurposeoftransferring theunexpendedbalancesof
thefirstEDFtothesecondEDF.,
II.-'THEFIRSTTWOEDFs:POSITIONAT31DECEMBER1977' ''
(a)FirstEDF . \-EUA
Overallappropriation 581250900-
Commitments . .- 570145609
Koniestransferred tothesecondEDF 10669793
.434598
Attheendofthe1977financialyear,therewerestillthreecountries..
(Algeria,.BeninandSenegal)inrespectofwhichtheaccountsforprojects
underthefirstEDFhadyettobeclosed.;• _
ALGERIA:Theaccountsforalltheprojectscould,beclosedsoonifthe
AlgerianGovernmentwere-toactpromptly..TheCommissionwill'-
shortlybetakingfurtherstepstothatend.
BENIN:Theaccountsforfourprojectsarestillopenandcouldbeclosed
duringthefirsthalfof1973.
SETIEOALiOnlyoneprojectisstillbeingimplemented ;theaccountscould ~
•beclosedinJune1978.

nshouldbenotedthatthefundstransferredfromthefirsttothesecond
ELFin1972-(amountingtoSUA10669793)haveallteenused.
FirL-,tLDPfundsnotusedasaresult.ofsavingsortheclosureofaccounts
forprojects(amountingtoEUA434-598at3"!December1977)canbetransferred
tothethirdEDF.
(b)SecondEDF
Overallappropriation
CommitmentsEUA
740.754947.61
734077815.49
Balanceto"betransferred 6.677.132,12
ThisamountcannowbetransferredtothethirdEDF.
III..PROPOSALFORTRANSFER
"Theargumentsinfavouroftransferringtheseunexpendedbalancesarefamiliar
toboth'theCouncilandtheauditauthorities,whichrecommendedsuchtransfer
inthereportsonthefinancialyears1975and1976.
Thisoperationcouldnotbecarriedoutearlier,however,sinceitentailed:
(i)imposingaceilingonprojects "beingimplementedunderthesecond
andthirdEDFs.Thismajorupdatingexercisewascompletedduring
thefirsthalfof1977;
\
(ii)closingtheaccountsforanumberofprojectsunderthesecondEDF
whichwerenearingcompletion,andthepaymentofanyunexpended "
balancesintothereserveaccountsofthesecondEDF.
TheCommissionsetitselfthedeadlineof31December1977(theendofthe
financialyear)forcompletingthisworkandsubsequentlypresentingtothe
CouncilaproposalforthetransferoffundstothethirdEDF.
InordertocomplywiththeobservationsoftheAuditBoard(nowtheCourt
ofAuditors),theresolutionoftheEuropeanParliamentandtherequestby
theCouncil,theCommissionissettingoutinthisproposalthedetails
ofthesolutionadvocated.

1.ByanalogywiththeDecisionof30May1972concerningtransfersfromN
thefirsttothesecondEDF,itisproposedthattheCounciladopta.framevrork
decisionauthorizingtheCommissiontotransfertothethirdEDFthebalances •
ofthefirstandsecondEDFsunexpendedat31December1977andsubsequently
proposetheusestowhichthefundstransferredshouldbeput,in.accordance
withtheproceduresgoverningthegxlministrationofthethirdEDF(EDFCommittee
opinionandCommissiondecision).
2.TheCommissionvri.llkeeptheEDFCommitteeregularlyinformed,bymeans
ofadhoccommunications ,astothenatureandVolumeof,thetransfersmade.:
Eachtransferwillservetoincreasetheresourcesavailabletothethird
EDF,ontheallocationofwhichtheCommitteeissubsequentlyrequiredto
giveitsopinion. < *.-
3.,Theunexpendedbalancesofthefundsreleasedandtransferred tothe
thirdEDFvailremaindefinitively assignedtotherecipientAssociatedState.s.
4.Paralleltothisframeworktransferdecision,theCommissionundertakes
nottofinanceanyfurtherprojectsunderthesecondEDF. '

.COUNCIL DECISION
.OHTHEUTILIZATION OPTHEUNEXPENDED BALANCES 'OPTHEFIRST
AND SECOHD EUROPEAN DEVELOPMENT FUEDS
THECOUNCIL OPTHEEUROPEAN COIIIflJNITTES , ■ ,
Having regard "to "theTreaty establishing theEuropean Economic Community ,
Having regard totheImplementing Convention ontheAssociation ofthe
Overseas Countries andTerritories with theCommunity ,annexed totheTreaty , .
andinparticular Article 5thereof ,
Having regard totheConvention ofAssociation between theEuropean Economic
Community andtheAfrican States andMadagascar associated with theCommunity ,
signed atYaoundd on20July 1963 , . , . , ' ; ■•
Having regard totheCouncil Decision of25February 1964relating tothe
Association ofthe overseas countries andterritories with theEuropean
Economic "Community , ' •
Having regard totheproposal from theCommission , .
VJhereas theImplementing Convention ontheAssociation oftheOverseas ~ -
Countries andTerritories with the Community setuptheDevelopment Fund for
theOverseas Countries and'Territories ,hereinafter called the "first EDF";
VJhereas theInternal Agreement onthefinancing and ,administration of
Community aid , ' ; .signed atYaoundd
on20July 1963/setupaEuropean Development Fund ,hereinafter called the
"second EDP"5
VJhereas theInternal Agreement onthefinancing andadministration ofCommunity
aid ,• J signed atYaounde on
29July 1969 ,setupaEuropean ..Development Fund (1969)1 hereinafter called
the"third EDF"2J ■■
VJhereas theexamination andexecution ofnewprojects under the second EDF
would mean that more time would beneeded toclear theaccounts altogether
andtheCommission would berequired toadminister three separate funds
simultaneously over thenext fewyears : - . '
OJITO93,11.6.1964 ,p.1493/64.
20JHoL282,28.12.1970 ,p.47

-2-
V/hc -i-eassuch asituation would notprovide asuitable "basis foreffective
financial administration ; -
VJhereas theAudit Board inits1975 and1976 reports ontheDevelopment Funds
requested thehalting ofallnewcommitment decisions under thesecond ED?
andthe .transfer oftheunexpended balances actually available tothethird ,
EDF ,ashad "been decided in1972 inthecase ofthefirst EDF ;
V.-hereas initsresolution relating totheobservations accompanying thegranting
ofadischarge ontheimplementation ofthebudget oftheEuropean Communi tiesforthe
financial year 1975 ,theEuropean Parliament requested theCommission "to
suspend alldecisions onfinancing from thesecond EDFandtotransfer
.theunused "balances tothethird EDF' ,
HASDECIDED ASFOLLOWS : . . : .
Article 1
1./jay -unexpended balances recorded inconnection with theimplementation of
projects financed bytheCommunity under thesecond EDFinaState ,Country
orTerritory inreceipt ofitsaidmaybetransferred tothethird EDF .
Thesaid balances shall beallocated totheState ,Country orTerritory in
receipt oftheprojects towhich they relate .
2.Thetransfers shall bedecided onbytheCommission .
3.Theunexpended balances thus transferred shall beused inaccordance
with theprocedures governing theadministration ofthethird EDF .
Article 2
TheCommission shall keep theEuropean Development Fund Committee setupby
Article 13oftheInternal Agreement of29July 1969 regularly informed as
tothenature andvolume ofthetransfers made .
Brussels , FortheCouncil
The President