9.4.84 Official Journal of the European Communities No C 97/1 
II 
(Preparatory Acts) 
COMMISSION 
Amendment of the proposal for a Council Regulation amending the Financial Regulation 
of 21 December 1977 applicable to the general budget of the European Communities (') 
COM(84) 123 fin. 
(Submitted by the Commission to the Council in accordance with the second paragraph of 
Article 149 of the EEC Treaty and the second paragraph of Article 119 of the Euratom 
Treaty on 15 March 1984) 
(84/C 97/01) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the Euro­
pean Coal and Steel Community, and in particular 
Article 78 (h) thereof, 
Having regard to the Treaty establishing the Euro­
pean Economic Community, and in particular 
Article 209 thereof, 
Having regard to the Treaty establishing the Euro­
pean Atomic Energy Community, and in particular 
Article 183 thereof, 
Having regard to the proposals from the Commis­
sion, 
Having regard to the opinion of the European 
Parliament (2), 
Having regard to the opinions of the Court of 
Auditors (3), 
Whereas the conciliation provided for in the Joint 
Declaration of 4 March 1975 of the European Par­
liament, the Council and the Commission (4) took 
place in a Conciliation Committee: 
(•) OJNoC 119,21.5. 1981, p. 1. 
(2) OJ No C 277, 17. 10. 1983, p. 64. 
(') OJ No C 232, 11.9. 1981, p. 1; OJ No C 122, 13.5. 
1982, p. 7. 
(4) OJNoL356, 31. 12. 1977, p. 1. Whereas Article 107 of the Financial Regulation of 
21 December 1977 (5), as amended by Regulation 
(ECSC, EEC, Euratom) No 1252/79 (6) and Finan­
cial Regulation 80/1176/EEC, Euratom, ECSC (7) 
provides for the said Financial Regulation to be 
examined by the European Parliament and the 
Council in the light of a proposal from the Commis­
sion; 
Whereas, in view of the evolution of the general 
budget of the European Communities and of the 
application of the Financial Regulation of 
21 December 1977 since its entry into force, it is 
necessary to adjust many of the provisions of the 
said Financial Regulation; 
Whereas the general budget of the European Com­
munities has increased in size over the years and 
whereas it is now the centre of attention at Com­
munity level; 
Whereas, as far as appropriations falling within the 
present Section III of the budget are concerned, the 
time has come to introduce a more uniform and 
rational presentation, to ensure political transpar­
ency of appropriations and to increase the number 
of headings available; whereas, to this end, the pres­
ent Section III should be reserved for staff and 
administrative appropriations and several sections 
introduced, as required, for operating appropria­
tions, taking into account changes in the contents of 
the budget and future prospects; 
(5) OJ No C 89, 22. 4. 1975, p. 1. 
(*) OJ No L 160, 28. 6. 1979. 
0) OJ No L 345, 20. 12. 1980, p. 23. 
No C 97/2 Official Journal of the European Communities 9. 4. 84 
Whereas the budgetary presentation of the borrow­
ing and lending operations should be improved and 
greater transparency achieved by including esti­
mates and authorizations for these operations in a 
separate part of the budget; whereas the borrowing 
and lending operations involve commitments which 
the Communities must honour; whereas these oper­
ations have accordingly been entered in the general 
budget to give clear expression to the Communities' 
undertaking to use budget funds to meet the obliga­
tions arising from the borrowing contracts if the 
recipients of the loans default or are late with their 
repayments; 
Whereas, in order to cover all the appropriations 
entered in the general budget of the European Com­
munities, the Financial Regulation should be 
extended to include the special provisions required 
for the budgetary management of Community exter­
nal aid; 
Whereas it is necessary to produce a more transpar­
ent presentation of the appropriations for research, 
development and technological innovation and to 
introduce appropriate rules for this presentation; 
Whereas, in the light of experience and in the inter­
ests of greater flexibility in the management of the 
Communities' own resources, any surplus or deficit 
from one financial year should be entered, for the 
purposes of adjustment, in the budget of the next 
but one financial year; 
Whereas, in the light of the experience acquired 
since its entry into force, it is necessary to make 
more detailed or revise certain provisions of the 
Financial Regulation of 21 December 1977, notably 
in respect of the presentation of appropriations in 
the general budget, the arrangements for provisional 
twelfths, transfers and carryovers, and the introduc­
tion of formal deadlines for the clearance procedure 
for the EAGGF, Guarantee Section, and for food 
aid; 
Whereas, in order to improve interinstitutional rela­
tions, the Financial Regulation should include pro­
visions on the procedure for supplementary and 
amending budgets, the establishment of the finan­
cial statement to accompany proposals, the indica­
tive nature of the estimates of the financial cost of 
operations provided for in legal acts, improvements 
to the organization of relations between the institu­
tions and the Court of Auditors and the information 
to be given to the budgetary authority on the utiliza­
tion of advances from the EAGGF Guarantee Sec­
tion; Whereas, in connection with the repayment of Com­
munity aids, the Financial Regulation should con­
tain provisions on the payment of interest and the 
imposition of penalties when these funds have been 
misused; 
Whereas, since the cost of living is rising constantly, 
it has become essential that, for the determination of 
certain amounts in connection with the awarding of 
contracts, reference be made to the measures for the 
implementation of this Regulation, so that these 
amounts can be adjusted by what is, technically 
speaking, a more appropriate legislative procedure, 
HAS ADOPTED THIS FINANCIAL REGULATION: 
Article 1 
The Financial Regulation of 21 December 1977 
applicable to the general budget of the European 
Communities, as amended by Council Regulation 
(ECSC, EEC, Euratom) No 1252/79 of 25 June 1979 
and Council Financial Regulation 80/1176/EEC, 
Euratom, ECSC of 16 December 1980, is amended 
as follows: 
1. Article 1 (1). The second subparagraph is 
replaced by the following: 
'For the purposes of this Financial Regulation, 
the revenue and expenditure of the Communi­
ties shall comprise: 
— the administrative expenditure of the 
European Coal and Steel Community and 
the corresponding revenue, 
— the revenue and expenditure of the Euro­
pean Economic Community, in particular 
loans raised, loans granted and repay­
ments and related costs, 
— the revenue and expenditure of the Euro­
pean Atomic Energy Community which 
may be credited to or charged against the 
budget pursuant to the Euratom Treaty 
and to the measures taken in implementa­
tion thereof, in particular loans granted 
and related costs and repayments of loans 
raised and related costs.' 
2. Article 1. Paragraphs 2, 3, 4 and 5 are replaced 
by the following text: 
'(2) The appropriations entered in the budget 
shall be authorized for the duration of one 
financial year. They shall constitute the upper 
limit of expenditure which may be paid or 
authorized during each financial year. 
9. 4. 84 Official Journal of the European Communities No C 97/3 
Expenditure may not be authorized for a 
period going beyond the financial year. 
(3) Administrative expenditure arising from 
contracts which have been concluded in 
accordance with local usage for periods going 
beyond the financial year and expenditure for 
repayment of loans raised and related costs 
shall be charged to the budget for the financial 
year in which it is effected. 
(4) The implementation of multiannual 
activities may give rise to commitment appro­
priations and payment appropriations. 
Commitment appropriations shall cover, for 
the current financial year, the total cost of the 
legal obligations entered into for activities 
whose implementation extends over more than 
one financial year. 
Payment appropriations shall cover expendi­
ture arising from commitments entered into in 
the current financial year and/or preceding 
financial years. 
(5) The entries intended for multiannual 
activities and consisting of commitment and 
payment appropriations shall be shown in the 
budget as follows: 
— the commitment appropriation authorized 
for the financial year concerned and the 
payment appropriation considered neces­
sary for the same financial year shall be 
entered under the appropriate heading; 
— the estimated annual payment appropria­
tions required for subsequent financial 
years shall be set out against the commit­
ment appropriations in an indicative 
schedule in the remarks column. 
(6) The multinannual activities in respect of 
which a distinction is to be made between 
commitment appropriations and payment 
appropriations shall be determined during the 
budgetary procedure.' 
3. The following new Article 3 is added: 
'(1) Where proposals submitted to the Coun­
cil and Parliament may have budgetary conse­
quences, including significant changes in the 
number of posts, the Commission shall draw 
up a financial statement. 
In the case of multiannual operations, this 
financial statement shall contain the estimated 
schedule of annual requirements of appropria­
tions and posts. (2) Estimates relating to costs or staff 
requirements in legislative acts other than the 
general budget shall be merely indicative.' 
4. Article 3 becomes Article 4. This Article is 
replaced by the following: 
(1) Subject to Article 26, all revenue and 
expenditure shall be entered in full in the 
budget and in the accounts without any adjust­
ment against each other. 
(2) Total revenue shall cover total appropria­
tions; revenue shall not be assigned to a 
specific purpose. 
However, certain revenue shall not be used for 
any other purpose, notably: 
— financial contributions from Member 
States to certain research programmes pur­
suant to Article 4 (6) of the Decision of 
21 April 1970 on own resources; 
— revenue earmarked for a specific purpose, 
such as income from foundations, sub­
sidies, gifts, bequests; 
— contributions to Community activities 
from non-Member States or various 
bodies; 
— revenue from third parties in respect of 
work carried out at their request; 
— the proceeds of loans raised, the repay­
ment of loans granted from these proceeds 
and related costs. 
(3) The total appropriations referred to in 
paragraph 2 shall be the total non-differen­
tiated appropriations and payment appropria­
tions. 
(4) The Commission may accept any dona­
tion made to the Communities, and in partic­
ular foundations, subsidies, gifts and bequests. 
The Commission may accept donations which 
may involve some financial charge only sub­
ject to prior authorization from Parliament and 
the Council, which shall act on the matter 
within two months of the date of receipt of the 
request from the Commission. If no objection 
has been made within this period, the Com­
mission shall take a final decision in respect of 
acceptance.' 
5. Article 4 becomes Article 5. The present text 
becomes paragraph 1 and the following para­
graph 2 is added: 
'(2) No expenditure may be committed or 
authorized in excess of the authorized appro­
priations, without prejudice to Article 26 (2).' 
No C 97/4 Official Journal of the European Communities 9. 4. 84 
6. Article 5 becomes Article 6. The last three para­
graphs are replaced by the following: 
'The readjustment of entries in respect of value 
added tax own resources or, if appropriate, of 
financial contributions, which under the third 
subparagraph of Article 10 (3) of the Regula­
tion is carried out following the final adoption 
of a supplementary or amending budget, shall 
be entered in the accounts for the financial 
year of the supplementary or amending budget 
in question. 
The allotted appropriations shall be used 
solely to cover expenditure properly entered 
into and paid in the financial year for which 
they were granted, save as otherwise provided 
in Articles 7, 93 and 101, and to cover the 
debts relating to preceding financial years for 
which no appropriation was carried forward. 
The commitments shall be entered in the 
accounts on the basis of the commitments con­
tracted up to 31 December. 
The expenditure of a financial year shall be 
entered in the accounts for that year on the 
basis of the expenditure for which authoriza­
tion reached the financial controller not later 
than 31 December and the accounting officer 
not later than the following 10 January, and 
for which payment was effected by the 
accounting officer not later than 15 January. 
By way of derogation from the two preceding 
subparagraphs, the expenditure of the 
EAGGF, Guarantee Section, and expenditure 
on food aid shall be taken into account for a 
financial year in accordance with the rules laid 
down in Articles 100 and 118.' 
7. Article 6 becomes Article 7. This Article is 
replaced by the following: 
'The following rules shall govern the utiliza­
tion of appropriations: 
1. In the case of budget headings where there 
is no distinction between commitment 
appropriations and payment appropria­
tions: 
(a) appropriations relating to remunera­
tions and allowances of members and 
staff of the institutions may not be 
carried over; 
(b) a decision may be taken to carry over 
to the next financial year only the por­
tion of the other appropriations still 
uncommitted at the close of the finan­
cial year; (c) appropriations in respect of payments 
still outstanding by virtue of commit­
ments duly entered into before the 
close of the financial year shall be car­
ried over automatically to the next 
financial year only. 
2. In the case of budget headings where a 
distinction is made between commitment 
appropriations and payment appropria­
tions: 
(a) commitment appropriations not com­
mitted at the end of the financial year 
for which they were entered in the 
budget shall remain in existence for 
the following financial year without 
prejudice to the provisions of Article 
92(4); 
(b) payment appropriations which have 
not been used at the end of the finan­
cial year for which they were entered 
shall be carried over automatically to 
the next financial year only. 
3. In the case of appropriations which were 
entered in the budget chapter containing 
"provisional appropriations" and which 
remain available at the close of the finan­
cial year: 
(a) appropriations in respect of staff and 
administrative expenditure (Titles 1 
and 2) may not be carried over; 
(b) appropriations in respect of other 
expenditure may be carried over to the 
next financial year only. 
4. In the case of appropriations on which a 
decision to carry over may be taken, the 
Commission shall submit to the budgetary 
authority, not later than 31 March, the 
duly substantiated requests to carry over 
appropriations made by Parliament, the 
Council, the Court of Justice, the Court of 
Auditors and by the Commission itself. 
The Council shall consult Parliament and, 
acting by qualified majority, shall decide 
on the requests to carry over appropria­
tions in respect of expenditure necessarily 
resulting from the Treaties or acts adopted 
in accordance therewith. 
Parliament shall consult the Council and 
act on the requests to carry over appropria­
tions in respect of expenditure other than 
that necessarily resulting from the Treaties 
or acts adopted in accordance therewith. 
If no decision is taken by the budgetary 
authority within six weeks, the requests to 
9. 4. 84 Official Journal of the European Communities No C 97/5 
carry over appropriations shall be deemed 
to have been approved. 
5. Unused revenue and appropriations avail­
able at 31 December arising from the spe­
cific revenue referred to in Article 4 (2) 
shall be carried over automatically. 
Commitments entered in Part II of the 
budget shall be carried over to the next 
financial year automatically where the 
operations authorized have not been 
effected by the end of the financial year. 
6. The following appropriations shall lapse 
at the end of the year: 
(a) appropriations from the previous 
financial year: 
— commitment appropriations re­
maining in existence which have 
not been committed, subject to the 
provisions of Article 92 (4); 
— appropriations carried over auto­
matically which have not been 
paid; 
— appropriations carried over by 
decision of the budgetary auth­
ority which have been neither 
committed nor paid; 
(b) appropriations of the financial year 
which have not been carried over. 
7. The appropriations for the Guidance Sec­
tion of the European Agricultural Guid­
ance and Guarantee Fund and for the 
European Regional Development Fund 
may be used by way of exception to 
finance projects for which they were not 
initially committed, under the conditions 
laid down in Regulations (EEC) No 
3171/75 0), (EEC) No 355/77 (2) and 
(EEC) No 214/79(3). 
8. Parliament and the Council shall be prov­
ided, for their information, before 31 May, 
with a list of the commitment appropria­
tions remaining in existence, the auto­
matic carryovers and the appropriations 
carried over by decision of the budgetary 
authority. 
9. For the purpose of implementing the 
budget, the utilization of appropriations 
carried over shall be shown separately, by 
(') OJNoL315,5. 12. 1975, p. t. 
O OJ No L 51, 23. 2. 1977, p. 1. 
(3) OJ No L 35, 9. 2. 1979, p. 1. article, in the accounts for the current 
financial year.' 
8. Article 7 becomes Article 8. The first and 
second subparagraphs become paragraphs 1 
and 2. The third subparagraph is replaced by 
the following: 
'(3) Expenditure relating to rents or certain 
associated expenditure which is payable in 
advance in accordance with provisions laid 
down by law or contract may give rise to pay­
ments from 20 December onwards to be 
charged to the appropriations for the next 
financial year. 
(4) Advances, in respect of the following 
financial year, within the meaning of Articles 
98 and 118 to finance the expenditure of the 
Guarantee Section of the European Agricul­
tural Guidance and Guarantee Fund and 
expenditure on food aid may be paid from 10 
December onwards if the budget for the fol­
lowing financial year has been adopted at that 
date. Otherwise advances may not be paid 
until after final adoption of the budget, with­
out prejudice to the procedures laid down in 
Article 9. The funds thus paid shall be used 
having regard to the rules laid down in Articles 
98 and 118. 
(5) The loans authorized in Part II of the 
budget may be granted only against the pro­
ceeds of the borrowing operations.' 
9. Article 8 becomes Article 9. This Article is 
replaced by the following: 
'(1) If the budget is not finally adopted at the 
beginning of the financial year, Article 78b of 
the ECSC Treaty, Article 204 of the EEC 
Treaty and Article 178 of the Euratom Treaty 
shall apply to commitment and payment of 
expenditure already approved in principle in 
the last budget duly adopted. 
An item of expenditure shall be considered as 
having been approved in principle in the last 
budget duly adopted if it could have been 
charged to a specific budget heading under the 
financial year concerned. 
(2) (a) Commitments may be entered into in 
respect of any chapter: 
— for up to one-quarter of the total 
appropriations entered in the rel­
evant chapter for the preceding 
financial year, account being 
taken of all transfers, plus one-
twelfth for each completed month, 
— without exceeding the appropria­
tions provided for in the draft 
No C 97/6 Official Journal of the European Communities 9. 4. 84 
budget or, in the absence thereof, 
in the preliminary draft budget. 
The global provisional commitments 
of the EAGGF, Guarantee Section, 
referred to in Article 98 shall be 
treated as commitments for the pur­
poses of these provisions. 
(b) Payments may be made monthly in 
respect of any chapter: 
— up to one-twelfth of the total 
appropriations entered in the 
chapter concerned for the preced­
ing financial year, account being 
taken of all transfers, 
— as long as this measure does not 
have the effect of placing at the 
disposal of the Commission, for 
any month, appropriations in 
excess of one-twelfth of those 
provided for in the draft budget 
or, in the absence thereof, in the 
preliminary draft budget. 
(3) The draft budget referred to in paragraphs 
2 (a) and 2 (b) above shall be the draft in the 
form in which it stands at the start of the 
financial year when the provisional twelfth 
arrangements began to be applied. 
(4) Where the absence of a budget is due to 
the rejection of the draft budget, by Parliament 
as provided for by Article 78 (8) of the ECSC 
Treaty, Article 203 (8) of the EEC Treaty and 
Article 117 (8) of the Euratom Treaty, the 
appropriations referred to in the second indent 
of paragraph 2 (a) and in the second indent of 
paragraph 2 (b) shall be those entered in the 
rejected draft budget or, where appropriate, in 
the new draft budget drawn up, following the 
rejection decision, before the start of the finan­
cial year. 
(5) If the continuity of Community activities 
and administrative needs so require: 
(a) for compulsory expenditure, the Council, 
acting by a qualified majority, may, at the 
request of the Commission and after con­
sulting Parliament, authorize simulta­
neously two or more provisional twelfths 
for both commitments and payments in 
addition to those automatically made 
available under paragraph 2 (a) and 2 (b); (b) for non-compulsory expenditure, the 
second subparagraph of Article 78 (b) (2) 
of the ECSC Treaty, the third paragraph of 
Article 204 of the EEC Treaty and the 
third paragraph of Article 178 of the 
EAEC Treaty shall apply. 
The additional twelfths shall be authorized in 
whole and may not be split. 
Where this procedure is to be applied, the 
annual amount authorized for each chapter as 
twelfths may not exceed the amount in the 
chapter of the budget for the previous year, 
account being taken of transfers, or the 
amount in the chapter of the draft budget or, 
in the absence thereof, the preliminary draft 
budget. 
(6) If, for a given chapter, the expenditure 
required to prevent any interruption of Com­
munity action in the sector concerned cannot 
be met by application of the procedures 
referred to in paragraphs 2 to 5, appropriations 
available under the twelfths arrangements 
may, on a proposal from the Commission, be 
transferred between chapters. 
Decisions on the proposal for transfer shall be 
taken in accordance with the procedure laid 
down in Article 78b (2) of the ECSC Treaty, 
Article 204 of the EEC Treaty and the third 
paragraph of Article 178 of the Euratom 
Treaty. 
If, however, in the case of transfers involving 
both expenditure necessarily resulting from the 
Treaties or from acts adopted in accordance 
therewith and other expenditure, the Council 
and Parliament disagree on the amount to be 
transferred, the smaller of the amounts 
accepted by one of the two institutions shall be 
deemed to have been approved. Where one of 
the institutions rejects the principle of the 
transfer, such transfer shall not be made. 
(7) The decisions referred to in the preceding 
paragraphs shall specify the requisite measures 
in respect of resources for the purposes of this 
Article. 
(8) The budgetary authority shall seek to 
limit the period for which the system of provi­
sional twelfths is applied.' 
10. Article 9 becomes Article 10. The following 
second subparagraph is added: 
'Publication shall, under normal circum­
stances, take place within one month of the 
final adoption of the budget.' 
9.4.84 Official Journal of the European Communities No C 97/7 
11. Article 10 becomes Article 11. The second sub­
paragraph of paragraph 1 becomes paragraph 
2, paragraph 2 becomes paragraph 3, para­
graph 3 becomes paragraph 4 and is replaced 
by the following: 
'(4) Any conversion between the ECU and a 
national currency shall be effected in accord­
ance with the special provisions referred to in 
Article 123.' 
12. Title II. The heading is replaced by the follow­
ing: 
TITLE II 
ESTABLISHMENT AND STRUCTURE 
OF THE BUDGET' 
13. Section 1. The heading is replaced by the fol­
lowing: 
'SECTION 1 
ESTABLISHMENT OF THE BUDGET 
14. Article 11 becomes Article 12. The second para­
graph is replaced by the following: 
'The Economic and Social Committee shall, 
for 1 June, forward to the Council an estimate 
of its revenue and expenditure for the follow­
ing year.' 
15. Article 12 becomes Article 13. This Article is 
replaced by the following: 
'(1) The Commission shall, in the prelimi­
nary draft budget which it shall place before 
the Council not later than 1 September of each 
year: 
— draw up a general statement of revenue of 
the Communities, and consolidate the esti­
mates referred to in Article 12; 
— draw up the second part of the budget 
containing the borrowing and lending 
operations. 
It shall at the same time forward the prelimi­
nary draft budget to Parliament. 
(2) The Commission shall prepare a general 
introduction to the preliminary draft budget. 
This introduction shall contain in particular: 
(a) financial tables covering the entire budget; 
and (b) as regards the Commission sections: 
— a definition of the policies justifying 
the requests for appropriations, 
— an explanation of the changes in 
appropriations from one financial year 
to the next, 
— a detailed statement on borrowing and 
lending policy. 
(3) Each of the sections of the preliminary 
draft budget shall be preceded by an introduc­
tion prepared by the institution concerned. 
The Commission shall prepare a single intro­
duction to its sections. 
(4) The preliminary draft budget shall be 
accompanied by working documents contain­
ing the following information: 
(a) in respect of staff: 
— for each category of staff, a detailed 
list of budgetary posts and numbers of 
persons in post on the date of the sub­
mission of the preliminary draft 
budget, indicating their distribution by 
grade and administrative unit (or prin­
cipal operational unit for the esta­
blishments of the Joint Research 
Centre), 
— where a change in the number of per­
sons in post is proposed and in partic­
ular the creation of new posts, a state­
ment justifying such changes; 
(b) in respect of subsidies to the bodies set up 
pursuant to the Treaties or acts adopted in 
accordance therewith, and having legal 
personality, an estimate of revenue and 
expenditure prefaced by an explanatory 
statement drawn up by the bodies con­
cerned. 
5. The Commission shall also attach to the 
preliminary draft budget: 
— an analysis of the financial management 
for the preceding financial year, as pro­
vided for in Article 80, and a balance sheet 
of assets and liabilities of the Communi­
ties as at 31 December of the preceding 
financial year, as provided for in 
Article 81, and 
— an opinion on the estimates of the other 
institutions; this opinion may contain dif­
ferent estimates, accompanied by the 
reasons therefor.' 
16. The following new Article 14 is added: 
'1. The Commission may, on its own initia­
tive or if requested by Parliament, the Council, 
No C 97/8 Official Journal of the European Communities 9. 4. 84 
the Court of Justice or the Court of Auditors, 
present to the Council a letter of amendment 
to the preliminary draft budget necessitated by 
the receipt of new information which was not 
available at the time the preliminary draft was 
established. 
However, save in very exceptional circum­
stances, the Commission must send such letter 
of amendment to the Council at least 30 days 
before the first reading of the draft budget by 
Parliament, and the Council must send a letter 
of amendment to the draft budget to Parlia­
ment at least 15 days before the said first read­
ing. 
2. If circumstances arise which it could not 
have taken into account when establishing the 
draft budget, the Council may, if necessary, 
send to Parliament a letter of amendment to 
the said draft under the conditions laid down 
in the second subparagraph of paragraph 1.' 
17. The following new Article 15 is added: 
'(I) In the event of unavoidable, exceptional 
or unforeseen circumstances, the Commission 
may submit preliminary draft supplementary 
and/or amending budgets. Also, particularly 
to enable policies to be adapted, the Commis­
sion may submit preliminary draft amending 
budgets which do not alter the total amount of 
the annual budget and to which the corre­
sponding necessary draft Regulations would 
be attached. 
Preliminary draft supplementary budget means 
any proposal which would alter the total 
amount of appropriations and hence of 
revenue or which would give rise to one or 
more new operations without, however, 
increasing the total amount of appropriations. 
Preliminary draft amending budget means any 
proposal which would not change or would 
reduce total appropriations or revenue and 
which involves internal financial or technical 
changes to the budget. 
(2) Preliminary draft supplementary and/or 
amending budgets shall be subject to the pro­
visions of Article 78 of the ECSC Treaty, 
Article 203 of the EEC Treaty and Article 177 
of the Euratom Treaty. 
They shall be submitted, examined, estab­
lished and finally adopted in the same form 
and according to the same procedure as the 
budget whose estimates they are amending. 
They must be substantiated by reference to the 
latter. (3) All preliminary draft supplementary 
and/or amending budgets must, as a general 
rule, be forwarded to the Council by the date 
laid down for the submission of the prelimi­
nary draft budget for the following financial 
year. 
The competent authorities shall discuss them 
in the light of their urgency. 
(4) Requests for supplementary and/or 
amending budgets from Parliament, the Coun­
cil, the Court of Justice or the Court of Audi­
tors shall be forwarded by the Commission to 
the budgetary authority. The Commission may 
attach a dissenting opinion. 
(5) Where the Commission proposes a preli­
minary draft supplementary and/or amending 
budget, the Council must present a draft sup­
plementary and/or amending budget. 
(6) Preliminary draft and draft supplemen­
tary and/or amending budgets shall be accom­
panied by justifications and information avail­
able on the implementation of the current 
budget at the time of their establishment. 
(7) Preliminary draft supplementary and/or 
amending budgets shall take into account the 
transfers approved up to the time of their 
establishment.' 
18. A rticle 13 becom es A rticle 16. 
19. Article 14 becomes Article 17. This Article is 
replaced by the following: 
'(1) The budget shall be adopted in accord­
ance with Article 78 of the ECSC Treaty, 
Article 203 of the EEC Treaty and Article 177 
of the Euratom Treaty. 
This decision shall have the effect of determin­
ing the rate of VAT allocated to the Com­
munity budget, calculated from an estimate of 
the base. 
(2) The final adoption of the budget shall, 
from 1 January of the following financial year 
or from the date of the adoption if it is later 
than 1 January, bind immediately each Mem­
ber State to make over to the Commission the 
payments due as specified in the texts in 
force.' 
20. The following new Article 18 is inserted: 
'The Commission and the budgetary authority 
may agree to bring forward certain dates for 
9. 4. 84 Official Journal of the European Communities No C 97/9 
the adoption and forwarding of the prelimi­
nary draft and draft budgets. This agreement 
may not, however, have the effect of reducing 
or delaying the periods allowed for considera­
tion of these texts under Article 78 of the 
ECSC Treaty, Article 203 of the EEC Treaty 
and Article 177 of the Euratom Treaty.' 
21. Section II. The heading is replaced by the 
following: 
'SECTION II 
STRUCTURE AND PRESENTATION OF THE 
BUDGET' 
22. Article 15 becomes Article 19: 
(a) Paragraph 1 is replaced by the following: 
'(1) The budget shall consist of two 
parts: 
Part One shall contain: 
— a general statement of the revenue of 
the Communities, 
— separate sections subdivided into 
statements of revenue and expenditure 
of Parliament, the Council, the Com­
mission, the Court of Justice and the 
Court of Auditors. The Commission 
shall have one section for staff and 
administrative appropriations, and 
several sections, as required, for oper­
ating appropriations. 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 state­
ment of revenue and expenditure, sub­
divided in the same way as the sec­
tions of the budget and subject to the 
same rules. 
Part Two shall contain: 
— borrowing and lending operations.' 
(b) In the final line of paragraph 4 'Article 21' 
is replaced by 'Article 25'. 
(c) Paragraph 5 is replaced by the following: 
'(5) A statement of revenue and expendi­
ture in respect of the Office for Official 
Publications of the European Communi­
ties, established in accordance with 
Article 120 (2) shall be attached to the 
Commission section relating to staff and 
administrative appropriations.' 
23. Article 16 becomes Article 20. This Article is 
replaced by the following: 
'The budget shall show: 1. In the general statement of revenue: 
— the rate of value added tax (VAT) and 
the estimated base from which it is 
derived, and the estimated revenue of 
the Communities for the financial year 
in question, divided into titles, chap­
ters, articles and items. 
— the revenue for the preceding financial 
year, divided into titles, chapters, 
articles and items, 
— appropriate remarks on each subdivi­
sion. 
2. In the Commission sections and the sec­
tion for each of the other institutions : 
(a) as regards the statement of revenue: 
— the estimated revenue for each 
institution for the financial year in 
question, divided into titles, chap­
ters, articles and items, following 
a decimal classification system, 
— the revenue entered in the budget 
for the preceding financial year 
and the revenue established for 
the last financial year for which 
accounts have been closed, using 
the same decimal classification, 
— appropriate remarks on each 
revenue heading; 
(b) as regards the statement of expendi­
ture: 
(ba) in the case of the various items, 
articles, chapters and titles: 
— the appropriations made 
available for the financial 
year in question, these appro­
priations being the commit­
ment appropriations and the 
payment appropriations for 
the budget headings for 
which this distinction has 
been agreed, 
— the appropriations made 
available for the preceding 
financial year, 
— the actual expenditure in the 
last financial year for which 
the accounts have been 
closed, determined as fol­
lows: 
— for the budget headings 
where the distinction 
between commitment 
appropriations and pay-
No C 97/10 Official Journal of the European Communities 9. 4. 84 
ment appropriations has 
not been made: 
— actual payments in 
the last financial year 
for which the 
accounts have been 
closed plus the carry­
overs to the next 
financial year; 
— for the headings where 
the distinction between 
commitment appropria­
tions and payment 
appropriations has been 
made: 
— in commitments: 
commitments entered 
into during the finan­
cial year against 
appropriations for 
that financial year 
and against appro­
priations remaining 
from the preceding 
financial year; 
— in payments: pay­
ments effected during 
the financial year 
against appropria­
tions for the financial 
year and against 
appropriations carried 
over from the preced­
ing financial year; 
(bb) in the case of the appropriations 
intended for the implementation 
of multiannual activities and 
consisting of commitment appro­
priations and payment appropria­
tions: in the remarks column, an 
indicative schedule of the pay­
ments relating to the financial 
year concerned and subsequent 
financial years; 
(be) appropriate remarks on each sub­
division. These remarks shall 
include: 
— basic legal instrument, where 
one exists, 
— all such explanations as may 
be necessary concerning the 
nature and purpose of the 
appropriations. 
3. As regards total staff: 
— for each section of the budget, a list of 
posts fixing the number of permanent and temporary posts for each grade in 
each category and in each service 
authorized within the limits of the 
budget appropriations. 
The staff of the Supply Agency and 
the European Agency for Cooperation 
shall be shown separately in the Com­
mission's list of posts; 
— a list of posts paid from the research 
and development and technological 
innovation appropriations, classified 
by category and grade and distinguish­
ing between permanent and non-
permanent staff, authorized within the 
limits of the budget appropriations. 
As regards scientific and technical 
staff, the classification may be based 
on groups of grades, in accordance 
with the conditions laid down in each 
budget. The list of posts must specify 
the number of highly qualified tech­
nical or scientific personnel who are 
accorded special advantages under the 
Staff Regulations applicable to these 
officials, 
— a list of posts fixing the number of 
posts for each grade in each category 
in: 
— the Office for Official Publica­
tions, 
— the European Centre for the 
Development of Vocational 
Training, 
— the European Foundation for the 
Improvement of Living and 
Working Conditions. 
The list of posts shall show next to the 
number of posts authorized for the finan­
cial year the number authorized for the 
preceding year. 
The list of posts shall constitute an abso­
lute limit for each institution; no appoint­
ment may be made in excess of the limit 
set. 
In cases of half-time work authorized by 
the appointing authority in accordance 
with Article 55a of the Staff Regulations of 
officials of the European Communities, a 
post in a given grade may serve for the 
assignment of two officials of the same 
grade or of a lower grade. Such assignment 
shall automatically terminate when the 
authorization expires. 
9. 4. 84 Official Journal of the European Communities No C 97/11 
5. As regards borrowing and lending opera­
tions: 
in Part Two, two titles divided into chap­
ters, articles and items, accompanied by 
appropriate remarks. 
These remarks shall, in particular, contain 
an undertaking that the Communities will 
use their funds to meet the obligations 
arising from borrowing contracts if the 
recipients of loans default or are late with 
their repayments. 
Title One shall contain: 
— authorizations for loans to be raised in 
the financial year concerned; 
— estimates of capital repayments and 
interest payments to be made to the 
Community by recipients of loans 
granted; 
— estimates of the contributions by reci­
pients towards the costs of borrowing 
and lending operations; 
— the revenue entered in the budget for 
the preceding financial year and the 
revenue established for the last finan­
cial year for which the accounts have 
been closed, broken down in the same 
way. 
Title Two shall contain: 
— authorizations for loans to be granted 
in the financial year concerned; 
— appropriations for capital repayments 
and interest payments on loans raised; 
— appropriations to cover the costs of 
borrowing and lending operations; 
— appropriations entered in the budget 
for the preceding financial year and 
the actual expenditure in the last 
financial year for which the accounts 
have been closed, broken down in the 
same way.' 
24. Article 17 becomes Article 21. 
25. Article 18 becomes Article 22. Paragraph 3 is 
replaced by the following: 
'(3) With the exception of decisions overrul­
ing the Financial Controller provided for in 
Articles 26, 28, 39, 49 and 52, the Commission 
and each of the other institutions may delegate 
their powers in accordance with the conditions 
laid down by their internal rules of procedure 
and within the limits which they themselves 
lay down in the act of delegation. 
Those so empowered may act only within the 
limits of the powers expressly conferred upon 
them. The acts of delegation shall be communicated 
to all the parties concerned in accordance with 
the implementing measures provided for in 
Article 123.' 
26. Article 19 becomes Article 23. This Article is 
replaced by the following: 
Each institution shall appoint a financial con­
troller. 
He shall be responsible for monitoring: 
— the commitment and authorization of all 
expenditure, 
— the establishment and collection of all 
revenue. 
The financial controller shall be consulted on 
all accounting systems applied by the institu­
tion to which he is attached. He shall have 
access to the information contained in these 
accounts. 
Monitoring shall be carried out by that official 
by means of inspection of the files relating to 
expenditure and revenue and, if necessary, on 
the spot. 
The financial controller may be assisted in his 
duties by one or more assistant financial con­
trollers. 
The special rules applicable to such officials, 
which shall be laid down in the implementing 
measures provided for in Article 123, shall be 
such as to guarantee that they are independent 
in the performance of their duties. Their 
appointment, their promotion, and discipli­
nary measures or transfer, and any interruption 
or termination of appointment by whatever 
procedure shall be the subject of reasoned 
decisions to be forwarded, for information, to 
Parliament, the Council and the Court of 
Auditors, 
The persons concerned and the institutions to 
which they belong may institute proceedings 
before the Court of Justice. 
27. Article 20 becomes Article 24. This Article is 
replaced by the following: 
'In each institution, the collection of revenue 
and the payment of expenditure shall be car­
ried out by an accounting officer. 
This accounting officer shall be appointed by 
the institution. 
Without prejudice to the system provided for 
in Articles 4 and 5 of Regulation (EEC) 
No 729/70 on the financing of the common 
agricultural policy, and subject to the second 
paragraph of Article 53 on payments proce­
dures, to Article 54 on imprests and to 
Article 110 on the financing of external aid of 
the Financial Regulation, the accounting offi-
No C 97/12 Official Journal of the European Communities 9. 4. 84 
cer alone is empowered to manage monies and 
other assets. He shall be responsible for their 
safekeeping. 
The accounting officer shall be responsible for 
preparing the financial statements provided 
for in Articles 78, 79, 80 and 81 of this Regula­
tion. 
He may be assisted in his duties by one or 
more assistant accounting officers, appointed 
under the same conditions as the accounting 
officer. 
The special rules applicable to the accounting 
officer and to assistant accounting officers 
shall be laid down in the implementing 
measures provided for in Article 123.' 
28. Article 21 becomes Article 25. This Article is 
replaced by the following: 
'(1) Appropriations shall be earmarked for 
specific purposes by chapter, article and item. 
(2) Parliament, the Council, the Court of Jus­
tice and the Court of Auditors may transfer 
appropriations from one chapter to another, 
from one article to another and from one item 
to another within their own sections of the 
budget. 
The Court of Justice and the Court of Auditors 
shall inform the budgetary authority and the 
Commission three weeks before making such 
transfers. 
(3) The Commission may, within its own sec­
tions of the budget: 
(a) transfer appropriations from one item to 
another and from one article to another 
within each chapter; 
(b) transfer appropriations from one chapter 
to another within each of the titles relating 
to staff expenditure and administrative 
expenditure. It shall inform the budgetary 
authority three weeks before making such 
transfers; 
(c) transfer payments appropriations from one 
chapter to another; 
(d) transfer appropriations entered in the 
chapter of the budget containing the provi­
sional appropriations to the budget head­
ing for which they were initially earmarked 
provided that the suspensive condition 
that originally gave rise to entry of the 
appropriations in this special chapter has 
been satisfied. It shall inform the budget­
ary authority three weeks before making 
such transfers. 
(4) The budgetary authority may enter in the 
budget one or more lists of chapters between 
which the Commission may make transfers from one chapter to another during the year 
after informing the budgetary authority three 
weeks in advance. 
(5) Without prejudice to the transfers which 
it may make on its own authority in accord­
ance with paragraph 3 above, the Commission 
may make proposals to the budgetary auth­
ority for transfers from one chapter to another. 
(6) The budgetary authority shall take deci­
sions on transfers of appropriations as follows: 
(a) in the case of proposals for transfers relat­
ing to expenditure necessarily resulting 
from the Treaties or from acts adopted in 
accordance therewith, the Council shall, 
after consulting Parliament, act by a quali­
fied majority within six weeks, except in 
urgent cases. Parliament shall deliver its 
opinion within such time as will permit the 
Council to be apprised of it and to act 
within the time limit indicated. Where the 
Council does not act within this time limit, 
the proposals for transfers shall be deemed 
to be approved; 
(b) in the case of proposals for transfers relat­
ing to expenditure other than that neces­
sarily resulting from the Treaties or from 
acts adopted in accordance therewith, Par­
liament shall, after consulting the Council, 
act within six weeks, except in urgent 
cases. The Council shall deliver its opin­
ion within such a time as will permit Par­
liament to be apprised of it and to act 
within the time limit indicated. Where Par­
liament does not act within this time limit, 
the proposals for transfers shall be deemed 
to be approved; 
(c) proposals for transfers relating both to 
expenditure necessarily resulting from the 
Treaties or from acts adopted in accord­
ance therewith, and to other expenditure 
shall be deemed to be approved if neither 
the Council nor Parliament has decided 
otherwise within six weeks of the date on 
which the two institutions received the 
proposals; 
(d) if, in the case of the proposals for transfers 
referred to in the preceding subparagraph, 
Parliament and the Council reduce the 
proposal for a transfer by different 
amounts, whichever is the smaller of the 
amounts accepted by one of the two insti­
tutions shall be deemed to be approved. 
Where only one of the institutions rejects 
the principle of the transfer, such transfer 
shall not be made. 
(7) For the purposes of this Article the Com­
mission sections shall be treated as a single 
section. 
9.4.84 Official Journal of the European Communities No C 97/13 
(8) The appropriations which may be trans­
ferred shall be as follows: 
— non-differentiated appropriations for the 
current financial year and non-differen­
tiated appropriations carried over, 
— commitment appropriations for the current 
financial year and commitment appropria­
tions remaining from the preceding finan­
cial year, 
— payment appropriations for the current 
financial year and payment appropriations 
carried over. 
(9) Appropriations may also be transferred, 
by decision of the budgetary authority, 
between headings where a distinction is made 
between commitment appropriations and pay­
ment appropriations and headings where no 
such distinction is made. 
(10) Every proposal for a transfer within a 
chapter or from one chapter to another shall be 
subject to the approval of the financial con­
troller, who shall certify that the appropria­
tions are available. 
(11) Appropriations may be transferred only 
to budget headings for which the budget has 
authorized appropriations or carried a token 
entry. 
(12) This Article shall apply to the appropria­
tions corresponding to revenue earmarked for 
a specific purpose under Article 4 (2) only as 
long as the revenue is not used for any other 
purpose. 
(13) Transfers within the titles of the budget 
devoted to the EAGGF, Guarantee Section, 
appropriations shall be the subject of special 
provisions under Article 103 of this Regula­
tion. 
(14) No transfer shall be made between 
Parts I and II of the budget.' 
29. Article 22 becomes Article 26: 
(a) The words introducing the items in para­
graph 1 are replaced by the following: 
' 1. By way of derogation from Article 4, 
the following deductions may be made 
from all bills, invoices or statements, 
which shall then be passed for payment of 
the net amount:' 
(b) The words introducing the items in para­
graph 2 are replaced by the following: 
'2. By way of derogation from Articles 4 
and 5, the following sums may be re-used 
under the heading to which the initial 
expenditure was charged:' (c) Subparagraph (g) of paragraph 2 is 
replaced by the following; 
'(g) proceeds from the sale of vehicles, 
equipment and installations and scientific 
and technical apparatus, equipment and 
materials which are being replaced or 
scrapped.' 
(d) Paragraphs 3 and 4 are replaced by the 
following: 
'(3) By way of derogation from Article 4, 
repayments made by third parties may be 
deducted from expenditure in cases where 
the institution has effected a payment for 
which it is legally liable to the creditors 
but where all or part thereof has been paid 
on behalf of those third parties. 
(4) By way of derogation from Article 4, 
adjustments may be made in respect of 
exchange differences occurring in budget 
operations. The final gain or loss shall be 
entered in the balance for the year.' 
(e) The following new paragraph 6 is added: 
'(6) Where recipients of Community aid 
repay advances to the general budget, such 
amounts shall be re-entered under the 
budget heading to which the original 
expenditure was charged.' 
30. Article 23 becomes Article 27: 
(a) Paragraph 1 is replaced by the following: 
'(1) All measures which may give rise to 
or modify a debt due to the Communities 
must be preceded by a proposal from the 
competent authorizing officer. Such pro­
posals shall be forwarded to the financial 
controller of the institution for his 
approval and to the accounting officer for 
provisional registration. They shall men­
tion, in particular, the type of revenue, the 
estimated amount thereof, the budget 
heading to which it is to be booked and 
the name and description of the debtor. 
The purpose of the approval of the finan­
cial controller shall be to establish that: 
(a) the revenue is booked to the correct 
budget item; 
(b) the proposal is in order and conforms 
to the relevant provisions, in particular 
of the budget and of the regulations 
and also of all acts made in imple­
mentation of the Treaties and of the 
No C 97/14 Official Journal of the European Communities 9. 4. 84 
regulations, and to the principles of 
sound financial management. 
Forward proposals may be made in 
respect of certain items of current 
revenue in accordance with the imple­
menting measures provided for in 
Article 123. 
The financial controller may withhold 
his approval if he considers that the 
conditions laid down in para­
graph 1 (a) and (b) above are not met. 
The superior authority of the institu­
tion may, by a decision stating the full 
reasons therefor and on its sole re­
sponsibility, overrule this refusal. This 
decision shall be enforceable; it shall 
be communicated for information to 
the financial controller. The superior 
authority of each institution shall 
inform the Court of Auditors of all 
such decisions within one month.' 
(b) In the last line of the first subparagraph of 
paragraph 2 'Article 106' is replaced by 
'Article 123'. 
31. A rticle 24 becomes A rticle 28 : 
(a) The third subparagraph of paragraph 1 is 
replaced by the following: 
'The accounting officer shall inform the 
authorizing officer and the financial con­
troller of any revenue not recovered within 
the time limits laid down. If necessary, he 
shall initiate the recovery procedure.' 
(b) The third subparagraph of paragraph 2 is 
replaced by the following: 
'If approval is withheld, the superior auth­
ority of the institution may, by a decision 
stating the full reasons therefor, and on its 
sole responsibility, overrule this refusal. 
This decision shall be final and binding; it 
shall be communicated for information to 
the financial controller. The superior auth­
ority of each institution shall inform the 
Court of Auditors of all such decisions 
within on month.' 
(c) In paragraph 4 'Article 106' is replaced by 
'Article 123'. shall be entered in the budget, expressed in 
ECU. They shall be made available in accord­
ance with Council Regulation (EEC, Euratom, 
ECSC) No 2891/77, and with Article 32 of this 
Financial Regulation. 
(2) The Commission shall inform the budget­
ary authority of any material delay or any 
other difficulty in making revenue available.' 
34. Article 27 becomes Article 31. This Article is 
replaced by the following: 
'The balance from each financial year, calcu­
lated in accordance with Article 15 of Council 
Regulation (EEC, Euratom, ECSC) No 2891/ 
77, shall be entered as revenue in the case of a 
surplus or expenditure in the case of a deficit 
in a supplementary or amending budget in the 
second financial year following the financial 
year in question. 
However, if the situation requires, a decision 
may be taken to enter all or part of this bal­
ance in advance in a supplementary or amend­
ing budget in the financial year immediately 
following the financial year in question.' 
35. A rticle 28 becomes A rticle 32 : 
(a) Paragraph 1 is replaced by the following: 
'(1) The contributions provided for in 
Article 4 (6) of the Decision of 21 April 
1970 for the financing of certain supple­
mentary research programmes shall be 
paid over as follows: 
— seven-twelfths of the amount shown in 
the budget not later than 31 January, 
— the remaining five-twelfths not later 
than 15 July. 
(2) If the budget is not finally adopted 
before the start of the financial year, the 
contributions provided for in paragraph 1 
shall be based on the amount shown in the 
draft budget, as referred to in Article 9 (3) 
and (4) of this Regulation or, if this does 
not exist, in the preliminary draft budget.' 
(b) Paragraphs 2 and 3 become paragraphs 3 
and 4. 
32. Article 25 becomes Article 29. 
33. Article 26 becomes Article 30. This Article is 
replaced by the following: 
'(1) Estimates of the own resources and, if 
appropriate, of the contributions referred to in 
Article 4 (2), (3) and (6) of the Decision of 
21 April 1970 to be paid by the Member States 36. Article 29 becomes Article 33. This Article is 
replaced by the following: 
'The Commission shall, four times a year, pres­
ent to Parliament and the Council a report on 
the implementation of the budget and of any 
supplementary or amending budgets and on 
the Communities' financial situation, covering 
both revenue and expenditure. This report 
shall also give details of the utilization of 
9.4.84 Official Journal of the European Communities No C 97/15 
appropriations carried forward from previous 
financial years. 
This report shall at the same time be sent to 
the Court of Auditors.' 
37. Article 30 becomes Article 34. This Article is 
replaced by the following: 
'(1) The Member States shall credit the 
amounts due to the account of the Com­
mission with the financial organizations 
referred to in Article 9(1) of Council 
Regulation (EEC, Euratom, ECSC) 
No 2891/77 in their national currency in 
accordance with the following provisions: 
(a) the own resources referred to in 
Article 2 (a) and (b) of the Decision of 
21 April 1970 (agricultural levies and 
customs duties) and the balance of 
VAT resources referred to in 
Article 10(4) of Council Regulation 
(EEC, Euratom, ECSC) No 2891/77, 
both amounts expressed in national 
currency, shall be credited to the 
abovementioned account as they 
stand; 
(b) the own resources accruing from VAT 
referred to in Article 4 (1) of the Coun­
cil Decision of 21 April 1970, the 
amounts of which are expressed in 
ECU in the general budget of the 
European Communities and, where 
appropriate, the financial contribu­
tions based on GNP and the adjust­
ments to such contributions provided 
for in Article 10 (5) and (6) of Council 
Regulation (EEC, Euratom, ECSC) 
No 2891/77 shall be converted at the 
rate for the ECU applying on the first 
working day following the fifteenth of 
the month preceding the final date for 
entry in the said account; 
(c) the financial contributions referred to 
in Article 4 (6) of the Decision of 
21 April 1970 (for the financing of 
supplementary research programmes) 
shall be converted at the rate from the 
ECU applying on the last but one 
working day of the month preceding 
the final date for entry in the said 
account; 
(d) all other contributions or additional 
payments referred to in Article 32 (3) 
of this Financial Regulation shall be 
converted in accordance with which­
ever of the methods laid down at (a) 
to (c) above applies to the case to 
which, depending on their nature, 
such contributions or additional pay­
ments correspond. (2) The Commission shall enter the amounts 
credited to the account referred to in para­
graph 1 in its accounts kept in implementation 
of the statement of revenue for the general 
budget of the European Communities on the 
basis of the rate for the ECU applying for the 
month in respect of which the entry is made.' 
38. Article 31 becomes Article 35. 
39. Article 32 becomes Article 36: 
(a) In paragraph 2 'Article 96' is replaced by 
'Article 98'. 
(b) In paragraph 3 'Article 106' is replaced by 
'Article 123'. 
40. Article 33 becomes Article 37. In the final line 
'Article 106' is replaced by 'Article 123'. 
41. Article 34 becomes Article 38: 
(a) The first paragraph becomes paragraph 1. 
(b) The second paragraph is replaced by the 
following: 
'(2) Approval may not be conditional. 
(3) The procedures for implementing this 
Article shall be determined by the imple­
menting measures provided for in 
Article 123.' 
42. Article 35 becomes Article 39: 
(a) In the first paragraph 'Article 34' is 
replaced by 'Article 38'. 
(b) The second and third paragraphs are 
replaced by the following: 
'If approval is withheld and the authoriz­
ing officer maintains his proposal, this 
refusal shall be referred for a decision to 
the superior authority of the competent 
institution among those listed in the first 
two paragraphs of Article 22. 
Except where the availability of the appro­
priations is in doubt, the said superior 
authority may, by a decision stating the 
full reasons therefor and on its sole 
responsibility, overrule this refusal. This 
decision shall be enforceable; it shall be 
communicated for information to the 
financial controller. The superior authority 
of each institution shall inform the Court 
of Auditors of all such decisions within 
one month.' 
43. Article 36 becomes Article 40. 
44. Article 37 becomes Article 41: 
(a) In paragraph 1 'Article 106' is replaced by 
'Article 123'. 
No C 97/16 Official Journal of the European Communities 9. 4. 84 
(b) Paragraph 2 is deleted. 
(c) Paragraph 3 becomes paragraph 2. 
45. Article 38 becomes Article 42. 
46. Article 39 becomes Article 43. 
47. Article 40 becomes Article 44. The third indent 
is replaced by the following: 
'— the amount to be paid (in figures and 
words), expressed in national currency or 
ECU.' 
48. Article 41 becomes Article 45. In the first para­
graph 'Article 106' is replaced by 'Article 123' 
and 'Article 59' is replaced by 'Article 65'. 
49. Article 42 becomes Article 46: 
(a) The second paragraph is replaced by the 
following: 
'The authorizing officer may grant ad­
vances if a provision laid down by regula­
tion specifically provides therefor.' 
(b) In the third paragraph 'Article 106' is 
replaced by 'Article 123'. 
(c) In the fourth paragraph 'Article 49' is 
replaced by 'Article 54'. 
50. The following new Article 4 7 is added: 
'Article 47 
(1) Interest shall be due on any amount paid 
to recipients of Community aid: 
— either as an advance, 
— or under the normal validation procedure, 
which gives rise to repayment to the general 
budget. 
Furthermore, where Community funds have 
been wrongfully obtained, kept or used, the 
Commission may impose penalties. 
(2) The procedure for implementing the 
above measures shall be laid down in an 
implementing regulation adopted by the 
Council on the basis of Article 209 of the EEC 
Treaty.' 
51. Article 43 becomes Article 48. 
52. Article 44 becomes Article 49. 'Article 35' is 
replaced by 'Article 39'. 
53. Article 45 becomes Article 50. 
54. Article 46 becomes Article 51. 55. Article 47 becomes Article 52. 
56. Article 48 becomes Article 53. In the second 
paragraph 'Article 106' is replaced by 
'Article 123'. 
57. Article 49 becomes Article 54: 
(a) In the first paragraph 'Article 106' is 
replaced by 'Article 123 . 
(b) The following new second paragraph is 
added: 
'Only the accounting officer may replenish 
the imprest accounts, save in exceptional 
cases defined in the implementing 
measures.' 
(c) The second paragraph becomes the third 
paragraph. 
58. The following new title is added: 
'SECTION IV 
MANAGEMENT OF POSTS' 
59. The following new Article 55 is added: 
' 1. Within each institution the following shall 
be established: 
(a) a table of posts; 
(b) an organization chart with a diagram of 
the organization of the departments.' 
60. Title IV. The title of Section I is replaced by 
the following: 
'SECTION I 
CONTRACTS FOR THE SUPPLY OF GOODS 
AND SERVICES; CONTRACTS FOR 
PURCHASE, LEASE AND HIRE' 
61. Article 50 becomes Article 56. Paragraph 1 is 
replaced by the following: 
'1. Contracts for the purchase or hiring of 
buildings or goods, for the provision of ser­
vices or for the performance of construction 
work shall be in writing. Apart from contracts 
relating to buildings, all such contracts shall be 
concluded following an automatic public ten­
dering or discretionary tendering procedure. 
However, contracts may be made by private 
treaty in the circumstances referred to in 
Article 58. 
Contracts may be made against invoice or bill 
of costs in the cases provided for in Article 63.' 
62. Article 51 becomes Article 57. In paragraph 3 
'Article 106' is replaced by 'Article 123'. 
63. Article 52 becomes Article 58: 
(a) Item (a) is replaced by the following: 
9. 4. 84 Official Journal of the European Communities No C 97/17 
'where the contract for the purchase or hir­
ing of goods, for the provision of services 
or for building works is within the limit 
laid down in the implementing measures 
provided for in Article 123, the institution 
concerned being bound, however, as far as 
possible and by all appropriate means, to 
enable suppliers who are likely to be able 
to supply the goods and services in ques­
tion to compete;' 
(b) In item (b) 'Article 51' is replaced by 
'Article 57'. 
64. Article 53 becomes Article 59. 
65. Article 54 becomes Article 60. This Article is 
replaced by the following: 
'Each institution shall set up its own advisory 
committee on procurements and contracts to 
express an opinion on contracts before the 
authorizing officer takes a decision. 
Details of the operation of this committee and 
the limit values for the contracts on which it is 
to be consulted shall be laid down in the 
implementing measures provided for in 
Article 123.' 
66. Article 55 becomes Article 61. In the first para­
graph 'Article 54' is replaced by 'Article 60'. 
67. Article 56 becomes Article 62: 
(a) First paragraph: 'Article 106' is replaced 
by'Article 123'. 
(b) The third paragraph is replaced by the fol­
lowing: 
'Within the limit laid down by the imple­
menting measures provided for in 
Article 123, the provision of security shall 
be obligatory. A guarantee may be 
retained until final acceptance.' 
68. Article 57 becomes Article 63: This Article is 
replaced by the following: 
'Contracts may be made against invoice or bill 
of costs within the limits laid down by the 
implementing measures provided for in 
Article 123.' 
69. Article 58 becomes Article 64. This Article is 
replaced by the following: 
'Without prejudice to the provisions laid down 
in this Financial Regulation, when concluding 
contracts referred to in this Regulation, each institution shall comply with the Directives (') 
adopted by the Council, pursuant to the Treaty 
establishing the European Economic Com­
munity, in respect of public works and sup­
plies, whenever the amounts involved are 
equal to or greater than the amounts provided 
for in those Directives. 
The implementing measures provided for in 
Article 123 shall include the supplementary 
provisions which may be required in order to 
implement this Article.' 
70. Article 59 becomes Article 65. The first para­
graph is replaced by the following: 
'Permanent inventories showing the quantity 
and value of all movable and immovable pro­
perty belonging to the Communities shall be 
kept in accordance with a model drawn up by 
the Commission. Only movable property 
exceeding a specific value laid down in the 
implementing measures provided for in 
Article 123 shall be entered in those inven­
tories.' 
71. Article 60 becomes Article 66. In the first para­
graph 'Article 106' is replaced by 'Article 123'. 
72. Article 61 becomes Article 67. The first para­
graph is replaced by the following: 
'A statement or record shall be drawn up by 
the authorizing officer and authenticated by 
the financial controller whenever any property 
in the inventory is sold, given away free of 
charge, scrapped, hired out, or missing on 
account of loss, theft or any other reason.' 
73. Article 62 becomes Article 68. In the first para­
graph 'Article 59' is replaced by 'Article 65'. 
74. Article 63 becomes Article 69. This Article is 
replaced by the following: 
'The accounts shall be kept in ECU by the 
double entry method, on the basis of the calen­
dar year. They shall show all revenue and 
expenditure for the financial year. They shall 
be authenticated by supporting documents. 
The revenue and expenditure account and the 
balance sheet shall be drawn up in ECU. 
However, when debts or commitments are in 
national currency, the accounting system 
(') The following Directives were in force at the 
time this Regulation was drawn up: 
(a) Public works: Directive 71/305/EEC, as 
amended by Directive 78/669/EEC; 
(b) Supplies: Directive 77/62/EEC. 
No C 97/18 Official Journal of the European Communities 9. 4. 84 
should make it possible, where necessary, for 
them to be recorded in the national currency as 
well as in ECU.' 
75. Article 64 becomes Article 70. This Article is 
replaced by the following: 
'The chart of accounts shall make a clear dis­
tinction between budgetary accouns and cash 
accounts. 
It shall comprise two parts: 
(a) accounts of budgetary expenditure and 
revenue, which show the detailed imple­
mentation of the budget; 
(b) the balance sheet accounts, which disclose 
the assets of the institutions. 
The detailed conditions for the establishment 
and operation of the chart of accounts for 
transactions relating both to assets and to the 
implementation of the budget shall be deter­
mined by the implementing measures provided 
for in Article 123. 
These accounts shall make it possible to draw 
up an annual balance of assets and a monthly 
statement of revenue and expenditure by chap­
ter and article. 
These statements shall be forwarded to the 
financial controller, the authorizing officer, 
and the Court of Auditors.' 
76. Article 65 becomes Article 71: 
(a) In the first paragraph 'Articles 96 and 102' 
is replaced by 'Articles 98 and 118'. 
(b) In the second paragraph 'the third para­
graph of Article 42' is replaced by 'the 
third paragraph of Article 46'. 
77. Article 66 is deleted. 
78. Article 67 becomes Article 72. 
79. Article 68 becomes Article 73: This Article is 
replaced by the following: 
'Authorizing officers who, when establishing 
entitlements to be recovered or issuing recov­
ery orders, entering into a commitment of 
expenditure or signing a payment order do so 
without complying with this Financial Regula­
tion and the implementing measures, shall ren­
der themselves liable to disciplinary action 
and, where appropriate, to payment of com­
pensation. The same shall apply if they omit to 
draw up a document establishing a debt or if 
they neglect to issue recovery or payment orders or are, without justification, late in issu­
ing them, thereby rendering the institution 
liable to civil action by third parties.' 
80. Article 69 becomes Article 74. 
81. Article 70 becomes Article 75: 
(a) In the first subparagraph of paragraph 1 
'the third paragraph of Article 46' is 
replaced by 'the third paragraph of 
Article 51'. 
(b) In the second subparagraph of para­
graph 3 'Article 106' is replaced by 
'Article 123'. 
(c) The third subparagraph of paragraph 3 
becomes paragraph 4. 
(d) Paragraph 4 becomes paragraph 5. 
82. Article 71 becomes Article 76. 
83. Article 72 becomes Article 77. 
84. Article 73 becomes Article 78. This Article is 
replaced by the following: 
'The Commission shall draw up, not later than 
1 June of the following year, a consolidated 
revenue and expenditure account of the gen­
eral budget of the European Communities for 
the financial year ended 31 December. The 
consolidated revenue and expenditure account 
shall include: 
1. a table of revenue including: 
— estimated revenue for the financial 
year, 
— amendments to the revenue estimates 
as a result of supplementary or 
amending budgets and additional 
revenue as specified in the second 
subparagraph of Article 4 (2), 
— entitlements established in the course 
of the financial year, 
— entitlements still to be collected from 
the preceding financial year, 
— revenue collected during the financial 
year and revenue carried over pur­
suant to Article 7 (5), 
— amounts still to be collected at the end 
of the financial year. 
Statements shall be attached to this table 
showing revenue carried over pursuant to 
Article 7 (5) and, where appropriate, the 
balances and gross amounts of the opera­
tions referred to in Article 26 (2); 
2. tables showing the changes in appropria­
tions for the financial year and, with a dis­
tinction being made between commitment 
9. 4. 84 Official Journal of the European Communities No C 97/19 
appropriations, payment appropriations 
and non-differentiated appropriations, 
indicating: 
— initial appropriations, 
— any changes made by means of sup­
plementary or amending budgets, 
— any changes made to appropriations 
by means of transfers, 
— final appropriations for the financial 
year, 
— appropriations remaining or carried 
over under Article 7; 
3. tables showing the use of the appropria­
tions allocated for the financial year and, 
with a distinction being made between 
commitment appropriations, payment 
appropriations and non-differentiated 
appropriations, indicating: 
— commitments entered into and charge­
able to the financial year, 
— payments made and chargeable to the 
financial year, 
— settlement of the commitments of the 
financial year and calculation of the 
sums still to be paid at the close of 
that financial year, 
— commitment appropriations remaining 
under Articles 7 and 92 (4), 
— payment appropriations carried over 
under Article 7, 
— non-differentiated appropriations car­
ried over under Article 7, 
— appropriations lapsing. 
Where appropriate, a statement shall be 
attached to this table showing the bal­
ances and gross amounts of the operations 
referred to in Article 26 (2); 
4. tables showing the use of the appropria­
tions available from previous financial 
years and indicating: 
— the amount of appropriations remain­
ing or carried over, a dinstinction 
being made between commitment 
appropriations, payment appropria­
tions and non-differentiated appro­
priations, 
— commitments entered into and charge­
able to available commitment appro­
priations, 
— payments made against payment 
appropriations and non-differentiated 
appropriations which have been car­
ried over, 
— settlement of sums still to be paid at 
the close of the preceding financial year and calculation of the sums still 
to be paid at the end of the current 
financial year, 
— amount lapsing, a distinction being 
made between commitment appro­
priations, payment appropriations and 
non-differentiated appropriations; 
5. tables showing capital operations and debt 
management and indicating: 
— loans raised, 
— capital repayments, interest payments 
and costs received in respect of loans 
granted, 
— loans granted, 
— capital repayments and interest and 
costs paid in respect of loans raised, 
— Community indebtedness.' 
'Each institution shall, not later than 1 March, 
transmit to the Commission, after submitting it 
to its financial controller, the information 
required for drawing up the revenue and 
expenditure account and the balance sheet, 
together with a contribution to the analysis of 
the financial management referred to in 
Article 80.' 
(1) The Commission shall draw up, not later 
than 1 June, a consolidated balance sheet of 
assets and liabilities of the Communities as at 
31 December of the preceding financial year. 
A statement, showing the movements and bal­
ances of the accounts, drawn up on the same 
date, shall be attached thereto. 
(2) These documents shall be submitted to 
the financial controller.' 
Article 77 becomes Article 82. 
Article 78 becomes Article 83. This Article is 
replaced by the following: 
'(1) The Court of Auditors and its members 
may, in carrying out the task of the Court, be 
assisted by officers of the Court. The Court 
itself or one of its members shall notify the 86. 
87. 
88. 
89. 85. Article 74 becomes Article 79. This Article is 
replaced by the following: 
86. Article 75 becomes Article 80. 
87. Article 76 becomes Article 81. This Article is 
replaced by the following: 
No C 97/20 Official Journal of the European Communities 9. 4. 84 
authorities with which the delegated officer is 
to work of the tasks delegated to him. 
(2) Parliament, the Council and the Commis­
sion shall inform the Court of Auditors, as 
soon as possible, of all decisions and measures 
taken pursuant to Articles 4 (4), 7 (4), 9, 17 (1) 
and 25. 
(3) The insitutions shall transmit to the Court 
of Auditors any rules of procedure in respect 
of financial matters. 
(4) The Court of Auditors shall be informed 
of the appointment of authorizing officers, 
financial controllers, accounting officers and 
administrators of imprest accounts and of the 
acts of delegation or appointment under 
Articles 22, 23, 24 and 54.' 
90. Article 79 becomes Article 84. The phrase: 
'subject to Article 19 of Council Regulation 
(EEC, Euratom, ECSC) No 2891/77 and to 
Article 80 of this Financial Regulation' is 
replaced by 'subject to Article 18 of Council 
Regulation (EEC, Euratom, ECSC) 
No 2891/77 and to Article 85 of this Financial 
Regulation.' 
91. Article 80 becomes Article 85. This Article is 
replaced by the following: 
'The audit carried out by the Court of Auditors 
shall be based on records and, if necessary, 
performed on the spot. Its purpose shall be to 
establish that all revenue has been received 
and all expenditure incurred in a lawful and 
proper manner having regard to the provisions 
of the Treaties, the budget, the Financial 
Regulations and all other acts adopted pur­
suant to the Treaties, and that the financial 
management has been sound. 
For the performance of its task, the Court of 
Auditors shall be entitled to consult, in the 
manner provided for in Article 87, all docu­
ments and information relating to the financial 
management of the departments or bodies sub­
ject to its inspection; it has the power to make 
inquiries of any official responsible for a 
revenue or expenditure operation, and to use 
any of the auditing procedures appropriate to 
those departments or bodies. 
The Court of Auditors, in order to obtain all 
the necessary information for the performance 
of the task entrusted to it by the Treaties and 
the acts adopted pursuant thereto, may be 
present, at its request, during the operations 
carried out by the Commission pursuant to 
Articles 8 and 9 of Regulation (EEC) 
No 729/70 and Articles 17 and 18 of Regula­tion (EEC, Euratom, ECSC) No 2891/77. This 
measure shall also apply to the inspection of 
any fund set up by the Communities. 
At the request of the Court of Auditors, each 
institution shall authorize outside persons to 
permit the Court to make any checks to ensure 
that external data correspond to the accounts.' 
92. Article 81 becomes Article 86. 
93. Article 82 becomes Article 87. The final para­
graph is replaced by the following: 
'The granting of Community funds to benefi­
ciaries outside the institutions shall be subject 
to the agreement in writing by the recipients to 
an audit being carried out by the Court of 
Auditors on the utilization of the amounts 
granted.' 
94. Article 83 becomes Article 88. This Article is 
replaced by the following: 
'The annual report of the Court of Auditors 
provided for in Article 78 of the ECSC Treaty, 
Article 206a of the EEC Treaty and Article 
180a of the Euratom Treaty shall be governed 
by the following provisions: 
(1) The Court of Auditors shall transmit to 
the Commission and the institutions con­
cerned, by 15 July at the latest, any comments 
which are, in its opinion, of such a nature that 
they should appear in the annual reports. 
These comments must remain confidential. 
Each institution shall address its reply to the 
Court of Auditors by 31 October at the latest. 
The replies of the institutions other than the 
Commission shall be forwarded simulta­
neously to the Commission. 
(2) The annual report shall contain an assess­
ment of the soundness of financial manage­
ment. 
(3) The annual report shall comprise a sec­
tion for each institution. Each section shall 
contain all the comments of the Court of Aud­
itors on the relevant institution. The replies of 
each institution shall be published immedia­
tely following the comments relating to that 
institution. 
(4) The Court of Auditors shall transmit to 
the authorities responsible for giving discharge 
and to the other institutions, by 30 November 
at the latest, its annual report accompanied by 
the replies, and it shall ensure publication 
thereof in the Official Journal of the European 
Communities.' 
9. 4. 84 Official Journal of the European Communities No C 97/21 
95. Article 84 becomes Article 89. This Article is 
replaced by the following: 
'(1) Parliament, upon a recommendation 
from the Council, acting by a qualified major­
ity, shall, before 30 April of the next year, give 
a discharge to the Commission in respect of 
the implementation of the budget. If that date 
cannot be met, Parliament or the Council shall 
inform the Commission of the reasons for the 
postponement. 
(2) The European Parliament shall deliver its 
opinion on the discharge, in particular on the 
basis of all revenue and expenditure of the 
Communities audited by the Court of 
Auditors. 
(3) The financial controller shall take 
account of the comments made in the deci­
sions giving discharge. 
(4) The institutions shall take all appropriate 
steps to act on the comments appearing in the 
decisions giving discharge. 
(5) At the request of Parliament or the Coun­
cil, the institutions shall report on the mea­
sures taken in the light of these comments and, 
in particular, on the instructions given to those 
of their departments which are responsible for 
the implementation of the budget. Such 
reports shall also be transmitted to the Court 
of Auditors. 
(6) Without prejudice to the reports provided 
for in paragraph 5, the institutions must give 
an account, in an annex to the revenue and 
expenditure account for the financial year 
during which the discharge is given, of the 
measures taken in the light of the comments in 
the decisions giving discharge. 
(7) If Parliament decides to postpone the dis­
charge the Commission must as rapidly as pos­
sible remove any obstacles to the discharge 
decision. 
(8) Supporting documents pertaining to the 
accounts and the preparation of the revenue 
and expenditure account and the balance sheet 
shall be kept for a period of five years follow­
ing the date of the decision giving discharge in 
respect of the implementation of the budget. 
However, the documents relating to transac­
tions not finally closed shall be kept for longer 
than the said period until the end of the year 
following the year in which such transactions 
are finally closed.' 
96. Article 85 becomes Article 90. This Article is 
replaced by the following: 
'(1) The Court of Auditors may also, at any 
time, submit observations on specific ques­
tions and deliver opinions at the request of 
one of the institutions of the Communities. 
(2) It shall transmit any observations made to 
the institutions or body concerned. The institution concerned shall have two and a 
half months in which to inform the Court of 
Auditors of any comments it wishes to make 
on the observations in question. 
Should the Court of Auditors decide to have 
such observations published in the Official 
Journal of the European Communities, it shall 
include after them any comments submitted by 
the institution or institutions concerned. 
(3) If the opinions referred to in paragraph 1 
do not relate to proposals for legislation or 
draft legislation on which it has been con­
sulted, the Court of Auditors shall not publish 
them unless the institution which has 
requested the opinion and the institution con­
cerned agree. In this case, these opinions shall 
be accompanied by the replies of the institu­
tion or institutions concerned.' 
97. Title VII. The title is replaced by the follow­
ing: 
TITLE VII 
SPECIAL PROVISIONS APPLICABLE 
TO RESEARCH AND DEVELOPMENT 
AND TECHNOLOGICAL INNOVATION' 
98. Articles 86 to 94 are deleted and are replaced 
by the following: 
'Article 91 
'The provisions of this title shall apply, by way 
of derogation from the provisions of this 
Regulation, to appropriations for research and 
development and technological innovation 
activities, in particular those under pro­
grammes adopted by the Council pursuant to 
Article 7 of the Euratom Treaty and Article 235 
of the EEC Treaty, and any other activities in 
this field, notably services performed in third-
party accounts. 
Article 92 
(1) The appropriations relating to the above 
activities, including those to cover the staff 
and administrative expenditure provided for in 
the corresponding decisions, shall be entered 
in as many titles as are required within a spe­
cific section of the general budget. 
(2) The nomenclature of the title relating to 
staff expenditure shall correspond to that of 
expenditure of the same type in all the institu­
tions; it may, however, include certain addi­
tional headings corresponding to expenditure 
specific to the activities referred to in this title. 
(3) The appropriations entered in the title 
relating to staff expenditure shall be non-dif­
ferentiated appropriations; the appropriations 
for operating and administrative expenditure 
in the other titles shall be differentiated appro­
priations. 
No C 97/22 Official Journal of the European Communities 9.4.84 
(4) — By way of derogation from Article 7 
(2) (a), the commitment appropria­
tions shall remain valid until the close 
of the financial year following that in 
which the programme adopted by the 
Council ends. 
— The commitment appropriations for 
other activities shall remain in exist­
ence for the following financial year in 
accordance with Article 7 (2) (a) of 
this Regulation. • 
(5) Staff appropriations which are available 
because the actual number of staff is temporar­
ily lower than the number authorized may be 
used only for expenditure to make up the staff 
shortage. 
The title relating to staff expenditure shall 
therefore contain a heading to which expendi­
ture on replacements may be charged. This 
heading, which shall carry a token entry, shall 
be allocated funds that are available during 
the financial year by means of transfers in 
accordance with Article 95 (1) (a). 
Article 93 
For each of the titles, there shall be attached to 
the specific section containing the appropria­
tions referred to here: 
— a table of equivalence breaking down 
these appropriations by programme and 
by instruments of implementation; 
— an indicative schedule of commitments 
and payments indicating the planned rate 
for utilizing the appropriations for each 
programme. 
Article 94 
(1) Analytical expenditure accounts shall be 
drawn up in respect of the implementation of 
the programmes referred to in Article 91. These 
accounts must enable the expenditure allo­
cated to each programme from the budget to 
be identified. 
(2) These accounts shall show the corre­
spondence between expenditure and the cost of 
the main instruments of implementation such 
as: 
— staff; 
— general technical services and administra­
tion ; 
— scientific and technical services and major 
installations; 
— the operating appropriations specific to 
the objectives. 
(3) The detailed procedures for drawing up 
these analytical accounts shall be determined 
by the implementing measures provided for in 
Article 123. Article 95 
By way of derogation from Article 25, the fol­
lowing provisions shall apply to transfers: 
1. The Commission is authorized to take 
decisions on: 
(a) all transfers within the title relating to 
staff expenditure; 
(b) transfers from one item to another, 
from one article to another and from 
one chapter to another in each of the 
titles relating to operating and admin­
istrative expenditure; 
(c) all transfers of payment appropria­
tions within and between the titles 
relating to operating and administra­
tive expenditure. 
2. The budgetary authority shall take deci­
sions on the following in accordance with 
the procedures laid down in Article 25: 
(a) transfers between the title relating to 
staff expenditure and the titles relating 
to operating and administrative 
expenditure; 
(b) transfers of commitment appropria­
tions between the titles relating to 
operating and administrative expendi­
ture. 
Article 96 
With regard to the award of contracts in the 
fields falling under this title, the implementing 
measures provided for in Article 123 may lay 
down special provisions on the operation and 
on the determination of the powers of the 
advisory committee on procurements and con­
tracts and on the limit values determining the 
procedure for concluding contracts.' 
99. Article 95 becomes Article 97. This Article is 
replaced by the following: 
'This title shall apply to the operations of the 
European Agricultural Guidance and Guaran­
tee Fund, Guarantee Section, in accordance 
with Regulation (EEC) No 729/70 of 21 April 
1970. 
In accordance with Article 4 (2) of this Regula­
tion, the Commission shall place the necessary 
appropriations for these operations at the dis­
posal of the Member States. 
The operations of the EAGGF, Guarantee Sec­
tion, shall normally be effected through the 
authorities or bodies referred to in Article 4(1) 
of Regulation (EEC) No 729/70, under the 
implementing provisions adopted pursuant to 
Article 5 (3) of the said Regulation. 
Special operations which the Commission 
manages directly, shall be implemented in 
9. 4. 84 Official Journal of the European Communities No C 97/23 
accordance with the rules laid down in Title 
III of this Regulation.' 
100. Article 96 becomes Article 98. This Article is 
replaced by the following: 
'(1) Global provisional commitments shall be 
entered into, corresponding to the advances to 
be made to the Member States, in respect of 
the appropriations for the Guarantee Section 
of the European Agricultural Guidance and 
Guarantee Fund. 
The Commission decisions fixing the amounts 
of these advances in accordance with Article 5 
(2) (a) of Regulation (EEC) No 729/70 shall 
constitute global provisional commitments. 
The approval of the financial controller shall 
have the sole purpose of establishing that these 
commitments correspond to the amount of the 
advances decided by the Commission after 
consultation with the EAGGF Committee, and 
that they are within the limits of the total 
amount of appropriations entered in the Guar­
antee Section of the European Agricultural 
Guidance and Guarantee Fund. 
Payment of the advances shall be made within 
the limits of the amounts so committed. The 
appropriations made available for advances 
shall be to cover exclusively expenditure 
which has given rise to payment in the Mem­
ber States between 1 January and 31 December 
of the financial year in question. 
(2) Every month, at the same time as granting 
the advances, the Commission shall inform 
Parliament and the Council of the breakdown 
by chapter of expenditure corresponding to the 
advances granted. It shall include whatever 
information which it considers appropriate.' 
101. Article 97 becomes Article 99. This Article is 
replaced by the following: 
'(1) Expenditure effected by authorities and 
bodies under Article 4 of Regulation (EEC) 
No 729/70 shall be the subject of a commit­
ment by chapter, article and item, and shall 
also be charged as a payment, after examina­
tion of the statements forwarded by the Mem­
ber States in accordance with the provisions 
laid down pursuant to Article 5 (3) of the said 
Regulation, and after the approval of the 
financial controller. 
Subject to Article 100, the commitment shall 
be entered into within two months following 
receipt of the statements forwarded by the 
Member States. The charging as a payment 
shall, in general, be carried out within the 
same period. (2) The commitments provided for in this 
Article shall be deducted from the global prov­
isional commitments referred to in Article 98. 
(3) This Article shall apply without prejudice 
to the clearance of accounts provided for in 
Article 101 of this Regulation.' 
102. Article 98 becomes Article 100. 
103. Article 99 becomes Article 101. This Article is 
replaced by the following: 
'(1) The object of the clearance of the 
accounts provided for in Article 5 (2) (b) of 
Regulation (EEC) No 729/70 shall be: 
— to determine the amount of expenditure 
effected in each Member State during the 
financial year in question and acknowl­
edged as being to the account of the 
EAGGF, 
— to determine the amount of the funds 
remaining available in the Member States. 
Not later than 30 June of the year following 
the financial year in question the Member 
States shall, for the purpose of clearance of the 
accounts, send to the Commission summary 
annual accounts for the financial year ended, 
amending where necessary the monthly 
accounts. These summary accounts shall be 
accompanied by the appropriate reports drawn 
up by the competent audit and control depart­
ments and dealing with the expenditure 
referred to in the Articles relating to expendi­
ture covered by the clearance. 
If the accounts of a paying agency or depart­
ment have not reached the Commission by 30 
June, the Commission may clear the accounts 
of that agency or department solely on the 
basis of the financial statements referred to in 
Article 5 (1) (a) of Regulation (EEC) No 
729/70 as described by implementing mea­
sures (') adopted pursuant to Article 5 (3) of 
the said Regulation. 
(2) On the basis of the abovementioned 
accounts or statements and of the findings of 
audits of documents and on the spot under the 
terms of Article 9 of Regulation (EEC) No 
729/70, the Commission, after consulting the 
Fund Committee referred to in Article 13 of 
the Regulation, shall clear the accounts not 
later than 30 November of the second year fol­
lowing the financial year in question. 
(') Regulation (EEC) No 380/78 of 30 January 
1978, OJ No L 56, 27. 2. 1978. 
No C 97/24 Official Journal of the European Communities 9. 4. 84 
(3) The Commission shall transmit the clear­
ance decisions to the Member States and pub­
lish them in the Official Journal of the Euro­
pean Communities. 
(4) The outcome of the clearance decision, 
i.e. any difference which may exist between 
the total expenditure charged to the accounts 
for a financial year pursuant to Articles 99 and 
100 and the total expenditure established by 
the Commission when clearing the accounts 
shall be charged, under a single article, as 
over- or under-expenditure to the financial 
year in which the accounts are cleared. How­
ever, if the procedures required for this pur­
pose — transfers or a supplementary or 
amending budget — cannot be completed by 
the end of the year, the clearance decision 
shall be charged as soon as possible to the fol­
lowing financial year.' 
104. Article 100 becomes Article 102. This Article is 
replaced by the following: 
'(1) Global provisional commitments which 
have been made for a financial year in accord­
ance with Article 98 and which have not been 
specifically committed under the budget 
nomenclature in accordance with Article 99 by 
31 March of the following financial year, shall 
be released under the original financial year. 
(2) A global provisional commitment corre­
sponding to the amount released shall be 
made from the appropriations for the current 
financial year.' 
105. Article 101 becomes Article 103. This Article is 
replaced by the following: 
'(1) Appropriations made available in one 
chapter of expenditure may not be allocated to 
another chapter of expenditure. 
(2) Transfers from one chapter to another 
and transfers within a chapter shall be made 
by decision of the Commission in accordance 
with the procedure provided for in Article 13 
of Regulation (EEC) No 729/70, which must 
be completed not later than 31 March. 
(3) The procedure referred to in paragraph 2 
shall also apply to transfers between the 
EAGGF Guarantee chapters and the food-aid 
chapter, in so far as such transfers are made 
necessary by changes, in relation to the appro­
priations authorized, in the parts of the 
expenditure chargeable to the respective 
chapters. (4) The Commission shall inform the budget­
ary authority of such transfers 15 days in 
advance.' 
106. Title IX. This title is replaced by the following: 
'TITLE IX 
SPECIAL PROVISIONS APPLICABLE 
TO EXTERNAL AID 
SECTION I 
GENERAL PROVISIONS 
Article 104 
(1) Subject to derogation, the provisions of 
Titles I to VI and XI shall apply to foreign aid 
financed from the Community budget, in so 
far as they are not incompatible with the 
express provisions of this title. 
(2) The appropriations assigned by the Com­
munity to its development cooperation policy 
shall be used either under global cooperation 
agreements of a contractual nature or as aid 
granted unilaterally. 
(3) These appropriations may be earmarked 
for grants, special loans, risk capital, or interest 
rate subsidies, and shall be paid out by the 
Commission, which may confer on the Euro­
pean Investment Bank authority on behalf of 
the Community to administer a part thereof. 
This provision shall not prejudice audit 
powers of the Court of Auditors under Article 
206a of the Treaty. 
(4) The appropriations paid out by the Com­
mission shall be used in accordance with the 
following provisions. 
(5) The amount of speical loans and risk cap­
ital granted shall be shown in the balance 
sheet provided for in Article 81. 
Article 105 
(1) A financing agreement shall be drawn up 
between the Commission, acting for the Com­
munity, and the government or the competent 
authority of the recipient State in respect of 
any investment project on which the Commis­
sion takes a financing decision. 
(2) The financing agreement shall determine 
the financial commitment of the Community 
for the measure concerned. No item of 
expenditure in excess of this amount may be 
charged to the budget without an additional 
commitment in accordance with the terms of 
Article 107. 
9. 4. 84 Official Journal of the European Communities No C 97/25 
(3) In addition, a loan contract shall be 
drawn up between the Commission, acting for 
the Community, and the borrower in respect of 
any investment project financed by a special 
loan. 
SECTION II 
EXECUTIVE AGENTS 
Article 106 
Where finance is provided by the Community 
under a global cooperation agreement, the dis­
bursement of funds shall, as a rule, be 
entrusted to a chief authorizing officer, a 
national authorizing officer, a Commission 
delegate and a paying agent, as specified 
below. 
Article 107 
(1) The Commission shall perform the func­
tions of chief authorizing officer, which shall 
be to ensure that financing decisions are car­
ried out and to be responsible for the manage­
ment of resources. In this capacity it commits, 
clears and authorizes expenditure. 
(2) The chief authorizing officer, in close 
cooperation with the national authorizing offi­
cer, shall ensure that participants in tendering 
procedures can compete on an equal footing, 
that there is no discrimination and that the 
tender selected is economically the most 
advantageous. In particular, he shall approve 
the terms of the invitation to tender before it is 
issued, be apprised of the results of the exami­
nation of the tenders, and approve the propo­
sal for the award of the contract, save where 
such powers are conferred on the Commission 
delegate. 
(3) The chief authorizing officer shall make 
any adjustments and take commitment deci­
sions which prove necessary to ensure the 
proper execution of approved projects and 
programmes in the best economic and tech­
nical conditions. 
(4) Decisions concerning additional commit­
ments to cover any amounts in excess of the 
allocation for a project shall be taken: 
— by the procedures for the adoption of 
financing decisions, where the excess is 
more than 15 % of the initial commitment 
set in the financing decision, 
— by the chief authorizing officer, where excess is 15 % or less of the initial commit­
ment set in the financing decision. 
Article 108 
(1) The Government of the recipient State 
shall appoint a national authorizing officer to 
represent the national authorities in all opera­
tions relating to projects financed by the Com­
munity. 
(2) The national authorizing officer shall 
submit invitations to tender to the Commis­
sion for agreement before issuing them. On the 
basis of the decisions thus endorsed and in 
close cooperation with the chief authorizing 
officer and with the delegate referred to in 
Article 107 where such a delegate has been 
appointed, the national authorizing officer 
shall issue invitations to tender, receive ten­
ders, preside over the examination of tenders 
and establish the results of the tendering 
procedure. 
(3) He shall transmit to the Commission for 
agreement the results of the examinations of 
the tendering procedure and a proposal for the 
award of the contract. He shall sign contracts 
and riders thereto and estimates and notify the 
Commission thereof. For contracts, riders 
thereto and estimates, the Commission shall 
enter into individual commitments in accord­
ance with the procedures laid down in 
Articles 36 to 39. Individual commitments shall 
be set against the commitments under the financ­
ing agreements provided for in Article 105 (2). 
(4) The national authorizing officer shall 
clear and authorize expenditure against appro­
priations committed by the Commission. He 
shall remain financially liable to the Commis­
sion until the Commission clears the 
operations for the execution of which he is 
responsible. 
Article 109 
(1) For the purposes of applying the agree­
ment or convention between the Community 
and the recipient State, and in respect of the 
appropriations for which it is the authorizing 
officer, the Commission may be represented in 
the recipient State by a delegate approved by 
that State. 
No C 97/26 Official Journal of the European Communities 9. 4. 84 
(2) At the request of the recipient State, the 
delegate shall give technical assistance in pre­
paring and appraising projects. 
(3) The delegate shall, regularly, and in cer­
tain cases acting on special instruction from 
the Commission, inform the authorities of the 
State to which he has been appointed of Com­
munity activities which may directly concern 
cooperation between the Community and that 
State. 
(4) While operations are in progress the dele­
gate shall verify, on the basis of documents 
and on the spot, that the work or services com­
ply with their description in the financing 
agreements, contracts or estimates. 
For these purposes he shall approve all pay­
ment authorizations issued by the national 
authorizing officer. This approval shall not 
constitute clearance by the Commission of the 
operation concerned, within the terms of 
Article 110 (7), and shall not discharge the 
national authorizing officer from his liability 
under Article 108 (4). The delegate shall be 
bound to comply with this Financial Regula­
tion in the performance of his duties. 
I 
The delegate shall be responsible to the Com­
mission for failure to observe the provisions of 
this Regulation or serious misconduct or neg­
ligence in the performance of his duties. 
Article 110 
(1) For payments in a currency other than 
that of the recipient State, the Commission 
shall make payment direct for services pro­
vided in connection with projects financed 
with grant aid. 
(2) For payments in the currency of the reci­
pient State, accounts denominated in the cur­
rency of a Member State shall be opened on 
behalf of the Commission with the recipient 
State's central bank, which shall exercise the 
functions of paying agent. 
(3) The accounts referred to in paragraph 2 
shall be replenished to meet actual cash 
requirements. Transfers shall be made in the 
currency of a Member State and converted 
into the currency of the recipient State as pay­
ments fall due, at the exchange rate ruling on 
the day of payment. 
(4) The paying agent shall not be remuner­
ated for his services; no interest shall be paid 
on the funds deposited. (5) Within the limits of the funds available, 
the paying agent shall make the payments 
authorized after verifying that the supporting 
documents provided are substantively accurate 
and in order, and that the discharge is valid. 
(6) At regular intervals, and at least once a 
quarter, the paying agent shall send the Com­
mission a statement of expenditure effected, 
together with supporting documents. 
(7) Payments made in the currency of the 
recipient State shall be subject to a clearance 
procedure before they are finally charged to 
the budget appropriations. Clearance shall 
consist of an examination by the competent 
department of the Commission and by the 
financial controller to establish that validation, 
authorization and payment have been properly 
effected. 
SECTION III 
AWARD OR CONTRACTS 
Article 111 
By way of derogation from Title IV of this 
Financial Regulation, the award of contracts 
financed by the Community shall be governed 
by the following provisions. 
Article 112 
The procedure to be followed prior to the 
award of works, supply or service contracts, or 
the conclusion of technical cooperation con­
tracts, shall be specified in the technical and 
administrative provisions annexed to the 
financing agreement, subject to the following 
principles. 
Article 113 
1. Participation in tendering procedures shall 
be open on equal terms to all natural persons 
and firms coming within the scope of applica­
tion of the Treaty and to all natural persons 
and firms in the recipient State. 
The specifications shall therefore require ten­
derers to state their nationality and to present 
the supporting evidence normally acceptable 
under their own law. 
9. 4. 84 Official Journal of the European Communities No C 97/27 
2. By way of exception, it may be decided, by 
mutual agreement between the Commission 
and the recipient State, to allow nationals of 
non-member countries to compete for con­
tracts financed by the Community. 
3. For financial and technical cooperation 
projects in favour of non-associated develop­
ing countries funded from the budget appro­
priations earmarked for that purpose, eligibil­
ity to participate in tendering procedures and 
contracts may be extended to other developing 
countries which have received Community aid 
from these appropriations in the current finan­
cial year and the two preceding years. 
Article 114 
The Commission and the relevant authorities 
of the recipient State shall take the necessary 
implementing measures to ensure that parti­
cipants in tendering procedures and other pro­
cedures for the award of contracts financed by 
the Community can compete on an equal foot­
ing. 
To this end, without prejudice to Article 115, 
care shall be taken in particular to: 
(a) ensure advance publication in reasonable 
time of invitations to tender in the Official 
Journal of the European Communities and 
the official journal of the recipient State; 
(b) eliminate any discriminatory practice or 
technical specification liable to hamper 
participation on equal terms by all natural 
or legal persons of the Member States and 
of the recipient State. 
Article 115 
In urgent cases or where the nature, small scale 
or particular characteristics of certain works or 
supplies so warrant, the relevant authorities of 
the recipient State may, by agreement with the 
Commission stating the reasons therefor, 
exceptionally authorize: 
— the award of contracts after restricted invi­
tations to tender, 
— the conclusion of contracts by private 
treaty, 
— the performance of contracts through 
public works departments. 
Article 116 
The Commission and the relevant authorities 
of the recipient State shall ensure that Articles 114 and 115 are observed for each opera­
tion and that the tender selected is economi­
cally the most advantageous, with due regard 
notably to the price, utilization costs, technical 
value, the qualifications of and the guarantees 
offered by the tenderers, the nature and condi­
tions of execution of the works or supplies. 
The Commission and the relevant authorities 
of the recipient State shall ensure that all the 
selection criteria are specified in the invitation 
to tender dossier. 
The result of invitations to tender shall be pub­
lished at the earliest possible date in the 
Official Journal of the European Communities. 
Article 117 
(1) For technical cooperation projects, ser­
vice contracts shall be concluded with a con­
sultancy bureau, a consultant engineer or an 
expert. Such contracts shall be made by private 
treaty or, where justified on technical, econo­
mic or financial grounds, following competi­
tive tendering. 
(2) For each technical cooperation project 
the Commission shall select one or more can­
didates according to criteria guaranteeing their 
qualifications, experience and independence 
and taking into account their availability for 
the proposed project. 
Where a private treaty procedure is used and 
the Commission has selected a number of can­
didates, the recipient State shall choose freely 
which of these candidates it wishes to deal 
with. 
Where a tendering procedure is used, the con­
tract shall be awarded to the candidate who, in 
the opinion of the Commission and the State 
concerned, has entered the economically most 
advantageous bid. 
(3) Service contracts shall, as a rule, be pre­
pared, negotiated and concluded by the rel­
evant authorities of the recipient State, with 
the agreement and assistance of the Commis­
sion delegate. 
However, they may be prepared, negotiated 
and concluded by the Commission where they 
relate to urgent, short-term expert services in 
connection with the preparation, appraisal, 
execution or utilization of projects, or where 
No C 97/28 Official Journal of the European Communities 9.4.84 
special provisions in the financing agreements 
referred to in Article 105 (1) so stipulate. 
SECTION IV 
FOOD AID 
Article 118 
(1) Every food-aid programme shall as soon 
as possible be made the subject of a proposal 
for commitment in accordance with the proce­
dure laid down in Articles 36 to 39. 
The advances paid to Member States shall be 
entered globally against the abovementioned 
commitments; the sum set aside for the com­
mitments may not be exceeded. 
(2) Expenditure effected by the Member 
States using the funds advanced by the Com­
mission pursuant to Article 3 of Regulation 
(EEC) No 2681/74 shall be entered as pay­
ments following examination of the statements 
transmitted by the Member States in accord­
ance with the implementing measures under 
Article 5 of the abovementioned Regulation 
and approval by the financial controller. 
Subject to paragraph 3 of this Article, expendi­
ture shall be entered as payments within two 
months of receipt of the statements transmit­
ted by the Member States. 
This Article shall apply without prejudice to 
the clearance of accounts provided for in 
Article 8 of Regulation (EEC) No 249/77. 
(3) Articles 36 to 53 shall apply as regards the 
commitment and payment of expenditure 
effected by the Commission direct, particularly 
in respect of purchases on the world market, 
the occasional transport or storage of goods, or 
quality controls on products supplied. 
(4) The Commission may decide, up to 
31 March of the following financial year, to 
transfer appropriations from one article to 
another within the chapter relating to food aid. 
(5) Expenditure shall be taken into account 
in respect of a financial year on the basis of 
payments made up to 31 December by the 
departments referred to in Article 3 of Regula­
tion (EEC) No 2681/74 provided that their 
authorization has reached the accounting 
officer by 31 March following. 
(6) Any differences between the expenditure 
charged to the accounts of a financial year 
pursuant to paragraph 5 above and that estab­
lished by the Commission when clearing the 
accounts as provided for in Article 8 of Regu­
lation (EEC) No 249/77 shall be entered in the accounts as over- or under-expenditure in re­
spect of the financial year in which the clear­
ance took place. 
However, if the procedures required for this 
purpose — transfers or a supplementary and/ 
or amending budget — cannot be completed 
by the end of the year, the clearance decision 
shall be charged as soon as possible to the fol­
lowing financial year. 
(7) The provisions of Article 103 (3) shall 
apply to transfers made necessary by changes 
in relation to the appropriations authorized, in 
the parts of the expenditure chargeable to the 
EAGGF Guarantee chapters and the food-aid 
chapter. 
SECTION V 
AUDITING OF ACCOUNTS 
Article 119 
(1) Each agreement for the financing of an 
investment project and each agreement relat­
ing to a food-aid operation shall make express 
provision for the Court's power of audit. 
(2) Should the Court of Auditors wish to 
carry out audits on the territory of recipient 
States, or States in which recipients are 
located, it shall do so by agreement with the 
relevant authorities of the State concerned. 
Such audits would be limited to the inspection 
arrangments implemented pursuant to the 
provisions governing Community aid and 
would not apply in respect of the execution 
arrangements which are the responsibility of 
the national authorizing officer.' 
107. Article 103 becomes Article 118. Paragraphs 2, 3 
and 4 are replaced by the following: 
'(2) The appropriations for the Office, the 
total amount of which shall be entered under a 
special budget heading within the section of 
the budget relating to the Commission con­
cerning appropriations for staff and adminis­
tration shall be set out in detail in an annex to 
that section. The appropriations shown under 
this specific budget heading may be trans­
ferred in accordance with the conditions set 
out in Article 25. 
The annex shall take the form of a statement 
of revenue and expenditure, subdivided in the 
same way as the sections of the budget. 
The appropriations entered in that annex shall 
cover all the financial requirements of the 
9. 4. 84 Official Journal of the European Communities No C 97/29 
Office in the performance of its duties in the 
service of the Community's institutions. 
(3) Where necessary, the estimates may be 
adjusted during the financial year by the Man­
agement Committee of the Office, which shall 
decide on the transfer required within the 
annex as a result of such adjustments. It shall 
inform the budgetary authority three weeks 
before effecting transfers from one chapter to 
another. 
(4) The remarks relating to the specific 
budget heading under which is entered the 
total appropriation for the Office shall show 
an estimate of the cost of services rendered by 
the Office to each of the institutions. 
The total costs of these services shall corre­
spond to the total expenditure shown in its 
statement of expenditure.' 
108. The following new Article 121 is added: 
'The financial rules of Community bodies with 
legal personality which receive subsidies from 
the general budget shall take over as far as 
possible the provisions of this Regulation and 
diverge from it only when their specific opera­
tional requirements warrant.' 
109. Article 104 becomes Article 122. 
110. Article 105 is deleted. 
111. Article 106 becomes Article 123. This Article is 
replaced by the following: 
'After consulting the other institutions, whose 
opinions must be given within two months, the 
Commission shall adopt measures for imple­
menting this Financial Regulation. It shall 
inform all the institutions of these provisions.' 
112. Article 107 becomes Article 124. This Article is 
replaced by the following: 
'Amendments to this Financial Regulation, 
proposed by the Commission, shall be adopted 
by the Council after conciliation with the 
European Parliament.' 
113. Article 108 becomes Article 125. This Article is 
replaced by the following: 
'Appropriations for the Guidance Section of 
the European Agricultural Guidance and 
Guarantee Fund entered in the budget for the 
financial year 1976 and in the budgets of 
earlier financial years shall be carried over 
under the following conditions: (a) where they relate to payments remaining 
due under commitments, they shall be car­
ried over automatically for a period of five 
years reckoned from 31 December of the 
financial year during which they were 
committed; 
(b) upon expiry of that period, the Commis­
sion may submit to the Council and for­
ward to Parliament, by 31 March, the lists 
of appropriations remaining committed, 
for which a duly substantiated request for 
carryover is being made. The decision 
shall be taken in accordance with 
Article 7 (4).' 
114. The following new Article 126 is added: 
'Until the entry into force of the implementing 
measures provided for in Article 123, the limit 
values to be specified in the implementing 
measures for Articles 58, 60, 62, 63 and 96 shall 
be as follows: 
— Article 58, first paragraph, subpara­
graph (a): the limit below which contracts 
may be made by private treaty shall be 
12 000 ECU; 
— Article 60: the limit above which the pow­
ers of the Advisory Committee on Procure­
ments and Contracts take effect shall be 
36 000 ECU; 
— third paragraph of Article 62: the threshold 
for compulsory security shall be 350 000 
ECU; 
— Article 63: the limits below which con­
tracts may be made against invoice or bill 
of costs shall be 600 ECU and 1 500 ECU 
respectively for expenditure outside the 
provisional places of work; 
— Article 96: the limit below which contracts 
may be made by private treaty shall be 
60 000 ECU.' 
115. Article 109 becomes Article 127. This Article is 
replaced by the following: 
'The following shall be repealed: 
— the Financial Regulations of 25 April 
1973 (»), 18 March 1975 (2), 21 December 
1977 (3), 25 June 1979 (4) and 16 December 
1980(5); 
— all other provisions contrary to this Finan­
cial Regulation.' 
(') OJ No LI 16, 1.5. 1973, p. 1. 
O OJ No L 73, 21. 3. 1975, p. 45. 
(3) OJ No L 356, 31. 12. 1977, p. 1. 
(4) OJ No L 160, 28. 6. 1979, p. 1. 
(5) OJ No L 345, 20. 12. 1980, p. 23 
No C 97/30 Official Journal of the- European Communities 9. 4. 84 
Article 2 Article 3 
1. In Articles 22, 23, 27, 28, 36, 37, 38, 45, 46, 53, 
57, 60, 62, 65, 66 and 75 (') the references to former 
Article 106 concerning implementing measures shall 
be understood as being to Article 123. 
2. The name 'the European Parliament' in the 
present text of the Financial Regulation is replaced 
by Parliament. References to provisions of the Financial Regula­
tion of 21 December 1977 shall be understood as 
being to the corresponding provisions as amended 
by this Regulation. 
Article 4 
This Regulation shall enter into force on 
(') New numbers. It shall be binding in its entirety and directly 
applicable in all Member States.