1.10.92 OfficialJournaloftheEuropeanCommunities NoC254/5
II
(PreparatoryActs)
COMMISSION
ProposalforaCouncilRegulationamendingtheFinancialRegulationof21December1977
applicabletothegeneralbudgetoftheEuropeanCommunities
(92/C254/05)
COM(92)358final
(SubmittedbytheCommissionon4September1992)
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishedtheEuropean
CoalandSteelCommunity,andinparticularArticle78h
thereof,
HavingregardtotheTreatyestablishedtheEuropean
EconomicCommunity,andinparticularArticle209
thereof,
HavingregardtotheTreatyestablishingtheEuropean
AtomicEnergyCommunity,andinparticularArticle183
thereof,
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropean
Parliament,
HavingregardtotheopinionoftheCourtAuditors,
WhereastheconciliationprovidedforbytheJoint
Declarationof4March1975bytheEuropean
Parliament,theCouncilandtheCommission(1)has
takenplaceinaConciliationCommittee;
Whereastheprincipleofsubsidiarityisenshrinedinthe
TreatyonEuropeanUnionandmustnowbeincor­
poratedintheFinancialRegulationof21December
1977applicabletothegeneralbudgetoftheEuropean
Communities (2)(hereinafterreferredtoasthe'Financial
Regulation'),aslastamendedbyRegulation(Euratom,
ECSC,EEC)No610/90(3);
WhereastheprovisionsoftheTreatyonEuropean
Union,andinparticularthoserelatingtoMonetary
Union,makeitallthemorenecessarytoprovideintheFinancialRegulationfortheprinciplethatthebudget
shallbeexecutedinecu;
WhereasthatTreatyraisestheCourtofAuditorsto
institutionstatusandconfersanewtaskuponit;whereas
theprovisionsoftheFinancialRegulationrelatingtothat
institutionshouldbeadaptedandsupplemented
accordingly;
Whereas,sincethatTreatyhasenhancedtheroleofthe
EconomicandSocialCommitteeandprovidedfora
CommitteeoftheRegions,provisionsneedtobelaid
downtogoverntheirbudgetarystatus;
WhereasArticle89oftheFinancialRegulationmustbe
amendedtoreflectthestrongerpowersofpolitical
controlexercisedbyParliamentandtheCounciloverthe
executionofthebudgetonthebasisofreportsbythe
CourtofAuditors;
Whereastheimplementation oftheAgreementonthe
EuropeanEconomicArearequiresthatappropriate
provisionsbeinsertedintheFinancialRegulationto
govern,inparticular,thebudgetarypresentationand
executionoftheadditionalfinancialcontribution
resultingfromfinancialparticipationbytheEFTA
countries;
Whereasappropriateprovisionsmustbeinsertedinthe
FinancialRegulationtogovernthefinancialparticipation
ofthirdpartiesinCommunityactivities;
Whereasitmustbeclearlystatedthat,whenawarding
contracts,theinstitutionsmustcomplywiththesame
obligationsasareincumbentonbodiesintheMember
StatesbyvirtueoftheCouncildirectivescoordinating
proceduresfortheawardofpublicworks,supplyand
servicescontractswithavalueequaltoorhigher'than
thethresholdsestablishedbythosedirectives;whereasOOJNoC89,22.4.1975,p.1.
OOJNoL356,31.12.1977,p.1
OOJNoL70,16.3.1990,p.1.

NoC254/6 OfficialJournaloftheEuropeanCommunities 1.10.92
theprovisionsapplicabletocontractsbelowthosethre­
sholdsshouldatthesametimebeclarifiedandadjusted;
Whereasappropriateprovisionsshouldbeaddedina
secondpartoftheFiancialRegulationtoimprovethe
presentationandtransparencyofinformationrelatingto
borrowingandlendingactivities,
HASADOPTEDTHISREGULATION :7.Article11isamendedasfollows:
(a)atthebeginningofthefirstsubparagraphof
paragraph2thewords'Theecuisthesumof
specifiedamountsofthecurrenciesofthe
MemberStates'arereplacedby'Theecuis
definedasthesumofspecifiedamountsofthe
currenciesoftheMemberStates';
(b)thesecondsubparagraph ofparagraph2is
replacedbythefollowing:'Anychangeinthe
definitionoftheecuadoptedbytheCouncilin
accordancewiththeECTreaty,andin
particularArticles109gand109b(4)thereof,
shallautomaticallyapplytothisprovision';
(c)paragraph4isreplacedbythefollowing:
'4.Withoutprejudicetospecificprovisionsof
sectoralrulesgoverningeitheramountsdueor
expenditure,therightsandobligationsofthe
Communitiesshallbeexpressedandexecutedin
ecu.';
(d)thefollowingparagraph5isadded:
'5.Foraslongasconversionbetweentheecu
andnationalcurrenciesisnecessary,such
conversionshall,withoutprejudicetospecific
sectoralrules,bemadeinaccordancewiththe
implementing measuresprovidedforinArticle
142.';
8.Article12isamendedasfollows:
(a)Thefirstparagraphisreplacedbythefollowing:
'TheEuropeanParliament,theCouncil,the
CourtofJustice,theCourtofAuditors,the
EconomicandSocialCommittee andthe
CommitteeoftheRegionsshall,eachyear
before1July,drawupanestimateoftheir
revenueandexpenditureforthefollwingyear.';
(b)thesecondparagraphisdeleted;
9.thethirdindentofArticle13(2)(b)isdeleted;
10.thefirstparagraphofArticle14isreplacedbythe
following:
'TheCommissionmay,onitsowninitiativeorif
requestedbytheEuropeanParliament,theCouncil,
theCourtofJustice,theCourtofAuditors,the
EconomicandSocialCommiteeortheCommittee
oftheRegionsinrespectoftheirsection,presentto
theCouncilaletterofamendmenttothepreliminary
draftbudgetnecessitatedbythereceiptofnewinfor­
mationwhichwasnotavailableatthetimethe
preliminarydraftwasestablished.';Article1
TheFinancialRegulationisamendedasfollows:
1.thefollowingheadingisinserted:'PartI.Provisions
applicabletothegeneralbudgetoftheEuropean
Communities';
2.theword'Economic'isdeletedformthesecond
indentofthesecondsubparagraphofArticle1(1);
3.Article3(2)isreplacedbythefollowing:
'2.Foractivitiesofanoperationalnature,the
financialstatementshallcontainfinancialdata
relatingtotheassessmentbythelegislativeauthority
oftheneedforCommunityactionasprovidedinthe
secondparagraphofArticle3boftheEECTreaty.
Itshallalsostatewhythefinancialinstrument
providedforisappropriate,specifyhowitistobe
implementedandjustifytheamountproposed.';
4.theintroductoryphraseofthesecondsubparagraph
ofArticle4(2)isreplacedbythefollowing :
'Notwithstanding thefirstsubparagraph ,and
withoutprejudicetothespecificprovisionsofTitle
XI,certainrevenuesshallnotbeusedforanyother
purpose,notably:';
5.thefirstsubparagraphofpoint3ofArticle7is
replacedbythefollowing :
'3.Inthecaseofappropriationsforwhichadecision
tocarryovermaybetakeninaccordancewith
point1(a),theCommissionshallforwardtothe
budgetaryauthority,notlaterthan15February,
thedulysubstantiatedrequeststocarryover
appropriations madebytheAuditors,the
EconomicandSocialCommittee,theCommittee
oftheRegionsandtheCommissionitself.';
6.InArticle9(1)and3(b)thewords'EECTreaty'are
replacedby'ECTreaty';

1.10.92 OfficialJournaloftheEuropeanCommunities NoC254/7
—PartBforoperatingexpenditure,divided
intoasmanysubsectionsasarerequired.';
(b)paragraph7isdeleted;
16.point5ofArticle20isreplacedbythefollowing:11.Article15isamendedasfollows:
(a)inparagraph2,thewords'EECTreaty'are
replacedby'ECTreaty';
(b)paragraph4isreplacedbythefollowing:
'4.Requestsforsupplementary and/or
amendingbudgetsfromtheEuropean
Parliament,theCouncil,theCourtofJustice,
theCourtofAuditors,theEconomicandSocial
CommitteeortheCommitteeoftheRegions
shallbeforwardedbytheCommissiontothe
budgetaryauthority.TheCommissionmay
attachadissentingopinion.';
12.inthefirstsubparagraphofArticle16(1)thewords
'EECTreaty'arereplacedby'ECTreaty';
13.inArticle17(1)thewords'EECTreaty'are
replacedby'ECTreaty';
14.inArticle18thewords'EECTreaty'arereplacedby
'ECTreaty';
15.Article19isamendedasfollows:
(a)paragraph 1isreplacedbythefollowing:
'1.Thebudgetshallconsistof:
—ageneralstatementofrevenue,
—separatesectionssubdividedintostatements
ofrevenueandexpenditureoftheEuropean
Parliament,theCouncil,theCommission ,
theCourtofJusticeandtheCourtof
Auditors .
TherevenueandexpenditureoftheEconomic
andSocialCommitteeandtheCommitteeofthe
Regionsshallbeenteredinaspecialsection
subdividedasfollows:
—PartAdevotedtotheEconomicandSocial
Committee,
—PartBdevotedtotheCommitteeofthe
Regions,
—PartCdevotedtothecommonorganiz­
ationalstructureofthetwoCommittees .
TheCommissionsectionshallconsistof:
—PartAforthestaffandadministrative expen­
ditureofthatinstitution .
TherevenueandexpenditureoftheOffice
forOfficialPublicationsoftheEuropean
Communitiesshallbeattachedtothispart,'5.Asregardsborrowingandlendingoperations :
(a)inthegeneralstatementofrevenue,the
budgetheadingscorresponding tothe
relevantoperationsandintendedtorecord
anyreimbursements receivedfrom
beneficiarieswhoinitiallydefaulted,leading
toactivationoftheperformanceguarantee.
Theseheadingsshallcarryatokenentryand
beaccompaniedbyappropriateremarks;
(b)intheCommissionsection:
—thebudgetheadingscontainingthe
Community'sperformanceguaranteesin
respectoftheoperationsinquestion.
Theseheadingsshallcarryatokenentry,
solongasnoeffectivechargewhichhas
tobecoveredbyspecificresourceshas
arisen.
—remarksgivingareferencetothelegal
basisand,whereappropriate,thevolume
oftheoperationsenvisagedandthe
financialguaranteegivenbythe
Communities inrespectoftheseoper­
ations.';
17.Article22isamendedasfollows:
(a)paragraph2isreplacedbythefollowing:
'2.TheCommissionshallconferuponthe
EuropeanParliament,theCouncil,theCourtof
Justice,theCourtofAuditors,theEconomic
andSocialCommitteeandtheCommitteeofthe
Regionstherequisitepowersfortheimplemen­
tationofthesectionsofthebudgetrelatingto
them.';
(b)paragraph5isreplacedbythefollowing:
'5.Saveasotherwiseprovided,theEconomic
andSocialCommitteeandtheCommitteeofthe
Regions,shall,forthepurposeofthisFinancial
Regulation,betreatedasinstitutionsofthe
Communites.';

NoC254/8 OfficialJournaloftheEuropeanCommunities 1.10.92
18.Article26isamendedasfollows:
(a)thesecondsubparagraphofparagraph2is
replacedbythefollowing:
'TheCourtofJustice,theCourtofAuditors,the
EconomicandSocialCommittee andthe
CommitteeoftheRegions—thetwolatter
Committeeswithregardtothepartwhichrelates
tothemand,bycommonagreement,withregard
tothecommonorganizational structure—may,
withintheirownsectionsofthebudget,transfer
appropriations formonearticletoanotherwithin
eachchapter.Theyshallinformthebudgetary
authorityandtheCommissionthreeweeks
beforemakingsuchtransfers.';
(b)thethirdsubparagraph ofparagraph4is
replacedbythefollowing:22.Article58isrenumberedArticle59andamendedas
follows:
(a)theintroductorywords'Contractsmaybemade
byprivatetreaty:'arereplacedby'Contracts
maybemadewithoutinvitationtotenderinthe
followingcircumstances:';
(b)point(a)isreplacedbythefollowing:
'(a)wheretheirestimatedvalue,notincluding
VAT,isbelowthethresholdsetbythe
implementing measuresprovidedforin
Article142;'
(c)inpoint(b),'Article57'isreplacedby'Article
58';
23.Article59isrenumberedArticle62;
'Proposalsmadebytheotherinstitutions,the
EconomicandSocialCommittee andthe
CommitteeoftheRegionsfortransfersfromthe
chaptertoanothershallbeautomatically
forwardedtotheauthority;theCommissionmay
attachitsownopiniontosuchproposals.';24.Article60isrenumberedArticle63andinthefirst
andthirdparagraphs'Article126'isreplacedby
'Article142';
25.Article61isrenumberedArticle64andamendedas
follows:
19.Article56isrenumberedArticle58andamendedas
follows:
(a)inthefirstsubparagraph ofparagraph 1the
words'eitherbytheautomaticpublictendering
procedureorthediscretionary tendering
procedure'aredeleted;
(b)thesecondsubparagraphofparagraph 1is
replacedbythefollowing:
'However,contractsmaybemadewithouta
tenderingprocedureinthecircumstances
referredtoinArticle59.';(a)inthefirstparagraph'Article60'isreplacedby
'Article63';
(b)inthesecondparagraph,thewords'choiceof
supplier'arereplacedby'selectionoftenderer';
26.thefollowingnewArticle61isinserted:
!Article61
Articles62to64ashallapplytotheawardof
contractsforthepurchaseorhiringofgoods,
furnitureorequipment,fortheprovisionofservices
orfortheperformanceofworks.';
(c)inthethirdsubparagraph ofparagraph 1,
'Article63'isreplacedby'Article60';
(d)thefollowingparagraph3isadded:
'3.Tenderingproceduresshallbelaiddown
bytheimplementingmeasuresprovidedforin
Article142.';
20.Article57isdeleted;
21.thefollowingnewArticle57isinserted:
!Article57
TheprovisionsofArticles58,59and60shallbe
applicabletocontractsotherthanthosereferredto
inArticle56.';27.Article62isrenumberedArticle64aandamendedas
follows:
(a)inthefirstandthirdparagraphs,'Article126'is
replacedby'Article142';
(b)inthethirdparagraph,thewords'forworks
contracts'areinsertedafter'obligatory';
28.Article63isrenumberedArticle60and'Article126'
isreplacedby'Article142';
29.Article64isrenumberedArticle56andreplacedby
thefollowing :
!Article56
Whenconcludingcontractsforwhichtheamount
involvedisequaltoorhigherthanthethreshold

1.10.92 OfficialJournaloftheEuropeanCommunities NoC254/9
providedforbytheCouncildirectivesonthecoordi­
nationofproceduresfortheawardofpublicworks,
suppliesandservicescontracts,eachinstitutionshall
complywiththesameobligationsasareimposed
uponbodiesintheMemberStatesbythose
directives .
TheimplementingmeasuresprovidedforinArticle
142shallincludeappropriateprovisionstothatend.';
30.point5ofArticle78isdeleted;
31.thefollowingArticle87aisadded:
!Article87a
TheCourtofAuditorsshallprovidetheEuropean
ParliamentandtheCouncilwithastatementof
assuranceastothereliabilityoftheaccountsandthe
legalityandregularityoftheunderlyingtrans­
actions.';
32.Article88isamendedasfollows:
intheintroductorysentence,thewords'inArticle78
oftheECSCTreaty,Article206aoftheEECTreaty
andArticle180aoftheEuratomTreaty'are
replacedby'inArticle45coftheECSCTreaty,
Article188coftheECTreatyandArticle160cof
theEuratomTreaty';
33.Article89isreplacedbythefollowing:
:Article89
1.TheEuropeanParliament,uponarecommen­
dationfromtheCouncilactingbyaqualified
majority,shall,before30Aprilofthefollowingyear,
giveadischargetotheCommissioninrespectofthe
implementation ofthebudget.
2.TothisendtheEuropenParliamentshall,after
theCouncilhasdoneso,examinetheaccounts,the
satementofrevenueandexpenditureandthebalance
sheetmentionedinArticle78doftheECSCTreaty,
Article205aoftheECTreatyandArticle179aof
theEuratomTreaty,theAnnualReportmadebythe
CourtofAuditorstogetherwiththerepliesofthe
institutionsunderaudittotheobservationsofthe
CourtofAuditorsandanyrelevantspecialreports
bytheCourtofAuditors.
3.BeforegivingadischargetotheCommission,
theEuropeanParliamentmayquestionthe
Commissionontheimplementation ofexpenditure
ortheoperationoffinancialcontrolsystems.The
Commissionshallsubmitanynecessaryinformation
totheEuropeanParliamentatthelatter'srequest.
4.Ifthedateprovidedforinparagraph 1cannot
bemet,theEuropeanParliamentortheCouncilshallinformtheCommissionofthereasonsforthe
postponement .
IftheEuropeanParliamentpostponesthedecision
givingadischarge,theCommissionshallmakeevery
efforttotakemeasures,assoonaspossible,to
facilitateremovaloftheobstaclestothatdecision.
5.Thedischargedecisionshallcovertheaccounts
ofalltheCommunity'srevenueandexpenditure,the
resultingbalanceandtheassetsandliabilitiesofthe
Communityshowninthebalancesheet.Itshall
includeanassessmentoftheresponsibilityofthe
Commission'sbudgetarymanagementoverthepast
financialyear.
6.Thefinancialcontrollershalltakeaccountof
thecommentsinthedecisionsgivingdischarge.
7.Theinstitutionsshalltakeallappropriatesteps
toactontheobservationsaccompanying the
dischargedecisionsandonotherobservationsbythe
EuropeanParliamentrelatingtotheimplementation
ofexpenditure,andonthecommentsaccompanying
therecommendations fordischargeadoptedbythe
Council.
8.AttherequestoftheEuropeanParliamentor
theCouncil,theinstitutionsshallreportonthe
measurestakeninthelightoftheseobservationsand
comments,and,inparticular,ontheinstructions
giventothoseoftheirdepartmentswhichare
responsiblefortheimplementation ofthebudget.
SuchreportsshallalsobetransmittedtotheCourt
ofAuditors.
9.Theinstitutionsshallalsogiveanaccount,in
anAnnextotherevenueandexpenditureaccount
forthefinancialyearfollowingthatofthedischarge
decision,ofthemeasurestakeninthelightofthe
commentsappearinginthedecisiongivingdischarge.
10.Supportingdocumentspertainingtothe
accountsandthepreparationoftherevenueand
expenditureaccountandthebalancesheetshallbe
keptforaperiodoffiveyearsfollowingthedateof
thedecisiongivingdischargeinrespectofthe
implementation ofthebudget.
However,thedocumentsrelatingtotransactionsnot
finallyclosedshallbekeptforlongerthanthesaid
period,untiltheendoftheyearfollowingtheyear
inwhichsuchtransactionsarefinallyclosed.
Eachinstitutionshalldecidewhichdepartmentwill
keepthesupportingdocuments.';

NoC254/10 OfficialJournaloftheEuropeanCommunities 1.10.92
34.inArticle91,thewords'VIandXII'arereplacedby
'VI,TitleXIandPartIII';
35.inArticle92(1)(d),thewords'Article1301ofthe
EECTreaty','Article130moftheEECTreaty',
'Article130noftheEECTreaty',and'Article130o
oftheEECTreaty'arereplacedby'Article130kof
theECTreaty','Article1301oftheECTreaty',
'Article130moftheECTreaty'and'Article130nof
theECTreaty'respectively ;
36.inthefirstparagraphofArticle98,thewords'and
XII'arereplacedby'andPartIII';
37.Article105isamendedasfollows:
(a)inparagraph 1,thewords'VIandXII'are
replacedby'VI,TitleXIandPartIII';
(b)inthesecondsubparagraphofparagraph3,the
words'ofArticle206aoftheEECTreaty'are
replacedby'ofArticle188coftheECTreaty';
38.inArticle119,thewords'Article56to64'are
replacedby'Articles56to64a';
39.inArticle121,thewords'andXII'arereplacedby
'andPartIII';Article125.Forinformationpurposesthe
remarkstotheseheadingsmayindicatethe
estimatedamounts;
(b)wheretherequestforparticipation ismadein
thecourseofafinancialyear,theCommission
may,ifitconsidersittobeintheinterestofthe
Community,proposethatitbeauthorizedbythe
budgetaryauthority.IfneithertheCouncil,
actingbyqualifiedmajority,northeEuropean
Parliament,actingbyanabsolutemajorityofits
members,rejectstheproposalwithinaperiodof
fourweeks,itshallstandasapproved.
Article125
Forthepurposesofimplementingthebudget,the
contributions referredtoinArticle124shallleadto
additionalappropriations beingmadeavailabeas
follows:
—commitmentappropriations equivalenttothe
entitlementduetotheCommunity,
—paymentappropriations equivalenttothe
amountsreceived.
Article126
Thecontributions referredtoinArticle124shall
constituteearmarkedrevenueinaccordancewiththe
secondsubparagraphofArticle4(2).
Allnecessaryaccountingmeasuresshallbetakento
ensuretheseparatemonitoringoftheappropriations
madeavailableunderArticle125.
SectionII
Provisionsapplicabletoparticipationprovidedfor
undertheAgreementontheEuropeanEconomic
Area
Article127
Thebudgetarystructuretocoverparticipationbythe
EFTAStatesshallbeasfollows:
(a)inthestatementofrevenuethereshallbea
headingtocoverthefullamountofthecontri­
butionoftheEFTAStatesfortherelevant
financialyear.Theamountenteredshallbe"for
information";
(b)inthestatementofexpenditure :
—theremarkrelatingtoeachheadingcovering
Communityactivitiesinvolvingthepartici­
pationoftheEFTAStatesshallindicatethe
amountoftheircontribution "forinfor­
mation",40.thefollowingnewTitleXIisinserted:
'TITLEXI
SPECIAL PROVISIONS APPLICABLE TO
FINANCIAL PARTICIPATION BYNON-MEMBER
COUNTRIES ANDOUTSIDE BODIESIN
COMMUNITY ACTIVITIES
SectionI
Generalprovisions
Article124
Financialparticipationbyanon-membercountryor
outsidebodyinaCommunityactivityshallrequire
thepriorauthorizationofthebudgetaryauthority,
givenaccordingtooneofthefollowingprocedures :
(a)inthecourseofthebudgetaryprocedureif
alreadyprovidedfor.Insuchcases,the
Commissionshall,inthepreliminarydraft
budget,proposetheappropriatebudgetary
structureandtheheadingstowhichthecontri­
butionshallbechargedinthestatementof
revenueandunderwhichthecorresponding
appropriations shallbemadeavailableinthe
statementofexpenditure,inaccordancewith

1.10.92 OfficialJournaloftheEuropeanCommunities NoC254/11
2.Point4ofArticle7andArticle26(9)shall
applytothecontributionsreferredtoinparagraph 1.
3.InthequarterlyreportsprovidedforinArticle
34,theCommissionshallgivecleardetailsofthe
stateofexecutionofboththerevenueandthe
expenditurecorresponding toparticipationbythe
EFTAStates.
Article132
Therevenueandexpenditurecorresponding to
participationbytheEFTAStatesshallbeverifiedin
compliancewiththeprovisionsoftheECTreatyof
thisRegulationandofregulationsapplicableto
matterscoveredbyArticles78oftheAgreementon
theEuropeanEconomicAreaandProtocol31
thereto.';
41.TitleXIrenumberedTitleXII;
42.Article124isrenumberedArticle133;
43.thefollowingPartIIisinserted:—anAnnex,constitutinganintegralpartofthe
budget,shallcontainallheadingsrelatingto
Communityactivitiesinvolvingthepartici­
pationoftheEFTAStates.
TheAnnexshallserveasthebudgetary
structureformakingavailabletheappropri­
ationscorresponding tosuchcontributions
byvirtueofArticle128andforimplemen­
tatingexpenditure .
Article128
ByvirtueofArticle82oftheAgreementonthe
EuropeanEconomicArea,amountrelatingtothe
annualparticipationofEFTAStates—asconfirmed
totheCommissionbytheJointCommitteein
conformitywithArticle1(5)ofProtocol32—shall,
atthebeginningofthefinancialyear,giverisetothe
fullentryofthecorresponding appropriations for
commitmentandappropriationsforpayment.
Article129
1.Ifinthecourseofafinancialyeartheappro­
priationsforbudgetheadingsinvolvingthepartici­
pationoftheEFTAStatesareincreasedby
amendingorsupplementary budgetsorbytransfers,
withoutitbeingpossiblefortheEFTAStates,inthe
courseofthatfinancialyear,toadjusttheircontri­
butionaccordinglyinlinewiththeproportionality
factorprovidedforinArticle82oftheEEA
Agreement,theCommissionshallbeauthorizedto
provideprovisionaladvancefinancingformitscash
resourcesfortheshareoftheEFTAStatesinorder
topermidbalancedimplementation ofexpenditure
relatingtotherelevantactivity.
2.Theadvancefinancingshallberegularizedas
soonaspossibleinthebudgetforthefollowing
financialyearor,atthelatest,forthesecond
followingfinancialyear.
Article130
BywayofderogationfromArticle58(2),asregards
therulesgoverningtenderingprocedures,invitations
totendershallbepublishedthroughoutallthe
MemberStatesandalltheEFTAStateswhenever
thecontractentailsexpenditurefromabudget
headinginvolvingparticipationoftheEFTAStates.
Article131
1.Thefinancialcontributions ofEFTAStates
shallconstituteearmarkedrevenuewithinthe
meaningofthethirdindentofthesecond
subparagraph ofArticle4(2).Allappropriate
accountingmeasuresshallaccordinglybetakento
ensuretheseparatemonitoringbothofrevenue
flowingfromthesecontributionsandofthecorre­
spondingappropriations .•SPECIALPROVISIONS APPLICABLE TO
BORROWING ANDLENDINGOPERATIONS
BYTHEEUROPEAN COMMUNITIES
Article134
TheCommissionshall,togetherwiththepreliminary
draftbudgetprovidedforinArticle13,presenta
documentgivingdetailsofallborrowingandlending
operations .
Article135
ThedocumentreferredtoinArticle134shall
contain:
—adetailedstatementonborrowingandlending
policy,
—asanindication :
—currentcapitaloperationsandcurrentdebt
management ,
—thecapitaloperationsanddebtmanagement
forthefinancialyearinquestion,
—anestimateoftheriskbornebythegeneral
budgetintermsofcapitalandinterestforfuture
budgetyears.

NoC254/12 OfficialJournaloftheEuropeanCommunities 1.10.92
—compliancewiththeprincipleofsoundfinancial
management .
2.Toenablehimtoexercisehisfunctionstothe
full,thefinancialcontrolleroftheCommission :
—shallhaveaccesseithermanuallyorbycomputer .
toalldata,documents,ledgers,registers,corre­
spondence,statementsofaccountorcomputer
filesrelatingtoborrowingandlendingoper­
ations,
—shallbeauthorizedtoconductortakepartin
on-the-spotchecks.';
44.TitleXIIisrenumberedPartIIIandentitled'Tran­
sitionalandfinancialprovisions';
45.Article125isrenumberedArticle141;
46.Article126isrenumberedArticle142.Referencesto
thisArticleinArticles22,23,24,25,28,29,36,37,
38,41,45,46,49,53,54,65,66,70,75,94,97,and
123areadaptedaccordingly;
47.Article127isrenumberedArticle143;Article136
Inthecourseofthebudgetaryprocedurethe
CouncilandEuropeanParliamentshallgivean
assessmentofborrowingandlendingoperations,in
particularinthelightoftheprovisionsofthebasic
actsforeachoftheinstrumentsconcerned .
TheCommissionshalltakethatassessmentfullyinto
account .
Article137
TheCommissionshallreporttotheCouncilandthe
EuropeanParliamenttwiceayearontheposition
regardingbudgetguaranteesandrisksrelating
thereto.
Thisinformation shallbesentatthesametimeto
theCourtofAuditors.
Article138
Theexpenditureandrevenueaccountandfinancial
balancesheetprovidedforinArticles78and81shall
givedetailsofcapitaloperationsanddebt
managementindicating:
—theamountofloansgranted,
—theamountoftherepaymentsmadeon
borrowingscontractedandofthechargeson
suchborrowings,
—theamountofborrowingscontracted,
—theamountofrepaymentsofcapitaland
paymentsofinterestmadeonloansgranted.
Article139
Borrowingtermsshallbenegotiatedinthebest
interestsoftheCommunity,inthelightof
conditionsonthecapitalmarket,andshallrespect
constraintsimposedastothedurationandother
termsofthecorrespondingrequestsforloans.
Article140
1.ThefinancialcontrolleroftheCommission
shallberesponsibleforcheckingtheexecutionof
borrowingandlendingoperationsinaccordance
withthepowersconferredontheCommissionin
relationtoeachinstrument .Tothisend,heshall
check:
—thatoperationsareinconformitywiththebasic
rules,
—theassessmentofrisks,
—whereappropriate,thecalculationofinterest
ratesubsidieswheretheyarecoveredbythe
generalbudget,48.Article128isrenumberedArticle144andamended
asfollows:
(a)Intheintroductoryphrase,'Article126'is
replacedby'Article142'and'Articles58,60,62,
63'by'Article59,60,63,64a';
(b)inthefirstindent,'Article58'isreplacedby
'Article59'and'byprivatetreaty'by'withouta
tenderingprocedure';
(c)thesecondindentbecomesthethirdindentand
'Article60'isreplacedby'Article63';
(d)thethirdindentbecomesthefourthindent,
'Article62'isreplacedby'Article64a'andthe
words'forworkscontracts'areaddedafterthe
word'compulsorysecurity';
(e)thefourthindentbecomesthesecondindentand
'Article63'isreplacedby'Article60';
(f)inthefirstsubindentofthefifthindent,the
words'byprivatetreaty'arereplacedby'without
atenderingprocedure';

1.10.92 OfficialJournaloftheEuropeanCommunities NoC254/13
(g)inthelastsubindentofthefifthindent,'Article Article2
58'isreplacedby'Article59'; . . .ThisRegulationshallenterintoforceonthethirdday
followingitspublicationintheOfficialJournalofthe
49.Article129isrenumberedArticle145; EuropeanCommunities.
50.Article130isrenumberedArticle146; IIsha11aPP^from■••
ThisRegulationshallbebindinginitsentiretyand
51.Article131isrenumberedArticle147. directlyapplicableinallMemberStates.