3.2.94 OfficialJournaloftheEuropeanCommunities NoC35/9
COURTOFAUDITORS
OPINIONNo11/93
onaproposalforaCouncilRegulation(EEC,Euratom)amendingCouncilRegulation(EEC,
Euratom)No1552/89implementingDecision88/376/EEC,Euratomconcerningthesystemof
theCommunity'sownresources
(94/C35/07)
HASADOPTEDTHEFOLLOWING OPINION : THECOURTOFAUDITORS OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
Community,andinparticularArticle209thereof,
HavingregardtotheTreatyestablishingtheEuropean
AtomicEnergyCommunity ,andinparticularArticle183
thereof,
HavingregardtotheCouncilDecision88/376/EEC,
Euratomof24June1988concerningthesystemof
theCommunity'sownresources('),andinparticular
Articles3and7thereof,
HavingregardtoCouncilRegulation(EEC,Euratom)
No1552/89of29May1992implementing Decision
88/376/EEC,Euratomconcerningthesystemofthe
Community'sownresources(2),
Havingregardtotheproposalsubmittedbythe
Commissionon5October1993(3),
HavingregardtotheCouncil'srequestfortheCourtof
Auditorstobeconsultedaboutthisproposal,receivedby
theCourton4'November1993,
Whereastheproposalaimstocompletethebudgetary
andaccountingproceduresfordealingwiththebalances
offinancialyearsbydefiningthewaytheyaretobe
enteredintheaccounts,bearinginmindtheown
resourcesceiling;
Whereas,pursuanttoArticles199and202oftheTreaty
establishingtheEuropeanCommunity,allrevenueand
expendituremustbeenteredinthebudget,therevenue
andexpenditureofthebudgetmustbeinbalanceand
expenditureenteredinthebudgetisauthorizedforthe
durationofonefinancialyear;
Whereas,pursuanttoArticle32oftheFinancialRegu­
lation,thebalanceofeachfinancialyearistobeentered
inthefollowingbudgetunderrevenueorexpenditure,
dependingonwhetherthereisasurplusoradeficit,1.Theproposalforaregulationwithwhichthis
Opinionisconcernedmainlyposesaprobleminrespect
oftheimplementation ofthefundamentalprinciples
governingtheannualbudgetcycle,asitrelatesto,the
conditionsunderwhichbudgetaryresourcesarecalled
up.
AstheCourtofJusticeconfirmedinitsrulingof31
March1992(4),itisapparentfromtheverywordingof
Article7oftheDecision(CouncilDecision
88/376/EEC,Euratomof24June1988)onown
resources,aswellasfromthewordingofArticle32of
theFinancialRegulation,thatthesurplusforagiven
financialyearmayonlybecarriedovertothefollowing
budgetaryyear.Thisruleistheexpressionoftwofunda­
mentalbudgetaryprinciples,namelytheannualnature
andtheunityofthebudget.Theseprinciples,whichare
setoutinthefirstparagraphsofArticles199and202of
theTreaty,requireallrevenueattheCommunity's
disposalforagivenfinancialyeartobeenteredinthe
budgetforthefinancialyearinquestion.
Similarly,andinparticularinaccordancewiththe
provisionsofArticle32oftheFinancialRegulation,any
negativebalancespertainingtoagivenfinancialyear
mustbeenteredundertheexpenditureforthefollowing
financialyear.
Tothefundamentalprincipleswhichaimtopreservethe
exhaustivenatureofbudgetarydecisionswereaddedthe
measuresintroducedbytheDecision88/376/EEC,
Euratomof24June1988onownresourceswithaview
toestablishing a'frameofreference'forfuture
budgetarydecisions.
Thus,foreachyearduringtheperiodunder
consideration ,Article3oftheDecisioninquestionsetsa
ceilingforthetotalamountofownresourcesattributed
totheCommunities ,whilstalsoinsistingthatobservance
oftheceilingssetforthefollowingyearsshouldnotbe
jeopardizedbytheeffectofcommitmentsofappropri­
ations.OOJNoL185,15.7.1988,p.24.
(2)OJNoL155,7.6.1989,p.1.
ODoc.COM(93)437finalof14.9.1993. (4)CaseC-284/90,recitals25and26.

NoC35/10 OfficialJournaloftheEuropeanCommunities 3.2.94
Thequestionastowhethertheceilingsenteredinthis
Decisionaretobeconsideredabsoluteceilingswould
thusseemtohavebeensettled,unlesscredenceisgiven
totheassumption,forwhichthereisnoparticularjustifi­
cation,thatoneandthesamenotionaimingtocontrol
thetrendofthepressureoftheCommunity'sown
resourcesmaybeinterpretedinseveralways.
Consequently ,theCourtconsidersthataproposal
aimingtoneutralizetheenteringintheaccountsof
compensatory resourcesinthelightoftheceilingfor
ownresourcesfortheyeartowhichtheresourcesin
questionaretobechargedwouldimpedethecorrect
implementation ofthelimitsimposedbytheaforemen­
tionedbasicDecisionof24June1988,especially
consideringthatthelimitsinquestionaresetwithina
broaderlegalcontextwhichisdefinedbyArticles199,
201and201aoftheECTreatyandArticle32ofthe
FinancialRegulation .
Inviewoftheeffectthattheproposalsubmittedcould
haveonbudgetarydecisionsfortheyeartowhichthe
deficitofthepreviousfinancialyearischarged,andthus
oncallsforownresources,suchasolutioncouldnotbe
adoptedsolelybythemechanismofamendingthe
Council'simplementingRegulation(EEC,Euratom)No
1552/89of29May1989.Thisisperhapsalsotheplacetopointoutthatthe
recessionwillaffectthebudgetaryrevenueofthe
MemberStatesjustasmuchasthatoftheCommunity,
andthat,insuchasituation,orintheeventofmacro­
economicforecastsprovingtoooptimisticinthemedium
term,itcannotberuledoutthatthemeasuresnecessary
forrecoverymaybetakenmorequicklyatnationallevel
thanwouldbepossiblefollowingtheplanproposedat
Communitylevel.
Asituationofthiskindwouldbeallthemorepara­
doxicalas,sincetheentryintoforceoftheTreatyon
EuropeanUnion,theCommission isresponsiblefor
checkingwhethertheMemberStatesareobservingthe
rulesofbudgetarydisciplineandalsoformonitoring
theirpublic-sectordeficits.
3.Incashresourcesterms,itwouldbedifficultto
imagineanyimmediatedifficultiesarising,since,
regardingtheVATandGNPresources,whicharebyfar
themostimportant,thepaymentsintwelfthsarecarried
outonthebasisoftherevenueforecastsasestablished
(Articles6(2)(c)and10(3)ofRegulation(EEC,
Euratom)No1552/89).Anysumsreceivedinexcessare
notreimbursedtotheMemberStatesuntilDecemberof
theyearn-1-1.
Inaddition,inthecaseofthetraditionalownresources
thepaymentsmay,ifneedbe,bebroughtforwardbya
month(Article10(2)).
Finally,incaseswherecashneedsareinexcessof
availablefunds,theCommissionmaymakewithdrawals
inexcessofitsavailablefundsprovideditstayswithin
thelimitsfortheownresourceslaiddowninthebudget
(Article12(2)).
Inadditiontothemarginsthuscreated,therecouldalso
beanoptiontobringforwardresourcepaymentsbytwo
months,inrespectthistimeofalltheownresources,
accordingtotheproposalsubmittedbytheCommission
on17May1993(proposalforaCouncil(EEC,
Euratom)RegulationamendingRegulation (EEC,
Euratom)No1552/89).
Suchmeasureswillfacilitatethetransitiontothe
financialyeartowhichestablishedbudgetaryaccidents
aretobecharged.
Moreover,the1990revisionoftheFinancialRegu­
lation(')hasprovedtobestricterinrespectoftheneed
forthebudgetaryauthoritytointervene,inthatitpre­
scribes,withaviewtogettingclosertothetruthofthe
budgetarysituation,theentryoftheestimatedbalance
forthepreviousyearduringthebudgetaryprocedure2.Inessence,theCommissionisenvisagingthepossi­
bilitythataslow-downineconomicactivitywhichis
morepronouncedandlonger-lasting thanexpected
mightmanifestitselfindiscrepanciesbetweenforecast
andactual(yearn)revenuewhichweresosignificant
that,onceregularized,theycouldbeincludedneither
undercontingencies inthegeneralbudgetnoreven
withinthelimitsdefinitivelyestablishedbythefinancial
perspective .
Therecommended solution,namelyneutralization ,
wouldnolongerobligetheCommission (inyearn+1
fortraditionalownresourcesandinyearn+2forVAT
andGNPresources)tomakeacorresponding reduction
intheexpendituredecidedonforthefinancialyear
underconsideration ,ifeliminatingthedeficitwould
resultintheownresourcesceilingbeingexceeded.
Inotherwords,theproblemcouldbesolvedbyrelying
exclusively,andwithoutanyotherconsideration ,on
callingupcompensatory ownresources,whichwould
implyenhancedCommunityfiscalpressureandthe
exceedingoftheownresourcesceiling.
Itgoeswithoutsayingthatsuchasolution,whichisboth
generalandpermanentinitseffects,couldconsiderably
delaytheclearingofthebalancesbytheoff-settingof
expenditure,suchbalancesbeingmoreoverconfinedto
theexceedingoftheceilingobservedonthebasisofthe
proposedArticle14(a).(*)CouncilRegulation(Euratom,ECSC,EEC)No610/90of
13March1990(OJNoL70,16.3.1990).

3.2.94 OfficialJournaloftheEuropeanCommunities NoC35/11
andeven,whereappropriate,usingaletterof
amendment .
Shouldmajordifficultiesstillbemetwith,notwith­
standingthedecisionstakenbythebudgetaryauthority,
theycouldbedealtwithusingaspecialregulationbased
onArticle209oftheTreaty.ThisOpinionwasadoptedbytheCourtofAuditorsin
LuxembourgattheCourtmeetingof2December1993.
FortheCourtofAuditors,
AndreJ.MIDDELHOEK
President