17.11.76 Official  Journal  of the  European  Communities No C 271/5 
II 
(Preparatory  Acts) 
COMMISSION 
Proposal  for a Council  Regulation  (ECSC,  EEC,  Euratom)  on the procedure  for applying 
the European  unit  of account  (EUA)  to the legal  acts  adopted  by the institutions  of the 
European  Communities 
(Submitted  by the Commission  to the Council  on 6 October  1976) 
THE  COUNCIL  OF  THE  EUROPEAN  COMMUNITIES, 
Having  regard  to  the  Treaty  establishing  the 
European  Coal  and  Steel  Community,  in particular 
Article  78 thereof, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  in  particular 
Articles  209  and  235  thereof, 
Having  regard  to  the  Treaty  establishing  the 
European  Atomic  Energy  Community,  in particular 
Articles  183  and  203  thereof, 
Having  regard  to the proposal  from  the Commission, 
Having  regard  to the  opinion  of the  European 
Parliament, 
Having  regard  to the  opinion  of the  Economic  and. 
Social  Committee, 
Whereas  the proposal  for a Regulation  amending  the 
Financial  Regulation  of 25 April  1973  applicable  to 
the General  Budget  of the European  Communities  (1)> 
forwarded  by the  Commission  to the  budgetary 
authorities  on 19 May  1976,  provides  for the use of a 
new European  unit  of account  (EUA),  based  on a 
basket  of Community  currencies,  in the drawing  up 
of the budget  of the Communities,  in the keeping  of 
the accounts  and  in the presentation  of the  revenue 
(») Doc.  COM(76)210  final,  19 May  1976. and expenditure  account  and  the  financial 
balance-sheet; 
Whereas  it is therefore  necessary  to adopt  the 
procedure  for expressing  the Communities'  financial 
rights  and  obligations  in EUA,  and  to adopt  the 
procedure  for  applying  the  new  unit  of account  to 
the General  Budget  of the Communities; 
Whereas  many  of the  legal  acts  adopted  by the 
Community  institutions  include  sums  fixed  in units  of 
account  or national  currencies  which  it would  be 
appropriate  to convert  into  European  units  of 
account; 
Whereas  it would  be advisable  to determine  what 
principles  should  govern  this  procedure; 
Whereas  in  certain  cases  exceptions  to  these 
principles  should  be provided  for and  whereas  special 
conversion  procedures  should  be held  in reserve  for 
an emergency; 
Whereas  in order  to achieve  the  Community's 
objectives  it is necessary  to ensure  the  uniform 
application  of Community  law  and  hence  to lay 
down  general  rules  governing  the  European  unit  of 
account; 
Whereas  the Treaties  make  no provision  for the type 
of authority  required  for making  the European  unit 
of account  applicable  to all legal  acts  adopted  by the 
Community's  institutions, 
No C 271/6 Official  Journal  of the European  Communities 17.11.  76 
HAS  ADOPTED  THIS  REGULATION: 
DEFINITION  OF  THE  EUA  (REMINDER)  (») 
Article  1 
Definition  of the EUA 
1. The  EUA  shall  be made  up of the  following 
amounts  of the  currencies  of the  Member  States  of 
the Community: 
DM 0-828 
£ Stg 0-0885 
FF 1-15 
Lit 109 
Fl 0-286 
Bfrs 3-66 
Lfrs 0-14 
Dkr 0-217 
£ Irl. 0-00759 
2. The  value  of the  unit  of account  in a given 
currency  shall  be equal  to the sum  of the equivalents 
in that  currency  of the amounts  of the currencies  set 
out in paragraph  1. The  value  shall  be determined  by 
the Commission  on the  basis  of the  exchange  rates 
recorded  each  day  on  the  exchange  markets, 
according  to the  method  published  in the  Official 
Journal  of the European  Communities. 
SECTION  I 
USE  OF  THE  EUA  AS  AN  INSTRUMENT  OF 
BUDGETARY  MANAGEMENT 
Article  2 
Budget  in EUA 
The budget  shall  be drawn  up in European  units  of 
account  (EUA). 
(*) See  Article  10 of the  proposal  for  a Council  Regu-
lation  (ECSC,  EEC,  Euratom)  amending  the  Financial 
Regulation  of 25 April  1973  applicable  to the General 
Budget  of the  European  Communities,  Doc.  COM(76) 
210 final  of 12 May  1976. Article  3 
Accounts,  revenue  and  expenditure  accounts, 
financial  balance  sheet 
The accounts  shall  be kept  in EUA  at the daily  rate, 
and the  revenue  and  expenditure  accounts  and  the 
financial  balance  sheet  shall  be presented  in EUA. 
Article  4 
Commitment,  recovery  and  payment  in EUA 
1. Every  proposal  for commitment,  every  payment 
order  and  every  recovery  order  shall  be entered  in the 
accounts  in EUA. 
2. A  payment  order  made  out  in EUA  shall  be 
executed  by a transfer  made  in EUA. 
If the beneficiary  is unable  or unwilling  to receive  or 
keep  sums  in EUA,  he may  request  the  financial 
institution  instructed  to execute  the payment  order  to 
convert  the  EUA  into  one  of the  nine  currencies 
of the Member  States. 
In such  cases,  the conversion  shall  be made  by the 
institution  at the  rate  applying  on  the  day  of 
execution. 
Any costs  involved  in such  conversion  shall  be 
charged  to the budget  of the Communities. 
Article  5 
Proposals  for  commitment,  recovery  orders  and 
payment  orders  in national  currency 
In cases  where  a commitment  by,  or a debt  to, the 
Communities  has  had  to be contracted  in a national 
currency,  the  authorizing  officer  shall  draw  up the 
proposal  for  commitment  or the  payment  order  or 
the recovery  order  in that  national  currency. 
Article  6 
Counter-value  in EUA  for the operations  referred  to 
in Article  5 
In the cases  referred  to in Article  5: 
1. The  counter-value  in EUA  of the  proposal  for 
commitment  or of the  recovery  order  shall  be 
calculated  by the accounts  department  at the rate 
of the day  preceding  the entry  in the accounts; 
17.11.  76 Official  Journal  of the European  Communities No C 271/7 
2. The  counter-value  of the  payment  order  shall  be 
calculated  by the accounts  department  at the rate 
of the  day  preceding  the  entry  in the  accounts. 
The proposal  for  commitment  shall  be corrected 
automatically  at the  same  rate.  In the  case  of 
payments  by instalments,  such  correction  shall  not 
apply  to that  part  of the  commitment  which  has 
already  been  paid; 
3. When  a debt  made  out  in a national  currency  is 
collected,  the  original  recovery  order  shall,  if 
necessary,  be  changed  on  the  basis  of the 
EUA/national  currency  exchange  rate  obtaining 
on the day  of payment  (value  date).  In the case  of 
recovery  orders  executed  by  instalments,  such 
change  shall  not  apply  to the  sums  already 
recovered. 
Article  7 
Enforcement  action  for recovery 
If, to enable  demand  for payment  of a debt  expressed 
in EUA  to be made,  this  debt  must  be converted  into 
a national  currency,  the Commission  shall  make  the 
conversion  at the rate  applying  on the day  on which 
it takes  the decision  to initiate  enforcement  action. 
Article  8 
Entry  in the accounts  of imprests 
The entry  in the  accounts  in EUA  of expenditure 
incurred  against  imprests  shall  be undertaken  by the 
accounting  officer  on a monthly  basis  for  each 
budgetary  item  in accordance  with  the principles  of 
Articles  4, 5 and  6 above. 
Article  9 
Entry  in the accounts  of expenditure  in respect  of the 
EAGGF  Guarantee  Section  and  Food  Aid  operations 
financed  by advances 
1. During  the  1978  budget  year,  expenditure  in 
respect  of the  EAGGF  Guarantee  Section  and  Food 
Aid operations  financed  by means  of advances  shall 
be paid  in national  currencies  and  entered  in the 
accounts  on the  basis  of the  rate  applying  on a 
reference  day to be fixed  for each  month. 
The reference  rate  to be applied  to month  'n' shall  be 
the twentieth  of month  (n - 2). 
The balances  in national  currencies  in the  Member 
States  shall  be  recalculated  by  the  accounts 
department  of the  Commission  at the reference  rate 
for the following  month. 2. From  the  1979  budget  year  onwards,  advances 
under  the EAGGF  Guarantee  Section  and  Food  Aid 
operations  shall  be paid  to the  Member  States  in 
EUA  and  expenditure  incurred  in national  currencies 
shall  be justified  in terms  of EUA. 
3. The  procedures  for  implementing  this  Article 
shall  be adopted  by the  Commission  in accordance 
with  the  procedure  laid  down  in Article  13  of 
Council  Regulation  (EEC)  No  729/70  of 21 April 
1970  concerning  the  financing  of the  common 
agricultural  policy. 
SECTION  II 
EXPRESSION  IN EUA  OF  THE  COMMUNITIES' 
FINANCIAL  RIGHTS  AND  OBLIGATIONS 
Article  10 
Expression  of amounts  in EUA:  General  principle 
The Communities'  financial  rights  and  obligations 
shall  be expressed  in EUA,  save  where  otherwise 
provided  in this  Regulation. 
STAFF  AND  OPERATION 
Article  11 
Expenditure  relating  to persons  working  with  the 
institution 
1. Application  of the  unit  of account  to the 
Communities'  rights  and  financial  obligations  with 
respect  to certain  categories  of persons  referred  to in 
Title  1 of the General  Budget  and  who  are  working 
with  the  institution  shall  be laid  down  in special 
provisions. 
2. By  way  of derogation  from  Article  10,  the 
Communities'  rights  and  financial  obligations  with 
respect  to other  categories  of persons  referred  to in 
Title  1 and  Chapter  33 of the  General  Budget  and 
not mentioned  in the  preceding  paragraph  together 
with  similar  rights  and  financial  obligations  with 
respect  to categories  of persons  referred  to in Title  2 
of the General  Budget,  may  be expressed  in national 
currency. 
Article  12 
Expression  of rights  and  obligations  as regards 
operating  expenditure,  excluding  supply  contracts 
By way  of  derogation  from  Article  10,  the 
Communities'  rights  and  financial  obligations 
concerning  operating  expenditure,  excluding  supply 
No C 271/8 Official  Journal  of the  European  Communities 17.11.  76 
contracts,  may  be expressed  in the national  currency 
of the country  of the co-contractor's  registered  office 
if: 
1. the  co-contractor  refuses  to accept  the  EUA 
principle  and  if the conclusion  of the contract  with 
this co-contractor  is of special  importance; 
2. the  financial  obligations  are the result  of external 
constraint. 
Article  13 
Invitations  to tender  in respect  of supply  contracts 
In invitations  to tender  for  supply  contracts  in the 
countries  of the  Community,  it shall  generally  be 
specified  that: 
— the  tenders  shall  be submitted  in EUA.  If the 
tenders  are submitted  in a national  currency,  they 
shall,  for  price  comparison  purposes,  be 
converted  into  EUA  at the  rate  applying  on the 
closing  day  for the submission  of tenders, 
— the  contracts  shall  be expressed  in EUA, 
— the  payments  arising  from  the  contracts  shall  be 
made  in accordance  with  the procedure  laid  down 
in Article  4 of this  Regulation. 
Article  14 
Price  revision  index 
1. For  contracts  expressed  in EUA,  the  price 
revision  index  shall  be the  weighted  average  of the 
general  national  price  indices  or that  relating  to the 
sector  of activity  concerned. 
2. For  contracts  expressed  in a national  currency, 
the price  revision  index  shall  be that  of the  general 
prices  or of the  sector  of activity  concerned  in the 
country  in which  the co-contractor  has  his registered 
office. 
Article  IS 
Other  appropriations  comparable  to operating 
appropriations 
Social  and  education  expenditure  and  expenditure 
charged  to intervention  appropriations  classified  by 
function,  objective  or destination,  shall  be treated  as 
operating  appropriations  if they  are of the same  type. INTERVENTION  OPERATIONS 
Article  16 
Expression  of amounts  in applications  for,  and 
decisions  on, financial  aid 
1. Applications  for  financial  aid and  decisions  on 
such  aid shall  be expressed  in EUA. 
2. The  amounts  expressed  in a national  currency 
in applications  for aid shall  be converted  into  EUA  at 
the rate  obtaining  on the  date  set as a deadline  for 
submitting  the  application,  where  such  a date  has 
been  fixed;  where  no  date  has  been  fixed,  the 
conversion  shall  be made  at the rate  obtaining  on the 
day when  the  application  is received  by  the 
Commission. 
Article  17 
Intervention  rate  and  refunding  of  costs  — 
Provisional  closing  of the accounts 
1. Where  the  present  regulations  fix a maximum 
rate for  intervention  or  a fixed  ratio  between 
Community  intervention  and  intervention  by another 
party  (Member  States,  beneficiaries,  etc.),  the 
Community  intervention  rate  shall  apply  to amounts 
expressed  in EUA  when  the aid is granted. 
2. When  the  aid  is paid  out,  and  notwithstanding 
Article  18 (3),  the  amount  committed  in EUA  shall 
represent  the  upper  limit  of the  amount  to be paid; 
this payment  may  not  be higher  than  the  maximum 
rate for  intervention  as applied  to the  real  effective 
costs. 
Real  effective  costs  are  costs  converted  into  EUA  in 
accordance  with  the  provisions  set out  in the  next 
paragraph. 
3. The  beneficiary  of financial  aid  may  choose 
either  of the  two  methods  described  below  co charge 
expenditure  incurred  by him  to the  General  Budget 
of the European  Communities. 
Either,  (a) the  beneficiary  adds  an auxiliary  account 
in EUA  to  his  accounts,  in  which  case  the 
expenditure  incurred  by the  beneficiary  is entered  in 
the accounts  daily  using  the  conversion  rate  for the 
day on which  the payment  in question  is made  (bank 
values  date). 
A provisional  balance  is made  (in EUA)  at least  once 
a year.  Any  corrections  to the provisional  balance  are 
entered  at the rate  for the day  preceding  the day  on 
which  the accounts  were  closed. 
17.11.  76 Official  Journal  of the  European  Communities No C 271/9 
Or, (b) if the  request  for  reimbursement  is made  in 
national  currency,  the sum  is converted  into  EUA  at 
the rate  for  the  day  on  which  the  Commission 
received  the application. 
Article  18 
Closing  of accounts,  final  settling  of the  accounts; 
cancelling  or  increasing  commitments  and 
appropriations 
1. The  accounts  shall  be finally  closed  in EUA. 
Corrections  to the final  account  shall  be made  at the 
rate obtaining  on the  day  preceding  that  on which 
the account  is closed. 
2. If  the  total  of payments  made  and  still  due  is 
less than  the  sum  committed,  the  surplus  shall  be 
released. 
3. If  the  total  of payments  already  made  and  still 
due exceeds  the  sum  committed,  the  Commission 
shall  be in principle,  absolved  of its obligations  as 
long  as total  payments  correspond  to the  total  sum 
committed.  However,  the Commission  may  decide  to 
commit  an additional  sum  be taking  the appropriate 
measures. 
But where,  during  the  period  between  the  date  on 
which  the commitment  was  entered  into  and  the date 
on which  financial  aid  is finally  paid  a currency 
appreciates  by  comparison  with  the  EUA,  the 
Commission  shall  take  the  appropriate  measures, 
where  the EAGGF  Guidance  Section  is concerned,  to 
ensure  that  the intervention  rate  fixed  at the time  that 
the aid was  granted  is maintained. 
ENTERING  REVENUE 
Article  19 
Entering  revenue 
Entries  on the credit  side  of the account  as referred  to 
in Article  7 (1) of Regulation  (EEC)  No 2/71  shall  be 
made  in EUA.  Where  own  resources  are  established 
in national  currency,  they  shall  be converted  into 
EUA  at the conversion  rate  obtaining  on the fifteenth 
of the month  during  which  the sum  is established. 
These  provisions  will  apply  for the first  time  to sums 
established  during  November  and  December  1977 
and, pursuant  to  Article  27  of  the  Financial 
Regulation,  these  will  be entered  as revenue  in the 
1978  budget. SECTION  III 
ADJUSTMENT  OF  THE  AMOUNTS  EXPRESSED  IN 
UNITS  OF  ACCOUNT  AND  IN  NATIONAL  CUR-
RENCIES  IN  THE  LEGAL  ACTS  OF  THE  COM-
MUNITIES 
Article  20 
Principles 
1. In  the  acts  adopted  by  the  Community 
institutions  pursuant  to the  Treaties  establishing  the 
EEC  and  the  EAEC,  amounts  expressed  in units  of 
account  shall,  from  the  date  when  this  Regulation 
comes  into  force,  be taken  as being  expressed  in 
European  units  of account  at the  rate  of 1 unit  of 
account  = 1 EUA.  Sums  expressed  in national 
currency  shall  be replaced  by the equivalent  in EUA 
at the  rate  obtaining  on the  first  general  quotation 
day in 1978. 
If the acts  quote  both  an amount  in units  of account 
and its equivalent  in national  currency,  the amount  in 
units  of account  shall  be converted  into  EUA  at the 
rate of 1 unit  of account  = 1 EUA  and  the reference 
to the national  currency  shall  be omitted. 
2. The  forecasts  in units  of account  contained  in 
multiannual  programmes  adopted  before  1 January 
1978  shall  however  be converted  into  EUA  in the 
budgetary  procedure. 
3. The  amounts  expressing  flows  or averages  such 
as turnovers,  GNP,  trade  volume,  etc.,  shall  be 
converted  at a rate  equivalent  to the  average  of the 
daily  rates  of the period. 
4. The  amounts  expressing  outstanding  liabilities 
existing  on a specific  date,  such  as company  capital, 
financial  reserves,  etc.,  shall  be converted  at the daily 
rate of that  date. 
5. The  principles  set out  in this  Article  shall  apply 
subject  to the  exceptions  listed  in the  provisions 
below  and  without  prejudice  to  any  special 
conversion  procedures  which  may  have  to be adopted 
at a later  date  in legal  acts  adopted  pursuant  to the 
Treaties  instituting  the  EEC  and  EAEC  under  the 
specific  provisions  on which  they  are based. 
Article  21 
Application  to the Common  Customs  Tariff 
1. Notwithstanding  Article  20, in conjunction  with 
Article  1 (2),  the value  in national  currencies  of the 
EUA  applicable  to the  Common  Customs  Tariff, 
No C 271/10 Official  Journal  of the European  Communities 17.11.  76 
including  suspension  of customs  duties,  tariff  quotas 
and general  preferences  shall  be calculated  twice  a 
year.  The  rates  to be applied  shall  be those  of the last 
day of October  and  April,  with  effect  on 1 January 
and 1 July  respectively. 
2. However,  the representative  rates  fixed  for the 
common  agricultural  policy  can  be applied  to those 
agricultural  products  for which  this  proves  necessary 
because  of the common  organization  of the markets. 
Article  22 
Amounts  in units  of account  fixed  for the common 
agricultural  policy 
The provisions  of Articles  10 and  20 do not apply  to 
amounts  fixed  for the common  agricultural  policy  in 
units  of account  for  agricultural  products,  and  for 
some  goods  which  are  the  result  of processing 
agricultural  products  and  are  governed  by special 
rules  applied  under  Article  235  of the  Treaty,  apart 
from  those  which  are  included  in the  Common 
Customs  Tariff  and  governed  by Article  21. 
These  amounts  are converted  into  national  currencies 
at the rates  fixed  for the common  agricultural  policy. 
Article  23 
Transit  arrangements,  verification  of origin  and 
duty-free  arrangements 
The detailed  rules  for the application  of Community 
transit,  verification  of origin  and  customs  and  fiscal 
exemptions  will  be regulated  separately. 
SECTION  IV 
TRANSITIONAL  PROVISIONS 
Article  24 
Debts  and  commitments  outstanding  at 1 January 
1978 
1. Debts  due  to  the  European  Communities 
originating,  and  commitments  entered  into,  before  1 
January  1978  shall  continue  to be administered  on 
the same  basis  whether  they  were  established  in units 
of account  converted  into  national  currencies  by the 
Commission  at the rate  current  on the date  the debts 
originated  or the commitments  were  entered  into,  or 
whether  they  were  established  in national  currencies. 
2. As  from  the  financial  year  1978,  the  debts 
collected  and  the  payments  outstanding  against commitments  made  in previous  financial  years  shall 
be entered  in the  accounts  in EUA  at the  rate 
obtaining  on the  day  before  they  are entered  in the 
accounts. 
Article  25 
Appropriations  for  commitment  outstanding  at 1 
January  1978 
The appropriations  for commitment  outstanding  at 1 
January  1978  shall  be converted  into  EUA  under  the 
budgetary  procedure,  on the principle  that  their  value 
in the  national  currencies  of the  beneficiaries  is 
maintained  when  the  transition  is made  from  one 
system  to the other. 
Article  26 
Applications  for aid submitted  before  1 January  1978 
1. Applications  for aid submitted  before  1 January 
1978  whose  final  date  for submission  was  also  before 
1 January  1978,  and  in respect  of which  no decision 
has been  taken,  shall  be converted  into  EUA  for the 
counter-value,  as at the first  general  quotation  day  in 
1978,  of the amount  in national  currency  requested. 
2. Aids  approved  in national  currencies  before  1 
January  1978  shall  be paid  in national  currencies. 
Article  27 
Supplementary  clauses  to contracts  for the execution 
of programmes 
The amounts  set down  in supplementary  clauses  to 
contracts  valid  at 1 January  1978  shall  be expressed 
in EUA  only  if the  duration  of the  contract  is 
extended  and  if the  financial  terms  relating  thereto 
are amended. 
SECTION  V 
GENERAL  FINAL  PROVISIONS 
Article  28 
EUA  conversion  rates 
1. The  rates  for conversion  of the  EUA  into  the 
different  national  currencies  shall  be available  each 
day. They  shall  be published  daily  in the  Official 
Journal  of the  European  Communities  (Information 
and Notices). 
17.11.76 Official  Journal  of the  European  Communities No C 271/11 
2. If  a rate  has  not  been  published  in the Official 
Journal  in respect  of a particular  day  or a particular 
national  currency,  the rate  applicable  for the day  or 
currency  in question  shall  be that  applicable  on the 
last day  for which  a rate  was  published. 
3. 'General  quotation  day'  for  the  purposes  of 
Article  20 and  26 shall  mean  a day  on which  the 
counter-value  of the  EUA  is published  in respect  of 
the currency  of each  Member  State. 
Article  29 
Detailed  rules  for application 
The detailed  rules  for  the  application  of this 
Regulation  in respect  of matters  dealt  with  by the Financial  Regulation  applicable  to  the  General 
Budget  of the  European  Communities  shall  be 
adopted  in accordance  with  Article  118  of the 
Financial  Regulation  (*). 
Article  30 
Entry  into  force 
This  Regulation  shall  enter  into  force  on 1 January 
1978. 
This  Regulation  shall  be binding  in its entirety  and 
directly  applicable  in all Member  States. 
(*) See  Financial  Regulation  of 25 April  1973  applicable 
to the  General  Budget  of the  European  Communities 
(73/91/ECSC,  EEC,  Euratom).