26.4.94 OfficialJournaloftheEuropeanCommunities NoC115/9
II
(PreparatoryActs)
COURTOFAUDITORS
OPINIONNo1/94OFTHECOURTOFAUDITORS OFTHEEUROPEAN
COMMUNITIES
(a)ontheproposalforaCouncilRegulation(EC,Euratom)amendingRegulation(EEC,
Euratom)No1552/89implementingDecision88/376/EEC,Euratomonthesystemofthe
Communities 'ownresources
(b)ontheproposalforaCouncilRegulation(ECSC,EC,Euratom)amendingtheFinancial
Regulationof21December1977applicabletothegeneralbudgetoftheEuropean
Communities
(94/C115/07)
Whereas,byvirtueofArticles199and202oftheTreaty
establishingtheEuropeanCommunity,allrevenueand
allexpendituremustbeenteredinthebudget,this
budgetmustbeinbalanceasregardsbothrevenueands
expenditure,andexpenditureenteredinthebudgetis
authorizedforthedurationofonefinancialyearonly;
Whereastherequirementforbudgetarybalanceand
observanceoftheceilingforownresourcesmustlead,
whereappropriate,totheimpositionofalimitonthe
appropriations availableforagivenfinancialyear,but
alsotothemobilizationofallavailableresourcessoasto
financesuchexpenditure;
WhereasinthiscontexttheprovisionsofCouncil
Decision88/376/EEC,Euratomconcerningthesystem
ofownresourcesprovidethattheVATandGNPown
resourcesaretobebasedonthebasescalculatedforthe
currentfinancialyear;whereasthosebasesarenot
knownuntilthefollowingfinancialyearand,asaresult,
adaptationsarenecessaryduringthatfinancialyear,THECOURTOFAUDITORS OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
CoalandSteelCommunity,andinparticularArticle78h
thereof,
HavingregardtotheTreatyestablishingtheEuropean
Community,andinparticularArticle209thereof,
HavingregardtotheTreatyestablishingtheEuropean
AtomicEnergyCommunity,andinparticularArticle183
thereof,
HavingregardtoCouncilDecision88/376/EEC,
Euratomof24June1988(')concerningthesystemof
theCommunities'ownresources,andinparticular
Articles3and7thereof,
HavingregardtoCouncilRegulation(EEC,Euratom)
No1552/89of29May1989(2)implementingCouncil
Decision88/376/EEC,Euratomconcerningthesystem
oftheCommunities'ownresources,
HavingregardtotheFinancialRegulationof21
December1977applicabletothegeneralbudgetofthe
EuropeanCommunities (3),aslastamendedbyCouncil
Regulation(Euratom,ESCS,EEC)No610/90of13
March1990(4),
Havingregardtotheproposalssubmittedbythe
Commissionon21December1993(5),
HavingregardtotherequestbytheCouncilforthe
CourtofAuditorstogiveitsopinionontheseproposals,
receivedbytheCourton25February1994,HASADOPTEDTHEFOLLOWING OPINION :
PARTONE
(a)Regardingtheproposedamendmenttoregulation
(EEC,Euratom)No1552/89
1.Thebudgetarytreatmentofthebalancesofthe
VATandGNPownresourceshasbeendealtwithinan
initialCommissionproposalamendingCouncilRegu­
lation(EEC,Euratom)No1552/89.Thisproposal
aimedtoneutralizethesebalanceswithregardtothe
ownresourcesceiling.TheCourt,askedbytheCouncil
togiveitsopinion,hadtakentheview(6)thatinsuchC)OJNoL185,15.7.1988,p.24.
OOJNoL155,7.6.1989,p.1.
C)OJNoL356,31.12.1977.
(4)OJNoL70,16.3.1990,p.1.
ODoc.COM(93)683finalof21.12.1993. (6)CourtopinionNo11/93,OJNoC35,3.2.1994,p.9.

NoC115/10 OfficialJournaloftheEuropeanCommunities 26.4.94
circumstances theCommunitywouldnolongerbe
obliged'tomakeacorresponding reductioninthe
expendituredecidedonforthefinancialyearunder
consideration',whichwouldhaveresultedin'enhanced
Communityfiscalpressure'.
2.TheCommissionwithdrewthisinitialproposaland
submittedanewoneamendingCouncilRegulation
(EEC,Euratom)No1552/89aswellastheFinancial
Regulationof21December1977.Thisnewproposal
(hereinafterreferredtoas'theCommission'sproposal')
aimstoeliminatetheownresourcesbalances.
3.ThebalancesoftheVATandGNPownresources
owetheirexistencetothefactthattheCommunity
budgetisfinanced,asfarasresourcesareconcerned,on
thebasisofestimates.TheactualVATbasesandthe
figuresforMembersStatesstatisticalGNPforfinancial
yearnarenotknownuntilfinancialyearn+1.The
systeminforceatpresentprovidesforthefiguresforthe
resourcestobeupdatedduringfinancialyearn+1using
theactualbases,thusregularizingtheMemberStates'
paymentsusingdifferentialbalancescalculatedonthe
basisofcall-upratesthatwereestablishedintheinitial
budgetforyearn.
4.TheVATandGNPbalancesforthisinitial
financialyearareestablishedasat1Decemberofthe
followingyear,i.e.atatimewhenitishardlypossibleto
amendtheexpenditureforthissamefinancialyear.If
thesebalancesprovetobenegativeitmaybenecessary
tocallupextraresourcessoastore-establishequilibrium
betweenrevenueandexpenditure,asrequiredbythe
provisionsofArticle199oftheECTreaty.
5.TheCommunity'sownresourcesaresubjecttoa
ceilingcalculatedasapercentageoftheCommunity
GNP.Thispercentagestandsat1,2%in1994.The
narrowingofthebases,especiallythefigureforthestat­
isticalGNP,raisestheriskoftheceilingbeingexceeded
bytheownresourcesrecoveredinrespectofthe
previousfinancialyear.Insuchaneventthepresent
systemallowsfornoformofcorrection.
6.Itwasinordertopreventtheemergenceofsuchan
unsatisfactorysituationthattheCommissionattempted
tofindaformulathatwouldcorrespondtothe
Parliament'soptionsinfavourofaformoftreatment
thatwouldnot'underminetheavailabilityofexpenditure
ceilingsforthefinancingofordinaryexpenditure',as
wellastothoseoftheCouncilaiming'toensurethat
availablefundsprovidedforintheFinancialPerspective
canbeusedtomeetthefinancingrequirementsofthe
Community'sbudgetexpenditure,whilecomplyingin
fullwiththeannualceilingonownresources.'
7.Inthiscontext,theCommissionconsidersthatthe
totalforpaymentappropriations laiddowninthe
FinancialPerspectivecouldcomeupagainsttheown
resourcesceilinginthenextfewyearsandthatthesumsavailableforthesefinancialyearswouldnotallowlarge
deficitstobeabsorbed .For1994theownresources
enteredinthebudgetarealreadyequalto1,19%ofthe
estimatedCommunityGNP.Eliminatingthebalances
thusappearstotheCommissiontobethekindof
solutionthatwouldobviatetheneedforthecarrying
forwardofexpenditure,whichisdifficulttomanage.
8.Inordertoarriveatasituationwherethebalances
havebeeneliminated,theCommission's proposal
providesfortheintroductionoftheprincipleofthe
re-financingofthebudgetduringfinancialyearn+1,on
theactualbases,bothofrevenueandexpenditure .In
otherwords,anewrateforcallinguptheGNPresource
hastobecalculatedinrespectofthefinancialyearn
duringn+1,accompaniedbyacheckoftheceilingfor
n.AsfortheuniformVATrate,thatwouldbeamended
technically,asaresultofchangestothebases.
9.Theexpostfactorefinancingofthebudgetraises
twoquestions:
(a)firstly,itistantamounttotheretrospectivemobili­
zationofavailablebutunusedappropriations from
thepreviousfinancialyear,especiallyintheevent
thatariseintheGNPrateprovestobenecessary.In
thisrespectitisnotinaccordancewiththe
provisionsofArticle6(2)oftheFinancialRegu­
lation,accordingtowhich'therevenueofafinancial
yearshallbeenteredintheaccountsforthefinancial
yearonthebasisoftheamountscollectedduringthe
financialyear';
(b)secondly,itstillinvolvestheriskofhavingany
exceedingoftheceilingforownresourcesbelonging
tofinancialyearnestablishedexpost,whereasthe
expenditurepertainingtothesamefinancialyearhas
alreadybeensettled.
10.Thefirstquestionwasnotexplicitlydealtwithin
theCommission's proposal.Itshouldneverthelessbe
consideredthatitintendedtointroduceanexceptionto
theprincipleraisedbyArticle6(2)oftheFinancial
Regulation .Infact,intheeventthattherefinancing
shouldleadnottoasimpleredistributionofexpenditure
betweentheMemberStatesbuttoanetcall-upofextra
GNP-basedresources,theadditionalamountwouldhave
tobeenteredintheaccountsforthepreviousfinancial
year.Thisalonecouldresultintheceilingforthe
financialyearbeingexceeded.
11.Thesecondquestionhasbeensettledbythe
provisionsofthenewparagraph5ofArticle10ofthe
Commission'sproposal.Inthisparagraphitisstatedthat
anyexceedingoftheceilingforownresourcesfor
financialyearnis,ontheonehand,toberefundedto
theMemberStatesduringDecemberofthefollowing
financialyear(n+1)and,ontheotherhand,enteredin
thebudgetforthefollowingfinancialyearbutone
(n+2),withintheceilingforownresourcesforthatyear
andintheformofnegativerevenue.

26.4.94 OfficialJournaloftheEuropeanCommunities NoC115/11
14.Enteringtheamountbywhichtheownresources
ceilinghasbeenexceededinthebudgetofagiven
financialyearasnegativerevenue,asproposedbythe
Commission,eventhoughitprovidesawayofstaying
formallywithintheownresourcesceiling,nevertheless
hastheinconveniencethattheexcessdoesnotgiverise
toanycorrespondingadjustmentofavailableappropri­
ationsforthesamefinancialyear.
(b)RegardingtheproposalamendingtheFinancialRegu­
lation
15.TheCommission'sproposalisintendedtoadapt
theprovisionsoftheFinancialRegulationtothe
amendmentsitproposestoRegulation(EEC,Euratom)
No1552/89.
16.TheCourttakestheviewthattherecommen­
dationsithasmadeaboveinconnectionwiththisRegu­
lationareapplicable,mutatismutandis,totheproposed
amendmentoftheFinancialRegulation .12.Thecomplexityofthissituationmayinpartbe
tracedbacktotheprovisionsofDecision88/376/EEC,
Euratomonthesystemofownresources,accordingto
whichtheVATandGNPresourcesaretobebasedon
thebasesusedduringthecurrentfinancialyear.These
basesarenotknownuntilthefollowingfinancialyear.
Adaptationsarethusnecessary,onanexpostbasis.
13.Refinancingthebudgetduringthefollowing
financialyear,asproposedbytheCommission ,allows
theseexpostadjustmentstobemade,whilstatthesame
timeintroducinganimproveddistributionofexpenditure
betweentheMemberStates.TheCommission'sproposal
introducingitshould,however,beamendedsoastotake
accountof:
(a)theneedexpresslytoallowforthemobilizationof
ownresourcesconcerningtheprecedingfinancial
yearinCouncilRegulation(EEC,Euratom)No
1552/89andintheFinancialRegulation;
(b)thepossibilityofchargingtothebudgetforfinancial
yearn+1anyexceedingoftheceilingforfinancial
yearn,onceithasbeenrefundedtotheMember
States.PARTTWO
17.IntheattachedtablestheCourtsetsoutthe
amendments toandcommentsontheCommission's
proposalwhichwerediscussedinPartOne.