No C 339/16 Official Journal of the European Communities 17.12. 87 
II 
(Preparatory Acts) 
COURT OF AUDITORS 
OPINION No 7/87 
of the Court of Auditors of the European Communities on a second amendment of the proposal 
for a Council (Euratom, ECSC, EEC) Regulation amending the Financial Regulation of 
21 December 1977 applicable to the general budget of the European Communities 
(87/C 339/19) 
THE COURT OF AUDITORS OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the treaty establishing the European 
Economic Community, and in particular Article 209 
thereof, 
Having regard to the Financial Regulation of 21 
December 1977 applicable to the general budget of the 
European Communities (x), and in particular Article 107 
thereof (2), 
Having regard to the proposal for a Council Regu­
lation revising the Financial Regulation of 21 December 
1977 O, 
Having regard to the first amendment of the proposal 
for a Council regulation amending the Financial Regu­
lation of 21 December 1977 (4), 
Having regard to the proposal from the Commission 
dated 29 July 1987 (5), 
Having regard to the request for consultation of the 
Court of Auditors on the proposal, formulated by the 
Council on 19 August 1987 and received by the Court 
on 24 September 1987, 
Whereas, according to the explanatory memorandum, 
the fundamental object of the proposal is to incorporate 
into the Communities' financial regulations those specific 
amendments that result directly from the objectives 
defined by the Commission in documents COM(87)100 
final and COM(87)101 final (6) for the implementation 
of the Single European Act; 
(') OJL356, 31. 12. 1977, p. 1. 
(2) as last amended by Regulation No 1176/80, OJ L 345, 
20. 12. 1980, p. 23. 
(J) OJC 119,21. 5. 1981, p. 1. 
(4) OJ C 97, 9. 4. 1984. 
O OJC 278, 16. 10. 1987. 
(6) Document COM(87)100 final: Communication from the 
Commission to the Council and the European Parliament, 
dated 15. 2. 1987 (Bulletin of the EC, supplement 1/87). 
Document COM(87)101 final: Report from the Commission 
to the Council and the European Parliament, dated 28. 2. 
1987. Whereas the proposal is designed primarily to reinforce 
the principle of the annual nature of the budget by 
decreeing that carry-overs of differentiated appro­
priations and the reconstitution of commitment appro­
priations shall no longer be automatic, particularly in the 
sphere of the European Regional Development Fund and 
of the Guidance Section of the European Agricultural 
Guidance and Guarantee Fund (EAGGF); 
Whereas the proposal is a step in the direction of 
reinforcing the principle of annuality, the overriding 
importance of which has been acknowledged by the 
Court on many occasions; whereas, however, the 
proposal aims to give the Commission the power to 
authorize the carry-over of appropriations or the 
reconstitution of commitment appropriations under 
exceptional circumstances; whereas the exercise of 
emergency powers of this kind must be subject to 
compliance with objective criteria which have been 
precisely defined beforehand, for which the proposal 
makes no provision; 
Whereas the Commission's draft contains no proposal 
for significantly strengthening the principle of annuality 
in the case of those budget headings where at present 
there is no distinction between commitment appro­
priations and payment appropriations; 
Whereas, secondly, in the case of operating appro­
priations, the proposal is designed to establish a 'global 
reserve' in a separate section; whereas the very concept 
of a reserve implies that the way it is created and utilized 
will be strictly limited to circumstances which are de facto 
and de iure exceptional, and which as such must be 
objectively defined beforehand; whereas in this respect 
neither the explanatory memorandum nor the wording 
of the proposal offer sufficient justification, thus leaving 
the budgetary authority and the authority responsible for 
the implementation of the budget too much latitude in 
the creation and management of the reserve; 
Whereas, furthermore, the effect of the amended 1984 
proposal as regards the clearance of the accounts is to 
17. 12.87 Official Journal of the European Communities No C 339/17 
extend the time limit for the clearance decision to 
financial year N + 2 and thus to defer the date on 
which the financial out-turn is entered in the accounts; 
Whereas the Court, in Opinion No 3/87 (') has already 
expressed its disapproval of one proposal which would 
have the effect of postponing the clearance decisions 
beyond the time limits introduced by current regulations, 
in asmuch as a delay of this kind would be tantamount 
to depriving the budgetary timetable of all coherence by 
institutionalizing a regrettable practice which results in 
the discharge authority having to give its opinion on 
provisional figures; 
Whereas, as regards those parts of the proposal which 
contain ad hoc amendments in connection with the pres­
entation of the preliminary draft budget for 1988, the 
Court has already stated its views in Opinion 5/87 (2) 
and reference should therefore be made to this earlier 
statement of the Court's position, 
HAS ADOPTED THIS OPINION: 
a) as regards the provisions which are designed to 
reinforce the principle of annuality, the Court regrets 
the limited scope of the proposal and considers that it 
should be supplemented by the inclusion of precise 
(') OJC 175, 3. 7. 1987, p. 7. 
(2) Opinion of the Court dated 21.9. 1987, not yet published in 
the OJ. criteria setting out the conditions under which pro­
cedures which derogate from this principle are to be 
implemented; 
b) as regards the provisions relating to the establishment 
in a separate section of a 'global reserve' for 
operating appropriations, in the opinion of the Court 
an instrument of this kind could cause considerable 
damage to the technique which the Commission 
proposes to introduce of adopting a strict approach 
when determining the initial allocation, and would be 
incompatible with the principles of budgetary 
discipline unless strict criteria for the creation and use 
of the reserve were defined objectively beforehand; 
c) as regards the provisions relating to amendment of 
the 'Special provisions applicable to the EAGGF, 
Guarantee Section', the Court considers that the 
proposal should be revised in respect of the system for 
clearing the accounts; 
d) as regards the provisions relating to the inclusion of 
ad hoc amendments in connection with the 1988 pre­
liminary draft budget, the Court must refer to its 
Opinion No 5/87 of 21 September 1987. 
This opinion was adopted by the Court of Auditors at 
its meeting of 26 November 1987. 
For the Court of Auditors 
Marcel MART 
President 
OPINION No 8/87 
of the Court of Auditors of the European Communities on a third amendment of the proposal 
for a Council (Euratom, ECSC, EEC) regulation amending the Financial Regulation of 
21 December 1977 applicable to the general budget of the European Communities 
(87/C 339/20) 
THE COURT OF AUDITORS OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the treaty establishing the European 
Economic Community, and in particular Article 209 
thereof, Having regard to the proposal of 12 December 1980 for 
a Council Regulation amending the Financial Regulation 
of 21 December 1977 (3), 
Having regard to the first amendment of the said 
proposal, dated 9 March 1984 (4), 
Having regard to the Single European Act ('), 
Having regard to the Financial Regulation of 21 
December 1977 applicable to the general budget of the 
European Communities (2), Having regard to the Commission proposal dated 30 
September 1987 (5) for a third amendment of the 
proposal amending the Financial Regulation of 21 
December 1977, 
(') OJL 169,29.6. 1987. 
O OJL 356, 31. 12. 1977. O OJC 119,21.5. 1981. 
(4) OJ C 97, 9. 4. 1984. 
(s) Doc. COM(87) 458 final.