23.6.84 Official Journal of the European Communities No C 163/7 
II 
(Preparatory Acts) 
COURT OF AUDITORS 
OPINION No 3/83 
of the Court of Auditors of the European Communities on the proposal for a Council 
Decision empowering the Commission to help finance innovation within the Community 
(84/C 163/12) 
THE COURT OF AUDITORS OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
the second paragraph of Article 206 (a) (4) thereof, 
Having regard to the Decision of the Council of 19 
April 1983 (83/200/EEC) empowering the 
Commission to contract loans under the New 
Community Instrument for the purpose of promoting 
investment within the Community ('), and in 
particular Article 1 thereof, 
Having regard to the Decision of the Council of 11 
July 1983 to consult the Court of Auditors on the 
proposal for a Council Decision empowering the 
Commission to help finance innovation within the 
Community, 
General considerations 
Whereas, in its report of 6 October 1983 in response 
to the conclusions of the Heads of State and 
Government at their meeting in Stuttgart, the Court 
of Auditors drew attention to the failure of the regu­
lations in the field of the structural funds to set clear 
and consistent objectives; 
Whereas Commission communication COM(83) 241 
final does not provide any evaluation of comparable 
national schemes nor does it establish criteria for 
assessing the appropriateness of intervention in this 
sector through public funds and at Community level; 
Whereas a large number of organizations would be 
involved in the administration of the European 
innovation loans, viz. the Commission, the European 
Investment Bank, the Member States and financial 
(') OJ No L 112, 28. 4. 1983, p. 26. intermediaries in the Member States, and the draft 
Decision proposed in the communication does not 
offer sufficiently precise definition of the respective 
roles, responsibilities, duties and functions of the 
organizations concerned to ensure efficient operation 
of the scheme; 
Whereas account must be taken of the Commission's 
responsibility for implementing the budget; 
Whereas the terms of the cooperation agreement 
between the European Investment Bank and the 
Commission, which will include the criteria to be 
used by the Bank when granting European innovation 
loans in respect of applications approved by the 
Commission, are not yet known to the Court; 
Specific considerations 
Whereas the cooperation agreement should not 
contain provisions contrary to the Treaty and in 
particular should not prejudice the audit power of the 
Court as defined in Article 206a, as the Court has 
observed in relation with previous cooperation 
agreements with the European Investment Bank (2); 
Whereas in certain important respects the financial 
provisions of the draft Decision are open-ended or 
imprecise in character, for example in relation to the 
maximum period of European innovation loans; 
(2) Special Report of the Court of Auditors on loans and 
borrowings (OJ No C 319, 6. 12. 1982). 
Opinion of the Court of Auditors on the proposal for a 
Council Regulation on interest subsidies for certain loans 
granted under the European Monetary System (OJ No 
C 55, 28. 2. 1984). 
No C 163/8 Official Journal of the European Communities 23.6.84 
Whereas proper provision should be made in the 
general budget of the European Communities both 
for the financial risk of possible default by 
beneficiaries of European investment loans and for 
the support of interest service costs of beneficiaries; 
Whereas funds from the budgetary appropriations 
should be used only as and when required; 
Whereas adequate provision should be made for 
evaluation of the scheme, (c) Article 5 
'Equivalent amount . . . payment of loans' should 
be replaced by 'necessary funds transferred to the 
Bank in such amounts and on such dates as may 
be required to meet the interest liability'. 
A new sentence should be added as follows: 'An 
item shall also be opened in due course in the 
general budget of the European Communities to 
cover the financial risks arising from any 
defaulting by the enterprises.' 
HAS ADOPTED THE FOLLOWING OPINION: 
The Court of Auditors has the following specific 
observations to make on the draft Decision: 
(a) Preamble 
Add: 'Having regard to the opinion of the Court 
of Auditors'. 
(b) Article 3, third subparagraph 
After 'European Communities' should be added: 
'to the extent required by the financing plan 
related to the project'. (d) Article 7 
This Article should be amended to read as 
follows: 
'Two years at the latest after adoption of this 
Decision, and in any case when loans granted 
total 80 million ECU, the Commission shall 
prepare a report evaluating the progress of the 
scheme and whether or not it is meeting the 
objectives set for it. On the basis of this report, 
the Council shall examine whether the principles 
and conditions of the scheme are still adapted to 
the needs which led to its creation.' 
This opinion was adopted by the Court of Auditors at its meeting of 5 April 1984, 
Done at Luxembourg, 9 April 1984. 
For the Court of Auditors 
Pierre LELONG 
President 
OPINION No 4/83 
of the Court of Auditors of the European Communities on the second amendment to the 
proposal for a Council Regulation amending Regulation (EEC, Euratom, ECSC) No 
2891/77 implementing the Decision of 21 April 1970 on the replacement of financial 
contributions from Member States by the Communities' own resources 
(84/C 163/13) 
THE COURT OF AUDITORS OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Coal and Steel Community, and in 
particular Article 78 nono thereof, Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Article 209 thereof, 
Having regard to the Treaty establishing the 
European Atomic Energy Community, and in 
particular Article 183 thereof,