A4-0040/95

Proposal for a Council Regulation (EC, Euratom) on protection of the Communities' financial interests (COM(94)0214 - C4-0155/94 - 94/0146(CNS))

The proposal was approved with the following amendments:

(Amendment 4)

Recital 2

>Original text>

Whereas more than half of Community expenditure is paid to final beneficiaries by the Member States;

>Text following EP vote>

Whereas more than half of Community expenditure is paid to final beneficiaries by the Member States; whereas the Member States pay the Communities the revenue they receive on its behalf;

(Amendment 5)

Recital 5

>Original text>

Whereas Community law already imposes administrative penalties in relation to the common agricultural policy; whereas such penalties should be extended to other areas;

>Text following EP vote>

Whereas Community law already imposes administrative penalties in relation to the common agricultural policy; whereas such penalties should be extended to all the other areas in which the Communities have financial interests, both revenue and expenditure;

(Amendment 6)

Recital 8a (new)

>Text following EP vote>

Whereas effective measures to combat activities detrimental to the Communities' financial interests are indispensable in order to prevent distortions of trade flows or competition which would disrupt the operation of the internal market;

(Amendment 8)

Article 1(1), introductory phrase

>Original text>

1. For the purposes of the protection of the Communities' financial interests, action shall be taken to counter:

>Text following EP vote>

1. For the purposes of the protection of the Communities' financial interests and protection of the conditions for operation of the internal market, action shall be taken to counter:

(Amendment 9)

Article 2(2), indent 4a (new)

>Text following EP vote>

- refusing of access, where obligatory, or in any way obstructing checks on documents or physical inspections provided for under Community law, with particular reference to the cases set out in Article 11(3).

(Amendment 10)

Article 3(2)

>Original text>

2. No rights or benefits shall be conferred by operations as referred to in paragraph 1.

>Text following EP vote>

2. No rights or benefits shall be conferred by operations as referred to in paragraph 1, which constitute fraud under the law.

(Amendment 11)

Article 7(1), first subparagraph

>Original text>

1. 'Community administrative penalties' means all enforcement measures provided by Community legislation to be taken in the event of conduct to which Article 5 applies which entail unfavourable financial or economic consequences for natural or legal persons to whom Article 8 applies.

>Text following EP vote>

1. 'Community administrative penalties' means all enforcement measures provided by Community legislation to be taken in the event of conduct to which Article 5 or Article 4(2), where appropriate, apply which entail unfavourable financial or economic consequences for natural or legal persons to whom Article 8 applies.

(Amendment 12)

Article 8, third and fourth indents

>Original text>

- legal persons where the irregularity is committed by a natural person acting on their behalf and exercising a decision-making power conferred by law or agency or in fact;

>Text following EP vote>

- legal persons where the irregularity or failure to fulfil the duty referred to in the second indent is committed by a natural person acting on their behalf and exercising a decision-making power conferred by law or agency or in fact;

>Original text>

- groups or associations of natural or legal persons where the irregularity is committed by a natural person acting on their behalf and exercising a decision-making power conferred by law or agency or in fact.

>Text following EP vote>

- groups or associations of natural or legal persons where the irregularity or failure to fulfil the duty referred to in the second indent is committed by a natural person acting on their behalf and exercising a decision-making power conferred by law or agency or in fact.

(Amendment 13)

Article 11(3), first subparagraph a and b (new)

>Text following EP vote>

On-the-spot checks and inspections may include, for example:

. books and business documents;

. data held on computer;

. systems and methods of production, packaging and dispatch;

. physical checks on the type and quantity of goods;

. the taking and checking of representative samples;

. progress made in projects and investments financed, use and destination of completed investments;

. budget and accounting documents of the public authorities;

. financial and technical execution of scientific and technological projects.

>Text following EP vote>

On-the-spot inspections by agents and experts duly authorized by the Commission may be carried out without warning, in conformity with the Financial Regulation applicable to the general budget of the European Communities.

(Amendment 14)

Article 11(4), second subparagraph (new)

>Text following EP vote>

The national and local authorities and bodies and offices dependent on them or connected with them have a similar duty regarding all types of data and information relating to operations connected with the implementation of Community policies. Such authorities shall not, however, be bound by this duty where the information in question has been legally classified 'secret¨.

(Amendment 15)

Article 11(5a) (new)

>Text following EP vote>

5a. By derogation from the provisions of Article 11(3), last subparagraph, the inspectors of the Commission and the Fraud Prevention Unit shall be obliged to report to the judicial authorities of the country in which they carry out their checks or inspections any crime which comes to their notice in the performance of their duties. The report stating the facts ascertained by the Commission's inspectors shall constitute evidence in the same way as that submitted by public officials of the country in which the check or inspection has been carried out.

Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation (EC, Euratom) on protection of the Communities' financial interests (COM(94)0214 - C4-0155/94 - 94/0146(CNS))

The European Parliament,

- having regard to the Commission proposal to the Council, COM(94)0214 - 94/0146(CNS) ((OJ C 216, 6.8.1994, p. 11.)),

- having been consulted by the Council pursuant to Article 235 of the EC Treaty and Article 203 of the Euratom Treaty (C4-0155/94),

- having regard to its resolution of 11 March 1994 on the independent power of investigation and inquiry which the Union may exercise for the purposes of legal protection of its financial interests ((OJ C 91, 28.3.1994, p. 334.)),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Civil Liberties and Internal Affairs (A4- 0040/95),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 189a(2) of the EC Treaty and Article 119, second paragraph of the Euratom Treaty;

3. Calls for the conciliation procedure to be opened should the Council intend to depart from the text approved by Parliament;

4. Formally asks the Commission to submit to it a proposal for an act regulating the liability of persons carrying out the procedure for implementing the budget;

5. Instructs its President to forward this opinion to the Council and Commission.