21.12.  77 Official  Journal  of the  European  Communities No C 307/5 
5. Applications  for reimbursement  shall  relate  to expenditure  incurred  by the  Member  State 
concerned  in the course  of a calendar  year  and  shall  be forwarded  to the Commission  before 
1 July  of the following  year. 
After  consulting  the EAGGF  Committee  on the financial  aspects,  the Commission  shall  take 
decisions  on these  applications,  together  or separately. 
6. The  Member  States  shall  furnish  the Commission  with  all information  which  it may  request 
on the application  of this  Decision. 
If the Commission  considers  that  the facilities  for which  Community  financial  aid was  granted 
under  this  Decision  are  not  being  used  for  the  purposes  intended,  the  Member  State 
concerned  shall  be so informed.  The  latter  shall  then  initiate  an administrative  inquiry  in 
which  officials  of the Commission  may  participate,  and  shall  inform  the Commission  of the 
progress  and  the findings  of the inquiry. 
The Commission  may  make  inspections  to verify  application  of this  Decision  by the Member 
States  concerned.  The  latter  shall  assist  the officials  appointed  by the Commission  for this 
purpose. 
7. Each  year  the Commission  shall  present  to the  Council  and  to the European  Parliament  a 
report  based  on information  supplied  by Denmark  and  Ireland  on the  measures  taken  in 
respect  of the  maritime  inspection  and  surveillance  of the  fishing  zones  off the  coasts  of 
Greenland  and  Ireland. 
Proposal  for a Council  Regulation  amending  Regulation  (EEC)  No 1192/69  on common 
rules  for the normalization  of the  accounts  of railway  undertakings 
(Submitted  by  the Commission  to  the Council  on  7 December  1977) 
THE  COUNCIL  OF THE  EUROPEAN  COMMUNITIES, 
Having  regard  to the Treaty  establishing  the European 
Economic  Community,  and  in particular  Articles  75 
and 94 thereof, 
Having  regard  to Council  Decision  65/271/EEC  of 13 
May  1965  on the  harmonization  of certain  provisions 
affecting  competition  in transport  by rail,  road  and 
inland  waterway  (1), 
Having  regard  to Council  Regulation  (EEC)  No 
1192/69  of 26 June  1969  on common  rules  for  the 
normalization  of railway  undertakings  (2), and  in par-
ticular  Articles  3 (2),  4 (4)  and  paragraph  B (4) of 
Annex  III, 
Having  regard  to the proposal  from  the Commission, 
(!) OJ No 88, 24. 5. 1965,  p. 1500/65. 
(=) OJ No L 156,  28. 6. 1969,  p. 8. Having  regard  to the opinion  of the  European  Parlia-
ment, 
Having  regard  to the  opinion  of the  Economic  and 
Social  Committee, 
Whereas  one  of the  objectives  of the  common  trans-
port  policy  is to eliminate  disparities  which  arise  by 
reason  of the  imposition  of financial  burdens  on,  or 
the grant  of benefits  to, railway  undertakings  by pub-
lic authorities,  and  which  are  consequently  liable  to 
cause  substantial  distortion  in the  conditions  of 
competition; 
Whereas  a first  step  in this  field  has  been  realized  by 
the adoption  of Regulation  (EEC)  No  1192/69; 
Whereas  Article  3 (2)  of Council  Regulation  (EEC) 
No 1192169  provides  for  its scope  to be extended  to 
cover  railway  undertakings  other  than  the  major 
national  undertakings  listed  in  paragraph  1,  as 
amended  by Chapter  IV,  Transport,  paragraph  2, of 
Annex  I to the  Act  concerning  the  Conditions  of 
No C 307/6 Official  Journal  of the  European  Communities 21.12.  77 
Accession  and  the  Adjustments  to the  Treaties;  and 
whereas  at the  present  stage  of integration  of the 
transport  market  it is worthwhile  extending  the scope 
of that  Regulation  only  to cover  railway  undertakings 
which  participate  substantially  in international  trans-
port;  and  whereas  it is the  responsibility  of those 
undertakings,  under  a procedure  to be laid  down  by 
the governments,  to show  that  they  meet  the  afore-
mentioned  conditions; 
Whereas  the  classes  of financial  burdens  and  benefits 
listed  in Article  4 (2) of Regulation  (EEC)  No 1192/69 
should  have  been  abolished  by 1 January  1971  at the 
latest;  whereas  the opportunity  should  nevertheless  be 
given  to Member  States,  where  exceptional  economic 
and social  circumstances  so require,  to impose  on the 
railway  undertakings  certain  of the  measures  covered 
by these  classes;  and  whereas  it will  therefore  be 
necessary  to make  compensation  in respect  of such 
measures; 
Whereas,  in respect  of the classes  of financial  burdens 
and benefits  listed  in Article  4 (4)  of Regulation 
(EEC)  No  1192/69,  the  Council  is to adopt  a final 
settlement  by the  time  that  measures  are  adopted  for 
the implementation  of Article  8 of Decision  65/271/ 
EEC;  and  whereas  the  Council  adopted  such 
measures  by its Decision  75/327/EEC  of 20 May  1975 
on the improvement  of the situation  of railway  under-
takings  and  the  harmonization  of rules  governing 
financial  relations  between  such  undertakings  and 
States  (i); whereas  certain  of these  categories  of bur-
dens  and  benefits  are  no longer  justified  and  should 
therefore  be abolished;  whereas  others  should  be 
made  subject  to an examination  under  the  procedures 
of consultation  between  Member  States  and  the  rail-
way undertakings  provided  for under  Article  4 of De-
cision  75/327/EEC  and  where  appropriate  should  be 
the subject  of adequate  compensation; 
Whereas  paragraph  B (4)  of Annex  III to Council 
Regulation  (EEC)  No  1192/69  provides  that  the 
Commission  shall,  by 31 December  1971,  submit  a 
report  on  the  estimated  amount  of compensation 
which,  in application  of the  principles  adopted  in the 
said Annex,  each  Member  State  intends  to pay  to its 
railway  undertakings;  and  whereas,  on the  basis  of 
that report  and  by  not  later  than  the  time  when 
measures  are  adopted  for  the  implementation  of 
Article  8 of Decision  65/271/EEC,  the  Council  shall 
decide  what  action  to take;  and  whereas  the Commis-
sion transmitted  its report  to the Council  on 25 Octo-
ber 1972  and  the  measures  for the  implementation  of 
Article  8 of the  Decision  were  adopted  by the  Coun-
cil in its Decision  75/327/EEC;  and  whereas  it is 
therefore  desirable  to arrive  at a closer  harmonization 
of the  principles  of calculation  concerned, 
H OJ  No L 152,  12. 6. 1975,  p. 3. HAS  ADOPTED  THIS  REGULATION: 
Article  1 
Paragraph  2 of Article  3 of Council  Regulation  (EEC) 
No 1192/69  is amended  to read  as follows: 
'2. This  Regulation  shall  also  apply  to railway 
undertakings  other  than  those  listed  in paragraph 
1 to the  extent  that,  under  a procedure  fixed  by 
the State,  it can  be shown  that  these  undertakings 
bear  financial  burdens  covered  by  one  of the 
classes  listed  in Article  4 and  that  international 
transport  constitutes  a substantial  part  of their  ac-
tivities.' 
Article  2 
Paragraph  2 of Article  4 of Council  Regulation  (EEC) 
No 11,92/6.9  of 26 June  1969  is amended  to read  as 
follows: 
'2. The  following  classes  of burden  or benefit, 
which  may  however  be  imposed  on  railway 
undertakings  only  where  exceptional  economic  and 
social  circumstances  so require,  shall  be normal-
ized within  the meaning  of this  Regulation: 
(a) the  obligation  upon  railway  undertakings 
alone  to recruit  staff  surplus  to their  require-
ments  (Class  V); 
(b) backdated  increases  in wages  and  salaries  im-
posed  by the  government  of a Member  State, 
except  where  such  increases  are  made  for  the 
sole purpose  of bringing  the  wages  and  salar-
ies paid  by  railway  undertakings  into  line 
with  the  wages  and  salaries  paid  elsewhere  in 
the transport  sector  (Class  VI); 
(c) delay  imposed  by the  competent  authorities 
with  regard  to renewals  and  maintenance 
(Class  VII)/ 
Article  3 
Paragraph  4 of Article  4 of Regulation  (EEC)  No 
1192/69  is hereby  amended  to read  as follows: 
'4. The  following  classes  of financial  burden  or 
benefit  shall  be the subject  of normalization  of ac-
counts  within  the  meaning  of this  Regulation  if it 
is decided  to maintain  them  after  examination 
tinder  the  consultation  and  cooperation  proce-
dures  laid  down  for  the  establishment  of business 
plans  and  financial  programmes  in Articles  4(1) 
and 13 respectively  of Council  Decision  75/327/ 
21. 12. 77 Official  Journal  of the  European  Communities No C 307/7 
EEC  of 20 May  1975  on the  improvement  of the 
situation  of railway  undertakings  and  the  har-
monization  of rules  governing  financial  relations 
between  such  undertakings  and  States  (*): 
(a) the  obligation  to retain  staff  surplus  to the re-
quirements  of the undertaking  (Class  IX); 
(b) measures  benefiting  staff,  in recognition  of 
certain  services  rendered  to their  country,  im-
posed  on railway  undertakings  by the  State 
on terms  different  from  those  applicable  to 
other  transport  undertakings  (Class  X); 
(c) allowances  payable  to staff  imposed  on rail-
way undertakings  and  not  on other  transport 
undertakings  (Class  XI); 
(d) expenditure  of a social  character  incurred  by 
railway  undertakings,  in respect  in particular 
of medical  treatment,  different  from  that 
which  they  would  bear  if they  had  to contri-
bute  on the  same  basis  as other  transport 
undertakings  (Class  XII); 
(e) financial  burdens  devolving  upon  railway 
undertakings  in consequence  of their  being  re-
quired  by  the  State  to keep  in operation 
works  or other  establishments  in circum-
stances  inconsistent  with  operation  on a com-
mercial  basis  (Class  XIII).' 
Article  4 
Annexes  XIV  and  XV  of Council  Regulation  (EEC) 
No 1192/69  are  hereby  repealed.  Annex  III of the 
same  Regulation  is hereby  replaced  by the following: 
'Annex  III 
Class  111:  Payments  in respect  of retirement  and 
pensions  borne  by railway  undertak-
ings on terms  different  from  those  ap-
plicable  to other  transport  undertak-
ings. 
A. Scope 
This  class  covers  cases  where,  pursuant  to 
some  provision  laid  down  by law,  regulation 
or administrative  action,  a railway  undertak-
ing is required  to make  payments  in respect  of 
retirement  and  other  pensions  for its staff  and 
other  persons  entitled  on terms  different  from 
those  applicable  to other  transport  undertak-
ings. 
n OJ  No L 152,  12. 6. 1975,  p. 3. The difference  in terms  resulting  in the differ-
ence  in payments  may  arise  by reason  of: 
1. the  fact  that  the  railways  must  pay  pen-
sions  as they  fall  due  directly  and  in full 
while  other  transport  undertakings  pay  to 
an appropriate  body  a contribution  propor-
tionate  to the  number  of their  active  staff 
and to the  level  of salaries  and  wages  of 
that staff;  or 
2. the  fact  that  railway  staff  receive  the bene-
fit of certain  special  provisions  to which 
other  modes  of transport  are  not  subject 
and which  result  in additional  burdens  on 
or in benefits  for railways. 
B. Principles  of calculation 
1. With  regard  to payments  covered  by A (1), 
compensation  shall  be equal  to the  differ-
ence  between  the  financial  burden  which 
the undertaking  bears  and  that  which  it 
would  bear  if, with  the  same  number  of 
persons  actively  employed  and  receiving 
the same  remuneration,  they  were  subject 
either  to the  scheme  under  the  general  law 
(general  social  security  scheme  or compul-
sory supplementary  schemes)  or  to the 
scheme  applicable  to other  modes  of trans-
port.  In cases  where  such  schemes  offer  no 
basis  for  comparison,  the  retirement  and 
pensions  scheme  of a representative  trans-
port undertaking  shall  be taken  as a basis. 
The financial  burden  borne  by the  railway 
undertaking  shall  be ascertained  directly 
from  its accounts.  , 
The financial  burden  which  the  undertak-
ing would  bear,  if, with  the  same  number 
of persons  actively  employed  and  receiving 
the same  remuneration,  it were  subject  to 
the scheme  taken  as a basis  of comparison, 
shall  be determined  by applying  the  pro-
visions  laid  down  by law,  regulation  or ad-
ministrative  action  governing  such  scheme. 
2. With  regard  to the payments  covered  by A 
(2), compensation  shall  be equal  to the 
difference  between: 
— the  financial  burden  which  the  under-
taking  bears  or would  bear  in order  to 
cover  the totality  of the payments  in re-
spect  of the  retirement  and  pensions 
scheme  to which  it is subject,  taking 
into account,  where  appropriate,  any 
direct  or indirect  benefits  which  the 
undertaking  enjoys  by comparison  with 
$ 
No C 307/8 Official  Journal  of the  European  Communities 21. 12. 77 
other  modes  of transport  by reason  of 
the application  of that  scheme,  and 
— the  financial  burden  which  would  result 
if the  scheme  taken  as a basis  of com-
parison  were  applied. 
To enable  the  Commission  to evaluate  the 
amount  of the  compensation  calculated  in 
accordance  with  the  principles  set  out  in 
paragraphs  1 and  2, the  Member  States shall  notify  the  Commission  of any  sums 
they  pay  into  independent  pension  funds 
from  which  the  staff  of the  railway  under-
takings  may  benefit.' 
Article  5 
This  Regulation  shall  be binding  in its entirety  and 
directly  applicable  in all Member  States.