Opinion of the Economic and Social Committee on the 'Proposal for a Council Regulation (EC, ECSC, Euratom) amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities'
Date: 1998-07-01
Institutions: European Economic and Social Committee
Subjects: Economic and Monetary Union, financial management, financial regulation, general budget (EU), operation of the Institutions

C 284/54

EN

Official Journal of the European Communities

14.9.98

Opinion of the Economic and Social Committee on the ‘Proposal for a Council Regulation
(EC, ECSC, Euratom) amending the Financial Regulation of 21 December 1977 applicable to
the general budget of the European Communities’ (1)

(98/C 284/10)

On 26 May 1998, the Council decided to consult the Economic and Social Committee, under
Article 198 of the Treaty establishing the European Community, on the above-mentioned
proposal.

The Section for Economic, Financial and Monetary Questions, which was responsible for the
preparatory work, adopted its Opinion on 9 June 1998. The rapporteur working without a
study group was Mr Donovan.

At its 356th plenary session on 1 and 2 July 1998 (meeting of 1 July) the Economic and Social
Committee adopted the following Opinion by 139 votes for, none against and with
6 abstentions.

The basis for the proposal for specific revisions to

1.
the Financial Regulation is the following:

3. ESC comments

— first, the start of the third phase of economic and
monetary union and the introduction of the euro,
replacing both the ecu and national currencies of the
11 participating Member States as the common
currency of these countries;

— second, the Treaty of Amsterdam repealed Protocol
No 16 of the Maastricht Treaty on the Economic
and Social Committee and the Committee of the
Regions, which provides for a common organi-
zational structure for both of the two bodies.

2. The Commission’s proposals

2.1.
The Commission proposes to replace any refer-
ence to the ecu in the Financial Regulation by a reference
to the euro and to provide for the rights and obligations
of the Union to be expressed and executed in euros and
to adapt all references to national currencies as those of
the Member States which are not participating in the
euro. Since certain measures (the non-interest-bearing
deposit, fine) foreseen under the ‘stability and growth
pact’ will have to pass through the budget, the Com-
mission proposes an amendment to describe an exact
technique of accounting for these sums.

2.2.
In regard to the repeal of the Protocol No 16 of
the Treaty of Maastricht the Commission proposes to
delete all references to the common organisational
structure of the Economic an Social Committee and the
Committee of Regions and to create a budget section
for each of these two bodies.

(1) OJ C 149, 15.5.1998, p. 21.

3.1.
The ESC is pleased by the fact that the euro will
be different from the ecu in that it is not only a simple
description in the sense of a basket of currencies but
also a currency in its own right. The proposal of the
Commission for specific amendments is a necessary
technical adaptation of the Union’s Financial Regulation
to stage three of the economic and monetary union.

3.2.
The Commission’s proposals also take into
account the specific problems related to the fact that
not all Member States will participate in the euro from
the start. A new Article 35 requires the Commission
every three months to send each Member State which
has not adopted the euro a statement indicating the
transfers effected in that Member State’s national
currency into another currency and vice versa.

3.3.
The proposed amendments related to deposits
and fines as provided for in the ‘stability and growth’
pact will ensure the necessary transparency in the
financial management of the European Union. The
amounts involved in a deposit or fine will only be taken
into account when there is no further possibility of
appeal and when the deposit or fine becomes definitive.

3.4.
The decision of the Council to abolish Protocol 16
of the Maastricht Treaty which stipulated that ‘the
Economic and Social Committee and the Committee
of the Regions shall have a common organisational
structure’ leads obviously to the liquidation of Section
VI, Part C and the redistribution of the budgetary means
presented until now under the heading of this part over
the specific budgets for ESC and COR. Since the budget
already identifies the origins of the posts of the joint
organisational structure (2)
the division of posts is

(2) OJ L 44, 16.2.1998, p. 158, establishment plan, Section VI
Part C: joint organisational structure footnote 4: ‘Of which
408 permanent posts belong to the Economic and Social
Committee and 108 to the Committee of Regions’.

14.9.98

EN

Official Journal of the European Communities

C 284/55

relatively simple. The split of appropriations for expen-
diture not related to posts could be based on the results
of the analytical bookkeeping system that has been
developed as foreseen by article 22 of the financial
regulations.

3.5.
The ESC welcomes the Commission’s proposal
of creating separate budget sections for both consultative
bodies. This presentation will create an independent
budgetary framework for each committee within which

either committee can define its own priorities and may
show its autonomous responsibility.

3.6.
Given its past experience and in particular the
economies of scale achieved by the joint organisational
structure, the ESC realises and accepts that from an
economic point it is useful to continue co-operation, on
a voluntary basis, on the production chain and, should
the committees be housed near to each other, on
premises-related functions.

Brussels, 1 July 1998.

The President

of the Economic and Social Committee

Tom JENKINS

Opinion of the Economic and Social Committee on:

— the ‘Proposal for a Council Regulation (EC) amending Regulation (EEC) No 1766/92 on
the common organization of the market in cereals and repealing Regulation (EEC)
No 2731/75 fixing standard qualities for common wheat, rye, barley, maize and durum
wheat’, and

— the ‘Proposal for a Council Regulation (EC) establishing a support system for producers

of certain arable crops’ (1)

(98/C 284/11)

On 4 June 1998 the Council decided to consult the Economic and Social Committee, in
accordance with Articles 43 and 198 of the Treaty establishing the European Community, on
the above-mentioned proposals.

The Section for Agriculture and Fisheries, which was responsible for preparing the Committee’s
work on the matter, adopted its opinion on 16 June 1998. The rapporteur was Mr Bastian.

At its 356th plenary session of 1 and 2 July 1998 (meeting of 1 July) the Economic and Social
Committee adopted the following opinion by 98 votes to 33 with 15 abstentions.

1. General comments

1.1.
The Committee would underline the strategic
nature and importance of arable crops (cereals, oilseeds
and protein crops) for the European Union. The figures
given in Appendix I are a clear illustration of this.

The Committee considers that the Union must
1.2.
press on with efforts to win back its internal market in
this sector (particularly for the purposes of animal feed);
it must also build up its food reserves and devise a

(1) OJ C 170, 4.6.1998, p. 1-4.

strategic plan so that it can take advantage of the
opportunities presented by international markets, viz.:

— world population growth,

— an increase in purchasing power (including purchas-

ing power in the developing countries),

— an increase in world demand for meat (particularly
in south-east Asia), which should trigger a rise in
demand for cereals, oilseeds and protein crops.

1.2.1.
The Committee is nevertheless well aware of
the constraints placed upon Europe’s arable crop sector,
and particularly the Community’s cereal exports, by the