Amended 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: 1998-11-20
Institutions: European Commission
Subjects: Economic and Monetary Union, financial management, financial regulation, general budget (EU), operation of the Institutions

C  396/18

EN

Official  Journal  of  the  European  Communities

19.12.98

Amended  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(cid:216)(˛)

(98/C  396/09)

COM(1998)  676  final  -  98/0130(CNS)

(Submitted  by  the  Commission  pursuant  to  Article  189a(2)  of  the  EC  Treaty  and  the  second
paragraph  of  Article  119  of  the  Euratom  Treaty  on  20  November  1998)

(˛)(cid:217)OJ  C(cid:216)149,  15.5.1998,  p.  21.

In  the  light  of  the  opinions  of  Parliament  and  the  Court  of  Auditors,  the  Commission  is
presenting  its  proposal  as  follows:

INITIAL  PROPOSAL

AMENDED  PROPOSAL

THE  COUNCIL  OF  THE  EUROPEAN  UNION,

Having  regard  to  the  Treaty  establishing  the  European
Coal  and  Steel  Community,  and  in  particular  Article  78h
thereof,

Having  regard  to  the  Treaty  establishing  the  European
Community,  and  in  particular  Article  209  thereof,

Having  regard  to  the  Treaty  establishing  the  European
Atomic  Energy  Community,  and  in  particular  Article  183
thereof,

Having  regard  to  the  proposal  from  the  Commission,

Having  regard  to  the  opinion  of  the  Court  of  Auditors,

Having  regard  to  the  opinion  of  Parliament,

Having  regard  to  the  opinion  of  the  Economic  and
Social  Committee,

Having  regard  to  the  opinion  of  the  Committee  of  the
Regions,

Whereas  the  conciliation  provided  for  by  the  Joint
Declaration  of  4  March  1975  by  Parliament,  the  Council
and  the  Commission  has  taken  place  in  a  conciliation
committee;

19.12.98

EN

Official  Journal  of  the  European  Communities

C  396/19

INITIAL  PROPOSAL

AMENDED  PROPOSAL

Whereas  it  is  necessary  to  amend  the  Financial  Regu(cid:220)
lation  of  21  December  1977  applicable  to  the  general
budget  of  the  European  Communities(cid:216)(˛),  hereinafter
"Financial  Regulation’,  in  order  to  take  account  of  the
entry 
into  force  of  the  Treaty  of  Amsterdam  of  2
October  1997,  the  implementation  of  the  third  phase  of
economic  and  monetary  union  and  the  adoption  of
Council  Regulation  (EC)  No  1467/97  of  7  July  1997  on
speeding  up  and  clarifying  the  implementation  of  the
excessive  deficit  procedure(cid:216)(ˇ);

Whereas  the  Treaty  of  Amsterdam  provides  for  the
repeal  of  Protocol  No  16  of  the  Treaty  on  European
Union  on  the  common  organisational  structure  for  the
Economic  and  Social  Committee  and  the  Committee  of
the  Regions;

Whereas  the  Treaty  of  Amsterdam  provides  for  the
repeal  of  Protocol  No  16  of  the  Treaty  on  European
Union  on  the  common  organisational  structure  for  the
Economic  and  Social  Committee  and  the  Committee  of
the  Regions;  whereas  specific  sections  of  the  budget
should  therefore  be  created  for  the  Economic  and  Social
Committee  and  the  Committee  of  the  Regions  and  also
for  the  Ombudsman;

Whereas, 
in  accordance  with  Regulation  (EC)  No
1103/97  of  17  June  1997(cid:216)(—)  on  certain  provisions
relating  to  the  introduction  of  the  euro,  all  references  to
the  ecu  are  replaced  by  references  to  the  euro  at  the  rate
of  one  euro  to  one  ecu;  whereas,  in  accordance  with
Regulation  .(cid:216).(cid:216)./97  of  .(cid:216).(cid:216).  1998  on  the  introduction  of  the
euro,  the  euro  will  be  the  currency  of  the  participating
Member  States  starting  from  1  January  1999;

Whereas, 
in  accordance  with  Regulation  (EC)  No
1103/97  of  17  June  1997(cid:216)(—)  on  certain  provisions
relating  to  the  introduction  of  the  euro,  all  references  to
the  ecu  are  replaced  by  references  to  the  euro  at  the  rate
of  one  euro  to  one  ecu;  whereas,  in  accordance  with
Council  Regulation  (EC)  No  974/98  of  3  May  1998  on
the  introduction  of  the  euro  ((cid:209)),  the  euro  will  be  the
currency  of  the  participating  Member  States  starting
from  1  January  1999;

Whereas,  during  the  transition  period  (from  1.1.1999  to
31.12.2001),  any  reference  in  this  regulation  to  the  euro
must,  as  a  general  rule,  also  be  read  as  a  reference  to  the
euro  as  a  currency  unit  as  specified 
in  the  second
sentence  of  Article  2  of  Regulation  .(cid:216).(cid:216)./97  of  .(cid:216).(cid:216).  1998;

Whereas,  during  the  transition  period  (from  1.1.1999  to
31.12.2001),  any  reference  in  this  regulation  to  the  euro
must,  as  a  general  rule,  also  be  read  as  a  reference  to  the
euro  as  a  currency  unit  as  specified 
in  the  second
sentence  of  Article  2  of  Council  Regulation  (EC)  No
947/98  of  3  May  1998;

Whereas,  following  the  adoption  by  the  Council  of  the
abovementioned  Regulation  No  1467/97,  a  mechanism
must  be  provided  for  ensuring  that  the  revenue  from
payment  by  the  Member  States  of  fines  imposed  by  the
Council  is  allocated  for  distribution  of  the  amounts  in
question  between  the  Member  States  participating  in  the
system  which  do  not  have  an  excessive  deficit,  while
guaranteeing  that  the  requirements  of  budgetary  trans(cid:220)
parency  in  those  operations  are  met,

(˛)(cid:217)OJ  L  356,  31.12.1977,  p.  1.  Regulation  last  amended  by
Council  Regulation  2444/97  (EC)  of  22  September  1997
(OJ  L  340,  11.12.1997,  p.  1).

(—)(cid:217)OJ  L  162,  19.6.1997,  p.  1.
((cid:209))(cid:217)OJ  L  139,  11.5.1998,  p.  1.

(ˇ)(cid:217)OJ  L  209,  2.8.1997,  p.  6.
(—)(cid:217)OJ  L  162,  19.6.1997,  p.  1.

C  396/20

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Official  Journal  of  the  European  Communities

19.12.98

INITIAL  PROPOSAL

AMENDED  PROPOSAL

HAS  ADOPTED  THIS  REGULATION:

Article  1

The  Financial  Regulation  is  amended  as  follows:

1.(cid:217)After  the  first  indent  in  the  second  subparagraph  of
Article  4(2),  the  following  new  indent  is  inserted:

"-(cid:217)interest  on  the  deposits  and  fines  referred  to  in
Section  4  of  Council  Regulation  (EC)  No
1467/97(cid:216)(˛),  in  accordance  with  Article  126a’.

1a.(cid:217)In  Article  7(3),  "the  Ombudsman’  is  inserted  after

"the  Committee  of  the  Regions’.

2.(cid:217)Article  11  is  replaced  by  the  following:

2.(cid:217)Article  11  is  replaced  by  the  following:

"Article  11

"Article  11

1.(cid:218)(cid:217)The  budget  shall  be  drawn  up  in  euros.

1.(cid:218)(cid:217)The  budget  shall  be  drawn  up  in  euros.

2.(cid:218)(cid:217)The  euro  shall  be  the  single  currency  as  defined
in  Regulation  (EC)  No  .(cid:216).(cid:216)./97  of  .(cid:216).(cid:216).  1998  on  the
introduction  of  the  euro(cid:216)(ˇ).

2.(cid:218)(cid:217)The  euro  shall  be  the  single  currency  as  defined
in  Council  Regulation  (EC)  No  974/98  of  3  May
1998  on  the  introduction  of  the  euro(cid:216)(*).

(*)(cid:217)OJ  L  139,  11.5.1998,  p.  1.

to 

prejudice 

3.(cid:218)(cid:217)Without 
provisions
deriving  from  the  application  of  sector(cid:220)specific  rules
governing  either  revenue  or  expenditure,  the  rights
and  obligations  of 
shall  be
expressed  and  executed  in  euros.

the  Communities 

specific 

to 

prejudice 

3.(cid:218)(cid:217)Without 
provisions
deriving  from  the  application  of  sector(cid:220)specific  rules
governing  either  revenue  or  expenditure,  the  rights
and  obligations  of 
shall  be
expressed  and  executed  in  euros.

the  Communities 

specific 

the 

and 

euro 

the
4.(cid:218)(cid:217)Conversions  between 
currencies  of  the  Member  States  which  have  not
adopted  the  euro  shall  be  made  at  the  exchange  rate
applicable  on  the  day  of  the  operation;  derogations
from  this  principle  may  be  permitted  in  exceptional
cases,  in  accordance  with  the  implementing  rules
referred  to  in  Article  139.’

(˛)(cid:217)OJ  L  209,  2.8.1997,  p.  6.
(ˇ)(cid:217)[OJ  C  236,  2.8.1997,  p.  7.(cid:129)

the 

and 

euro 

the
4.(cid:218)(cid:217)Conversions  between 
currencies  of  the  Member  States  which  have  not
adopted  the  euro  shall  be  made  at  the  exchange  rate
applicable  on  the  day  of  the  operation;  derogations
from  this  principle  may  be  permitted  in  exceptional
cases,  in  accordance  with  the  implementing  rules
referred  to  in  Article  139.

19.12.98

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Official  Journal  of  the  European  Communities

C  396/21

INITIAL  PROPOSAL

AMENDED  PROPOSAL

5.(cid:218)(cid:217)The  daily  euro  exchange 
the
currencies  not  participating  in  the  single  currency
shall  be  available  each  day  and  shall  be  published  in
the  Official  Journal  of  the  European  Communities.’

rates 

for 

2a.(cid:217)Article  12  is  amended  as  follows:

a)(cid:217)the  first  paragraph  is  replaced  by  the  following:

and 

"The  European  Parliament,  the  Council,  the
Court  of  Justice,  the  Court  of  Auditors,  the
Economic 
the
Committee  of  the  Regions  and  the  Ombudsman
shall,  each  year  before  1  July,  draw  up  an
estimate  of  their  revenue  and  expenditure  for  the
following  year.’

Social  Committee, 

b) The  second  paragraph  is  deleted.

2b. In  Article  14  the  first  paragraph  is  replaced  by  the

following:

"The  Commission  may,  on  its  own  initiative  or  if
requested  by  the  European  Parliament,  the  Council,
the  Court  of  Justice,  the  Court  of  Auditors,  the
Economic  and  Social  Committee,  the  Committee  of
the  Regions  or  the  Ombudsman,  each  in  respect  of
its  own  section,  present  to  the  Council  a  letter  of
amendment  to  the  preliminary  draft  budget  neces(cid:220)
sitated  by  the  receipt  of  new  information  which  was
not  available  at  the  time  the  preliminary  draft  was
established.’

2c. Article  15(4)  is  replaced  by  the  following:

for 
from 
the  Court  of  Justice, 

supplementary  and/or  amending
"Requests 
the
the  European  Parliament, 
budgets 
Council, 
the  Court  of
Auditors,  the  Economic  and  Social  Committee,  the
Committee  of  the  Regions  or  the  Ombudsman  shall
be  forwarded  by  the  Commission  to  the  budgetary
authority.  The  Commission  may  attach  a  dissenting
opinion.’

3.(cid:217)Article  19(1)  is  amended  as  follows:

3.(cid:217)Article  19(1)  is  amended  as  follows:

a)(cid:217)in  the  first  subparagraph,  the  second  indent  is

a)(cid:217)in  the  first  subparagraph,  the  second  indent  is

replaced  by  the  following:

replaced  by  the  following:

"-(cid:217)separate  sections  subdivided  into  statements
of  revenue  and  expenditure  of  the  European
Parliament,  the  Council,  the  Commission,  the
Court  of  Justice,  the  Court  of  Auditors,  the
Economic  and  Social  Committee  and  the
Committee  of  the  Regions.’

"-(cid:217)separate  sections  subdivided  into  statements
of  revenue  and  expenditure  of  the  European
Parliament,  the  Council,  the  Commission,  the
Court  of  Justice,  the  Court  of  Auditors,  the
the
Economic 
Committee 
the
Ombudsman.’

Social  Committee, 
and 
the  Regions 

and 
of 

C  396/22

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19.12.98

INITIAL  PROPOSAL

AMENDED  PROPOSAL

b) the  third  subparagraph  is  deleted.

b) the  second  and  third  subparagraphs  are  deleted.

4.(cid:217)In  paragraph  5  of  Article  19,  "ECU’  is  replaced  by

"EUR’.

5.(cid:217)In  the  first  indent  of  Article  20(3),  "the  staff  of  the
Economic  and  Social  Committee,  the  Committee  of
the  Regions  and 
their  common  organisational
structure  shall  be  shown  separately  in  their  specific
section’  is  deleted.

shall 

shown 

5.(cid:217)In  the  first  indent  of  Article  20(3),  "The  staff  of  the
Ombudsman 
in
be 
Parliament’s  establishment  plan.  The  staff  of  the
Economic  and  Social  Committee,  the  Committee  of
their  common  organisational
the  Regions  and 
structure  shall  be  shown  separately  in  their  specific
section’  is  deleted.

separately 

6.(cid:217)Article  22  is  amended  as  follows:

6.(cid:217)Article  22  is  amended  as  follows:

a)(cid:217)in  paragraph  2,  the  second  paragraph  is  deleted;

a)(cid:217)in  paragraph  2,  the  first  paragraph  is  replaced  by

the  following:

"The  Commission  shall  confer  upon  the  European
Parliament,  the  Council,  the  Court  of  Justice,  the
Court  of  Auditors,  the  Economic  and  Social
Committee,  the  Committee  of  the  Regions  and
the  Ombudsman  the  requisite  powers  for  the
implementation  of  the  sections  of  the  budget
relating  to  them.’

The  second  paragraph  is  deleted.

b) in  paragraph  5, 

the  second  subparagraph 

is

deleted.

7.(cid:217)In  the  first  paragraph  of  Article  24,  "The  Economic
and  Social  Committee  and  the  Committee  of  the
financial  controller  by
Regions  shall  appoint  a 
common  agreement’  is  deleted.

8.(cid:217)In 

the 

second  paragraph  of  Article  25, 

"The
Economic  and  Social  Committee  and  the  Committee
of  the  Regions  shall  appoint  an  accounting  officer  by
common  agreement’  is  deleted.

9.(cid:217)In  the  second  subparagraph  of  Article  26(2),  "-  the
two  latter  each  with  regard  to  the  part  which  relates
to  it  and  by  common  agreement  with  regard  to  the
common  organisational  structure  -’  is  deleted.

9.(cid:217)Article  26  is  amended  as  follows:

a)(cid:217)the  second  subparagraph  of  paragraph  2 

is

replaced  by  the  following:

"The  Court  of  Justice,  the  Court  of  Auditors,  the
Economic  and  Social  Committee,  the  Committee
of  the  Regions  and  the  Ombudsman  may,  within
their  own  section  of  the  budget,  transfer  appro(cid:220)
priations  from  one  article  to  another  within  each
chapter.  They 
the  budgetary
authority  and  the  Commission  three  weeks  before
making  such  transfers.’

inform 

shall 

19.12.98

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Official  Journal  of  the  European  Communities

C  396/23

INITIAL  PROPOSAL

AMENDED  PROPOSAL

b) the  third  subparagraph  of  paragraph  4  is  replaced

by  the  following:

"Proposals  made  by  the  other  institutions,  the
Economic  and  Social  Committee,  the  Committee
of  the  Regions  and  the  Ombudsman  for  transfers
from  one  chapter  to  another  shall  be  auto(cid:220)
matically  forwarded  to  the  budgetary  authority;
the  Commission  may  attach  its  own  opinion  to
such  proposals.’

10.(cid:217)In 

the 

first  subparagraph  of  Article  28a,  after
"imposed  by  the  Commission’,  the  words  "or  the
Council’  are  added.

11.(cid:217)In  Article  31,  "ecus’  is  replaced  by  "euros’.

12.(cid:217)In  Article  33(5),  "ecu’  is  replaced  by  "euro’.

13.(cid:217)Article  35  is  replaced  by  the  following:

13.(cid:217)Article  35  is  replaced  by  the  following:

"Article  35

"Article  35

The  Commission  shall,  every  three  months,  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.’

The  Commission  shall,  every  three  months,  send  the
Member  States  a  statement  of  the  transfers  effected
between  their  currencies.’

14.(cid:217)In  the  third  indent  of  Article  44,  "ecus’  is  replaced  by

"euros’.

15.(cid:217)In  Article  69,  "ecus’  is  replaced  by  "euros’.

16.(cid:217)In  Article  111(2)  and  (3), 

"ecus’ 

is  replaced  by

"euros’.

17.(cid:217)Under  Title  XI,  the  following  new  section  Ia  is

17.(cid:217)After  Title  XI,  the  following  new  Title  XIa 

is

inserted:

inserted:

C  396/24

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19.12.98

INITIAL  PROPOSAL

AMENDED  PROPOSAL

"SECTION  Ia

"TITLE  XIa

PROVISIONS  APPLICABLE  TO  THE  SANCTIONS
REFERRED  TO  IN  SECTION  4  OF  COUNCIL  REGU(cid:220)
LATION  (EC)  No  1467/97(cid:216)(*)

SPECIAL  PROVISIONS  APPLICABLE  TO  THE
SANCTIONS  REFERRED  TO  IN  SECTION  4  OF
COUNCIL  REGULATION  (EC)  No  1467/97(cid:216)(*)

Article  126a

Article  132a

The  budgetary  structure  for  the  proceeds  of  the
sanctions  referred  to  in  Section  4  of  Council  Regu(cid:220)
lation  (EC)  No  1467/97  is  as  follows:

The  budgetary  structure  for  the  proceeds  of  the
sanctions  referred  to  in  Section  4  of  Council  Regu(cid:220)
lation  (EC)  No  1467/97  is  as  follows:

a)(cid:217)the  statement  of  revenue  shall  carry  a  budget
heading  to  receive  the  amounts  of  each  sanction
imposed  by  the  Council  on  a  Member  State  in
accordance  with  Section  4  of  Council  Regulation
(EC)  No  1467/97;

b) in  parallel,  and  without  prejudice  to  Article  28a,
commitment  and  payment  appropriations  shall  be
entered  in  a  heading  in  the  statement  of  expen(cid:220)
diture  to  match  these  amounts  in  the  statement  of
revenue.  These  appropriations  shall  cover  the
repayments  provided  for  in  Article  16  of  Council
Regulation  (EC)  No  1467/97.

a)(cid:217)the  statement  of  revenue  shall  carry  a  budget
heading  to  receive  the  amounts  of  the  fines  and
the  interest  on  the  deposits  and  the  fines  imposed
by  the  Council  on  a  Member  State  in  accordance
with  Section  4  of  Council  Regulation  (EC)  No
1467/97;

b) in  parallel,  and  without  prejudice  to  Article  28a,
commitment  and  payment  appropriations  shall  be
entered  in  a  heading  in  the  statement  of  expen(cid:220)
diture  to  match  these  amounts  in  the  statement  of
revenue.  These  appropriations  shall  cover  the
repayments  provided  for  in  Article  16  of  Council
Regulation  (EC)  No  1467/97.

(*)(cid:217)OJ  L  209,  2.8.1997,  p.  6.’

(*)(cid:217)OJ  L  209,  2.8.1997,  p.  6.’

Article  2

Article  2

This  Regulation  shall  enter  into  force  on  1  January  1999.

This  Regulation  shall  enter  into  force  on  1  January  1999.

The  provisions  relating  to  Articles  7,  12,  14,  15,  19(1),
20,  22,  24,  25  and  26  shall  enter  into  force  on  the  first
day  after 
the  Treaty  of
Amsterdam.

the  entry 

force  of 

into 

This  Regulation  shall  be  binding 
directly  applicable  in  all  Member  States.

in 

its  entirety  and