Council Regulation (EC, ECSC, Euratom) No 2779/98 of 17 December 1998 amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities
Date: 1998-12-17
Institutions: Council of the European Union
Subjects: commitment of expenditure, financial control, financial regulation, general budget (EU), management audit

23. 12. 98

EN

Official Journal of the European Communities

L 347/3

COUNCIL REGULATION (EC, ECSC, EURATOM) No 2779/98

of 17 December 1998

amending the Financial Regulation of 21 December 1977 applicable to the
general budget of the European Communities

THE COUNCIL OF THE EUROPEAN UNION,

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

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
Atomic Energy Community, and in particular Article 183
thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Parlia-
ment (2),

Having regard to the opinion of the Economic and Social
Committee (3),

to in the second sentence of Article 2 of Regulation (EC)
No 974/98;

Whereas, following 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 (8), a mechanism must be provided for ensuring
that the revenue from fines imposed on Member States by
the Council is allocated to the expenditure intended for
the distribution of such revenue between the Member
States participating in the euro which do not have an
the require-
excessive deficit, while guaranteeing that
ments of budgetary transparency in those operations are
met,

HAS ADOPTED THIS REGULATION:

Having regard to the opinion of the Court of Auditors (4),

Article 1

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 the European Parliament,
the Council and the Commission has taken place in a
conciliation committee;

Whereas it is appropriate to amend the Financial Regula-
tion of 21 December 1977 applicable to the general
the European Communities (5), hereinafter
budget of
referred to as the ‘Financial Regulation', in order to take
account of the start of the third phase of economic and
monetary union;

Whereas, in accordance with Council Regulation (EC) No
1103/97 of 17 June 1997 on certain provisions relating to
the introduction of the euro (6), all references to the ecu
are replaced by references to the euro at the rate of EUR 1
to ECU 1; whereas, in accordance with Council Regula-
tion (EC) No 974/98 of 3 May 1998 on the introduction
of the euro (7), the euro will be the currency of those
Member States which have adopted the single currency
within the meaning of the Treaty establishing the Euro-
pean Community;

Whereas, any reference in this Regulation to the euro
must be read as a reference to the currency unit referred

(1) OJ C 149, 15. 5. 1998, p. 21.
(2) OJ C 313, 12. 10. 1998, p. 34.
(3) OJ C 284, 14. 9. 1998, p. 54.
(4) Opinion delivered on 22 October 1998 (not yet published in

the Official Journal).

(5) OJ L 356, 31. 12. 1977, p. 1. Regulation as last amended by
Regulation (EC, ECSC, Euratom) No 2548/98 (OJ L 320, 28.
4. 1998, p. 1).

(6) OJ L 162, 19. 6. 1997, p. 1.
(7) OJ L 139, 11. 5. 1998, p. 1.

The Financial Regulation is hereby amended as follows:

1. The following indent shall be inserted after the first
indent in the second subparagraph of Article 4(2):

‘— interest on the deposits and fines referred to in
Section 4 of Regulation (EC) No 1467/97 (*), in
accordance with Article 132a.

(*) OJ L 209, 2.8.1997, p. 6 and corrigenda in OJ L
46, 17.2.1998, p. 20 and OJ L 128, 30.4.1998, p.
71'.

2. Article 11 shall be replaced by the following:

‘Article 11

1.

The budget shall be drawn up in euro.

2.
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 (*).

to

prejudice

3. Without
provisions
deriving from the application of sector-specific rules
governing either revenue or expenditure, the rights
and obligations of
shall be
expressed and executed in euro.

the Communities

specific

4.
Conversions between the euro and the curren-
cies 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 prin-
ciple may be permitted in exceptional cases,
in
accordance with the implementing rules referred to
in Article 139.

(8) OJ L 209, 2. 8. 1997, p. 6 and corrigenda in OJ L 46, 17. 12.

1998, p. 20 and OJ L 128, 30. 4. 1998, p. 71.

L 347/4

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Official Journal of the European Communities

23. 12. 98

The daily euro exchange rates for the currencies
5.
not participating in the single currency shall be avail-
able each day and shall be published in the Official
Journal of the European Communities.

10. In Article 111(2) and (3), the term ‘ecus' shall be

replaced by ‘euro'.

11. The following Title shall be inserted after Title XI:

(*) OJ L 139, 11.5.1998, p. 1.'

3. In Article 19(5), the term ‘ecus' shall be replaced by

‘euro'.

4. In the first

subparagraph of Article 28a,

after
the words ‘or the

‘imposed by the Commission',
Council' shall be added.

5. In Article 31, the term ‘ecus' shall be replaced by

‘euro'.

6. In Article 33(5), the term ‘ecu' shall be replaced by

‘euro'.

7. Article 35 shall be replaced by the following:

‘Article 35

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

8. In the third indent of Article 44, the term ‘ecus' shall

be replaced by ‘euro'.

9. In Article 69, the term ‘ecus' shall be replaced by

‘TITLE XIa

SPECIAL PROVISIONS APPLICABLE TO THE
SANCTIONS REFERRED TO IN SECTION 4 OF
REGULATION (EC) No 1467/97

Article 132a

The budgetary structure for the proceeds of the sanc-
tions referred to in Section 4 of Regulation (EC) No
1467/97 shall be as follows:

(a)

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 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 expend-
iture to match these amounts in the statement of
revenue. These appropriations shall be executed
in accordance with Article 16 of Regulation (EC)
No 1467/97'.

Article 2

‘euro'.

This Regulation shall enter into force on 1 January 1999.

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

Done at Brussels, 17 December 1998.

For the Council

The President

W. MOLTERER