European Parliament Decision giving discharge to the Commission in respect of implementation of the general budget of the European Union for the 1998 financial year (SEC(1999) 412 - C5-0006/1999 - 1999/2050(DEC))
Date: 2000-07-06
Institutions: Committee on Budgetary Control, European Parliament
Subjects: European Commission, budgetary discharge, financial year, general budget (EU), implementation of the budget

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4. Draft SAB 2/2000

A5-0192/2000

European Parliament resolution on draft supplementary and amending budget No 2 for the 2000
financial year (C5-0342/2000)

The European Parliament,

(cid:1) having regard to the Treaty establishing the European Community, and in particular Article 272

thereof,

(cid:1) having regard to the Financial Regulation of 21 December 1977 applicable to the general budget of
the European Communities, as last amended by Regulation (EC, ECSC, Euratom) No 2673/1999 (1) and
in particular Article 15 thereof,

(cid:1) having regard to the general budget of the European Union for the 2000 financial year, finally

adopted on 16 December 1999 (2),

(cid:1) having regard to the Interinstitutional Agreement of 6 May 1999 (3),

(cid:1) having regard to preliminary draft supplementary and amending budget No 2/2000 drawn up by the

Commission (SEC(2000) 1095),

(cid:1) having regard to draft supplementary and amending budget No 2/2000, established by the Council

(9779/2000 (cid:1) C5-0342/2000),

(cid:1) having regard to the report of the Committee on Budgets (A5-0192/2000),

A. whereas the margin in heading 5 of the financial perspective for the financial year 2000 is € 90,7

million,

B. whereas draft supplementary and amending budget No 2/2000 deals with the Council’s requirements
arising from the conclusions of the Helsinki European Council on 10 and 11 December 1999, and
notably will strengthen the common European security and defence policy,

C. whereas draft supplementary and amending budget No 2/2000 deals also with Parliament’s buildings

needs in Brussels;

1.

2.

Accepts the Council’s draft supplementary and amending budget No 2/2000 without amendment;

Instructs its President to forward this resolution to the Council and Commission.

(1) OJ L 326, 18.12.1999, p.1.
(2) OJ L 40, 14.2.2000.
(3) OJ C 172, 18.06.1999, p.1.

5. General budget (1998 discharge)

A5-0190/2000

I.
European Parliament Decision giving discharge to the Commission in respect of implementation of
the general budget of the European Union for the 1998 financial year (SEC(1999) 412 - C5-0006/
1999 - 1999/2050(DEC))

The European Parliament,

(cid:1) having regard to the revenue and expenditure account, the analysis of financial management and the
balance sheet of the European Union for the financial year 1998 (SEC(1999) 412 (cid:1) C5-0006/1999,
SEC(1999) 413 (cid:1) C5-0007/1999, SEC(1999) 415 (cid:1) C5-0009/1999, SEC(1999) 1473 (cid:1) C5-0204/
1999),

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(cid:1) having regard to the annual report concerning the 1998 financial year (C5-0266/1999) and the spe-

cial reports of the Court of Auditors and the Institutions’ replies (1),

(cid:1) having regard to the statement of assurance as to the reliability of the accounts and the legality and
regularity of the underlying transactions provided by the Court of Auditors pursuant to Article 248 of
the EC Treaty (C5-0266/1999),

(cid:1) having regard to the Council recommendation of 13 March 2000 (C5-0154/2000),

(cid:1) having regard to its resolution of 13 April 2000 on the postponement of discharge to the Commi-
ssion in respect of implementation of the general budget of the European Union for the financial year
1998 (2) and the Commission’s replies,

(cid:1) having regard to the ECSC Treaty and in particular Article 78g thereof,

(cid:1) having regard to the EC Treaty and in particular Article 276 thereof,

(cid:1) having regard to the EAEC Treaty and in particular Article 180b thereof,

(cid:1) having regard to Rule 93 of its Rules of Procedure,

(cid:1) having regard to the report of the Committee on Budgetary Control (A5-0190/2000),

A. whereas, pursuant to Article 274 of the EC Treaty, the Commission bears responsibility for imple-

menting the budget in accordance with the principles of sound financial management,

B. whereas the Commission must, in so doing, ensure the legality and regularity of revenue and expen-

diture,

C. whereas, pursuant to Article 276 of the EC Treaty, Parliament is required to give a discharge to the
Commission in respect of implementation of the budget and thereby assumes responsibility for ensur-
ing that the Commission meets its Treaty obligations in full,

D. whereas Parliament is thus accountable to the citizens of the Union for ensuring that their money is
spent as economically and efficiently as possible and that the institutions of the Union do everything
in their power to secure maximum protection against fraud, corruption and organised crime and to
reduce the number of errors in the implementation of the budget as far as possible,

E. whereas Parliament has postponed discharge for the 1998 financial year in order to ensure that the
Commission actually makes all the necessary efforts to improve the implementation of the budget as
far as possible and that the Commission pursues a policy of zero tolerance in dealing with cases of
fraud, corruption or mismanagement,

F. whereas the Commission has satisfied most of the requirements set out in its abovementioned resolu-

tion of 13 April 2000 on the postponement of the discharge:

(a) The Commission is prepared to take action to cut drastically the errors in implementation of the

budget,

(b) Against the background of the Fléchard case, the Commission has clarified its procedure for the
forfeiture of claims and has announced that in revising the Financial Regulation it will propose a
clear allocation of responsibilities for all areas of implementation of the budget, including the
charging of costs,

(c) The Commission has agreed to answer further questions on the Fléchard case,

(d) The European Anti-Fraud Office (OLAF) has renewed its search for the minutes of the meeting of
7 January 1994 in the private office of the then Commission President relating to the Fléchard
case,

(1) OJ C 349, 3.12.1999.
(2) Texts Adopted, Item 1.

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(e) The Commission will issue new rules for the electronic registration, archiving and management of

documents by the end of 2000,

(f) The Commission has stated its readiness to reopen disciplinary proceedings in connection with

the Echo affair if new evidence comes to light,

(g) OLAF is examining whether the full dossier has been submitted to the competent judicial autho-

rities in Belgium, France and Italy in the MED affair,

(h) The Commission is prepared to consider the opening of disciplinary proceedings in the light of
the outcome of the investigations conducted by the national judicial authorities in the MED affair,

(i) The Commission has reported the findings of its investigation into visiting scientists’ contracts for
the 1998 financial year to Parliament, started disciplinary proceedings in connection with the case
of a visiting scientist employed at the instigation of a former Commissioner and forwarded the
relevant OLAF report to the Belgian judicial authorities,

(j) The Member of the Commission responsible for financial control has launched an administrative
investigation in connection with the withheld warning of serious deficiencies at the Joint Research
Centre (particularly with the handling of nuclear materials),

(k) The Commission has submitted a report by the Financial Controller on the number of correcting
communications and postponements/withholdings of approvals in 1998, including an analysis of
the most frequent types of errors,

(l) The Commission has submitted a report on action taken with regard to Member States which
have not yet implemented the integrated administration and control system for agricultural
expenditure. Parliament in its above-mentioned resolution of 13 April 2000 called for the system
to be fully implemented by April 2002 at the latest,

(m) The Commission has submitted a report on the measures that it has taken in response to the
recommendations of Parliament’s Committee of Inquiry into the Community Transit System,

(n) The Commission has submitted a report on the number and outcome of disciplinary proceedings
carried out since 1998 in all cases in which the Community’s financial interests are affected,

G. whereas the Fléchard case cannot be considered closed until the problems it has revealed, and in
particular the questions relating to the monitoring and control of export operations, the proportion-
ality of penalties and the structure of administrative and judicial penalties, have been satisfactorily
resolved,

H. whereas the Commission and Parliament have concluded an interinstitutional agreement to address the
fundamental principles set out in particular in paragraph 26 of its resolution of 19 January 2000 on
the discharge for the 1997 financial year (1) on Parliament’s access to information within the frame-
work of Article 276 of the EC Treaty; deploring, however, that the Commission is not yet prepared to
afford Parliament at least the same access to its documents as the Court of Auditors,

I. whereas the Commission has also not said that it will introduce an independent external element in its
disciplinary procedure but that it will do no more than ensure that the various institutions are repre-
sented on the disciplinary board in future,

J. whereas the current practice of administrative investigations and disciplinary proceedings within the
Commission should be evaluated by an independent external body, including a study of best practice
within public administration,

K. whereas the new director of OLAF has submitted a revealing list of cases of suspected fraud or corrup-

tion,

L. whereas the Commission has brought forward a comprehensive package of proposals in the White

Paper on administrative reform,

Gives the Commission discharge in respect of the implementation of the general budget of the Euro-

1.
pean Union for the 1998 financial year;

2.

Records its comments in the attached resolution;

(1) Texts Adopted, Item 2.

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3.
Instructs its President to forward this decision and the resolution containing its comments to the
Commission, the Council, the Court of Justice, the Court of Auditors and the European Investment Bank
and to have it published in the Official Journal of the European Communities (L series).

Thursday 6 July 2000

II.
European Parliament Decision closing the accounts relating to the implementation of the general
budget of the European Union for the 1998 financial year (SEC(1999) 412 - C5-0006/1999 -
1999/2050(DEC))

The European Parliament,

(cid:1) having regard to the budget of the European Union for the 1998 financial year,

(cid:1) having regard to the consolidated revenue and expenditure account and balance sheet for the 1998

financial year (1),

(cid:1) having regard to the annual report concerning the financial year 1998 (C5-0266/1999) (2) and the

special reports of the Court of Auditors and the Institutions’ replies,

(cid:1) having regard to the Statement of Assurance as to the reliability of the accounts and the legality and
regularity of the underlying transactions provided by the Court of Auditors pursuant to Article 248 of
the EC Treaty (C5-0266/1999) (3),

(cid:1) having regard to the Council recommendation of 13 March 2000 (C5-0154/2000),

(cid:1) having regard to its resolution of 13 April 2000 on the postponement of discharge to the Commi-
ssion in respect of implementation of the general budget of the European Union for the financial year
1998 (4),

(cid:1) having regard to the ECSC Treaty and in particular Article 78g thereof,

(cid:1) having regard to the EC Treaty and in particular Article 276 thereof,

(cid:1) having regard to the EAEC Treaty and in particular Article 180b thereof,

(cid:1) having regard to Rule 93 of and Annex V to its Rules of Procedure,

(cid:1) having regard to the report of the Committee on Budgetary Control (A5-0190/2000),

A. whereas pursuant to Article 275 of the EC Treaty responsibility for drawing up the revenue and

expenditure account lies with the Commission,

Notes that the estimated revenue for the 1998 financial year and the resources finally approved for

1.
payments amounted to:

(a) Revenue

(b) Appropriations for payments

2.

Notes the following amounts relating to commitments:

(a) Appropriations available

(b) Commitments entered into

(1) OJ C 350, 3.12.1999, p. 1.
(2) OJ C 349, 3.12.1999.
(3) OJ C 349, 3.12.1999, pp. 168-169.
(4) Texts Adopted, Item 1.

(ECU million)

83 652,2

83 833,7

(ECU million)

91 257,2

88 340,1