Opinion of the Economic and Social Committee on "Draft Commission Regulation (Euratom, ECSE, EC) amending Commission Regulation No 3418/93 of 9 December 1993 laying down detailed rules for the implementation of certain provisions of the Financial Regulation of 21 December 1977"
Date: 2001-01-24
Institutions: European Economic and Social Committee
Subjects: commitment of expenditure, financial control, financial regulation, general budget (EU), management audit

25.4.2001

EN

Official Journal of the European Communities

C 123/79

Opinion of the Economic and Social Committee on ‘Draft Commission Regulation (Euratom,
ECSE, EC) amending Commission Regulation No 3418/93 of 9 December 1993 laying down
detailed rules for the implementation of certain provisions of the Financial Regulation of
21 December 1977’

(2001/C 123/20)

On 20 November 2000 the Commission decided to consult the Economic and Social Committee, under
Article 262 of the Treaty establishing the European Community, on the above-mentioned draft regulation.

The Economic and Social Committee decided to appoint Mr Donovan as rapporteur-general for this
opinion.

At its 378th plenary session of 24 and 25 January 2001 (meeting of 24 January), the Economic and
Social Committee adopted the following opinion by 67 votes to one.

1.

Introduction

3. Analysis

1.1.
A Council Regulation (Euratom, ECSC, EC) of
21 December 1977 is the legal basis, under the treaties, for the
Financial Regulation applicable to the general budget of the
European Communities.

1.2.
Several amendments have been made over the years
since 1977 and there have been further developments necessit-
ating a general review, updating and consolidation to conform
with modern best practice. Such review and consolidation is
in course and completion is anticipated by 2002. This is a
most welcome initiative.

1.3.
The Commission is charged with the implementation
of several provisions of the Council’s Financial Regulation by
way of ‘implementing rules’. The rules currently in force are
laid down in Commission Regulation (EC) No 3418/93 of
9 December 1993 and came into force on 1 January 1994.

1.4.
The new consolidated Council Financial Regulation
2002 will of course necessitate review of the 1993 Com-
mission ‘implementation rules’ Regulation (EC) No 3418/93.
Nevertheless it is necessary to include the proposed amend-
ments contained in this draft proposal at this stage. These
changes arise principally from Council Regulations (EC)
Nos 2548/98, 2779/98 and 2673/1999.

The analysis of proposed amendments is set out in part B
sections 1, 2 (paragraphs 1-9), 3, 4 (paragraphs 10-13) of the
Commission draft proposal.

4.

Specific Comments

Article 1 sub paragraph 1(a) should be amended to
4.1.
read ‘the need to be met in the short term or the long term’
instead of ‘the need to be met’.

4.2.
Article 1a. Point 3, first line should read ‘The Com-
mission shall use information from the European Central Bank
when ...’ instead of ‘The Commission shall use any source of
information if considers reliable when ...’.

Article 104, point 2, second paragraph add ‘... and

4.3.
including a legal officer’.

Third paragraph, second line change as follows ‘... shall be
present as an observer’
instead of ‘may be present as an
observer’.

Point 4 delete the second paragraph and replace in third
paragraph ‘may’ with ‘shall’ in the first line.

In the fifth and last paragraph of point 4, after ‘... committee’
add ‘and shall be retained for possible future reference’.

2.

Substance

49. In Article 135, point 3 the following four classes

4.4.
should be added to the list:

The substance and reasons for these implementations rules
amendments is set out in the foreword of the Commission
draft in Section 3 paragraphs 1-13.

— undrawn commitment accounts;

— suspense accounts;

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Official Journal of the European Communities

25.4.2001

— provisions for legal cases;

— pensions liabilities.

5. General Comments

5.1.
The Council Financial Regulation as variously amended
together with the Commission Regulations setting down rules
for implementation of certain provisions of that Regulation
are highly technical and most cumbersome. Although designed
to provide transparency in the financial affairs of the European
Communities, the instruments in themselves lack transparency
in many respects.

5.2.
Although the ‘European Company’ has finally been
provisionally agreed in outline, harmonisation of financial
accounting procedures is still not very advanced.

Brussels, 24 January 2001.

As a consequence, there remain differences in financial control
and management systems across the Member States. These
those
include differences in titles and responsibilities of
working in this area in some cases this leads to confusion.

5.3.
In the case of the amendments proposed in this
instance, there would seem to be lack of clarity particularly in
the responsibilities under the titles Internal Audit and Financial
Controller.

6. Conclusion

6.1.
The Economic and Social Committee fully supports
this necessary but interim draft proposal amending Com-
mission Regulation (EC) No 3418/93 but suggests that the
minor amendments outlined above would improve the text.

6.2.
The proposed new Financial Regulation due in 2002 is
urgently needed for the updating, modernising, consolidation,
simplification and enhancement of transparency in the finan-
cial control systems of the European Communities.

The President

of the Economic and Social Committee

Göke FRERICHS