Council Regulation (EC) No 1525/2007 of 17 December 2007 amending Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities
Date: 2007-12-17
Institutions: Council of the European Union
Subjects: EU financing, financial management, financial regulation, general budget (EU), implementation of the budget, party financing, political parties

27.12.2007

EN

Official Journal of the European Union

L 343/9

COUNCIL REGULATION (EC) No 1525/2007

of 17 December 2007

amending Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the
general budget of the European Communities

THE COUNCIL OF THE EUROPEAN UNION,

budgets. To that end limited possibilities to carry over
funding from one year to the first quarter of the following
year should be introduced.

Having regard to the Treaty establishing the European Commu-
nity, and in particular Article 279 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Court of Auditors,

Whereas:

(1) Regulation (EC) No 2004/2003 of the European Parliament
and of the Council of 4 November 2003 on the regulations
governing political parties at European level and the rules
regarding their
rules
governing the financing of political parties at European
level from the general budget of the European Union.

lays down,

funding (1)

inter alia,

(2) Article 12 of Regulation (EC) No 2004/2003 provides that
the European Parliament is to publish a report on the
application of that Regulation, including — where appro-
priate — possible amendments to be made to the funding
system.

(3)

(4)

In its Resolution of 23 March 2006 on European political
parties (2), the European Parliament considered that, in light
of experience gained since its entry into force in 2004,
Regulation (EC) No 2004/2003 should be improved as
regards a number of points.

The rules governing the financing of political parties at
European level should be adapted to take better account of
the special conditions under which political parties operate,
including shifting political challenges and agendas creating
budgetary impacts that political parties cannot predict
when drawing up their annual work programmes and

(5)

In order to enhance parties' long-term financial planning
capabilities, to take account of funding needs that vary
from one year to another, and to strengthen the incentives
for parties not to rely on public funding alone, political
parties at European level should be allowed to establish
limited financial reserves based on own resources generated
from sources other than the general budget of the European
Union. The abovementioned derogations from the non-
profit rule should be exceptional and should not constitute
a precedent.

(6) Council Regulation (EC, Euratom) No 1605/2002 (3)

should be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

The following paragraph shall be added to Article 109 of
Regulation (EC) No 1605/2002:

If a political party at European level realises a surplus
‘4.
of income over expenditure at the end of a financial year for
which it received an operating grant, part of that surplus up
to 25 % of
that year may, by
derogation from the no-profit rule laid down in para-
graph 2, be carried over to the following year provided that
it is used before the end of the first quarter of this following
year.

income for

the total

the own resources,

For the purpose of verifying compliance with the no-profit
rule,
in particular donations and
membership fees, aggregated in the annual operations of
a political party at European level, which exceed 15 % of
the eligible costs to be borne by the beneficiary, shall not be
taken into account.

The second subparagraph shall not apply if the financial
reserves of a political party at European level exceed 100 %
of its average annual income.’

(1) OJ L 297, 15.11.2003, p. 1. Regulation as last amended by
Regulation (EC) No 1524/2007 (See page 5 of this Official Journal).

(2) OJ C 292 E, 1.12.2006, p. 127.

(3) OJ L 248, 16.9.2002, p. 1. Regulation as amended by Regulation
(EC, Euratom) No 1995/2006 (OJ L 390, 30.12.2006, p. 1).

L 343/10

EN

Official Journal of the European Union

27.12.2007

This Regulation shall enter into force on the day following its publication in the Official Journal of the European
Union.

Article 2

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

Done at Brussels, 17 December 2007.

For the Council

The President

J. SILVA