CELEX: 51976PC0515
Language: en
Date: 1976-09-29
Title: - Application of the unit of account to the European Community Budget - Draft resolution of the Council and proposal for a Council regulation (ECSC, EEC, EURATOM) amending the Financial Regulation of 25 April 1973 applicable to the general budget of the European Communities (Submitted by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 515
Vol. 1976/0154
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---     COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       \
                        A    <  • ■          :
                                                     COM(76)515 final
                                                     Brussels . 29th September 1976
                                                                          (
               - Application of the unit of account to the European
                                    Community Budget -
                Draft resolution of the Council and proposal for a
                Council regulation (ECSC ^ EEC , EURATOM) amending the
                Financial Regulation of 25 April 1973 applicable to
                   the general budget of the European Communities
                   ( Submitted by the Commission to the Council )
  COM (76 ) 515 final
/
 ---pagebreak---                  COUNCIL RESOLUTION OF
     The Council takes note of the lodging by the Commission of
a proposal for a Regulation introducing from 1 January 1978 the
application of the European unit of account to the budget of the
Communities .
     It observes that the proposal embodies in substance the
relevant provisions contained in the text laid before it on 26 May
1976 providing for an overall revision of the Financial Regulation
of 25 April 1973 .
     Having regard to the reasons of urgency adduced as necessitating
the lodging of a proposal , the Council undertakes to act without
delay upon that proposal so that the unit of account shall effectively
apply to the budget of the Communities for the financial year 1978
at the latest .
     It decides to forward the Commission 's proposal to the European
Parliament for the opinion of the latter .
 ---pagebreak---                           EXPLANATORY TOTOTLUTJUM
With a view to finding a common neutral way of expressing the revenue and
expenditure of the Communities which faithfully reflects actual rates of
exchange , the Commission is proposing to introduce the European unit of
account (EUA) "based on a ""basket" of Member States' currencies ; its fixed
composition has "been worked out on the "basis of economic indicators and
its daily value in terms of the various national currencies is calculated
from the rates operating on the exchange markets .
This new unit of account has already "been introduced to express the amounts
of aid mentioned in Article 42 of the ACP-EEC Convention of Lome .       It has
applied to the "balance sheet of the European Investment Bank since
 18 March 1975 and "to the operational "budget of the European Coal and Steel
                                2
Community since 1 January 1976 .
As the Commission recently stated in its Communication of 24 March 1976^
to the Council , the EUA is to replace the present unit of account ( defined
"by reference to gold) from 1 January 1978 as far as the general "budget is
 concerned .
 In its Communication to the augmented Council of 5 April 1976 this position
 was confirmed , and the Council agreed that " it is essential that the European
 unit of account should "be introduced in all aspects of Community activity at
 the earliest possible date .    It is to apply to the Community "budget for the
 financial year 1978 at the latest"^. The Commission was accordingly requested
                                                                                 /
 to "make the necessary proposals and recommendations as a matter of urgency" .
  OJ No L 104 , 24 April 1975 *
  OJ No L 327 , 19 December 1975 .
 ^Communication on problems posed by the application of the unit of account to
  the budget of the Communities ( C0M(76)123 final of 24 March 1976 ).
  R/959/76 (PIN 222 ) of 13 April 1976 .
 ---pagebreak--- The draft amendment to the Financial Regulation which the Commission
                                   1
sent to the Council on 26 May 1976 already contains the general
provisions needed for the application of this principle .   Notwithstanding
in view of the length of time this will take to consider and adopt , the
urgent need for a formal decision on the introduction of the European
unit of account in respect of the budget from 1 January 1978
requires the submission of a separate proposal , which ±k is the
subject of the attached .
                ι
The procedures for the implementation of this principle will be
the subject of separate proposals , which will be submitted to the
Council as soon as possible .
 C0M(76)210 final of 19 May 1976 .
 ---pagebreak---                                  ARTICLE ONE
  The Financial Regulation of 25 April 1973 applicable to the general
  budget of the European Communities ( 73/91/ECSC , EEC , Euratom) shall
  be amended as follows :
  1.    The following Articles shall be worded as follows t
        Article 10
        1 , The budget shall be drawn up in European units of account ( EUA) .
            The unit of account shall be expressed as the sum of the
            following amounts of the currencies of the Member States of the
            Community j
                            DM          0.828
                             *, Stg .   0.0885
                            PP          1 . 15
                            Lit       109
                            FL          0.286
                            Bfrs        3.66
                            Lfrs        0.14
                            Dkr         0.217
                            .felrl . 0.00759
        2 . The value of the unit of account in a national currency shall
            be equal to the sum of the equivalents in that currency of the
            amounts of the currencies set out in Paragraph 1 . It shall
            be determined by the Commission on the basis of the exchange
            rates recorded each day on the exchange markets ( l );
            The daily rates for conversion into the various national currencies
            shall be available each day : they shall be published in the
            Official Journal of the European Communities .
        3 . Any operations involving conversion of the European unit of
            account ( EUA) into a national currency shall , where appropriate ,
            be effected on the basis of the exchange rate applicable on that
            day , without prejudice to the special provisions of Article 119 •
        Article 32
        The payments of own resources provided for in Article 26 and 30
        shall be effeoted in national currency and converted into and
        entered in the accounts in units of account .
        The contributions referred to in Articles 26 and 30 shall be
        expressed in units of aocount ;        their payment shall be effected
        in national currency .
I ( I ) OJ Uo C 21/4f 30 January 1976 .
 ---pagebreak---     Article 71
    The accounts shall be kept xn units of account by the double
     entry method , on the basis of the calendar year . They shall
    show all revenue and expenditure for the financial year .
    They shall be authenticated by supporting documents .
    The revenue and expenditure account and the balance sheet shall
    be drawn up in units of account .
    Article 119 § 8
    8 . a) The provisions amending Articles 10 and 71 shall not enter
           into force until 1 January 1978 .
           From that date the term "unit of account " used in this Finanoial
           Regulation shall be taken to mean the European unit of account
           ( EUA) as defined in Article 10 .
           Until 31 December 1977 the provisions of Articles 10 , 27 and 71
           of Financial Regulation No 73/91/ECSC , EEC , Euratom of
           25 April 1973 shall remain in force .
        b) The conditions in which the unit of account (EUA) is to be
           applied to revenue and expenditure shall be decided in accordance
           with the implementing measures envisaged in Article 118 of this
           Finanoial Regulation .
                              ARTICLE TW0
This Regulation shall come into force on
This Financial Regulation shall be binding in its entirety and directly
applicable in all Member States .
Done at Brussels ,