CELEX: 51975PC0237
Language: en
Date: 1975-05-30
Title: Proposals for A REGULATION amending the financial regulation as regards appropriations for the European social fund (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 237
Vol. 1975/0086
 ---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
                                             COM(75)237 final
                                             Brussels , 30 May 1975
                            Proposals for
                            A REGULATION
                 amending the financial regulation as
                 regards appropriations for the
                 European social fund
           ( submitted to the Council "by the Commission )
COT,1(75 ) 237 final
 ---pagebreak---                                                         HX/323/75-E
                      EXPLANATORY MEMORANDUM
1 . At present , appropriations for the European Social Fund (ESF) are
subject – as regards carrying forward - to the general rules in
Article 6 of the Financial Regulation . As a result , appropriations for
payments outstanding under commitments entered into "between 1 January
and 31 December are carried forward automatically , although this is
limited strictly to the following financial year .
2 . Experience in recent years has shown that this rule is too inflexible
for Social Fund appropriations .
2.1 The ESF*s payment procedures derive from Regulation (EEC) No 858/72
of the Council of 24 April 1972 on certain administrative and financial
procedures of the operation of the European Social Fund , Article 4 (0
first subparagraph of which states that payments on account may be
made , at the request of the beneficiary and to a total not exceeding
85io of the total assistance granted . The balance shall be paid , however ,
only after the Commission has received a general statement of expenditure
(together with supporting documents ) drawn up on conclusion of the operation.
As a result , the application for payment of the balance , possibly covering
the whole of the assistance granted , could generally be lodged only in the
course of the financial year to which the appropriations are carried
forward .
2.2 Council Regulation (EEC) No 239^/71 ^ provides that the Commission shall
grant assistance from the Fund on the basis of the actual cost of operations .
As a result , the benefioiaries must assemble all particulars and all
supporting documents relating to operations financed in order to cost and
support the application for payment of the balance .
In view of this , it is hardly possible to require the said applications to
be lodged before 30 June .
                                                                    9
1 0J No L 101 of 28 April 1972 , page 3.
2~ __
  8 November 1971 implementing the Council Decision of 1 February 1971 on
  the reform of the European Social Fund (OJ L 294 of 10 November 1971 , p.54) .
 ---pagebreak---                                 - 2 -                 XIX/ 32 3/7 5-E
2.3 In view of the "actual cost " rule the Commission is required, to
subject all applications for payment to thorough checking .     With a few
exceptions such checking entails in-situ verification .
2.4 In view of the constraints on "beneficiaries ( see para . 2.3 ) » the
tasks of checking against supporting documents and of in-3itu verification
inevitably fall in the second half of the year , more specifically in the
final months . These few months are undoubtedly not sufficient to provide
the assurance , in all cases , that applications are well-founded .
Consequently the appropriations in question become time-expired and
applications for payment must be honoured , following full checking , from
the appropriations for the succeeding financial year . However , the latter
appropriations are not intended primarily for paying off the remainder
of assistance for earlier operations but rather for promoting and
encouraging fresh projects .
3 . In view of the foregoing , provision should be made to extend the period
during which appropriations carried forward can be used .     In this
connection it should be pointed out that Article 6(5 ), first subparagraph ,
of the Financial Regulation itself makes a similar provision in respect of
the EACGF , Guidance Section .  In the case of the European Social Fund it
will be sufficient to provide that appropriations for payments outstanding
under commitments assumed, against appropriations for one financial year
will 09 automatically carried forward to the next two financial years .
 ---pagebreak---                                                         XIX/323/75-E
              PROPOSALS FOR A REGULATION AMENDING THE FINANCIAL
              REGULATION AS REGARDS APPROPRIATIONS FOR THE
              EUROPEAN SOCIAL FUND    .
 The Council of the European Communities ;
Having regard to the Treaty establishing the European Economio
 Community and in particular Article 209 thereof ;
Having regard to the Proposal from the Commission ;
Having regard to the Opinion of the European Parliament ;
Whereas Article 6(l)(c ) of the Financial Regulation of 25 April 1973
                                                            1
applicable to the General Budget of the European Community provides
that appropriations for payments still outstanding for commitments
properly entered into "between 1 January and 31 December shall be carried
forward automatically to the next financial year only ;
Whereas this rule has proved too inflexible with regard to appropriations ,
for the European Social Fund , in view of the provisions governing the
lodging of applications for payment and the checking thereof ;
Whereas , consequently , it must be rendered more flexible by providing
that the appropriations in question shall be carried forward automatically
for a period of two years ;
HAS ADOPTED THIS FINANCIAL REGULATION :
                              Article 1
Article 6 of the Finanoial Regulation shall be supplemented by paragraph 6a
worded as follows :
 OJ No L 116 of 1-May 1973 , p.1 .
 ---pagebreak---                                - 2 -                     XIx/323/75-E
"By way of derogation from paragraph 1 , appropriations relating to the
European Sooial Fund for payments outstanding for commitments entered
into against the appropriations for one financial year shall be
automatically carried forward for the following two years ."
                           , Article 2
This Regulation shall enter into force on 1 December 1975 *
This Regulation shall he "binding in its entirety and directly applicable
in all Member States .                                 .
Done at Brussels ,                             For the Council
                                               The President