CELEX: 51978PC0279
Language: en
Date: 1978-06-23
Title: Proposal for a COUNCIL DECISION (EEC) on the utilization of the unexpended balances of the first and second European development funds (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 279
Vol. 1978/0104
 ---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(78)279 final
                                       . Brussels , 23 June 1978
                            Proposal for a
                        COUNCIL DECISION ( EEC )
                                                      . V
          on the utilization of the unexpended balances of
          the first and second European development funds
             ( submitted to the Council by the Commission )
C0M(78 ) 279 final
 ---pagebreak---                    ■: •• COMMISSI OF PROPOSAL TO THE COUNCIL
CONCERNING THE TRANSFER' AND UTILIZATION OF THIS UNEXPENDED BALANCES OF THE
                                FIRST AND SECOND 'EDFs     ~
I.   INTRODUCTION
In its reports on the accounts of the European Development Funds for the
financial years 1975 2nd 1 976 , the Audit Board drew the Commission 's attention
to the need to transfer the unexpended balances to the third EDF and to halt
all new commitment decisions under the . second EDF.                       •
In its resolution /on the granting of a discharge to the Commission in respect .
of the activities of the European Development Fund for the financial year
1975 , the European Parliament requested the Commission "to suspend all
decisions on financing from the second EDF . and to transfer the unused "balances
to the third EDF".
These recommendations are "based on a similar decision taken "by the Council
on 30 Kay 1972 for the purpose of transferring the unexpended balances of
the first EDF to the second EDF.          ,
II . -'THE FIRST TWO EDFs :     POSITION AT 31 DECEMBER 1977 '           '   '
( a)   First EDF            .                                \      - EUA
      Overall appropriation                                       581 250 900 -
      Commitments .                          .  -                 570 145 609
      Konies transferred to the second EDF                         10 669 793
                                                                .     434 598
At the end of the 1977 financial year , there were still three countries ..
( Algeria ,. Benin and Senegal ) in respect of which the accounts for projects
under the first EDF had yet to be closed. ;            •                   _
ALGERIA :    The accounts for all the projects could, be closed soon if the
             Algerian Government were - to act promptly .. The Commission will '  -
             shortly be taking further steps to that end.
BENIN :      The accounts for four projects are still open and could be closed
             during the first half of 1973 .
SETIEOAL i   Only one project is still being implemented;      the accounts could ~
           • be closed in June 1978 .
 ---pagebreak--- n should be noted that the funds transferred from the first to the second
ELF in 1972 - ( amounting to SUA 10 669 793) have all teen used.
FirL-,t LDP funds not used as a result .of savings or the closure of accounts
 for projects (amounting to EUA 434-598 at 3"! December 1977 ) can be transferred
 to the third EDF .
                                                                   EU A
 ( b)      Second EDF
                                                               740.754 947.61
           Overall appropriation
                                                               734 077 815.49
           Commitments
                                 Balance to "be transferred      6.677.132,12
  This amount can now be transferred to the third EDF.
  III ..     PROPOSAL FOR TRANSFER
" The arguments in favour of transferring these unexpended balances are familiar
  to both' the Council and the audit authorities , which recommended such transfer
  in the reports on the financial years 1975 and 1976 .
  This operation could not be carried out earlier , however , since it entailed:
     ( i ) imposing a ceiling on projects "being implemented under the second
           and third EDFs .  This major updating exercise was completed during
           the first half of 1977 ;
                                       \
   ( ii ) closing the accounts for a number of projects under the second EDF
            which were nearing completion , and the payment of any unexpended "
            balances into the reserve accounts of the second EDF.
   The Commission set itself the deadline of 31 December 1977 ( the end of the
   financial year ) for completing this work and subsequently presenting to the
   Council a proposal for the transfer of funds to the third EDF.
   In order to comply with the observations of the Audit Board ( now the Court
   of Auditors ), the resolution of the European Parliament and the request by
   the Council , the Commission is setting out in this proposal the details
   of the solution advocated .
 ---pagebreak---  1 . By analogy with the Decision of 30 May 1972 concerning transfers from N
the first to the second EDF , it is proposed that the Council adopt a. framevrork
decision authorizing the Commission to transfer to the third EDF the balances •
of the first and second EDFs unexpended at 31 December 1977 and subsequently
propose the uses to which the funds transferred should be put , in .accordance
with the procedures governing the gxlmini strati on of the third EDF ( EDF Committee
opinion and Commission decision).
2.    The Commission vri.ll keep the EDF Committee regularly informed , by means
of ad hoc communications , as to the nature and Volume of , the transfers made .:
Each transfer will serve to increase the resources available to the third
EDF, on the allocation of which the Committee is subsequently required to
give its opinion .       <                                   * .    -
3 . , The unexpended balances of the funds released and transferred to the
third EDF vail remain definitively assigned to the recipient Associated State.s .
4.    Parallel to this framework transfer decision , the Commission undertakes
not to finance any further projects under the second EDF.                     '
 ---pagebreak---                             . COUNCIL DECISION
     . OH THE UTILIZATION OP THE UNEXPENDED BALANCES 'OP THE FIRST
                    AND SECOHD EUROPEAN DEVELOPMENT FUEDS
THE COUNCIL OP THE EUROPEAN COIIIflJNITTES ,        ■     ,
Having regard "to "the Treaty establishing the European Economic Community ,
Having regard to the Implementing Convention on the Association of the
Overseas Countries and Territories with the Community , annexed to the Treaty , .
and in particular Article 5 thereof ,
Having regard to the Convention of Association between the European Economic
Community and the African States and Madagascar associated with the Community ,
signed at Yaoundd on 20 July 1963, .        ,     .    , '    ;           ■•
Having regard to the Council Decision of 25 February 19 64 relating to the
Association of the overseas countries and territories with the European
Economic "Community ,                         ' •
Having regard to the proposal from the Commission, .
VJhereas the Implementing Convention on the Association of the Overseas ~           -
Countries and Territories with the Community set up the Development Fund for
the Overseas Countries and' Territories , hereinafter called the "first EDF";
VJhereas the Internal Agreement on the financing and, administration of
Community aid ,            '                    ;               . signed at Yaoundd
on 20 July 1963 / set up a European Development Fund, hereinafter called the
" second EDP" 5
VJhereas the Internal Agreement on the financing and administration of Community
aid , •                                             J   signed at Yaounde on
29 July 1969 , set up a European.. Development Fund ( 1969)1 hereinafter called
the "third EDF"2 J                  ■
VJhereas the examination and execution of new projects under the second EDF
would mean that more time would be needed to clear the accounts altogether
and the Commission would be required to administer three separate funds
simultaneously over the next few years: -             . '
  OJ ITO 93 , 11.6.1964 , p . 1493/64.
20J Ho L 282 , 28.12.1970 , p . 47
 ---pagebreak---                                        - 2 -
 V/hc- i-eas such a situation would not provide a suitable "basis for effective
 financial administration ;                                      -
 VJhereas the Audit Board in its 1975 and 1976 reports on the Development Funds
 requested the halting of all new commitment decisions under the second ED?
 and the . transfer of the unexpended balances actually available to the third            ,
 EDF , as had "been decided in 1972 in the case of the first EDF;
 V.-hereas in its resolution relating to the observations accompanying the granting
 of a discharge on the implementation of the budget of the European Communi ti es for the
 financial year 1975 , the European Parliament requested the Commission "to
 suspend all decisions on financing from the second EDF and to transfer
.the unused "balances to the third EDF' ,
 HAS DECIDED AS FOLLOWS : .              . : .
                                       Article 1
 1 . /jay -unexpended balances recorded in connection with the implementation of
 projects financed by the Community under the second EDF in a State , Country
 or Territory in receipt of its aid may be transferred to the third EDF.
 The said balances shall be allocated to the State , Country or Territory in
 receipt of the projects to which they relate .
 2.      The transfers shall be decided on by the Commission .
 3.      The unexpended balances thus transferred shall be used in accordance
 with the procedures governing the administration of the third EDF.
                                        Article 2
 The Commission shall keep the European Development Fund Committee set up by
 Article 13 of the Internal Agreement of 29 July 1969 regularly informed as
 to the nature and volume of the transfers made .
 Brussels ,                                                     For the Council
                                                                The President