CELEX: 51977PC0491
Language: en
Date: 1977-10-13
Title: Proposal for a FINANCIAL REGULATION concerning the EAGGF, Guarantee Section, for the periods 1967/68 to 1970 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 491
Vol. 1977/0156
 ---pagebreak--- Disclaimer
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(77)491 final
                                             Brussels , 13 October 1977
                          Proposal for a
                        FINANCIAL REGULATION
             concerning the EAGGF, Guarantee Section , for the
                       periods 1967/68 to 1970
             ( submitted to the Council by the Commission)
CGM(77) 491 final
 ---pagebreak---  EXPLANATORY KMOPJUTOUM
 1 . Aid from the EAGGP , Guarantee Section , for the four accounting periods
 of 19-7/68 , 1968/69 , the second half of 1969 and 1970 relates to a total
 of about 7 000 million units of account of expenditure , of which around
 5 300 million were entered in the "budget as part of the, payments on account
 decided on by the Commission .
 The balance of around 1 700 million units of account has bsen the subjoct
 of fund movements in the form of clearing pursuant to the Council "cumulation"
                                 1   .....        2
 resolutions of 21 April 1970      and 30 May 1972 ; the ob,jectiv3 of these  •
 resolutions was to solve the liquid assets problems which might arise for
Member States on the transition from the reimbursement system ( valid until
 31 December 1970 ) to the system of direct financing, and the BUD was not
 accounted for by budget entries .     For this reason , applying the current
 financial rules would require about 1 700 million units of account to be
entered in the budget under expenditure and receipts , whereas the payments
which the Member States must make or receive total only about 47 m u.a .
2.   The presentation of a supplementary budget of 1 700 million u.a . for
purely accounting reasons would thus be very difficult to justify in vi^w
both of the size of the amount compared with, actual fund movement (4? m u.a .)
   OJ No C   50 , 28.4.1970 , p.   2
2 OJ No C 105 , 10.10.1972 , p. 16
 ---pagebreak---  and in view also of the reactions which the request for such a
 large appropriation would be likely to excite .   The unsuitability
 of the ordinary budget procedure is further added to "by the facts
 that it is not a case , in the budgetary sense , of new forecasts of
 expenditure and receipts but simply of a correction , that the
 expenditure in question is very old – it dates back ten years - and covers
 several accounting years and , lastly , that this situation relates to
 a receipts system which is different from the present one and concerns
 only the Member States of the original Community .
 These reasons justify the search for a simplified solution at budget
level , i.e. an ad hoc financial regulation to definitively settle
the matter of former periods and regulate the effects of cumulation .
3.    This specific Regulation , based on Article 209 of the Treaty ,
contains broadly speaking the following enacting terms :
(a) Articles 1 to 3 describe the mechanisms relating to Member States'
     contributions and the repayment of expenditure ( clearing) ; these
     provisions repeat those contained in Articles 6 , 8 (with the excep­
     tion of paragraph 2 (b )), 10 and 11 of the Financial Regulations on
     the EAGGP (64/127/EEC ) ;
(b ) Article 4 stipulates that where there is no budget entry the
     accounting results by period , which are necessary to draw up Member
     States' accounting positions , will be published in an annex to
     the revenue and expenditure accounts of the Commission .
 ---pagebreak---                                - 3 -
 ( c ; Article >_>        * all o or,t. vary provis:;, oris in existing Cf.ir.iwrn* i. *
        régulations .
4 - Finally , tna repealing of all provisions prior to this Regulation
 ( see point- 3(c )) liieans that the existing provisions concerning sums
unpaid laid down in Article 3(2 ) of Regulation No 2003/73 , which are
particularly restrictive ( annual mini-clearing for the Six), must be
replaced "by a special Article settling this problem definitively
 (Article 5 ), It is proposed that the sums at present unpaid for the
seoond half of 19^9 and 1970 should be incorporated in the new system
of financing ? the existing provisions are not only very difficult to
implement but furthermore they ignore two important factors ;
( a) Recoveries following irregularities relating to former periods
       are already covered by the new system ; it is logical that this should
       also be the case for expenditure , this latter being moreover offset
      by the abovementioned receipts .
(b ) Furthermore , since it is intended that the provision should not enter
       into force until 1978 » it will in any event have to be aligned on
      the situation as it stands at that date , i.e. the abolition of
      relative shares and the introduction of the integral own resources
      system .
                                                               • • •/• • •
 ---pagebreak---     Financi al Regulation concerning the EACOF . Guarantee Se ct ion ,
                   for the periods 1967/68 to 1970
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 43 and 209 thereof ,
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Parliament ,
Whereas , in order to clear the accounts for the accounting periods
1967/68 to 1970 , which involves only the Member States of the Community
as originally constituted , movements of funds relating to these four
periods should be limited to a single clearing ,
HAS ADOPTED THIS REGULATION:
 ---pagebreak---                       Article 1
 1.  The financial contributions from Member States calculated in accord­
 ance with Article 11 of Council Regulation No 130/66/EEC of 26 July 1966
 on the financing of the common agricultural policy* and Articles 2 and
 7 of Council Regulation (EEC ) No 728/70 of 21 April 1970 on additional
                                                                2
 provisions for the financing of the oommon agricultural policy   shall
 be used to cover expenditure "by the Guarantee Section of the Fund .
 2.  The financial contributions as expressed in units of account shall
be converted into national currency and credited "by each Member State
to a special account opened in the Commission 's name (EAGGF) with the
 Treasury or other "body appointed by the Member State . Such accounts
 shall be separate from all other accounts opened for the Commission
under budgetary procedure .
3.   The credit entry referred to in paragraph 2 shall be made in accor­
dance with the provisions of Article 3(l ).
1 0J No I65, 21.9.1966 , p. 2965/66
2 0J No L 94, 28.4.1970 , p. 9
 ---pagebreak---                             Article 2
  1 » Pop the pui^pose of the settlement of account Sj the granting of
  authority to pay and the payment of expenses relating to the Guarantee
  Section, the Commission shall , in the name of each Member State , keep
  an account for each accounting period which shall he :
  - credited with the amounts to "be reimbursed to that Member State
     pursuant to the decisions taken in accordance with Article 10 of
     Council Regulation No I7/64/EEC of 5 February I964 on the conditions
     for granting aid from the European Agricultural Cuidance and Guarantee
     Fund"^;
 - debited with the contributions of that Member State calculated in
     accordance with the provisions in force during the accounting period
     in question and on the basis of the data available at the time of the
     decision .
 2.   The Commission shall inform each Member State of the balance of its
 account •
 3«   The accounts referred to in paragraph 1 shall be kept and adopted in
 units of account .
                           Article 3
 1.   Member States in debit shall , within one month from the date of noti­
 fication , pay the amounts for which they are liable for the whole of the
periods 1967/68 to 1970 - The payments shall be made in their national
currency into the accounts opened in accordance with Article 1 ( 2 ), on
the basis of the parity in force on 31 December 1970 .
2 . Member States in credit shall , within two months from the date of
notification , receive a payment from the Commission for the whole of the
periods 1967/68 to 1970 , made in their national currency on the basis of
the parity in force on 31 December 1970 .
   OJ No 34 , 27.2.1964 , P. 586/64
 ---pagebreak---                                 Article 4
  A detailed table on the closure of accounts for the periods 1967/68
  to 1970 shall be published as an annex to the revenue and expenditure
  accounts of the Commission referred to in Article 81 of Financial
  Regulation No 73/91/ECSC , EEC , Euratom of 25 April 1973 applicable to
  the general budget of the European Communities^^.
                                Article 5
  The expenditure chargeable in respect of the second half of 19«9
  and 1970 which remains unpaid when the accounts for those periods are
  closed shall be financed in accordance with the provisions of Council
  Regulation (EEC ) No 729/70 of 21 April 1970 on the financing of the
                                ( 2)
 common agricultural policy          .
                               Article 6
                                                         Λ
 Financial Regulation No 64/127/EEC of 5 February 1964 on the European
 Agricultural Guidance and Guarantee Fund and Article 3(2) of Council
 Regulation (EEC ) No 2030/73 of 24 July 1973 on aid from the EAGGF,
 Guarantee Section, for the 1967/68 "to 1970 accounting periods^" are hereby
 repealed *
                               Article 7
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities *     This
Regulation shall be binding in its entirety and directly applicable in all
Member States .
Done at Brussels .
: OJ No L 116 , 1.5.1973 , p . 1
Z OJ No L    94 , 28.4.1970 , p . 13
   OJ No 34 , 27.2.1964 , p . 599/64
   OJ No L 207 , 28.7.1973 , p . 1