CELEX: 51978PC0263
Language: en
Date: 1978-06-09
Title: PROPOSAL FOR A COUNCIL REGULATION ( EURATOM, ECSC, EEC ) AMENDING THE FINANCIAL REGULATION OF 21 DECEMBER 1977 APPLICABLE TO THE GENERAL BUDGET OF THE EUROPEAN COMMUNITIES

6. 7. 78                            Official Journal of the European Communities                            N. C 160/11
              Proposal for a Council Regulation (Euratom, ECSC, EEC) amending the Financial
               Regulation of 21 December 1977 applicable to the General Budget of the
                                                European Communities
                           (Submitted by the Commission to the Council on IS June 1978)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                       HAS ADOPTED THIS REGULATION:
Having regard to the Treaty establishing the                                             Article 1
European Coal and Steel Community, and in
particular Article 78 (9) thereof,                             The Financial Regulation of 21 December 1977
                                                               applicable to the General Budget of the European
Having regard to the Treaty establishing the                   Communities shall be amended as follows:
European Economic Community, and in particular
 Article 209 thereof,                                           1. Second indent of Article 1 (1): substitute the
                                                                    following wording for the text of the second
Having regard to the Treaty establishing the                        indent of the second subparagraph:
 European Atomic Energy Community, and in                           '— the revenue and expenditure of the European
particular Article 183 thereof,                                     Economic Community, particularly any loans
                                                                    contracted, sums lent and              the relevant
 Having regard to the proposal from the Commission,                 repayments and costs.'
 Having regard to the opinion of the European                   2. Article 1 (4): substitute the following wording for
 Parliament,                                                        the text of the second subparagraph:
 Having regard to the opinion of the Court of                       'Operating expenditure arising from contracts
 Auditors,                                                          which have been concluded, in accordance with
                                                                     local usage, for periods going beyond the
                                                                     financial year, and expenditure for repayment of
 Whereas the budgetary presentation of borrowing                    loans and related costs, is not subject to the
 and lending transactions should be improved by                     provisions of the preceding subparagraph. Such
 showing more clearly in a separate part of the Budget               expenditure shall be charged to the Budget for
 the estimates and the authorizations relating to these              the financial year in which it is effected.'
 transactions;
                                                                 3. Article 3 (2): substitute the following wording for
 Whereas the borrowing and lending operations                        the text of the first subparagraph:
 represent commitments the Community must
 honour; whereas these operations have therefore been                'Notwithstanding         paragraph     1,    revenue
 entered in the General Budget of the European                       earmarked for a specific purpose, such as income
 Communities in order to express the Communities'                     from foundations, subsidies, gifts, bequests, and
 undertaking to use their own resources, in case of                  the product of any loans raised, repayment of
 default or delay in repayment by the beneficiary, to                sums lent and related costs, shall not be used for
 honour the obligations arising out of the loan                       any other purpose.'
  contracts;
                                                                 4. Article 6 (3): substitute the following wording for
 Whereas it would be desirable to simplify the                       the text of the second subparagraph:
 presentation of the research and investment                          'Should the Council, acting by a qualified
  appropriations in Chapter 33 of the Commission                     majority, fail to take a contrary decision within
  section of the Budget;                                              six weeks of receiving the application, the carrying
                                                                      over of these appropriations shall be deemed to
  Whereas in respect of decisions to carry over                       be approved.
  appropriations it would be advisable to adopt the
                                                                     The Council shall consult the European
  same period as for transfers of appropriations in
                                                                     Parliament immediately upon receiving the
  order to give the Council time to consult the
                                                                      application to carry over appropriations.'
  European Parliament during that period;
  Whereas it is therefore necessary to amend certain             5. Article 6 (4): add the following subparagraph:
  provisions of the Financial Regulation of 21 December               'Authorizations entered in Part II of the Budget
  1977,                                                               shall be carried over automatically to the
 ---pagebreak--- No C 160/12                            Official Journal of the European Communities                                   6. 7. 78
    following financial year where the operations                     in Part II, two Titles divided into Chapters,
    have not been implemented by the end of the                       Articles and Items accompanied by appropriate
     financial year for which they were authorized.'                  remarks.
                                                                       These remarks shall, in particular, express the
 6. Article 7: add the following subparagraph:
                                                                       Communities' undertaking to use their own
     'The lendings authorized in Part II of the Budget                 resources, in case of default or delay in
     shall be covered solely by the product of                        repayment by a beneficiary, to honour the
     borrowings.'                                                      obligations arising out of the loan contracts.
                                                                       Title I shall include:
 7. Article 12: substitute the following wording for
     the text of paragraph 1:                                          — authorizations for loans to be contracted in
                                                                           the financial year concerned;
     '1.       The Commission shall, in the preliminary
     draft budget which it shall place before the                     — estimated capital and interest repayments to
     Council not later than 1 September of each year:                      the Community by beneficiaries of lending
                                                                            operations,
     — draw up Part I of the Budget which shall
           include a general statement of revenue of the               — estimated contributions by beneficiaries to the
           Communities and the consolidated estimates                       costs of the borrowing and lending
            referred to in Article 11,                                     operations,
     — draw up Part II of the Budget which shall                       — broken down as above, the revenue entered in
           include     the    borrowing      and     lending                the Budget for the preceding financial year,
            operations.                                                     and the actual revenue for the last financial
                                                                             year for which the accounts have been closed.
      It shall at the same time forward the preliminary
      draft budget to the European Parliament.'                         Title II shall include:
                                                                        — authorizations         for  Community        lending
 8. Article IS: substitute the following wording for                         operations      during   the    financial    year
      the text of paragraph 1:                                               concerned,
      'The Budget shall consist of two parts:                           — appropriations to cover the repayment of
                                                                            Community borrowings and of interest
      Part I shall consist of:
                                                                             thereon,
      — a general statement of the revenue of the
                                                                        — appropriations to cover the costs                  of
             Communities, and
                                                                             borrowing and lending operations,
      — separate sections subdivided into statements
            of revenue and expenditure of the European                  — broken down as above, the appropriations
             Parliament, the Council, the Commission, the                    entered in the Budget for the preceding
             Court of Justice and the Court of Auditors.                     financial year, and the actual expenditure for
             The revenue and expenditure of the                               the last financial year for which the accounts
             Economic and Social Committee shall be                           have been closed.'
             entered in the section dealing with the
             Council and presented in the form of a
                                                                   11. Article 73: substitute the following wording for
             statement of revenue and expenditure,
                                                                        the text of paragraph (5):
             subdivided in the same way as the sections of
             the Budget and subject to the same rules.                  '(5)      Tables showing capital operations and
                                                                        debt management, indicating:
       Part II shall consist of:
                                                                        — total loans raised,
       — the borrowing and lending operations.'
                                                                        — total capital, plus interest and costs repaid in
   9. Article 15 (5): delete the second subparagraph.                          respect of lending-on operations,
                                                                         — total loans granted,
 10. Article 16: substitute the following wording for
        the text of paragraph (3):                                       — total capital, plus interest and costs, repaid in
                                                                               respect of borrowings,
        '(3)     as regards       borrowing     and    lending
        operations:                                                      — Community indebtedness.'
 ---pagebreak--- 6. 7. 78                               Official Journal of the European Communities                             No C 160/13
12. Article 88: substitute the following wording for
                                                                            Sub-item                    Heading
     the text of paragraph (2):
     '(2)      The figures given in programme decisions
     or corresponding decisions shall be merely                                1             Staff expenditure
     indicative.'                                                              2             Administrative expenditure
     — the present paragraph (2) becomes paragraph                             3             Technical operating expenditure
           (3),                                                                4             Investment
     — paragraph (3) becomes paragraph (4), and                                5             Expenditure under contracts
     — paragraph (4) becomes paragraph (5).                                    9             Reserve appropriations
13. Article 89: substitute the following wording for
      the text of the second and third subparagraphs:                  For management purposes, the sub-items may be
                                                                       subdivided into categories and headings which,
      'Appropriate remarks on each subdivision shall
                                                                       as regards expenditure, correspond similarly to
      include, in particular:
                                                                       the Chapters and Items of the Budget
     (a) a summary           description   of    the action            nomenclature fixed in accordance with the
           involved;                                                   provisions of Article 15 (3).'
      (b) in respect of budget implementation:
                                                                  15. Article 91: substitute the following wording for
            — the number of personnel authorized for                   the text of the present Article 90 (3), (4), (5) and
                 the current financial year,                            (6):
            — a simplified version of the schedule of
                                                                       Paragraph (3) becomes paragraph (1), with the
                 amounts and due dates for commitments
                                                                        first sentence reading as follows:
                 and payments referred to in paragraph
                 (3) below.                                             'An appropriation account shall be provided for
                                                                        each instrument of implementation referred to in
      The following shall be annexed to Section III —                   Article 90 (2) (b).'
      Commission — of the Budget:
                                                                        Paragraph (4) becomes paragraph (2), paragraph
      — a comparative table giving a breakdown by                       (5) becomes paragraph (3) and paragraph (6)
           destination and type of expenditure of the                   becomes paragraph (4).
           appropriations entered in Chapter 33,
      — an indicative schedule of amounts and due                  16. Article 94: delete paragraph (3)
           dates for commitments and payments by
           Article, Item and amount per tranche                        — the present paragraph (4) becomes paragraph
           indicating the        rate of      use of     the                 (3),
           appropriations for commitment and the                        — paragraph (5) becomes paragraph (4), and
           corresponding appropriations for payment.
           The schedule shall be revised each year;                     — paragraph (6) becomes paragraph (5).
      — the decision authorizing the Commission to                17. Annex giving 'Budgetary nomenclature provided
           make the transfers referred to in Article 94                 for in Article 89 of the Financial Regulation':
           (2).'                                                        delete.
14. Article 90 (2): substitute the following wording
       for the text of the last subparagraph:                                                Article 2
       'For the research and investment objectives or
                                                                  This Financial Regulation shall enter into force on
       other activities of Part I, the appropriation
                                                                   11 December 1978.
       accounts of Part II and the accounts showing
       staff expenditure of Part III, the expenditure shall
       be broken down by type into sub-items as                   This Financial Regulation shall be binding in its
       follows:                                                    entirety and directly applicable in all Member States.