CELEX: 51987PC0600
Language: en
Date: 1987-11-12
Title: PROPOSAL FOR A COUNCIL DECISION ON THE CORRECTION OF BUDGETARY IMBALANCES ( THE PROPOSED DECISION IS DESIGNED TO ACCOMPANY COM ( 87 ) 100 AND COM ( 87 ) 101 )

No C 346/22                              Official Journal of the European Communities                               22.12.87
                                                                II
                                                        (Preparatory Acts)
                                                  COMMISSION
                          Proposal for a Council Decision on the correction of budgetary imbalances
                  (The proposed Decision is designed to accompany COM(87) 100 and COM(87) 101)
                                                       COM(87) 600 final
                             (Submitted by the Commission to the Council on 11 November 1987)
                                                         (87/C 346/05)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                            Whereas a timetable has to be drawn up for carrying out
                                                                    the obligations arising from this Regulation;
Having regard to the Treaty establishing the European
Economic Community, and in particular Articles 201 and              Whereas Article 8 A of the Treaty establishing the
235 thereof,                                                        European Community, as amended by Article 13 of the
                                                                    Single European Act, provides for the completion of the
                                                                    internal market by 31 December 1992,
Having regard to the Treaty establishing the European
Atomic Energy Community, and in particular Articles
173 and 203 thereof,                                                HAS DECIDED AS FOLLOWS:
Having regard to the proposal from the Commission,                                            Article 1
                                                                    Financial compensation shall be granted to the United
Having regard      to    the  opinion    of   the   European        Kingdom in accordance with the following provisions.
Parliament,
                                                                                              Article 2
Whereas the fact that the economy of a Member State                 The amount of compensation to be granted in respect of
which is in a special situation has to bear a dispro-               each financial year shall correspond to the difference in
portionate share of the financing of the Community                  that financial year between:
budget can give rise to a situation which is incompatible
with the smooth functioning of the Community;                       — the United Kingdom's percentage share of total G N P
                                                                        in the Member States
Whereas the European Council which met in Fontaine-
bleau on 25 and 26 June 1984 reached certain                            and
conclusions;
                                                                    — the United Kingdom's percentage share of total
                                                                        European Agricultural Guarantee and Guidance
Whereas there is still an imbalance in the United                       Fund (EAGGF), Guarantee section payments,
Kingdom's budgetary position resulting from the                         including the monetary compensatory amounts paid
relatively small amount of agricultural spending by the                 on its behalf by other Member States
Community in the United Kingdom; whereas this
imbalance may be gauged in relation to gross national               multiplied by 50 % of total EAGGF Guarantee Section
product at market prices, hereinafter referred to as                payments.
G N P ; whereas compensation should be paid to offset
part of this imbalance; whereas the Treaties do not
provide any specific powers to cover this compensation;                                       Article 3
whereas recourse should therefore be had to Article 235
                                                                     1.   The compensation due in respect of a financial year
of the EEC Treaty and Article 203 of the Euratom
                                                                    shall be paid during the following financial year; an
Treaty;
                                                                    estimate of this compensation shall therefore be entered
                                                                    in the statement of expenditure of the general budget of
Whereas the compensation to be granted to the United                the European Communities.
Kingdom should be financed by other Member States by
reference to their ability to pay and their contribution to         2.     Corrections to these estimates may be entered in
the budget;                                                         subsequent budgets or amending budgets.
 ---pagebreak--- 22.12.87                                 Official Journal of the European Communities                             No C 346/23
3.     The final amount of compensation shall be                    2891/77 and the Commission shall pay the United
determined by reference to the G N P of the Member                  Kingdom one twelfth of the relevant amounts in the
States used for making the final adjustment to the                  budget. Any change in the amounts shall require the final
definitive additional base provided for in Article 6 of             adoption of a supplementary or amending budget and
Regulation (EEC, Euratom, ECSC) No 0000/88 of                       shall give rise to the readjustment of the twelfths entered
          1988. The adjustment of the compensation                  since the beginning of the financial year.
resulting from comparison between the estimate and the
final amount shall be entered in the budget of the                  2.    If the budget has not been adopted at the beginning
following financial year.                                           of the financial year, the twelfths to be entered or paid
                                                                    on the first working day of each month shall be twelfths
                                                                    of the relevant amounts in the last budget adopted or of
                           Article 4                                the relevant amounts in the draft budget, whichever are
The compensation shall be financed by Belgium,                      the lower; if no draft budget has been established,
Denmark, the Federal Republic of Germany, France,                   reference shall be made to the relevant amounts in the
Italy, Luxembourg and the Netherlands in accordance                 preliminary draft budget. The adjustment of these
with the following rules:                                           operations shall be made on the first due date following
                                                                    final adoption of the budget if it is adopted before the
(a) The GNP of the seven Member States concerned                    sixteenth of the month. Otherwise, the adjustment shall
     shall be multiplied by the index of per capita gross           be made on the second due date following final adoption
     national product in purchasing power parities                  of the budget.
     established on the basis of the twelve-nation
     Community as available when the estimate is                    3.    The amounts entered in the budget in ECU in
     prepared    and when the final amounts of                      respect of the correction of budgetary imbalances shall
     compensation are determined;                                   be converted at the ECU rate applying on the first
                                                                    working day after the fifteenth day of the month which
(b) The results shall be added together and expressed as            precedes the due date.
     a percentage of the total;
(c) The percentage obtained for the Federal Republic of                                        Article 6
     Germany shall be reduced by 75 % ;                             Member States shall be notified of this Decision by the
(d) The 75 % deducted from the share of the Federal                 Secretary-General of the Council of the European
     Republic of Germany shall be divided between the               Communities; it shall be published in the Official Journal
     six other Member States in accordance with their               of the European Communities.
     share in the scale referred to at (b).                         Member States shall notify the Secretary-General of the
                                                                    Council of the European Communities without delay of
The amounts to be paid shall be entered as negative
                                                                    the completion of the procedures for the adoption of
expenditure in the statement of expenditure of the
                                                                    this Decision in accordance with their respective
general budget of the European Communities.
                                                                    constitutional requirements.
                           Article 5                                This Decision shall enter into force on the first day of
                                                                    the month following receipt of the last of the
1.     On the first working day of each month the                   notifications referred to in the second paragraph.
Member States shall enter in the account provided for in
Article 9 (1) of Regulation (EEC, Euratom, E^CSC) No                It shall take effect on 1 January 1988.