CELEX: 51995PC0208
Language: en
Date: 1995-06-01
Title: Amended proposal for a COUNCIL REGULATION (EC, ECSC, Euratom) amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities

COMMISSION OF THE EUROPEAN COMMUNITIES
 *****
*      *
 *****
                                             Brussels, 01.06.1995
                                             COM(95) 208 final
                                             94/0192 (CNS)
                              Amended proposal for a
                COUNCIL REGULATION (EC. ECSC. Euratom)
            amending the Financial Regulation of 21 December 1977
          applicable to the general budget of the European Communities
  (presented by the Commission pursuant to Article 189a(2) of the EC Treaty
         and the second paragraph of Article 119 of the Euratom Treaty)
 ---pagebreak---  ---pagebreak---                             EXPLANATORY MEMORANDUM
On 22 July 1994 the Commission presented a proposal for the amendment of the Financial
Regulation in the research field to cater for the new activities being conducted by the Joini
Research Centre under the fourth framework programme of European Community
activities in the field of research, technological development and demonstration (1994-98)
adopted by Parliament and Council Decision of 26 April 1994.
The specific purpose is to cater for the new competitive approach for the JRC, whicli
means that the Centre will have to start competing with other bodies to carry out certain
projects financed by the general budget and will therefore have to make competitive bids to
win funding for some of its activities.
Parliament gave its opinion on the proposal at its March 1995 part-session and passed a
number of amendments, most of which the Commission is able to accept.
The Commission is incorporating Parliament's amendments subject to various drafting
adjustments, but cannot endorse the refusal of the increase from the current 15% to 22%
for transfers on which decisions are to be taken by the Commission itself in the field of
direct action (excluding exploratory research).
This increase, together with the other amendments proposed by the Commission
concerning transfers, will give the Commission greater autonomy in managing JRC
appropriations by putting it on the same footing as its competitors, which are not subject to
the same constraints.
The Commission has accordingly drawn up this amended proposal under Article 189a(2) oi
the EC Treaty and the second paragraph of Article 119 of the Euratom Treaty.
 ---pagebreak---    AMENDED PROPOSAL FOR A COUNCIL REGULATION (EC, ECSC, Euratom)
              amending the Financial Regulation of 21 December 1977 applicable
                      to the general budget of the European Communities
In the light of the opinions delivered by Parliament and the Court of Auditors, the
Commission is amending its proposal as follows:
             INITIAL PROPOSAL                                AMENDED PROPOSAL
              (COM(94)338 final, 22.7.1994)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the
European Coal and Steel Community, and in
particular Article 78h thereof,
Having regard to the Treaty establishing the
European Community, and in particular Article
209 thereof,
Having regard to the Treaty establishing the
European Atomic Energy Community, and in
particular Article 183 thereof,
Having regard to the proposal from the
Commission1 ,
Having regard to the opinion of the European
Parliament2,
Having regard to the opinion of the Court of
Auditors3 ,
Whereas conciliation has taken place in a
conciliation committee as provided in the Joint
Declaration of the European Parliament, the
Council and the Commission of 4 March 1975,4
Whereas the fourth framework programme of
European Community activities in thefieldof
research and technological development and
1
   OJL
2
   OJL
3
   OJL
4
   OJC 89, 2.4.1975 p. 1
 ---pagebreak---                 INITIAL PROPOSAL                                  AMENDED PROPOSAL
demonstration (1994-1998)5 adopted by decision
of the Council and Parliament of 26 April 1994
introduced a new competitive approach for the
Joint Research Centre, which implies, amongst
other things, that the JRC will gradually have to
enter into competition with other bodies for
certain projects financed by means of
appropriations in the general budget, whether
inside or outside the particular subsection referred
to in Article 92(1) of the Financial Regulation of
21 December 1977 applicable to the general
budget6 ; whereas it is necessary to adapt the
Financial Regulation in order to take account of
this competitive approach;
                                                      The third recital is replaced by the following:
Whereas this new competitive approach implies         Whereas this new competitive approach implies
changes to certain terms of the Financial             changes to certain terms of the Financial
Regulation so as to afford the JRC greater            Regulation so as to afford the JRC greater
flexibility in the management of its appropriations   effectiveness in the management of its
and thus enable it to compete effectively with        appropriations and thus enable it to compete with
other similar bodies;                                 other similar bodies;
                                                      The fourth recital is replaced by the following
Whereas, in this connection, the Commission           Whereas, in this connection, the Commission
should be given greater autonomy in this area for     should be given greater autonomy in this area lor
transferring appropriations, including                transferring appropriations;
appropriations for staff;
Whereas appropriations obtained on a competitive
basis should be treated as revenue from services
for third parties so as to ensure total transparency
in the accounts pertaining to these operations,
HAS ADOPTED THIS REGULATION:
 5
    OJL 126, 19.5.1994, p. 1
6
    OL L 356, 31.12.1977 - last amended by Council Regulation N° 610/90 of 13.3.1990 (JO L 70,
     16.3.1990)
 ---pagebreak---               INITIAL PROPOSAL                                     AMENDED PROPOSAL
                    Article 1                                  Article
The Financial Regulation is amended as follows:
1. Article 92 is amended as follows:                  Article 92 is amended as follows:
   (a) in the second subparagraph of paragraph        (a)    unchanged
        1, point (a) is replaced by the following:
       "(a) direct action consisting of research
             programmes and exploratory
             research and scientific and technical
             support activities of an institutional
             nature carried out by the
             establishments of the Joint Research
             Centre (JRC) and in principle
             entirely financed from the general
             budget of the European
             Communities;"
   (b) in the second subparagraph of paragraph        (b)    unchanged
        1, point (b) is replaced by the following:
       "(b) indirect action consisting of
             programmes carried out under
             contracts to be concluded with third
             parties. The JRC may participate in
             these activities on the same basis as
             third parties. These activities shall in
             principle be partially financed from
             the general budget of the European
             Communities (shared-cost action
             projects);
   (c) in the second subparagraph of paragraph        (c)    unchanged
        1, point (e) is replaced by the following:
       "(e) other activities of a competitive
             nature carried out by the JRC:
           - scientific and technical support
               activities under the R&TD
               framework programmes in
               principle entirely financed from the
               general budget;
           - services for third parties.";
 ---pagebreak---            INITIAL PROPOSAL                                    AMENDED PROPOSAL
(d) the following paragraph is inserted after        (d) the following paragraphs are inserted
     paragraph 2:                                         after paragraph 2:
    "3. Notwithstanding paragraph 1, the JRC             "3. Notwithstanding paragraph 1, the JRC
        may receive appropriations entered                    may receive funding covered by
        elsewhere than in the subsection                      appropriations entered elsewhere than
        referred to in that paragraph in respect              in the subsection referred to in that
        of its participation on a competitive                 paragraph in respect of its
        basis in activities implemented under                 participation on a competitive basis in
        Community policies financed, in                       activities implemented under
        principle, entirely from the general                  Community policiesfinanced,in
        budget."                                              principle, entirely from the geneml
                                                              budget.
                                                         4. The provisions of Title IV on the
                                                              conclusion of contracts shall app I y Jo
                                                              the cases referred to in the first indent
                                                              of paragraph 1(e) and in paragraph 3."
                                                 Paragraph 2 of Article 93 is replaced by the
                                                 following:
                                                 " However, for the Joint Research Centre.
                                                     appropriations for staff and appropriations for
                                                     resources shall be entered in two separate
                                                     chapters."
                                                 The following indents are inserted in Article ()4:
                                                 "- in order to permit full comparison between
                                                     forecasts and outturn, the table of equivalence
                                                     of commitments and payments shal I be
                                                     presented with the same subdivisions and
                                                     headings in the budget and in the revenue and
                                                     expenditure account;
                                                 - In the working document accompanying the
                                                     preliminary draft budget the Commission shall
                                                     provide the necessary information concerning
                                                     the foreseeable distribution and utilization of
                                                     the commitment appropriations for the various
                                                     budget headings for the duration of the action
                                                     and also concerning the revenue originating
                                                     from financing by third parties (public or
                                                     private) as part of JRC participation in shared-
                                                     cost action."
 ---pagebreak---                INITIAL PROPOSAL                                  AMENDED PROPOSAL
2. Article 95 is amended as follows:                Article 95 is amended as follows.
   (a) the first paragraph is replaced by the       (a)unchanged
            following:
        "Notwithstanding Article 26 and without
       prejudice to paragraph 7 thereof, the
       Commission may, within the subsection
        referred to in Article 92, transfer
       appropriations from one title to another
       and from one chapter to another in respect
       of the activities referred to in
       Article 92(lXa).";
   (b) the second paragraph is replaced by the      (b)unchanged
            following:
       "These transfers may not have the effect of
       increasing or decreasing by more than
       22% in commitment appropriations the
       initial allocation entered in the budget for
       each of the programmes referred to in
       Article 92(1 )(a) excluding exploratory
       research. They may not have the effect of
       increasing the appropriations earmarked
       for exploratory research by more than 6%
       in commitment appropriations of the initial
       allocation for the total of the programmes
       referred to above";
                                                    (c) deleted
   (c) the third paragraph is deleted;
   (d) the fourdi subparagraph is replaced by the   (d)unchanged
            following:
       "For the purposes of the application of
       Article 26, the budget headings relating to
       the activities referred to in Article 92 (I)
       (b) (excluding JRC participation), (c) and
       (d) shall be regarded as chapters."
 ---pagebreak---                INITIAL PROPOSAL                                     AMENDED PROPOSAL
3. The following paragraph is added after Article     3. The following paragraph is added after Article
96(3):                                                96(3):
    "4. The appropriations relating to the activities     "4. The appropriations relating to the activities
    referred to in Article 92 (I) (b), as regards the     referred to in Article 92 (1) (b), as regards the
    participation of the JRC on a competitive             participation of the JRC on a competitive
    basis, and (e) and (3) shall be treated as            basis, and (e) and (3) shall be treated as
    revenue from services to third parties provided       revenue from services to third parties provided
    for in paragraphs 1 and 2."                           for in paragraphs 1 and 2."
                                                          The utilization of these appropriations shall be
                                                          shown in a set of analytical accounts in the
                                                          revenue and expenditure accounts for each
                                                          category of action to which it relates; it shall
                                                          be separate from revenue originating from
                                                          financing bv third parties (public or private)
                                                          and from revenue from services provided for
                                                          third parties in connection with the activities
                                                          referred to in paragraphs 1 and 2 or activities
                                                          of a different nature."
                    Article 2                                   Article 2
                                                      Article 95 may be revised, if necessary, on expiry
                                                      of the 1995-98 framework programme < >n the
                                                      basis of a reasoned report.
This regulation shall enter into force on the third   This regulation shall enter into force on the third
day following that of its publication in the          day following that of its publication m the
Official Journal of the European Communities.         Official Journal of the European Communities.
It shall apply from                                   It shall apply from
This Regulation shall be binding in its entirety      This Regulation shall be binding in its entirety
and directly applicable in all Member States.         and directly applicable in all Member States
Done at Brussels,                                     Done at Brussels,
         For the Council                                           For the Council
                                                                   The President
         The President
 ---pagebreak---                                              %
                                                                  BSN 0254-1475
                                                            COM(95) 208 final
                                              DOCUMENTS
EN                                                                       01 15
                                     Catalogue number : CB-CO-95-233-EN-C
                                                             ISBN 92-77-89187-4
Office for Officiai Pablicatioas of the European Communities
L-2985 Luxembourg