CELEX: 51988PC0483
Language: en
Date: 1988-09-19
Title: Proposal for a COUNCIL REGULATION (ECSC, EEC, Euratom) implementing the Decision of 24 June 1988 on the system of the Communities' own resources (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 483
Vol. 1988/0169
 ---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) modifié en dernier
lieu par le règlement (UE) 2015/496 du Conseil du 17 mars 2015 (JO L79 du 25. 3.2015, p. 1), ce
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informations classifiées de l'Union européenne.
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 last amended by Council
Regulation (EU) 2015/496 of 17 March 2015 (OJ L 79, 27.3.2015, 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 or are considered declassified in conformity with
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on the security rules for protecting EU classified information.
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), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
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Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
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2015/444 vom      13. März 2015 über die Sicherheitsvorschriften für den Schutz von EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                         COM(88 483 final
                       «1*77?            Brussels , 19 September 1988
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                              Proposai for a
             COUNCIL REGULATION ( ECSC , EEC , Euratom )
        implementing the Decision of 24 June 1988 on the
            system of the Communities' own resources
                     ( presented by the Commission )
 ---pagebreak---                                     - S)‘
                                   Proposai for a
                 Council Regulation (B29C , SBC, Euratcm)
                    Implwnarstlng the Dnotrelon of 24 June 1068
                 on the system of tbs Comaunities' own resources
ByÿLapfttagy
1 . In the light of the experience gained In the application of Counoil
    Regulation No 2801 /7? of 10 Deoouber 1077 , and to moke good oertain
    deficiencies , the Commission presented the following proposals :
    - Proposal for a Council Regulation amending Regulation (ESC , Suratan ,
      HG8G) No 2801/77 implementing the Dealsian of 21 April 1070 on tbs
      rspl&csMsvt of financial contributions from Member states by tbs
      Communities' own resouroes (OJ C 231 , 4 September 1062);
    - Amendaient to the proposai for a Counoil Régulation amerriing Régulation
      No 2801/77 (QJ C 140 , 4 J'use 1983);
    ~ Second, amendment to the proposal for a Council Regulation amending
      Regulation No 2801/ 77 (OJ C 303 , 10 November 1983);
    - Thizri emsndment to the proposai for a Counoil Régulation «candi rg
      Régulation No 2801/77 (OJ C 219 , 21 AugUSt 1064).
    These proposals were presented to the Council on 23 July 1982 , 20 May
    1983 , 24 October 1983 and 31 July 1984 respectively .
2 . The initial, proposal and the first amendment to it were considered on
    16 June 3987 at a conciliation meeting between Parliament and the
    Counoil on the basis of the oommon position adopted by the Counoil on
    8 neoember 1986 . On 30 June 1988 the Counoil then adopted the amendments
    agreed on during ocnoill&tlan, eoooept for Artiole 12 (overdrawing on the
    Commission 's accounts with the Member States ) and Artiole 18(3)
    (Independent inspections by the Commission) (see Regulation No 190O/681
    amending Regulation No 2801/77) .
3 . Cm 13 June 1988 the Counoil adopted a oommon position on the aeocmd and
    third amendments to the Commission proposal . The Commission regards this
    oommon position as unsatisfactory .
4 . In the mean time , on 24 June 1988 , following the oonolusions of the
    Brussels European Counoil of 11-13 February , the Counoil has adopted a
    new Dealslon on the system of the Communities' own resouroes . 2
    The application of -this Dealslon and in particular the new arrangements
    for VAT own resouroes and the additional resouroe baaed on the sum of
    all the Member States' GNP , will require adjustments to the current
1 OJ L 178 , 7 July 1988 .
2 OJ L 188 , 18 July 1988
 ---pagebreak---                                          - a -
    rules , which will mean amendments to & number of provisions already
    ocvered by the Ooasnlaslcn'fl earlier propoe&ls and to oertaln provisions
    rso*tttly adopted by the Council in Regulation No 199U/68 .
5 . Tbs Coasalsslaii therefore feels the beet solution would be to present &
    sew complete and coordinated regulation for the application of tbs
    Decision of 84 June 1988 , rather than yet another proposal for an
    amendment , which would only oanmlioate natters further . There are
    reasotMi of substanoa too for withdrawing the two proposals . The ocmmon
    Ctdcn        adoptedoansiders
          Ooranigsion     by the Council on 13asJune
                                  Inadequate         1968-tpresents
                                                 regards            solutionsofwhich
                                                           he establishment     own
    resources , the supply of Information to the Oaranisalon on oases of fraud
    and aon-reoovery , and independent Inspections oarried out by the
    fimmiri «Mg cm .
6 . For these reasons , the Cowsnisgicm , having withdrawn its proposals far a
    second and a third amendment to the initial proposal for the revision of
    Regulation No 8891 /77 , is presently a proposal for a new Regulation
    isrpl&Bsnfcirg the Dsoigion of 84 June 1988 . replacing , frost 1 January
    1989 , COUKXLI Regulation No 8801/77 as amended by Regulation No 19S0 / 88
    30 June 1988 .
    Nherever possible , and ta&Lng account of the technical amendments
    resulting from the Decision of 84 June 1988 , the new proposal retains
    -tee provisions already oontadned In -these two regulations and In the
    oosB&on position adopted by the Council an 13 June 1988 .
 ---pagebreak---                                   - 3 -
                                  Proposai for
               Cornioli Ragulatiaa (ECSC, ESC, Euratom) R>
                                        of
                   implementing tbs Decision of 24 June 1966
                on the system of the Communities' own rescuroes
тнв ооансиь ар газ вмшаг сштхтш ,
Having regard to the Treaty establishing    the European Coal and Steel
Oassmmlty, an1 In particular Article 78h    thereof ,
HAviug regard to the Treaty establishing    the European Boonomlo Community,
ftnii In particular Article 200 thereof ,
Eavixg regard to the Treaty establishing    the European Atomic Energy
CcsEaunlty, and in particular Article 183   thereof ,
Having regard to the Deoisicm of 94 June 1968 on the system of the
Communities' own rescuroes , hereinafter referred to as 'the Dedsian of
94 June 1066' , and In particular Artiole 8(2) thereof , 1
Having regard to the proposal from the Commission,
Havlxg regard to the opinion of the European Parliament, 3
Having regard to the opinion of the Court of Auditors, 3
Whereas for implementation of the Deo.1sl on of 94 June 1988 and In the light
of experience gained in applying Council Regulation (ESC , Euratom, ECSC)
No 2891/77 of 19 Deoember 1977^ as amended toy Council Regulation ( ECSC,EEC, Euratom )
NO 199(y88 of 30 June 1988, ® hereinafter referred to as 'Regulation
No 2891/77' , the regulation will need to toe amended to such an extent that
it is better to replace it ;
Whereas the own rescuroes referred to in Artiole 2 of -the Decision of
24 June 1988 must toe available to the Community ;
'Whereas the ooacept of establishment must be defined In respeot of the own
resources referred to In Artiole 2 (l)(a) and (to) of the Decision of
94 Jims 1968 ;
Whereas separate accounts Should toe Kept for entitlements wtaloh have not
been recovered ; whereas these accounts end the submission of a quarterly
statement of erudh accounts should enable the Oonudesion to monitor more
alosely the action taken toy Nenfcer States to oolleot own rescuroes, and
particularly those compromised toy fraud or irregularities ;
Whereas provision Should toe mads , as regards the own rescuroes seaming
from value added tax , hereinafter called 'VAT rescuroes' , referred to in
Artiole 2(l)(o) of the Decision of 34 June leaa , for Member States to make
available to the Community , In the form of oonstant monthly twelfths , the
1 OJ L 188 , 18 July 1988
9 0J
3 OJ
4 OJ L 338 , 27 Daoember 1977
8 OJ L 178 , 7 July 1988 .
 ---pagebreak---                                           4
      own resources entered In the budget and subsequently to adjust the amounts
            available In accordance with the actual VAT asaesscnent base as soon as
      It Is fully known ;
     Whereas this procedure Is also to apply to the additional resource referred
      to In Article 2(l)(d) of the Decision of 24 (Tune 1088 , hereinafter referred
      to as 'the additional resouroe' , created in aooordanoe with Council
     Directive 68/      /S$G of 24 June 1083 , 1 hereinafter referred to as 'the
     Directive of 24 June 1986' ;
     Whereas the own resources must be made available in the form of an entry of
     the amounts due in a special account opened in the name of tbs Ccanaieeian
     with e. financial institution appointed for the purpose by agre&asnt between
      tbs Oommieslan and the hembsr State concerned ; vherea* the balances on
      these accounts should boar interest ; whereas in order to restrict
     movements of funds to what are necessary for the Implantation of the
     budget , the Community must alloy the abcvesmentioned accounts to be drawn
     upon solely to oover the Coradaslcn 's ossh requirements ;
     Whereas ths balance to b@ oarried forward to the following financial year
     Should be defined ;
     Whereas , in order to ensure that the Ccsreaunity budget will be financed in
     all circumstances , the procedure for making available the GNP-b&sad
     contributions referred to in Article 2(7) of the Decision of 24 June 1988
     should be laid down ;
     Whereas tfcg Member States must keep at the dispose! of the Cotcmisslon and ,
     where nseassssasy , ferwg&d to it the documents and information needed to
     allow It to emratse the powers conferred upon it as ragards the
     Ctammltics' cm resources and budgetary procedure ;
     Whereas the Member States should conduct the c£jeofes and inquiries relating
     to the establishment and naming available of own resources ; whereas the
     Ccemttiasian Should exercise its powers in accordance with this Regulation ;
     Whereas close cooperation between Member States and the Commission will
     facilitate the application of this Regulation , the aim of which is to
     wrunKi a the Communities to dispose of their own resources under the beet
     possible conditions ;
     HAS ADOTSD mS RTOHI :
     1 0J
en • -J
 ---pagebreak---                                           - 5 -
                                        TITLE I
                                  General provision »
                                       Article 1
    The Community 's own resources provided for 1n the Decision of 24 June 1988
   shell be established by the Member States 1n accordance with Community
   provisions or , In the absence thereof 1n accordance with their own laws ,
    regulations or administrative provisions . They shall be made available to
   the Commission and Inspected as specified 1n this Regulation , without
   prejudice to Council Regulation ( EEC , Euratom, ECSC ) No 2892/ 77 of
    19 December 1977 .
                                       Article 2
1. For the purpose of applying this Regulation, the Community 's entitlement to
   the own resources referred to 1n Article 2(1 ) ( a > and ( b ) of the Decision of
   24 June 1988 shall be established as soon as the appropriate department of
   the Member State has notified the debtor of the amount which 1$ due or which
   it considers to be due . Notification shall be given as soon as the debtor
   is known and the amount of tax can be determined or estimated by the
   appropriate administrative authorities .
2. Paragraph 1 shall apply when a notification must be corrected .
                                      Article 3
   Member States shall take all appropriate measures to ensure that the supporting
   documents concerning the establishment and the making available of own
   resources are kept for at least three calendar years as from the end of the
   year to which these supporting documents refer .
   If verification of these supporting documents by the national administration
   alone or 1n conjunction with the Commission shows that an establishment to
   which they relate may have to be corrected , they shall be kept beyond the
   time limit provided for In the first subparagraph for a sufficient period to
   permit the correction to be made and checked .
                                      Article 4
1. Each Member State shall inform the Commission :
   (a )   of the names of the departments or agencies responsible for establishing
          own resources and , where appropriate, their status ;
   (b)    of the laws, regulations , administrative provisions and accounting
          procedures for establishing own resources and making them available to
          the Commission .
2. The Commission shall , at the request of the other Member States , pass to
   them the information referred to In paragraph 1 .
   ^J L 336, 27 . 12.1977.
 ---pagebreak---                                         - 6 -
                                     Article 5
  The rate referred to In Article 2(1Xd ) of the Decision of 24 June 1988,
 which shall be set within the budgetary procedure , shall be calculated as a
 percentage of the sum of the forecast GNP of the Member States in such
 manner that It fully covers that part of the budget not financed from
 customs duties , agricultural levies , VAT resources , financial contributions
 to supplementary research and technological development programmes , other
 revenue and, where appropriate , GNP-based financial contributions . This
 rate shall be expressed in the budget by a figure rounded off to the
 fourth decimal place .
                                      TITLE II
                            Accounts for own resources
                                     Article 6
 Accounts for own resources shall be kept by the Treasury of each Member
 State or by the body appointed by each Member State and broken down by type
 of resources .
 (a)    The entitlements established in accordance with Article 2 shall ,
        subject to point ( b ), be recorded in the accounts no later than the
        first working day of the second month following the month during
        which the entitlements were established .
 (b)    Entitlements which are established but not recorded in the accounts as
        specified 1n point ( a ) because they have not yet been recovered and
        no security has been lodged , shall be recorded in separate accounts
        within the time limit specified 1n point ( a ).
        Member States may take the same action when established entitlements
        covered by guarantees are challenged and are liable to change as a
        result of the dispute .
 (c )  VAT resources and the additional resources shall however , be recorded
        in the accounts as specified in point ( a ) as follows :
       - the twelfth referred to in Article 10(3 )      shall be recorded on the
           first working day of each month ,
       - the balances referred to in Article 10(4 ) and ( 7 ) and the adjustments
           referred to in Article 10(6 ) and ( 8 ) shall be recorded annually ,
           except for the particular adjustments referred to in the first indent
           of Article 10(6), which shall be recorded in the accounts on the
          first working day of the month following agreement between the Member
           State concerned and the Commission .
Each Member State shall send the Commission , within the time limits specified
in paragraph 2 , a monthly statement of its accounts for the entitlements
referred to in paragraph 2(a ) and ( c ), and a quarterly statement for the
separate accounts referred to in paragraph 2(b ).
The quarterly statement shall include a brief description of cases of fraud
and irregularities involving entitlements of over 10 000 ECU .
 ---pagebreak---                                                 - 7 -
                                             Article 7
   Each Member State shall draw up yearly a summary account of established
   entitlements together with a report on the establishment and entry 1n the
   accounts of own resources and shall send It to the Commission before 1 May
   of the year following the financial year 1n question .
                                             Article 8
   Corrections carried out under Article 2(2 ) shall be added to or subtracted
    from the total amount of established entitlements. •• They shall be recorded 1n the
   accounts as specified 1n Article 6(2 ) ( a ) and ( b) and 1n the statements as
   specified 1n Article 6(3) 1n accordance with the date of these corrections .
   Corrections 1n respect of cases of fraud and Irregularities already notified
   to the Commission shall be singled out .
                                             TITLE III
                                Making available own resources
                                             Article 9
1. Subject to Article 10(1)(b ), the amount of own resources established , after
   10% has been deducted by way of collection costs 1n accordance with
   Article 2(3) of the Decision of 24 June 1988, shall be credited by each
   Member State to the account opened 1n the name of the Commission with a
   financial Institution appointed for the purpose by agreement between the
   Commission and the Member State concerned .
   However, VAT resources , the additional resource and, where appropriate,
   GNP-based financial contributions shall be credited In accordance with the
   procedure laid down 1n Article 10(3) to ( 8). This account shall earn Interest
   at a rate reflecting the Interbank money market rate for the currency
   concerned .
2. The amounts credited shall be converted by the Commission and entered 1n Its
   accounts 1n ECU on the basis of the ECU rate used for the month during which
   such entry 1s made .
                                            Article 10
1. (a )    The credit entry referred to 1n Article 9(1 ) shall be made , subject to
           point ( b), no later than the first working day of the second month
           following the month during which the entitlement was established in
           accordance with Article 2 .
   ( b)    Entitlements recorded 1n the separate accounts in accordance with
           Article 6(2) ( b ) shall be credited no later than the first working day
           of the second month following the month during which the entitlements
           are recovered .
   (c)     Member States shall notify the Commission by telex , at least four
           working days 1n advance , of the amounts they are going to credit to
           the account .
 ---pagebreak---                                             8
2.  If necessary , Member States may be Invited by the Commission to bring forward
    by one month the crediting of resources other then VAT resources and the
    additional resource .   In this case , the credit entry referred to in paragraph
    1 shall be for twice the amount of customs duties , agricultural levies and
    sugar storage levies .
    Each entry brought forward shall be adjusted the following month when the
    entry mentioned in paragraph 1 is made . This adjustment shall consist in
    the negative entry of an amount equal to that in the entry brought forward .
3.  However , VAT resources , the additional resource and , where appropriate ,
    GNP-based financial contributions shall be credited on the first working
    day of each month , the amounts being one twelfth of the relevant totals in
    the budget , converted into national currencies at the rates of exchange used
    for the conversion into ECU for budgetary purposes of the VAT base and GNP
    forecasts drawn up by the Member States in their national currencies .
    The entry in respect of the EAGGF monetary reserve referred to in Article 6
    of the Decision of 24 June 1988 shall be made on the first working day of
    the month following the charging to the budget of the expenditure
    concerned and shall be limited to the said expenditure .
    Any change in the uniform rate of VAT resources , in the correction granted
    to the United Kingdom referred to in Article 5 of the Decision of 24 June 1988
    and in its financing , in the uniform rate of the additional resource and ,
    where appropriate , in the GNP-based financial contributions shall require
    the final adoption of a supplementary or amending budget and shall give
    rise to readjustments of the twelfths which have been entered since the
    beginning of the financial year .
    These readjustments shall be carried out when the first entry is made
    following the final adoption of the supplementary or amending budget if
    It is adopted before the 16th of the month . Otherwise they shall be carried
   out when the second entry following final adoption is made . By way of
   derogation from Article 5 of the Financial Regulation of 21 December 1977
   applicable to the general budget of the European Communities ^ as last
   amended by Council Regulation ( ECSC , EEC , Euratom ) No 2049/ 88 of
   24 June 1988, 5 these readjustments shall be entered in the accounts 1n
   respect of the financial year of the supplementary amending budget in
   question .
   Calculation of the twelfths for January of each financial year shall be
   based on the amounts provided for in the draft budget , with the exception
   of the amounts for financing the EAGGF monetary reserve , referred to in
   ArticLe 78(3 ) of the ECSC Treaty , Article 203(3 ) of the EEC Treaty and
   Article 177(3 ) of the Euratom Treaty ; the adjustment shall be made with the
   entry for the following month .
   -   ---■– -
   fCJ L 356, 31 December 1977 .
     0J L 18S , 15 July 1988 .
 ---pagebreak---                                             - 9 -
    If the budget has not been finally adopted before the beginning of the
    financial year , the Member States shall enter on the first working day of
   erch ror.th , Including January , one twelfth of the amount of VAT own resources ,
   cf the additional resource , with the exception of the amounts for financing
   the FAGGF mcnetery reserve / and , where appropriate / of the GNP-based
    financial contributions entered in the last budget finally adopted ; the
   adjustment shall be made on the first due date following final adoption of
    the budget It 1t is adopted before the 16th of the month . Otherwise / the
   adjustment shall be made on the second due date following final adoption
   of the budget .
4.  Each Member State shall / on the basis of the annual statement of VAT
    resources provided for In Article 10(1 ) of Regulation ( EEC / Euratom, ECSC )
   Ns 2892 / 77/ be debited with an amount calculated from the Information
   contained In tha said statement by applying the uniform rate adopted for
   the previous financial yaar and credited with tha 12 payments made during
   that previous financial year . However / each Member State 's VAT resources
   base to which the above rate 1s applied may not exceed 55% of Its GNP as
   referred to in the first sentence -        of paragraph 7 .  The Commission shall
   work out the balance and shall Inform the Member States in time for them to
   enter 1t 1n the account referred to In Article 9(1 ) of this Regulation on
   the first working day of December of the same year .
5. Tha Commission shall then calculate adjustments to the financial contributions
   so as to restore / in the light of the actual yield from VAT resources / the
   original distribution 1n the budget between the latter end the GNP-based
   financial contributions .     For the calculation of these adjustments , the
   balances referred to in paragraph 4 shall be converted Into ECU at the rates
   of exchange applying on the first working day after 15 November
   preceding the entries provided for 1n paragraph 4 . For each Member State
   concerned / the total of VAT balances shall be adjusted by the ratio between
   VAT resources and the financial contributions entered in the budget . The
   Commission shall communicate the results of this calculation to the Member
   States which , during the previous financial year , paid GNP-based financial
   contributions so that they can make a credit or debit entry as appropriate 1n
   the account referred to 1n Article 9(1 ) on the first working day of December
   of the same year .
6. Any corrections to the VAT resources base under Article 10b<1 ) of Regulation
   ( ESC , Euratom, ECSC ) NO 2892/ 77 shall give rise for each Member State
   concerned whose base does not exceed 55% of its GNP to the following
   adjustments to the balance referred to 1n paragraph 4 of this Article :
   - The corrections under the first subparagraph of Article 10b(1 ) of the said
      Regulation shall give rise to a general adjustment to be entered 1n the
     ascocr.t referred 1n Article 9(1 ) of this Regulation on the first working day
     cf Dec«,ffcet of the same year , provided that the correction applies to years
      after 1987; otherwise the adjustment shall be made on 1 August of the same
      year . However , a particular adjustment may be entered before that date 1f
      the Member State concerned and the Commission are 1n agreement ;
   - when? the measures which the Commission takes under the second subparagraph
      of Article 1 0b CD of Regulation ( EEC , Euratom , ECSC ) No 2892 / 77 to correct
      the base lead to an adjustment of the entries 1n the account referred to
 ---pagebreak---                                              10 -
       In Article 9(1 ) of this Regulation , that adjustment shall he made on the
      date specified by the Commission pursuant to the said measures .
    The changes to GNP referred to in the first subparagraph of p&racrspii ft shall
    also give rise to an adjustment of the balance of any Member state whose base
    is capped at 55X of its GNP . The adjustments to be made to the V AT balances
    by the first working day of December of each year under the preceding subparagraphs
    of this paragraph shall also give rise to the calculation by the Commission
    of further adjustments to the GNP-based financial contributions . The exchange
    rates to be employed in calculating these further adjustments shall be those
    used for the initial calculation referred to in paragraph 5 .
    The Commission shall inform the Member States of these adjustments so that
    they can enter them in the account referred to in Article 9(1 ) cn the first
    working day of December of the same year .
7.  On the basis of figures for aggregate GNP at market prices and its components ,
    suppLied by the Member States in accordance with Article 3(2 ) of the Council
    Directive of 24 June 1988 and subject to Article 6 thereof , the Commission
    shall establish the GNP of the previous financial year for each Member State .
    Each Member State shall be debited with an amount calculated by applying to
   GNP the uniform rate adopted for the previous financial year , account being
    taken of any drawings on the EAGGF monetary reserve , and credited with the 12
   payments made during that previous financial year . The Commission shall work
   out the balance and shall inform the Member States in time for th-m to enter
   it in the account referred to in Article 9(1 ) of this Regulation on the first
   working day of December of the same year .
8. Any changes to the GNP of previous financial years , pursuant to Article 3(2 )
   of the Council Directive of 24 June 1988 end subject to Article 6 thereof ,
   shall give rise for each Member State concerned to an adjustment to the
   balance established pursuant to paragraph 7 .     The Commission shall Inform the
   Member States of these adjustments so that they can enter them in the account
   referred to in Article 9(1 ) of this Regulation on the first working day of
   December of the same year . After the third year following a given financial
   year , any changes to GNP shall no longer be taken into account , except on
   points notified within this time limit either by the Commission or by the
   Member State .
9. The operations referred to in paragraphs 4 , 5, 6, 7 and 8 constitute
   modifications to revenue in respect of the financial year in which they occur .
                                     Article 11
   Any delay in making the entry in the account referred to in Article 9(1 ) shall
   give rise to the payment of interest by the Member State concerned at the
   interest rate applicable on the Member State 's money market on the due date
   for short-term public financing operations , increased by 2 percentage points .
   This rate shall be increasedby 0.25 of a percentage point for each month of
   delay . The increased rate shall be applied to the entire period of delay ,
 ---pagebreak---                                           - 11
                                         TITL6 IV
                              Management of cash resources
                                        Article 12
 1.  The Commission shall draw on the sums credited to the accounts referred to 1n
     Article 9(1 ) to the extent necessery to cover Its cash resource requirements
     arising out of the Implementation of the budget .
 2.  If the cash, resource requirements ere 1n excess of the assets of the accounts ,
     the Commlcslen may draw 1n excess of the total of these assets subject to the
     availability of appropriations 1n the budget and within the limit of the total
     revenue entered 1n the budget . Xn this event , 1t shall Inform the Member
     States 1n advance of any foreseeable excess requirements .
3.  In the sole case of default under a loan contracted pursuant to regulations
    and decisions of the Council , 1n circumstances 1n which the Commission
    cannot activate other measures provided for by the financial arrangements
    applying to these loans in time to ensure compliance with the Community 's
     legal obligations to Its lendsrs , the provisions of paragraphs 2 and 4 may
    provisionally be applied Irrespective of the conditions 1n paragraph 2 in
    ordar to service the Community 's debts .
4.  The difference between the overall assets and the cash resource requirements
    shall be divided among the Member States , as far as possible , 1n proportion
    to the estimated budget revenue from each of them .
5.  The financial Institution referred to 1n Article 9(1 ) shall execute the
    orders and Instructions sent by the Commission within the time limit specified
    by the latter .
    When no time limit is specified, the financial Institution shall credit the
    accounts of ths final banef Iciaries with their financial Institutions as soon
    as possible, and at all avents within five working days after receiving the
    Commission 's orders and instructions .
6.  The financial Institution shall send a statement of account to the Commission
    no later than three working days sftsr each operation .
                                         TITLE V
                     Procedure for the application of Article 2(7)
                            of the Decision of 24 June 1988
                                       Article 13
1.  This Article shall apply where 1t may ba necessary to Implement the provisional
    derogation provided for in Article 2(7) of the Decision of 24 Juns 1988 .
2.  The  GNP at market prices shall bs calculated by the Statistical Office of
    the  European Communities , on the basis of statistics prepared according to
    the  European System of Integrated Economic Accounts ( ESA), and corresponding,
    for  each Member State, to the arithmetic mean of the first three years of the
 ---pagebreak---  five-year period preceding the financial year in respect of which the
 provisions of Article 2(6 ) of the 0ec1s1on of 24 June 1988 have been app'isd .
 No account shall be taken of any revisions of statistical data made after the
 final adoption of the budget .
 The gross national product for each reference year shall be calculated 1n
 terms of the ECU on the basis of the average rate of the ECU for the year In
 question .
 As long as the derogation provided for in Article 2(7) of the Decision of
 24 June 1988 applies to one or more Member States , the Commission shall , in
 its preliminary draft budget , fix the percentage corresponding to the
 financial contributions of those Member States on the basis of the
 proportion of their GNP to the sum total of the gross national products of
 the Member States , and shall determine the amount of that part of the bjdget
 to be financed by VAT resources at the uniform rate and by financial
 contributions *
 These figures shall be approved in accordance with budgetary procedure .
                                     Article 14
 The definition of GNP at market prices shall be that given in Articles 1 and
 2 of the Directive of 24 June 1988 ,
 The figures to be used in calculating the percentage of financial contributions
 shall be those supplied pursuant to Article 3(2 ) of the Council Directive of
 24 June 1988 and subject to Article 6 thereof . In the absence of such figures
 the Statistical Office of the European Communities shall use the data
 • vai labié .
                                      TITLE VI
                 Procedure for the application of Article 7 of the
                              Decision of 24 June 1988
                                     Article 15
 For the purposes of applying Article 7 of the Decision of 24 June 1983 , the
balance of a given financial year shall consist of the difference between :
- all the revenue collected in respect of that financial year , and
- the amount of payments made against appropriations for that financial year
    increased by the amount of the appropriations for the same financial year
    carried over pursuant to Articles 6(1)(b ) and ( c ) and 2(b ) of the Financial
    Regulation .
This difference shall be increasedor decreased on the one hand , by the net
amount of appropriations carried forward from previous financial years which
have lapsed and , on the other hand , by way of derogation from Article 4 of
the Financial Regulation , by :
- payments made in excess of non-dif ferentiated appropriations carried over
    from the previous financial year under Article 6(1 ) of the Financial
    Regulation as a result of changes In ECU rates , and
- the balance resulting from exchange gains and losses during the financial
    year .
 ---pagebreak---                                                 - 13
                                            Article 16
 1.  The Commits Ion shall / before the end of October In each financial year , make
     an estimate of the own resources collected for the entire year, on the basis
     of the data at Its disposal at that time .
     Zf appreciable differences from the original estimates appear, the former
     may give rise to a letter of amendment to the draft budget for the following
     financial year .
                                             TITLE VII
                        Provisions concerning Inspection measures
                                            Article 17
1.  Member States shall take all requisite measures to ensure that the amount
     corresponding to the entitlements established under Articles 1 and 2 are1 made available
    to the Commission as specified 1n this Regulation .
2.  Member States shall be free from the obligation to place at the disposal of
    the Commission the amounts corresponding to established entitlements solely
    1f , for reasons of force majeure these amounts have not been collected .
    Moreover, 1n exceptional cases , Member States shall be entitled not to make
    these amounts available to the Commission 1f , after a detailed examination
    of the relevant details of the case, 1t 1s found that recovery 1s definitively
    Impossible, for reasons beyond their control . Cases Involving amounts of
    over 10 000 KCU must be mentioned 1n the report referred to 1n paragraph 3 .
3.  Member States shall notify the Commission, 1n six-monthly reports , of the
    outcome of their Inspections and of comprehensive Information and questions
    of principle concerning the most Important problems arising out of the
    application of this Regulation and, 1n particular , matters 1n dispute .
    These reports shall be submitted within two months after the end of each half
    year and shall Include the number of cases of Irregularities concerning own
    resources and an overall estimate of the own resources evaded .
    The reports shall also describe serious Irregularities which could have a
    significant financial Impact on own resources .
                                            Article 18
1.  Member States shall conduct the checks and Inquiries concerning the establishment
    end the making available of own resources . The Commission shall exercise Its
    powers as specified 1n this Article .
2.  Accordingly, Member States shall :
    - carry out additional Inspection measures at the Commission 's request ; in Its
       request the Commission shall state the reasons for the additional Inspection;
    - associate the Commission, at Its request , with the Inspection measures which
       they carry out .
 ---pagebreak---                                               U -
    Member States shall take all steps required to facilitate these inspection
    measures . Where the Commission is associated with these measures . Member
    States shall place at its disposal the supporting documents referred to in
    Article 3 .
    In order to restrict additional Inspection measures to tie minimum :
            the Commission may , 1n spécifie cases , request thafc certain documents
           be forwarded to it *
            1n the monthly statement of accounts referred to in1 Article 6(3 ), the
           amounts entered in the accounts which relate to ir'" egularities or
           delays in the establishment , entry 1n the accounts and making available
           of own resources , discovered during the inspectionss referred to above ,
           must be identified by means of appropriate notes .
3.  Without predjudice to the inspections referred to in para   ragraph 2 , the Commission
    may itself undertake on -the - spot inspections . The officncnals appointed by the
    Commission to undertake these inspections shall , to the extent
                                                                 e       necessary for
    the correct application of this Regulation , have access to  l the supporting
    documents referred to in Article 3 and to all other relafc  aped  documents . The
    Commission shall give adequate notice of the inspection tto      the Member State
    concerned by the inspection or on whose territory the inp   nppection is to take
   place .    Representatives of the Member State concerned mav ay take part in these
                                                              may
    Inspections .
4.  The inspection measures referred to in paragraphs 1 , 2 a id 3 shall not predjudice :
    <*>    the inspection measures
                           measure * undertaken by Member States
                                                           State in accordance with
           their own laws , regulations or administrative provn sions ;
    (b)    the measures provided for in Articles 206, 206a and 206b of the Treaty
           establishing the European Economic Community and Articles 180, 180s
           and 180b of the Treaty establishing the European Atomic Energy Community ;
    (c)    the inspection arrangements made pursuant to Article 209(c ) of the
           Treaty establishing the European Economic Community and Article 183(c )
           of the Treaty establishing the European Atomic Energy Community .
5. The Commission shall from time to time report to Parliament and to the Council
   on the functioning of the inspection arrangements .
                                      TITLE VIII
                Provisions relating to the Advisory Committee    on the
                              Communities 1 Own Resources
                                      Article 19
1. An Advisory Committee on the Communities' Own Resources , hereinafter called
   'the Committee' , is hereby set up .
г. The Committee shall consist of representatives of the Member States and of the
   Commission .    Each Member State shall be represented on t he Committee by not
   more than five officials .
 ---pagebreak---                                          - 15 -
    The Chairman of the Committee shall be a representative of the Commission .
    The secretariat services for the Committee shall be provided by the Commission .
3.  The Committee shall adopt Its own rules of procedure .
                                     Article 20
1.  The Committee shall examine the questions raised by Its chairman on h1s own
    Initiative or at the request of the representative of a Member State, which
    concern the application of this Regulation .
2.  At the request of the chairman , the Committee shall give Its opinion within
    a time limit which the chairman may set according to the urgency of the
   matter 1n hand , 1f necessary, by taking a vote .
    The opinion shall be recorded 1n the minutes ; 1n addition, each Member State
    shall have the right to request that Its position also be recorded 1n these
   minutes .
   The Commission shall take full account of the Committee 's opinion .  It shall
    Inform the Committee of the manner 1n which 1t has done so .
                                      TITLE IX
                                  Final provisions
                                     Article 21
   The commission shall , by 1 December 1992 at the lataat , submit a report on
   the Implementation of this Regulation and, where appropriate, propose any
   necessary amendments .
                                     Article 22
   The Commission, after consulting the Committee, shall adopt the procedures
   for Implementing this Regulation as and when necessary .
                                     Article 23
   This Regulation shall enter Into force on the day following its publication
   1n the Official Journal of the European Communities .
   It shall have effect from 1 January 1989.
   Regulation No 2891 / 7? is hereby repealed .
   This Regulation shall be binding 1n Its entirety and directly applicable 1n
   all Member States .