A3-0300/93

Resolution on the adoption of an Interinstitutional Agreement on budgetary discipline and improvement of the budgetary procedure for 1993-1999

The European Parliament,

-having regard to the Treaty on European Union,

-having regard to the report by the Commission on the implementation of the 1988-1992 Interinstitutional Agreement (COM(92)0082),

-having regard to the draft text of a new Interinstitutional Agreement submitted by the Commission on 24 September 1992 (XIX/527/92/Rev.2),

-having regard to its resolution of 22 November 1990 on the future financing of the European Community,

-having regard to its resolution of 10 June 1992 on the Commission communication "From the Single Act to Maastricht and beyond: the means to match our ambitions",

-having regard to its resolution of 16 December 1992 on the conclusions of the European Council meeting in Edinburgh on 11 and 12 December 1992,

-having regard to Rule 121 of its Rules of Procedure,

-having regard to the report of the Committee on Budgets (A3-0300/93),

A.whereas the entry into force of the Treaty on European Union is now imminent,

B.whereas the financial framework proposed by the Edinburgh European Council may well prove insufficient for the tasks conferred on the European Union by the Maastricht Treaty; whereas, however, in the light of the current economic situation and uncertain political circumstances, there is no prospect in the near future of re-opening the debate on the volume of the Union's own resources,

C.whereas it is urgently necessary to guarantee the continuity and predictability of Community finance, to eliminate the democratic deficit which is still a feature of the budgetary procedure and to resolve the conflicts of a structural nature which exist between budgetary legislation and authorizations and between the two arms of the budgetary authority,

D.whereas the proposed Interinstitutional Agreement (IIA) represents progress in this direction,

1.Notes that the IIA embodies the consent of the Institutions to an orderly progression of Community spending, by major headings, over a multiannual period and within the limits of the foreseeable increase in own resources;

2.Points out that Parliament was excluded from the negotiations on the volume of own resources and considers that the latter is not sufficient to finance the tasks conferred on the Union by the Maastricht Treaty; reserves the right to take appropriate initiatives as soon as the economic situation allows;

3.Notes that the IIA includes provision for the possible review of the financial framework and the provisions of the agreement in order to take account of new resources and requirements in the event of enlargement of the Community and to fulfil the mandate which voters will give to the newly elected Parliament in 1994 and, through Parliament, to the new Commission which takes office in 1995;

4.Welcomes the undertakings given by the Council and the Commission with a view to the 1996 Intergovernmental Conference concerning a review of the own resources system and the budgetary provisions of the Treaty with the aim of achieving interinstitutional cooperation on a partnership basis;

5.Considers that the provisions proposed with regard to

-co-determination of the amount of compulsory expenditure,

-negative co-decision on drawing on the reserves provided for in the Financial Perspective and entered in the budget from the beginning of the financial year,

-joint consideration of the trend in expenditure not yet budgetized and the various categories of own resources,

-the principle that the financial implementation of any decision by the legislative authority depends on the volume of the corresponding appropriations in the Financial Perspective and the budget,

-the extension of the Agreement with an automatic adjustment of the Financial Perspective should there be any delay in adopting a new IIA in 1999,

constitute significant progress towards the desired goal of Treaty revision and undertakes to apply the new procedures in that spirit;

6.With regard to Parliament's new draft on the control of compulsory expenditure in the budgetary procedure:

(a)emphasizes, having regard to Article 203 of the EEC Treaty, that 'expenditure necessarily resulting from this Treaty or from acts adopted in accordance therewith' must be taken into account without restriction by the Council and Parliament in establishing the budget; reaffirms its interpretation concerning compulsory expenditure;

(b)will assess, before its first reading of each draft budget, the extent to which the amounts entered therein result necessarily from the Treaty or from acts adopted in accordance therewith;

(c)expects the Council and the Commission to take part in this assessment in the agreed ad hoc conciliation procedure in order to prevent differences of opinion over this matter;

(d)will duly respect the compulsory nature of such expenditure which is shown to result necessarily from the relevant legislation;

7.Notes with satisfaction that the provisions of the old IIA concerning the safeguarding of NCE as against CE, expenditure targets in relation to structural operations, the maintenance of quantities of food aid irrespective of external monetary fluctuations and respect for the rights of third parties have been endorsed and improved;

8.Stresses the need for close coordination between its legislative and budgetary decisions, particularly as regards research and technological development policy, which is multiannual; requests its competent committees to reach agreement on arrangements for cooperation amongst themselves and with the other institutions;

9.Instructs its competent bodies to implement the undertakings given in the IIA with a view to

-improving the implementation of the principles set out in the 1982 Joint Declaration concerning the amounts deemed necessary in legislative acts and the requirement of a basic regulation for significant new action,

-the budgetization of the EDF from 1995,

-revision of the provisions and practices applicable to commitology,

-preparation of the 1996 Intergovernmental Conference, with particular reference to the reform of the own resources system and the revision of the budgetary provisions of the Treaty;

10.Stresses that the signing of the new IIA was subject to the express condition of a prior agreement with the Council on how to deal with the negative balances arising from fiscal shortfalls which must be budgetized in such a way that they do not undermine the availability of expenditure ceilings for the financing of ordinary expenditure;

11.(a)Welcomes the fact that the sine qua non to which, according to Parliament, adoption of the IIA had to be subject, has been removed since the Council, in its statement of 25 October 1993, recognized that every effort had to be made to ensure that the available funds provided for in the financial perspective could be used as required to finance expenditure under the Community budget and undertook, further, to work out an appropriate way for dealing with balances, in cooperation with Parliament;

(b)Notes the clarifications made by the Council President, at the 'Budgets' Council, and by the Member of the Commission responsible for the budget, addressing the Committee on Budgets on 25 October 1993, namely that, assuming that the own resources ceiling is observed, the arrangement referred to above will be such as to ensure that the full amount of the expenditure ceilings provided for in the financial perspective will be available to finance ordinary expenditure; notes, consequently, that the expenditure ceilings will not be affected as a result of clearance of the balances from preceding financial years;

(c)Will ensure that the above undertakings are honoured in subsequent budgetary procedures;

12.Approves therefore, the Interinstitutional Agreement on budgetary discipline and improvement of the budgetary procedure for 1993-1999 and the decision updating the amounts for 1994, as annexed to report A3-0300/93, including acceptance, within the meaning of Article 203(9) of the EEC Treaty, of the maximum rates of increase in non-compulsory expenditure which will result from the budgets established within the limits of the Financial Perspective;

13.Accordingly authorizes its President to sign the IIA;

14.Instructs its President to forward this resolution to the Council and the Commission.