A3-0074/94

Resolution on the independent power of investigation and inquiry which the Union may exercise for the purposes of legal protection of its financial interests

The European Parliament,

-having regard to its resolution of 24 October 1991 on the legal protection of the European Community's financial interests,

-having regard to Rule 148 of its Rules of Procedure,

-having regard to the report of the Committee on Budgetary Control (A3-0074/94),

A.whereas legal protection of the Community's financial interests makes use of laws and administrative provisions that are often inconsistent, incomplete, and barely effective either under the Community legal system or under national legal systems,

B.whereas the gaps exist both with respect to the powers to conduct financial investigations and inquiries and with respect to the penalties imposed in the Union under administrative rules or penal law for irregularities and frauds adversely affecting the Community budget committed by persons outside or employed by the Community institutions,

C.whereas the Community has to act in order to ensure that protection of its financial interests within the scope of the single market is made effective and uniform, in accordance with the principles enshrined in Articles 3b and 100a of the EC Treaty,

1.Decides to invoke Article 138b, second paragraph, of the EC Treaty in order to request the Commission to submit four legislative proposals on the subjects specified below;

As regards powers of investigation and inquiry

2.Calls on the Commission to submit a proposal for a regulation to Parliament and the Council by 30 September 1994, the substance of which should be as follows:

(a)legal basis: Articles 43, 100a and 209a of the EC Treaty;

(b)purpose: to set up a Fraud Prevention Unit (ULAF) which, in addition to UCLAF's existing powers of coordination, would have wide-ranging powers to obtain access to information and conduct on-the-spot inquiries;

(c)substance: regulatory provisions laying down both the structure of ULAF (investigation bodies established in other Directorates-General to be incorporated into ULAF or subsidiary coordinating units under ULAF's authority to be set up in other Directorates-General) and its powers (single text to regulate both its powers of inquiry - adopting in each instance the most clear-cut powers provided for in existing regulations - and the force of evidence and cooperation with the authorities of the Member States, especially in cases where fraud is taking place on an international scale);

As regards penalties to be imposed on persons guilty of irregularities and fraud affecting the Community budget

3.Calls on the Commission to submit a proposal for a directive to Parliament and the Council by 30 June 1994, the substance of which should be as follows:

(a)legal basis: Articles 100a and 209a of the EC Treaty;

(b)purpose: to harmonize the protection afforded to the Union's financial interests under the Member States' penal laws;

(c)substance: common principles to be laid down; types of offences and penalties to be identified; minimum and maximum limits to be set, ensuring compliance with the principle whereby a penalty must be effective, proportionate and dissuasive, in accordance with the ruling handed down by the Court of Justice in Case 68/88; provision to be made to cover corresponding types of offences and penalties in cases where the person guilty or the victim of an offence is a Community official;

4.Calls on the Commission to submit a proposal for a regulation to Parliament and the Council by 30 June 1994, the substance of which should be as follows:

(a)legal basis: Articles 43, 100a and 209a of the EC Treaty;

(b)purpose: to lay down general rules to regulate the administrative penalties provided for in Community legislation;

(c)substance: principles and guarantees applicable to Community administrative penalties, laid down in such a way as to ensure compliance with the principle whereby a penalty must be effective, proportionate, and dissuasive, as set out in the above-mentioned ruling of the Court of Justice;

As regards the liability of Community officials

5.Calls on the Commission, after it has assessed and ascertained the nature and legal basis of the act, to submit a legislative proposal by 30 September 1994, the substance of which should be as follows:

(a)purpose: liability of persons carrying out the procedure for implementing the budget;

(b)substance:

(i)rules governing the procedure for giving effect to the financial and disciplinary liability of authorizing officers, financial controllers, and accounting officers, conferring jurisdictional competence in respect of accounting matters on an external body independent of the parent institution of the official concerned;

(ii)criteria for waiving the immunity from legal proceedings enjoyed by officials, in cases where the offence is punishable under the law of a Member State;

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