A4-0030/94

Decision on the results of the conciliation procedure, provided for in the Joint Declaration of the European Parliament, the Council and the Commission of 4 March 1975, on the Council joint guidelines concerning the Council Decision concerning budgetary discipline (C3-0143/94), the Council Regulation establishing a Guarantee Fund (C4-0179/94), the Council Regulation modifying the Financial Regulation (C3-0004/94), and the Council Regulation modifying Regulation 1552/89 (C3-0003/94)

(Conciliation procedure)

The European Parliament,

-having regard to the joint text drawn up by the Conciliation Committee, C4-0180/94,

-having regard to its opinions on the Commission proposals to the Council,

-having regard to the amended proposals by the Commission,

-having regard to the joint guidelines drawn up by the Council (C3-0143/94, C4-0179/94, C3-0004/94, C3-0003/94),

-having regard to the Joint Declaration of the European Parliament, the Council and the Commission of 4 March 1975, and in particular its Articles 2 and 7 thereof,

-having regard to Rule 63(4) of its Rules of Procedure,

-having regard to the report of the Committee on Budgets (A4-0030/94),

1.Approves the joint text attached;

2.Instructs its Secretary-General, in agreement with the Secretary-General of the Council, to have the results published in the Official Journal;

3.Instructs its President to forward this decision to the Council and the Commission.

JOINT TEXT

GUARANTEE FUND

General remarks

The European Parliament considers it extremely important that the Commission should be made responsible for the management of the Fund in order to ensure that the budgetary authority and the Court of Auditors are in a position to exercise fully the responsibilities conferred on them by the treaty.

The Council takes the view that the budgetary aspects of the management of the Fund should be distinguished from those of a purely financial nature. Whereas the first are the responsibility of the Commission, it is appropriate that the second should be the responsibility of the EIB which, by its very nature, has the expertise needed to manage the Fund's resources in a professional manner. The EIB, which was brought into being by the Treaty of Rome in 1957, has taken on increasingly important tasks over the years: in 1993 it was the largest borrower on the capital markets. In the context of its banking activities it manages liquid assets amounting to ECU 6 billion, using the most highly developed financial techniques for the purpose.

Apart from this, as shown by experience in a number of Member States, the task of managing the Fund's assets is usually placed in the hands of banks.

The Council does, however, recognize the importance of ensuring that the financial management of the Fund complies with Community budgetary law, and that it does so with a maximum of transparency.

With this in mind, it has been agreed to add a recital to the joint guideline containing a reference to supervision of the financial management of the Fund by the Court of Auditors and to include a number of statements (see points B 4 and 5).

A.Changes to the text of the joint guideline

1.Change in the order of the recitals

The second and third recitals are combined in a single recital.

The fifth recital becomes the third recital.

2.Addition to the penultimate recital

'Whereas the financial management of the Fund should be supervised by the Court of Auditors in accordance with procedures to be agreed jointly by the Court of Auditors, the Commission and the EIB,'

B.Statements

1.General statement

'The institutions also point out that the risks in connection with loan guarantees are covered by the Loan Guarantee Fund and by any amount available in the reserve referred to in paragraph 15(b) of the Interinstitutional Agreement. If these facilities do not fully cover a default, the institutions note that, in the absence of a sufficient margin under the ceiling for heading 4 and a transfer from the budgetary headings relating to cooperation with the defaulting country, the Council will adopt appropriate measures to cover the Community's debt'.

2.General statement

'The Commission declares its willingness to present, by the end of 1996, a comprehensive report on the operation of the Guarantee Fund, containing inter alia a detailed analysis based on experience to date of the parameters of the endowment of the Fund and its target amount, as well as an assessment of their appropriateness relative to the objectives to be achieved.'

3.Statement on Article 5, second indent

'The Commission declares that in drawing up the report referred to in Article 5, second indent, of the Regulation it will take account inter alia of the possibility of raising the rate of provisioning.'

The Council will, where appropriate, consider the Commission proposal.

4.Statement on Article 6

'The Commission declares its willingness to forward to the budgetary authority the text of the agreement between the Community and the EIB concerning the Guarantee Fund, together with any changes thereto.'

5.Statement on Article 8

'The budgetary authority will have available to it all the relevant information concerning the management of the Fund in the form of the revenue and expenditure account and the balance sheet relating to the Fund, which will, in accordance with Article 8 of the Regulation, be attached to the Communities' revenue and expenditure account and balance sheet.'

FINANCIAL REGULATION

A.Changes to the text of the joint guideline

Second and third recitals

'Whereas, in accordance with the conclusions of the Edinburgh European Council, the institutions have agreed, in the framework of the Council decision of ... on budgetary discipline and of the Interinstitutional Agreement of 29 October 1993, to enter in the general budget a reserve relating to Community loans and loan guarantees to non-member countries and a reserve for emergency aid,

Whereas the Financial Regulation must be amended accordingly,'

B.Statement on Article 26(5)

'With regard to Article 26(5) of the Financial Regulation, concerning mobilization of reserves, the institutions refer to the procedures set out in paragraph 15 of the Interinstitutional Agreement of 29 October 1993.'

REGULATION 1552/89

Statements

1.Statement by the Commission on Article 1, point 2, final indent

'Before presenting the proposal for a transfer, the Commission will report to the budgetary authority on the possibility of waiving the corresponding entries, taking into account the current and foreseeable situation regarding the implementation of the budget.'

2.Statement by the European Parliament and the Commission on Article 1, point 2, final indent

'The European Parliament and the Commission stress that this decision to waive the call-in of resources may not in any circumstances be based on the voluntary non-implementation of appropriations other than the EAGGF Guarantee Section.'

DECISION ON BUDGETARY DISCIPLINE

A.Changes to the text of the joint guideline

1.Article 1 (new) (to replace Article 17)

'Budgetary discipline shall be applied to all expenditure. It shall be applied, as appropriate, on the basis of the Financial Regulation, the present decision or the Interinstitutional Agreement of 29 October 1993.'

N.B. The numbering of the articles thereafter to be changed accordingly

2.Article 4(2)

'Any member of the Council may call on the Commission to assess the financial implications of any change liable to be made to the proposal referred to in paragraph 1 in the course of the Council's deliberations. The Commission shall provide these assessments as early as possible and, in any event, within a period not exceeding two weeks. The Council shall defer its decision until such time as it is informed of these implications. The European Parliament shall be informed of the Commission's assessments.'*

3.Article 18

'The financial implementation of any Council Decision or of any Decision of the European Parliament and of the Council exceeding the appropriations available in the budget or the amounts specified in the financial perspective may not take place until the budget and, where appropriate, the revised financial perspective have been suitably amended according to the procedure laid down for each of these cases.'

4.Article 17

Delete

B.Statements

1.Statement by the institutions on NCE

'With regard to non-compulsory expenditure, the institutions note that the provisions of the present decision and those of the Interinstitutional Agreement of 29 October 1993 are consistent.'

2.Statement by the institutions on the legal basis

'The institutions note the divergence of their views regarding the legal basis of the present decision: the Council and Commission take the view that it is sufficient to refer to Articles 43, 209 and 235 CE, whereas the European Parliament takes the view that, as in the previous decision on the same subject, Articles 126, 127, 130d and 130i should form part of the legal basis.'

3.Statement by the Commission on Article 4(3)

'The Commission undertakes to inform the European Parliament of any financial assessments carried out under the terms of Article 4(2) at the request of a member of the Council. The Commission will inform the Council if it considers that the outcome of the latter's discussions will entail a substantial change to its legislative proposals, necessitating renewed consultation of the European Parliament, and whether the conditions for the opening of the conciliation procedure as set out in the Joint Declaration of 4 March 1975 are fulfilled.'

*Unofficial translation by the translation service of the European Parliament

4.Statement by the Commission on Article 12

'In the event of obvious non-compliance with the rules or clear misuse of Community funds, the Commission, without prejudice to any conclusions it might reach in carrying out the prescribed procedure, takes the view that it should reduce or suspend the advances provided for in Article 12(2). It will forward to the European Parliament the argued decision provided for in Article 12(3).'

5.Statement by the institutions on Article 15

'With regard to Article 15 of the Decision on budgetary discipline, concerning mobilization of reserves, the institutions refer to the procedures set out in paragraph 15 of the Interinstitutional Agreement of 29 October 1993.'