B4-0470/94

Resolution on the proposal for a regulation on the protection of the Community's financial interests and the proposal for a Council of the European Union Act establishing the Convention for the protection of the Communities' financial interests

The European Parliament,

-having regard to its resolutions on the legal protection of the Community's financial interests and in particular those of 16 December 1993 on combating international fraud and of 11 March 1994 on the independent power of investigation and inquiry which the Union may exercise for the purposes of legal protection of its financial interests,

-having regard to Articles 100a, 235 and 209a of the EC Treaty and K.1-K.6 of the Treaty on European Union,

-having regard to the resolution annexed to the conclusions of the Council of Ministers of Justice and Home Affairs of 1 December 1994,

-having regard to the conclusions of the Essen European Council of 9 and 10 December 1994,

A.having regard to the urgency and importance of setting out its basic position on the protection of the Community's financial interests with a view to establishing the procedures in progress under the EC Treaty and Title VI of the Treaty on European Union,

B.whereas the conclusions of the Essen European Council clearly indicate that the protection of the Community's financial interests will require concerted action by the Community institutions and whereas this must be done, inter alia, in accordance with Community legislative procedures providing for codecision by Parliament and the Council,

1.Believes that giving the Council, in what is in part a non-Community context, the power to take decisions on acts governing the protection of the financial interests of the Community might seriously undermine that protection in respect of both the conflict of interests which might arise between the Community and the Council and the multiplicity and variety of powers and procedures which have been set up;

2.Calls on the Council therefore to acknowledge that the Community alone is entitled to draw up the general rules governing the protection of its own financial interests and therefore to accept that this field should be governed by standard EC Treaty procedures, confining the implementation of Article K.1(5) of the Treaty on European Union to action against international fraud not affecting the Community budget;

3.On the basis of the proposals submitted, expresses a degree of disappointment at the policies set out in the Council resolution on various points in the rules proposed by the Commission on penal protection, especially in respect of the definition of fraud and its subjective elements, procedures and jurisdiction over cross-border fraud, jurisdiction in respect of fraud committed in third countries and the liability of legal persons;

4.Considers for its part that, in order to avoid the danger of weak and inadequate rules, the institutional framework should be consolidated in the following form:

(a)the Commission should withdraw its proposal for a Convention, which could become a European Parliament and Council directive on the basis of Articles 100a and 209a of the EC Treaty,

(b)the legal basis of the proposal for a regulation should be amended (to Article 100a instead of Article 235), to involve Parliament in the harmonization of the administrative protection of the Community's financial interests, which seeks to avoid distortions within the single market,

(c)the Commission should propose to the Justice and Home Affairs Council a convention under Article K.3 of the Treaty on European Union on rules governing international fraud having no implications for the Community budget;

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