REPORT on amendment of Annex V to Parliament's Rules of Procedure
22 April 1999
Committee on the Rules of Procedure, the Verification of Credentials and Immunities
Rapporteur: Ben Fayot
PROCEDURAL PAGE
By letter of 4 December 1998 the President of Parliament instructed the Committee on the Rules of Procedure, the Verification of Credentials and Immunities to examine the provisions of the Rules of Procedure applicable to the vote on discharge.
At its meeting 14 December 1998 the committee decided, pursuant to Rule 162(2) of the Rules of Procedure, to propose an amendment to those Rules.
It appointed Mr Ben Fayot rapporteur at its meeting of 19 January 1999.
At the sitting of 12 April 1999 the President of Parliament announced that he had asked the Committee on Budgetary Control for its opinion.
The Committee on the Rules of Procedure, the Verification of Credentials and Immunities considered the draft report at its meetings of 17 March and 20 April 1999.
At the latter meeting it adopted the proposal for a decision unopposed, with 1 abstention.
The following were present for the vote: Fayot, chairman and rapporteur; Filippi, vice-chairman; Carbide (for Ford), Donnelly, Fabre-Aubrespy, Gutiérrez Díaz (for Ephremidis), Kjer Hansen (for Nordmann, pursuant to Rule 138(2)), Palacio Vallelersundi, Vecchi (for Manzella), Wibe and Wijsenbeek.
The opinion of the Committee on Budgetary Control is attached.
The report was tabled on 22 April 1999.
The deadline for tabling amendments will be indicated in the draft agenda for the relevant partsession.
A PARLIAMENT'S RULES OF PROCEDURE - PROPOSAL FOR A DECISION
Present text |
Proposed new text |
(Amendment 1)
Annex V, Article 2(1)
1. Within the time limits laid down by the Financial Regulation, Parliament shall consider a report from the committee responsible proposing the giving, postponement or refusal of discharge. | 1. Parliament shall consider a report from the committee responsible concerningdischarge by the 30 April of the year following the adoption of the Court of Auditors' Annual Report as required by the Financial Regulation. |
(Amendment 2)
Annex V, Article 3
Giving of discharge | Grant or refuse to grant discharge |
1. Where the committee responsible considers it appropriate to propose a favourable decision, it shall draw up a report comprising: | 1. The committee responsible shall draw up a report comprising: |
(a) a proposal for a decision containing the figures forming the subject of the discharge, thus establishing the final outturn of the budgetary management for the financial year concerned; | (a) a proposal for a decision on the granting or refusal to grant discharge; |
(b) a motion for a resolution containing the comments accompanying the discharge decision; and | (b) a proposal for a decision closing the accounts of all the Community's revenue, expenditure, assets and liabilities; |
(c) an explanatory statement. Where necessary, the explanatory statement may be delivered orally. | (c) a motion for a resolution containing the comments accompanying the discharge decision including both an assessment of the Commission's budgetary management over the financial year and observations relating to the implementation of expenditure for the future; |
(d) an explanatory statement. | |
2. The committee responsible shall deliver its opinion on any amendments before they are put to the vote. | Deleted |
3. The proposal for a decision shall be put to the vote before the motion for a resolution. The procedure for giving a discharge shall end with a vote on the motion for a resolution as a whole. | Deleted |
(Amendment 3)
Annex V, Article 4
Postponement of discharge decision
1. The committee responsible may table a motion for a resolution postponing the discharge decision. This motion shall set out the reasons for postponement. | 1. If the date provided for in the Financial Regulation cannot be met, Parliament shall inform the Commission of the reasons for the postponement. The committee responsible may either: |
- table a motion for a resolution postponing the discharge decision setting out the reasons for postponement; or | |
- request the President of Parliament to inform the Commission giving the reasons for the postponement. | |
2. Such a motion shall be included on the agenda of the next part-session following its tabling. | 2. If Parliament wishes for any other reasons to postpone the discharge decision, the Commission shall make every effort to take measures, as soon as possible, to facilitate removal of the obstacles to that decision. The adoption of such a motion for a resolution shall mandate the committee responsible to continue with the discharge procedure. |
(Amendment 4)
Annex V, Article 5
Refusal of discharge | Consideration in Plenary |
1. The committee responsible may table a motion for a resolution refusing to give a discharge. This motion shall set out the reasons for the refusal. | 1. Any motion for a resolution on the discharge shall be included on the agenda of the next part-session following its tabling. |
2. Such a motion shall be included on the agenda of the next part-session following its tabling and shall be approved only if it obtains the votes of a majority of the component Members of Parliament. | 2. Only the motion for a resolution containing the comments accompanying the proposals for a decision or postponing the discharge decision may be the subject of plenary amendments. |
3. Adoption of the report in plenary shall follow the order of Article 3 of this Annex. | |
4. The proposal for a decision closing the accounts shall be voted within three months whatever the outcome of the previous vote (Art. 3 (1)(a). If this proposal is not adopted by the plenary, then the report shall be immediately deemed referred back to committee. | |
5. Parliament shall decide by a majority of those voting on the proposals for a decision, pursuant to Article 141 of the EC Treaty. |
(Amendment 5)
Annex V, Article 6
Referral back to committee
1. If a proposal for a decision pursuant to Article 3(1)(a) or a motion for a resolution pursuant to Articles 3(1)(b), 4(1) or 5(1) fails to obtain the required majority or if any amendment to the figures contained in the proposal for a decision pursuant to Article 3(1)(a) is adopted, the matter shall be deemed to have been referred back to the committee responsible, which shall report back to Parliament at the subsequent part-session, taking into account Parliament's vote. | Deleted |
2. Where this would result in Parliament's being unable to give a discharge within the time limits laid down by the Financial Regulation, the President shall inform the Commission accordingly. | Deleted |
(Amendment 6)
Annex V, Article 7
Article 7 | Article 6 |
Implementation of discharge decision | Implementation of discharge decision |
1. The President shall forward any decision and resolution of Parliament pursuant to Articles 3, 4 or 5 to the Commission and to each of the other institutions. He shall arrange for their publication in the Official Journal in the series appropriate to acts of a legislative character. | 1. The President shall forward any decision and resolution of Parliament pursuant to Articles 3, 4 or 5 to the Commission and to each of the other institutions. He shall arrange for their publication in the Official Journal in the series appropriate to acts of a legislative character. |
2. The committee responsible shall report to Parliament at least annually on the action taken by the institutions in response to the comments accompanying the discharge decisions and the other comments contained in Parliament's resolutions concerning the implementation of expenditure. | 2. The committee responsible shall report to Parliament at least annually on the action taken by the institutions in response to the comments accompanying the discharge decisions and the other comments contained in Parliament's resolutions concerning the implementation of expenditure. |
3. On the basis of a report by the committee responsible for budgetary control, the President, acting on behalf of Parliament, may bring an action before the Court of Justice against the institution concerned, pursuant to Article 175 of the EC Treaty, for failure to comply with the obligations deriving from the comments accompanying the discharge decision or the other resolutions concerning implementation of expenditure. | 3. On the basis of a report by the committee responsible for budgetary control, the President, acting on behalf of Parliament, may bring an action before the Court of Justice against the institution concerned, pursuant to Article 175 of the EC Treaty, for failure to comply with the obligations deriving from the comments accompanying the discharge decision or the other resolutions concerning implementation of expenditure. |
Decision amending Annex of Parliament's Rules of Procedure
The European Parliament,
- having regard to the letter of {4-12-1998}4 December 1998 from its President,
- having regard to Rule 162(2) of its Rules of Procedure,
- having regard to the report of the Committee on the Rules of Procedure, the Verification of Credentials and Immunities and the opinion of the Committee on Budgetary Control (A4-0216/99),
1. Decides to amend its Rules of Procedure as indicated above;
2. Decides that the provisions thus adopted shall enter into force with immediate effect;
3. Instructs its President to forward this decision to the Council and Commission, for information.
B EXPLANATORY STATEMENT
The discharge procedure is governed by Article 206 of the Treaty and Article 89 of the Financial Regulation.
Giving, postponement or refusal of discharge
The above provisions include the concepts of giving and postponing discharge. The immediate refusal thereof, in the circumstances laid down in Article 5 of Annex V to the Rules of Procedure, is not envisaged. On the other hand, the giving of discharge is not presented as an obligation for the European Parliament.
Such an obligation would represent a restriction on Parliament's right of assessment and freedom of choice when voting on proposals. It would, in fact, not be possible to present a document to a democratic assembly while putting it under an obligation, at some point, to adopt it.
While a refusal to give discharge, expressed as a political sanction, does not directly conflict with the provisions of the Treaty, it does conflict with the binding mechanism laid down by the Treaty and the Financial Regulation, the implementation of which it might undermine.
That mechanism applies to cases of giving or postponing discharge.
That observation alone might prompt the abandonment of the entire procedure laid down in Article 5 of Annex V to the Rules of Procedure.
Binding nature of the discharge procedure for the Commission
The discharge procedure itself, far from being the equivalent of approval granted to the Commission, entails constraints for the latter before, during and also after discharge is given. In particular, it must comply with the comments made in connection with the implementation of the budget.
Before discharge is given
- Article 206(2) of the Treaty stipulates: 'Before giving a discharge to the Commission, or for any other purpose in connection with the exercise of its powers over the implementation of the budget, the European Parliament may ask to hear the Commission give evidence with regard to the execution of expenditure or the operation of financial control systems. The Commission shall submit any necessary information to the European Parliament at the latter's request.'
- Article 89(4), second subparagraph, of the Financial Regulation states: 'If the European Parliament postpones the decision giving discharge, the Commission shall make every effort to take measures, as soon as possible, to facilitate removal of the obstacles to that decision.'
When discharge is given
- Article 206(3), first subparagraph, of the Treaty stipulates: 'The Commission shall take all appropriate steps to act on the observations in the decisions giving discharge and on other observations by the European Parliament relating to the execution of expenditure, as well as on comments accompanying the recommendations on discharge adopted by the Council.'
- Article 89(5) of the Financial Regulation stipulates: 'The discharge decision ... shall include an assessment of the responsibility of the Commission's budgetary management over the past financial year.' Paragraph 7 states: '... the Commission and the other institutions shall take all appropriate steps to act on the observations by the European Parliament relating to the implementation of expenditure ...'
After discharge is given
- Article 206(3), second subparagraph, of the Treaty stipulates: 'At the request of the European Parliament or the Council, the Commission shall report on the measures taken in the light of these observations and comments and in particular on the instructions given to the departments which are responsible for the implementation of the budget. These reports shall also be forwarded to the Court of Auditors.'
- Article 89(8) of the Financial Regulation stipulates: 'At the request of the European Parliament or the Council, the institutions shall report on the measures taken in the light of these observations ...'. Paragraph 9 states: 'The institutions shall also give an account, in an annex to the revenue and expenditure account for the financial year following that of the discharge decision, of the measures taken in the light of the comments appearing in the decisions giving discharge.'
Closure of accounts
As regards the 1982 financial year, for which Parliament has still not given discharge, it made use of the 'closure of accounts' procedure (in 1985). The sole purpose of this procedure was to establish that the [budgetary] procedure had been completed and to enable discharge to be given, if appropriate, for subsequent financial years. Since no institution made any critical comments in this connection, this practice might usefully be revived.
Basic points relating to the proposed amendment of Article 5 of Annex V to the Rules of Procedure
It may be concluded from the very logic of the relevant provisions of the Treaty and the Financial Regulation that discharge may be given, postponed or refused, with the last option possibly arising after the discharge decision has been postponed.
The proposed amendment of Annex V to the Rules of Procedure, which is the subject of this report, is thus organised around these three key stages, to which the 'closure of accounts' procedure would be added.
As regards the censure procedure, this remains a legitimate option and may certainly be used as part of or following the discharge procedure. The Commission's financial management is covered by the conditions for implementing the censure procedure. On the other hand, censure may be expressed only through the implementation of Article 144 of the EC Treaty and Rule 34 of the Rules of Procedure.
OPINION
(Rule 147)
for the Committee on the Rules of Procedure, the Verification of Credentials and Immunities
on the amendment of Annex V of Parliament's Rules of Procedure (report by Mr Fayot)
Committee on Budgetary Control
Draftsman: Mrs Kjer Hansen
PROCEDURE
At its meeting of 16 March 1999 the Committee on Budgetary Control appointed Mrs Kjer Hansen draftsman.
It considered the draft opinion at its meetings of 24 March and 19 April 1999.
At the latter meeting it adopted the following conclusions unanimously.
The following took part in the vote: Theato, chairman; Blak and Tomlinson, vice-chairmen; Kjer Hansen, draftsman; Bardong, Bösch, Brinkhorst (for Mulder), Colom i Naval, Dell'Alba, Fabra Vallés (for Garriga Polledo), Holm, Napoletano (for Sandberg-Fries), Perry (for Kellett-Bowman), Sarlis, Tappin, von Habsburg (for Rack), Wemheuer and Wynn.
GENERAL REMARKS
The discharge procedure for the financial year 1996 both confirmed the practice followed previously and highlighted the need to adjust certain provisions of Annex V of the Rules of Procedure, which are out of step with this practice and as a result have become obsolete.
The nature of the discharge procedure has been confirmed. It is clearly seen as a procedure for closing the accounts which, because it is a power entrusted to Parliament by the 1970 and 1975 Treaties, has taken on a political dimension. This political dimension is expressed in the form of Parliament's comments, which on the one hand represent a qualitative assessment of the Commission's management for the financial year concerned and, on the other, form legally binding injunctions concerning budgetary management reforms.
When the discharge is granted, the accounting dimension and the political dimension coincide. However, if the discharge is not granted, the accounting dimension must inevitably be dealt with separately from the political dimension. This was recently confirmed by Parliament's Legal Service which, after pointing out that the possibility of refusing to grant a discharge exists, stressed that: 'Pursuant to Article 206 of the EC Treaty, the act formally concluding the budget cycle and containing the figures examined must under all circumstances be adopted.
During the discharge procedure for the 1996 financial year, the Committee on the Rules of Procedure, was able to clarify the situation. A decision is taken in plenary on the proposal submitted by the Committee on Budgetary Control to give or refuse to give discharge solely by means of a vote. Amendments to the proposal are not admissible.
The provision in Annex V, Article 5, which establishes a specific procedure for refusing to give discharge with voting requirements which derogate from Article 141 of the EC Treaty and whose legality is challenged by the Legal Service (opinion of 10 December 1998, points 7, 8 and 9), was not applied. This provision should therefore be considered null and void and the role of the Committee on Budgetary Control spelled out more clearly.
It transpires that Article 4 of Annex V, which deals with the postponement of discharge and which is designed to regulate derogations from the requirement that the discharge should be given by 30 April of the following year laid down in Article 89 of the Financial Regulation, actually covers two different situations, namely the need to postpone discharge for technical reasons and the desire to postpone discharge for political reasons. To end this ambiguity, the wording of the article should be changed to bring it more into line with Article 89a(1) (Article 89(4)) and to draw a distinction between the procedures applicable in either case.
The 1996 discharge procedure also highlighted the need for specific provisions governing referral back to committee. The aim of these provisions is to allow Parliament to decide on the discharge itself only on the basis of a proposal from the Committee on Budgetary Control and, conversely, to make the Committee on Budgetary Control subject to votes in plenary.
The present amendment of Annex V of the Rules of Procedure is in response to a pressing need, namely to enable the 1996 procedure to be completed in a transparent manner. Pursuant to Rule 163(3) of the Rules of Procedure, provision should be made when the vote is taken for the present amendments to enter into force immediately. However, these amendments do not prejudice the need to redraw the general scope of and procedures governing the discharge, particularly as regards relations with the Court of Auditors and the discharge authority's right to information, as well as the working methods of the Committee on Budgetary Control, as envisaged in the Wemheuer report on the 'tourism' case and the draft report by Kjer Hansen, which was not finally authorised by the Conference of Presidents. Consideration of this question should be taken up again by the next Parliament.
(Amendments)
Rules |
Proposal by Fayot(PE 229.517) |
Proposal by Kjer Hansen |
Article 2Consideration of report |
Article 2Consideration of report |
Article 2Consideration of report |
1. Within the time limits laid down by the Financial Regulation, Parliament shall consider a report from the committee responsible proposing the giving, postponement or refusal of discharge. |
1. Within the time limits laid down by the Financial Regulation, Parliament shall consider a report from the committee responsible concerning discharge. |
1. (10 words deleted) Parliament shall consider a report from the committee responsible concerning discharge by 30 April of the year following the adoption of the Court of Auditors' Annual Report as required by the Financial Regulation. |
2. Parliament's Rules relating to amendments in voting shall apply unless otherwise provided in this annex. |
2. Parliament's Rules relating to amendments in voting shall apply unless otherwise provided in this annex. |
Article 3Giving of discharge |
Article 3Giving or refusing of discharge | |
1. Where the committee responsible considers it appropriate to propose a favourable decision, it shall draw up a report comprising: |
- |
1. The committee responsible shall draw up a report comprising: |
(a) a proposal for a decision containing the figures forming the subject of the discharge, thus establishing the final outturn of the budgetary management for the financial year concerned; |
(a) a proposal for a decision on the giving or refusing of discharge; | |
(b) a motion for a resolution containing the comments accompanying the discharge decision; and |
(b) a proposal for a decision closing the accounts of all the Community's revenue, expenditure, assets and liabilities; | |
(c) an explanatory statement.Where necessary, the explanatory statement may be delivered orally. |
(c) a motion for a resolution containing the comments accompanying the discharge decision including both an assessment, of the Commission's budgetary management over the financial year and observations relating to the implementation of expenditure for the future; | |
(d) an explanatory statement; | ||
2. The committee responsible shall deliver its opinion on any amendments before they are put to the vote. | ||
3. The proposal for a decision shall be put to the vote before the motion for a resolution. The procedure for giving a discharge shall end with a vote on the motion for a resolution as a whole |
Deleted |
Article 4Postponement of discharge decision |
Article 4Postponement of discharge decision |
Article 4Postponement of discharge decision |
1. The committee responsible may table a motion for a resolution postponing the discharge decision. This motion shall set out the reasons for postponement. |
1. Where the committee responsible tables a motion for a resolution postponing the discharge decision, that motion shall set out the reasons for postponement.. | |
2. Such a motion shall be included on the agenda of the next part-session following its tabling. |
2. Such a motion shall be included on the agenda of the next part-session following its tabling. |
2. The adoption of such a motion for resolution shall mandate the committee responsible to continue with the discharge procedure. |
3. Adoption of such a motion shall entail referral back to the committee responsible. |
Article 5Refusal of discharge |
Article 5Refusal of discharge |
Article 5Consideration in plenary |
1. The committee responsible may table a motion for a resolution refusing to give a discharge. This motion shall set out the reasons for the refusal. |
1. Where Parliament has refused to give discharge or where, after postponing the decision thereon, it considers that the Commission has failed to fulfil its obligations in connection with Article 276 of the Treaty and Article 89 of the Financial Regulation, it may (without prejudice to the application of Rule 34) pronounce the accounts closed. |
1. Any motion for resolution on the discharge shall be included on the agenda of the next part-session following its tabling. |
2. Such a motion shall be included on the agenda of the next part-session following its tabling and shall be approved only if it obtains the votes of a majority of the component Members of Parliament. |
2. The sole effect of the closure of accounts shall be to establish the completion of the budgetary procedure for the financial year concerned. It shall not in any circumstances release the Commission from the obligations referred to in paragraph 1. |
2. Only the motion for resolution containing the comments accompanying the proposals for a decision or postponing the discharge decision may be the subject of plenary amendments. |
4. Adoption of the report in plenary shall follow the order of Article 3 of this Annex. | ||
5. The proposal for a decision closing the accounts shall be voted on within three months, whatever the outcome of the previous vote (Art 3.1.a). If this proposal is not adopted by the plenary then the report shall be immediately deemed referred back to committee. | ||
6. Parliament shall vote yes or no on the proposals for a decision. |
Article 6 Referral back to committee |
Article 6 |
Article 6Implementation of discharge decisions |
1. If a proposal for a decision pursuant to Article 3 (1)(a) or a motion for a resolution pursuant to Articles 3(1)(b), 4(1) or 5(1) fails to obtain the required majority or if any amendment to the figures contained in the proposal for a decision pursuant to Article 3(1)(a) is adopted, the matter shall be deemed to have been referred back to the committee responsible, which shall report back to Parliament at the subsequent part-session, taking into account Parliament's vote. |
1. The President shall forward any decision and resolution of Parliament pursuant to Articles 3 or 4 to the Commission and to each of the other institutions. He shall arrange for their publication in the Official Journal in the series appropriate to acts of a legislative character. | |
2. Where this would result in Parliament's being unable to give a discharge within the time limits laid down by the Financial Regulation, the President shall inform the Commission accordingly. |