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Procedure : 2000/0203(CNS)
Document stages in plenary
Document selected : A5-0176/2001

Texts tabled :

A5-0176/2001

Debates :

Votes :

Texts adopted :

P5_TA(2001)0305
P5_TA(2001)0625

Texts adopted
Thursday, 31 May 2001 - Brussels
Financial Regulation applicable to the general budget of the EC *
P5_TA(2001)0305A5-0176/2001

Proposal for a Council regulation (EC, ECSC, Euratom) on the Financial Regulation applicable to the general budget of the European Communities COM(2000) 461 - C5-0627/2000 - 2000/0203(CNS) )

The proposal was amended as follows(1) :

Text proposed by the Commission(2)   Amendments by Parliament
Amendment 1
Title
Council Regulation (EC, ECSC, Euratom) on the financial regulation applicable to the general budget of the European Communities
Council Regulation (EC, ECSC, Euratom) on the financial regulation applicable to the general budget of the European Union
Amendment 2
Recital 1
   (1) Since times have changed enormously since the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities was adopted, in particular as a result of a series of enlargements, a financial perspective forming a framework for the development of the budget and changes to the institutional structure, that Financial Regulation has been substantially amended several times. Since further amendments are necessary to take account, in particular, of the requirements of simplification in legislative and administrative matters and the tightening up of management of Community finances, the Financial Regulation of 21 December 1977 should be recast in the interests of clarity .
   (1) Both the Court of Auditors and the Committee of Independent Experts have recommended a complete overhaul of the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities. This recommendation was endorsed by the European Parliament in its resolution of 19 January 2000 containing the comments which form an integral part of the decision giving discharge to the Commission for the implementation of the general budget of the European Union for the 1997 financial year(1 ).
____________
(1 ) OJ C 304, 24.10.2000, p. 135.
Amendment 3
Recital 2
   (2) This Regulation should be confined to stating the broad principles and basic rules governing all budgetary matters referred to in the Treaty and the detailed provisions should be moved to a Regulation laying down rules for the implementation of this Regulation (hereinafter: "the implementing rules') in order to produce a better hierarchy of rules and make the Financial Regulation easier to read.
Deleted
Amendment 4
Recital 5
   (5) As regards the principle of unity, this Regulation should state that it also applies to expenditure on the common foreign and security policy and cooperation in the field of justice and home affairs where this is charged to the budget. Decisions on the establishment plans of the Community agencies should be taken by the budgetary authority as part of the budgetary procedure in view of their impact, present or future, on the number of European civil servants and on the general budget, via subsidies paid or planned by those agencies, or the pensions which will be paid to their staff.
Deleted
Amendment 5
Recital 7
   (7) As regards the principle of specification, the Commission should be given some degree of management flexibility for transfers of staff and administrative appropriations between titles relating to different policy areas and between chapters for operational expenditure. This Regulation should allow integrated presentation of the allocation of financial and administrative resources by purpose. The procedures for transferring administrative appropriations should be harmonised for all the other institutions so that transfers between titles are a matter for the budgetary authority and those within titles a matter for each institution. The budgetary authority should be allowed to constitute reserves in only two cases: where there is no legal base and where it is not certain that appropriations are adequate or necessary.
Deleted
Amendment 9
Recital 17
   (17) As regards the role of the different actors, authorising officers should be given more responsibility by dropping centralised ex ante controls, and in particular advance approval by the financial controller of revenue and expenditure operations and verification by the accounting officer that payment does constitute discharge of all liability . In return , the function of internal auditor of management and internal control systems set up by authorising officers should be developed. The internal auditor should be the financial controller within the meaning of the Treaties .
   (17) As regards the role of the different actors, authorising officers should be given more responsibility by dropping centralised ex ante controls. Authorising officers must be made fully responsible for all revenue and expenditure operations executed under their authority and must be held accountable, including, where necessary, through disciplinary proceedings. In addition, the function of internal auditor, responsible for providing the institution with guarantees, in accordance with the relevant international standards, concerning the proper operation of budget implementation systems and procedures, should be developed. The internal auditor should be a financial controller within the meaning of Article 279 of the EC Treaty .
Amendment 10
Recital 18
   (18) The liability of authorising officers, accounting officers and imprest administrators is not different from that of other officials and staff and should be subject, under the Staff Regulations of Officials of the European Communities and the Conditions of Employment of Other Servants of those Communities (hereinafter: "the Staff Regulations”) to the application of the existing disciplinary and financial compensation measures. On the other hand, certain specific provisions identifying specific cases of misconduct of accounting officers and imprest administrators given the nature of their duties should be retained; they will no longer have any special allowance or insurance. This Regulation should also refer to the provisions in force on the protection of the European Communities' financial interests and on the fight against corruption involving officials of the European Communities or officials of Member States of the European Union.
   (18) The liability of authorising officers, accounting officers and imprest administrators should be subject, under the Staff Regulations of Officials of the European Communities and the Conditions of Employment of Other Servants of those Communities (hereinafter: "the Staff Regulations”) to the application of disciplinary and financial compensation measures. On the other hand, the responsibility of authorising officers for financial irregularities should be considered by a specialised financial irregularities committee, on the basis of a report from the internal auditor. This committee would have the competence to refer cases to the disciplinary procedure under the Staff Regulations. C ertain specific provisions identifying specific cases of misconduct of accounting officers and imprest administrators given the nature of their duties should be retained; they will no longer have any special allowance or insurance. This Regulation should also refer to the provisions in force on the protection of the European Communities' financial interests and on the fight against corruption involving officials of the European Communities or officials of Member States of the European Union.
Amendment 12
Recital 26 a (new)
(26a) Simplified rules for the awarding of grants for small projects will be laid down in the implementing rules.
Amendment 13
Recital 27
   (27) In order to avoid any cumulation, it should not be possible for grants to be awarded to finance the same action twice or to finance actions which have already been completed before the application for the grant is made.
   (27) In order to avoid any cumulation, it should not be possible for grants to be awarded to finance the same action twice or to finance actions which have already been completed before the application for the grant is approved.
Amendment 14
Recital 38
   (38) In order to improve interinstitutional operation , the Commission should present to the European Parliament, at its request, any information relating to the year in question required for the smooth application of the discharge procedure, with due respect for fundamental human rights, the protection of business secrecy, the provisions governing judicial and disciplinary proceedings and the interests of the Union.
   (38) In order to ensure a smooth discharge procedure , the Commission must submit any necessary information to the European Parliament, at the latter's request, pursuant to Article 276 of the EC Treaty. It is the European Parliament's responsibility to keep such information confidential in so far as this is necessary .
Amendment 15
Recital 39
   (39) Special provisions should be laid down for certain Community policies to ensure this Regulation is consistent with sectoral rules.
   (39) Special provisions should be laid down for certain Community policies to ensure that sectoral rules are consistent with this Regulation.
Amendments 18 and 19
Part one, Title I, Article 1
CHAPTER 1
SCOPE
Article 1
This Regulation lays down the rules for the establishment of the general budget of the European Communities , hereinafter referred to as “the budget” and the implementation of revenue and expenditure. It also contains the rules for the keeping of accounts, procurement and the award of grants by the Communities. It determines the rules and methods for supervising the liability of the authorising officers, accounting officers and internal auditors. It lays down the arrangements for external control and the discharge procedure.
Article 1
This Regulation lays down the rules for the establishment of the general budget of the European Union , hereinafter referred to as “the budget” and the implementation of revenue and expenditure. For the purposes of this Regulation, the budget of the European Union as defined in Article 3 incorporates the general budget of the European Communities. It also contains the rules for the keeping of accounts, procurement and the award of grants by the Communities. It determines the rules and methods for supervising the liability of the authorising officers, accounting officers and internal auditors. It lays down the arrangements for external control and the discharge procedure.
For the purposes of this Regulation, the Economic and Social Committee, the Committee of the Regions and the Ombudsman shall be treated as Community institutions.
For the purposes of this Regulation, the Economic and Social Committee, the Committee of the Regions and the Ombudsman shall be treated as Community institutions.
All other instruments concerning the implementation of the revenue or expenditure of the budget must comply with the rules laid down by this Regulation. The Commission shall keep a register of such subordinate instruments, which it shall update regularly, and shall notify the budgetary authority thereof.
CHAPTER 2
GENERAL BUDGET PRINCIPLES
Amendment 20
Chapter 1, heading
CHAPTER 1
Section 1
Amendment 21
Article 3
   1. The budget is the instrument which forecasts and authorises the revenue and expenditure of the Communities each year.
   1. The budget is the instrument which forecasts and authorises the revenue and expenditure of the European Union each year.
   2. The revenue and expenditure of the Communities shall comprise:
   2. The revenue and expenditure of the Union shall comprise:
   (a) the revenue and expenditure of the European Community, including administrative expenditure for the common foreign and security policy and for cooperation in the field of justice and home affairs and the related operational expenditure where this may be charged to the budget;
   (a) the revenue and expenditure of the European Community;
   (aa) the administrative expenditure for the common foreign and security policy and European security and defence policy and for cooperation in the field of justice and home affairs and the related operational expenditure where this may be charged to the budget;
   (b) the administrative expenditure of the European Coal and Steel Community and the related revenue;
   (b) the administrative expenditure of the European Coal and Steel Community and the related revenue;
   (c) the expenditure and revenue of the European Atomic Energy Community.
   (c) the expenditure and revenue of the European Atomic Energy Community.
   (ca) the revenue and expenditure of the European Development Fund;
   (cb) the revenue and expenditure of any body to which tasks are delegated in connection with the implementation of Union policies or activities and which, for that purpose, is given legal personality by an instrument adopted by the institutions of the Union, including decisions taken or agreements concluded under Titles V and VI of the Treaty on European Union; the own revenue of such a body, generated by its activities, shall be entered as estimates; a list of such bodies is annexed hereto and shall be regularly updated by the Commission, which shall notify the budgetary authority accordingly.
   3. The budget shall record the guarantee for borrowing and lending operations entered into by the Communities and payments to the Guarantee Fund for external actions, the operations of which are shown in the Commission's revenue and expenditure account and balance sheet.
   3. The budget shall record the guarantee for borrowing and lending operations entered into by the Communities and payments to the Guarantee Fund for external actions, the operations of which are shown in the Commission's revenue and expenditure account and balance sheet.
3a. Each year, the European Central Bank shall forward to the Commission and the budgetary authority its budget, comprising revenue and expenditure, which may be annexed to the budget of the European Union for information and with the aim of ensuring the transparency thereof.
3b.Each year the European Investment Bank shall forward to the Commission and the budgetary authority its budget, comprising revenue and expenditure, which may be annexed to the budget of the European Union for information and with the aim of ensuring the transparency thereof.
3c. The budget shall include, in a specific annex, an indication of the revenue and expenditure in connection with the activities under Titles V and VI of the Treaty on European Union where the relevant expenditure is not charged to the budget of the Union, but financed by contributions from the Member States.
3d. Where sectoral legal provisions continue to prevent application of this Article, the Commission shall make the necessary proposals to act on the principle of unity by 31 December 2002 at the latest. The Council shall act on the Commission proposals in time to allow full application of the principle of unity as of the general budget for the financial year 2004.
Amendment 22
Article 4 a (new)
Article 4a
The interest earned on the European Union's own funds shall be paid over as revenue to the budget, without prejudice to other provisions of this Regulation.
Amendment 23
Chapter 2, heading
CHAPTER 2
Section 2
Amendment 24
Article 6, paragraph 1, subparagraph 3
Payment appropriations shall cover payments made to honour the legal commitments entered into in the current financial year and/or earlier financial years.
Payment appropriations shall cover payments which, during the financial year, are made to honour the legal obligations entered into in the current financial year and/or earlier financial years.
Amendment 25
Article 8, paragraph 2, point (a)
   (a) amounts corresponding to commitments which have been virtually concluded at 31 December; or
   (a) amounts corresponding to commitment appropriations where all the preliminary formalities required for the act of commitment have been concluded at 31 December; or
Amendment 26
Article 12, paragraph 5
   5. If, for a given chapter, the authorisation of two or more provisional twelfths granted in the circumstances provided for in paragraph 4 is not sufficient to cover the expenditure necessary to avoid a break in continuity of the Communities' activity in the area in question, authorisation may exceptionally be given by the procedures provided for in the first subparagraph of paragraph 4 to exceed the total provided for in the third subparagraph of paragraph 4. In this case the overall total of the appropriations available in the budget of the preceding year may not be exceeded.
   5. If, for a given chapter, the authorisation of two or more provisional twelfths granted in the circumstances provided for in paragraph 4 is not sufficient to cover the expenditure necessary to avoid a break in continuity of the Communities' activity in the area in question, authorisation may exceptionally be given by the procedures provided for in the first subparagraph of paragraph 4 to exceed the total provided for in the third subparagraph of paragraph 4.
Amendment 27
Chapter 3, heading
CHAPTER 3
Section 3
Amendment 28
Chapter 4, heading and title
CHAPTER 4
Section 4
PRINCIPLE OF UNIT OF ACCOUNT
Principle of currency unit
Amendment 29
Article 15
The budget shall be drawn up in euro.
The budget shall be drawn up and implemented in euro, and the budgetary accounts presented in euro.
Amendment 30
Chapter 5, heading
CHAPTER 5
Section 5
Amendment 31
Article 16, paragraph 2
   2. All revenue and expenditure shall be entered in full without any adjustment against each other, subject to Article 18 .
   2. All revenue and expenditure shall be entered in full without any adjustment against each other.
Amendment 225
Article 17, paragraph 1, subparagraph 1, introduction
   1. Revenue in the following categories provided for in this Regulation shall not be used for any other purpose :
   1. Revenue in the following categories provided for in this Regulation shall not be used for any purpose other than the financing of certain specific items of expenditure:
Amendment 226
Article 17, paragraph 1, subparagraphs 2 and 3
Revenue which is earmarked for a specific purpose in accordance with the applicable legal basis shall also not be used for any other purpose.
Revenue which is earmarked for a specific purpose and whose collection is authorised by the budget authority shall also not be used for any other purpose, provided that this is stipulated in the budget .
The budget shall carry items to accommodate the categories of revenue referred to in the first and second subparagraphs and, wherever possible, an estimated amount shall be entered.
The budget shall carry items to accommodate the categories of revenue referred to in the first and second sub-paragraphs and an estimated amount shall be entered. The institutions shall justify discrepancies between those estimates and the amounts which give rise to re-use. Appropriate information shall be provided, in the documents referred to in Article 30(2) on the items of such revenue, broken down and specified according to the items on the expenditure side of the budget for which they shall be used.
Amendment 32
Article 17, paragraph 1, subparagraph 3 a (new)
The budget shall also carry items to accommodate the expenditure relating to earmarked revenue. Budgetary authority decisions on entering that expenditure shall be taken, without exceeding the revenue concerned or financial perspective ceilings, in accordance with the procedures laid down by the Treaties for the establishment of the budget.
Amendment 33
Article 17 a (new)
Article 17a
The political groups in the European Parliament shall disclose and specify any income they receive from sources other than the general budget. This obligation shall include bodies having legal personality which are funded or administered by the political groups in whole or in part, which make use of their facilities, or which carry out activities on their behalf on a non-commercial basis.
Amendment 34
Article 18, paragraph 2
   2. The cost of products or services provided to the Communities incorporating taxes refunded by the Member States pursuant to the Protocol on the Privileges and Immunities of the European Communities shall be charged net to the budget.
   2. The cost of products or services provided to the Communities incorporating taxes refunded by the Member States pursuant to the Protocol on the Privileges and Immunities of the European Communities shall be charged to the budget at their ex-tax total. Any taxes that may be incurred at that time shall be entered in a suspense account until they are repaid by the Member States .
Amendment 35
Chapter 6, heading
CHAPTER 6
Section 6
Amendment 36
Article 19
Appropriations shall be earmarked for specific purposes by title and chapter; the chapters shall be further subdivided into articles and items.
Appropriations shall be entered in the budget for specific purposes and shall be classified according to their purpose by title and chapter; the chapters shall be further subdivided into articles and items.
Amendment 37
Article 20
   1. Subject to the arrangements set out for the Commission, each institution may, within its own section of the budget, propose to the budgetary authority transfers from one title to another.
   1. Subject to the arrangements set out for the Commission, each institution may, within its own section of the budget, propose to the budgetary authority transfers from one title to another and from one chapter to another .
Proposals made by the other institutions for transfers from one title to another shall be forwarded by the Commission to the budgetary authority for its decision. The Commission may attach its own opinion to such proposals.
Proposals made by the other institutions for transfers from one title to another and from one chapter to another shall be forwarded by the Commission to the budgetary authority for its decision. The Commission may attach its own opinion to such proposals. This provision shall not apply to the European Parliament or the Council whose proposals for such transfers shall be automatically forwarded to the budget authority.
   2. Subject to the arrangements set out for the Commission, each institution may, within its own section of the budget, transfer appropriations from one chapter to another and from one article to another. These institutions shall inform the budgetary authority and the Commission of the transfers they have made .
   2. Subject to the arrangements set out for the Commission, each institution may, within its own section of the budget, transfer appropriations from one article to another within each chapter . These institutions shall inform the budgetary authority and the Commission three weeks before making such transfers . Within that three-week period, if the budgetary authority so requests, and if there are urgent or important reasons, the institution concerned shall refrain from making the transfer. In the event of such a decision by the budgetary authority the conditions laid down in Article 22 other than those concerning the deadline for the decision shall apply mutatis mutandis .
2a. Without prejudice to the provisions of paragraphs 1 and 2, the Commission may make proposals to the budgetary authority for transfers from one chapter to another within each budget section.
Amendment 39
Article 21, paragraph 1, point (b)
   (b) as regards expenditure on staff and administration, transfer appropriations from one title to another provided that the appropriations are entered under the same heading;
   (b) as regards expenditure on staff and administration, transfer appropriations from one title to another provided that the appropriations are entered under the same heading, i.e. used for the same purpose, in accordance with the definitions of administrative expenditure laid down in Article 38(2a) ;
Amendment 38
Article 21, paragraph 1, point (c) and subparagraph 2
   (c) as regards operational expenditure, transfer appropriations between chapters within the same title, up to a maximum of 10% of the initial appropriations on the line from which the transfer is made.
   (c) as regards operational expenditure, transfer appropriations between chapters within the same title, up to a maximum of 5% of the initial appropriations on the line from which the transfer is made.
The Commission shall inform the budgetary authority of the transfers it has made under points (b) and (c) of the first subparagraph.
The Commission shall inform the budgetary authority three weeks before making transfers under the first subparagraph. Within that three-week period, if the budgetary authority so requests, and if there are urgent or important reasons, the Commission shall refrain from making the transfer. In the event of such a decision by the budgetary authority the conditions laid down in Article 22 other than those concerning the deadline for the decision shall apply mutatis mutandis .
Amendment 40
Article 21 a (new)
Article 21a
Proposals for transfers and all information to the budget authority about transfers made pursuant to Articles 20 and 21 shall be accompanied by appropriate and detailed supporting documents showing the implementation of appropriations and estimates of requirements up to the end of the financial year, both for the headings to be credited and for those from which the appropriations are drawn.
Amendment 41
Article 21 b (new)
Article 21b
At the end of a financial year, and no later than 1 December of the year in question, the Commission may propose to the budgetary authority an omnibus transfer simultaneously concerning several chapters of the budget.
The objective of the omnibus transfer shall be to enable adjustments to be made in the light of conditions for implementation and requirements which have emerged during the financial year, in order, in particular, to ensure orderly development in the relationship between commitment appropriations and payment appropriations, and sound financial management. The Commission and the budgetary authority shall prevent omnibus transfer operations from producing an excessive disparity in relation to the appropriations originally entered against the items concerned.
Amendment 42
Chapter 7, heading
CHAPTER 7
Section 7
Amendment 43
Article 25
   1. Budget appropriations shall be used in accordance with the principle of sound financial management, that is to say, in accordance with the principles of economy, efficiency and effectiveness.
   1. Budget appropriations shall be used in accordance with the principle of sound financial management, that is to say, in accordance with the principles of economy, efficiency and effectiveness as set out in the implementing rules .
1a. In accordance with the principle of economy, the resources used by the organisation to produce goods and/or services must be available in due time, in appropriate quantity and quality, at the best price.
1b. In accordance with the principle of efficiency, the goods and services needed to achieve the organisation's objectives must be produced at an optimum input-output ratio and highest possible environmental standards.
1c. In accordance with the principle of effectiveness, the given objectives must be achieved, thereby maximising the desired effects of the policy being pursued.
   2. Objectives which can be checked by means of measurable indicators shall be set and achievement of these objectives shall be monitored.
   2. Objectives which can be checked by means of measurable indicators shall be set, and achievement of these objectives shall be monitored, by the budgetary authority and by each of the institutions, in relation to its own budget. The institutions shall supply the budgetary authority with all the necessary information for this purpose, in particular in the documents referred to in Article 30(2).
   3. In order to apply the principle of sound financial management, the institutions shall evaluate actions regularly.
   3. In order to apply the principle of sound financial management, the institutions shall evaluate actions regularly and shall supply the budgetary authority with all the necessary information for this purpose.
Amendment 247
Article 25 a (new)
Article 25a
The Commission shall establish criteria by which it can determine whether proposed legislation facilitates or hampers sound financial management and whether it is susceptible to irregularities and fraud. The Commission shall check each proposal for legislation against these criteria and shall include the results in the financial statement.
Amendment 44
Article 26
During the budgetary procedure, the Commission shall provide the necessary information for a comparison between changes in the appropriations required and the initial forecasts made in the financial statements accompanying all proposals sent to the legislative authority which may have a budgetary impact.
   1. Any proposal or communication submitted by the Commission to the legislative authority which may have budgetary consequences, including changes in the number of posts, shall include a financial statement.
The financial statement shall include financial and economic data with a view to the assessment by the legislative authority of the need for Community action in accordance with the relevant provisions of Article 5 of the EC Treaty. It shall give details of possible consistency and synergy with other financial instruments.
In the case of multiannual operations, the financial statement shall contain the estimated schedule of annual requirements in appropriations and posts and an assessment of its impact on the medium-term financial plan referred to in Article 36a.
   2. At the start of the budget procedure, the Commission shall provide the necessary information enabling a comparison to be made between the appropriations actually required or actually utilised and the initial forecasts made in the financial statements accompanying the original proposals sent to the legislative authority. Where necessary, the financial statements shall be revised in the light of this comparison and the Commission shall indicate any potential impact on the medium-term financial plan that emerges as a result.
   3. During the budget procedure, the Commission shall continually update the budgetary authority on any developments which might cause financial statements or the medium-term financial plan to be revised, including:
   - progress made in implementing programmes;
   - the state of the legislative authority's deliberations on existing proposals;
   - any new programmes proposed;
   - the Commission's annual work plan.
   4. The provisions of paragraphs 1 to 3 shall apply mutatis mutandis to all the other institutions.
Amendment 45
Chapter 8, heading
CHAPTER 8
Section 8
Amendment 46
Article 27, paragraph 2, subparagraph 2
The budget shall be published within two months following the date on which the budget is declared finally adopted .
The budget shall be published at the latest within two months following the date on which it enters into force .
While awaiting official publication and within four weeks of the date on which the budget is declared finally adopted a summary of the budget in figures shall be published, at the initiative of the Commission.
Amendment 47
Article 29 a (new)
Article 29a
   1. The decentralised bodies referred to in Article 3(2)(cb) and listed in the annex to this Regulation shall forward to the Commission, by 1 April each year, an estimate of their revenue and expenditure, including their establishment plan, accompanied by a work programme. The estimates shall be forwarded to the budgetary authority before 1 July each year.
   2. The bodies shall forward to the Commission, before 1 April each year, their revenue and expenditure account and balance sheet for the financial year n-1, their final budget for the financial year n and their establishment plan as adopted by their decision-taking authorities.
   3. The Commission shall incorporate the information supplied by the bodies under paragraphs 1 and 2 into the budget documents forwarded to the budgetary authority to accompany the preliminary draft budget. Taking account of the information supplied, the Commission shall draw up the preliminary draft budget.
   4. A body may modify its estimates after submission of the preliminary draft budget by the Commission. Modifications shall be adopted by the appropriate decision-taking authorities of the body concerned in the form of amendments to the estimates. The Commission and the budgetary authority shall be notified in advance of all proposed modifications.
   5. The bodies shall not finally adopt their budget or annual work programme prior to adoption of the general budget of the Union by the budgetary authority. They shall forward a copy thereof to the budgetary authority.
   6. Any modification by a body to the budget already notified to the budgetary authority shall be forwarded to the Commission and the budgetary authority in the form of an amending budget.
   7. The bodies shall immediately forward to the Commission or the budgetary authority any information requested by them concerning implementation of their revenue or expenditure.
Amendment 48
Article 34, paragraph 4
   4. Where the Council, having received a preliminary draft amending budget, considers that it is not necessary to establish a draft amending budget, it shall determine its position after an exchange of views with the European Parliament .
   4. Where the Council has received a preliminary draft amending budget, it shall establish a draft amending budget in accordance with the procedure set out in Article 35.
Amendment 227
Article 35
Except for the timetable, Articles 32 and 33 shall apply to amending budgets. They must be substantiated by reference to the budget whose estimates they are amending .
Except for the timetable, the procedure provided for in Article 272 of the EC Treaty, Article 78 of the ECSC Treaty and Article 177 of the Euratom Treaty shall apply to amending budgets, and the provisions concerning the duration of periods laid down for each stage of the procedure shall apply mutatis mutandis .
Amendment 49
Article 36 a (new)
Article 36a
The Commission and the budgetary authority may agree a multiannual expenditure plan termed "financial perspective". That plan may provide for ceilings for the broad expenditure categories. If agreement is reached on the financial perspective, the two arms of the budgetary authority agree, with regard to expenditure other than that necessarily resulting from the Treaties or from acts adopted in accordance therewith, to accept, for the duration of such an agreement, the maximum rates of increase for that expenditure deriving from the budgets established within the ceilings set by the financial perspective.
Amendment 50
Article 38, paragraph 2, subparagraph 2
A title shall correspond to a policy area and a chapter shall, as a rule, correspond to an activity. The administrative appropriations for a title shall be grouped in a single chapter.
A title shall correspond to a policy area and a chapter shall, as a rule, correspond to an activity.
Each policy area shall comprise operational appropriations and administrative appropriations. Appropriations specified as operational shall not be used for administrative expenditure, or vice versa.
Operational appropriations shall be the appropriations used for the financial interventions which constitute the objective of the policy area or activity concerned and which normally impact directly on third-party beneficiaries.
2a. The administrative appropriations for a title and the activities classified therein shall be grouped in a single chapter and shall be specified by separate headings according in particular to the following purposes :
   A. human resources
   - staff in establishment plan
   - support staff
indicated both by an amount of appropriations and by a number of posts;
   B. management and support expenditure, including, where necessary, separate headings for expenditure on:
   - executive agencies within the meaning of Article 52;
   - external public bodies within the meaning of Article 53;
   - technical assistance entrusted to external private-law bodies within the meaning of Article 54;
   C. the other broad headings by which this type of expenditure is normally classified, including buildings.
Where a policy area or activity is implemented on basis of shared or decentralised management, the additional administrative costs comprised in this expenditure shall be indicated separately.
Amendment 51
Article 39
The budget may not contain negative revenue or expenditure. The own resources paid under the Council Decision on the system of the Communities' own resources shall be entered net in the budget statement of revenue.
The budget may not contain negative revenue or expenditure. The total own resources paid under the Council Decision on the system of the Union's own resources shall be entered in the budget statement of revenue. The amounts representing the collection costs deducted at source by Member States from own resources shall be clearly indicated in the budget statement of expenditure.
Collection costs shall be reimbursed on the basis of the duly substantiated declarations by Member States.
Amendment 52
Article 40, paragraph 1, subparagraph 1
   1. Each section of the budget may include a "provisions" title. Appropriations shall be entered in this title in the following two circumstances:
   1. Each section of the budget may include a "provisions" title. Appropriations shall be entered in this title in the following three circumstances:
   (a) where no legal basis exists for the action concerned when the budget is established;
   (a) where no legal basis exists for the action concerned when the budget is established;
   (b) where there is uncertainty about the adequacy of or need for the appropriations entered on the operational lines.
   (b) where there is uncertainty about the adequacy of or need for the appropriations entered on the operational lines;
   (ba) where there is uncertainty about the possibility of implementing the appropriations entered on the operational lines in a manner in keeping with the principle of sound financial management laid down in Article 25.
Amendment 53
Article 40, paragraph 2
   2. In the event of serious implementation difficulties, the Commission may transfer appropriations to the “provisions” title in the course of a financial year.
   2. In the event of serious implementation difficulties, the Commission may propose a transfer of appropriations to the “provisions” title in the course of a financial year. The budgetary authority shall take decisions on such transfers as provided for in Article 22.
On a proposal by the Commission, the budgetary authority may decide, before 1 December of the financial year concerned, to use the appropriations transferred in this manner to the “provisions” title:
   - either on the basis of a transfer of appropriations to the budget items from which they were taken, if it is demonstrated that implementation difficulties no longer exist;
   - or on the basis of a transfer of appropriations to budget items other than those from which they were taken, in order to ensure sound financial management or orderly development as regards implementation of appropriations, or if the Commission considers that appropriations could be inadequate.
Amendment 54
Article 42, paragraph 1
   1. The Commission section of the budget shall include the following two reserves:
   1. The Commission section of the budget shall include the following three reserves:
   (a) a reserve for emergency aid for third countries;
   (a) a reserve for emergency aid for third countries;
   (b) a reserve relating to Community loans and loan guarantees to third countries.
   (b) a reserve relating to Community loans and loan guarantees to third countries;
   (ba) a reserve for unforeseen expenditure.
Amendment 55
Article 42 a (new)
Article 42a
With regard to agricultural expenditure, the Commission section may include a "contingency reserve" entered in a special title and earmarked for specific titles or chapters. By way of exception, the own resources shall not be called in to finance the appropriations entered until a transfer has been decided on by the budgetary authority.
The conditions for the entry and utilisation of the "contingency reserve" shall be laid down by common accord between both arms of the budgetary authority.
The annual appropriations entered in this reserve shall be decided on by the budgetary authority below the ceiling of heading 1 of the financial perspective.
Amendment 56
Article 43, paragraph 3, point (d)
   (d) an establishment plan setting the number of posts for each grade in each category in each agency set up by the Communities .
   (d) an establishment plan setting the number of posts for each grade in each category in each agency referred to in Article 3(2) and listed in the annex to this Regulation.
Amendment 57
Article 44, paragraph 1
   1. The establishment plan shall constitute an absolute limit for each institution; no appointment may be made in excess of the limit set.
   1. The establishment plan described in Article 43(3) shall constitute an absolute limit for each institution; no appointment may be made in excess of the limit set.
However, each institution may modify each establishment plan by up to 10% and within the limit of the budget appropriations and the total number of posts allocated, except in the case of grades A1 and A2.
However, each institution may propose to the budgetary authority modifications to each establishment plan by up to 10% and within the limit of the budget appropriations and the total number of posts allocated, except in the case of grades A1 and A2.
The budgetary authority shall take decisions on such proposals under the conditions laid down in Article 22(3).
Amendment 58
Article 47 a (new)
Article 47a
The Commission shall confer on OLAF the requisite powers for the implementation of its statement of revenue and expenditure in the manner laid down in Part Two.
Amendment 59
Article 49
Any measures of budget implementation which may give rise to a conflict of interests between the delegator, the delegatee and the third party supplying the revenue or the third party receiving the expenditure shall be prohibited .
It shall be prohibited for any actor involved in the implementation of the budget to take any measures of budget implementation which may bring his own interests into conflict with those of the Community. Should such a case arise, the actor in question must refer it to the competent authority .
Amendment 60
Article 49, paragraph 2 (new)
A conflict of interests shall exist where persons carrying out an act implementing the budget may directly or indirectly obtain advantages for themselves or for persons related or otherwise linked to them or where their ability to perform their duties impartially and objectively is impaired for other reasons.
Amendment 61
Article 49a (new)
Article 49a
   1. The maximum time limit for payment is set at thirty days following the date of receipt of the invoice or an equivalent request for payment.
   2. The European Institutions are liable to pay as statutory rate for late payment the sum of the reference rate plus a margin of seven percentage points.
   3. The detailed implementing rules for this regulation shall specify and define the timetables of any acceptance or verification procedures that might be deemed necessary for considering a request for payment eligible.
Amendment 62
Article 50, paragraphs 2 and 3
   2. Where the Commission implements the budget on a centralised basis, implementation operations shall be performed directly by Commission departments or by executive agencies or by national, Community or international public-law bodies.
   2. Where the Commission implements the budget on a centralised basis, implementation operations shall be performed directly by Commission departments or by executive agencies or public bodies as defined in Articles 51 to 54 .
   3. Where the Commission implements the budget by shared or decentralised management, implementation operations shall be entrusted to Member States in accordance with the provisions of Titles I and II of Part Two, or to third countries in accordance with Title IV of Part Two. In this case, in order to ensure that the funds are used in accordance with the applicable rules, the Commission shall apply, in accordance with specific provisions, clearance of accounts procedures and appropriate financial correction mechanisms.
   3. Where the Commission implements the budget by shared management, implementation operations shall be entrusted in part to Member States in accordance with the provisions of Titles I and II of Part Two.
Where the Commission implements the budget by decentralised management, implementation operations shall be entrusted in part to third countries in accordance with Title IV of Part Two.
In the cases referred to in the first and second subparagraphs, in order to ensure that the funds are used in accordance with the applicable rules, the Commission shall apply, in accordance with specific provisions, clearance of accounts procedures and appropriate financial correction mechanisms which enable it to assume its final responsibility for the implementation of the budget.
In the case of shared management referred to in the first subparagraph, the beneficiary country shall agree to assume full responsibility for the Community funds paid to it. It shall also undertake to conduct regular checks to ensure that the actions financed from the Community budget have been implemented correctly, to prevent and prosecute irregularities and fraud and to recover funds lost, wrongly paid or incorrectly used.
The conditions referred to in the third and fourth subparagraphs shall be specified in the decision by which implementation operations are delegated by the Commission.
Amendment 63
Article 51
   1. The Commission may not delegate the executive powers it enjoys under the Treaties where they involve a large measure of discretion implying political choices.
The Commission may not delegate executive powers it enjoys under the Treaties which involve a large measure of discretion implying political choices.
   2. Within the limits laid down in paragraph 1 , the Commission may delegate tasks of public authority and in particular measures of budget implementation to executive agencies governed by Community or international law, hereinafter: "executive agencies” or to other external national, public-law bodies or bodies with a public-service mission guaranteed by the State.
Article 51a
Within the limits laid down in Article 51 , the Commission may delegate tasks of public authority, including measures of budget implementation, to:
   (a) executive agencies governed by Community law, hereinafter: "executive agencies”
or to
   (b) other external national, public-law bodies or bodies with a public-service mission guaranteed by the State, hereinafter: “public bodies” .
The decision by which the Commission delegates tasks under the first paragraph shall specify the exact tasks to be performed by the executive agency or public body on behalf of the Commission and under its responsibility.
Amendment 64
Article 52
The executive agencies are bodies which can be empowered to implement all or part of a Community programme or project on behalf of the Commission and under its responsibility.
The executive agencies are bodies which can be empowered to implement all or part of a Community programme or project on behalf of the Commission and under its responsibility.
The expenditure on each agency established under this Article shall be specified in the budget in accordance with Articles 3, 29a and 39.
The conditions and arrangements for the creation and operation of these agencies shall be defined in such a way that the Commission retains control of implementation and can monitor their operation.
The conditions and arrangements for the exercise of implementing powers delegated to these agencies shall be defined by the Commission as part of the implementing rules adopted pursuant to Article 172 and in such a way that the Commission retains control of implementation and can monitor the operation of each agency .
Amendment 66
Article 53, paragraph 1, point (d a) (new)
   (da) public access to information of similar or higher standard than Community rules provide for.
Amendments 67 and 240
Article 53, paragraph 1, subparagraph 3
The Commission must also ensure periodic supervision, evaluation and control of the implementation of the delegated tasks. It shall take account of the equivalence of control systems when undertaking its controls.
The Commission must also ensure periodic supervision, evaluation and control of the implementation of the delegated tasks. It shall take account of the equivalence of the control systems vis-à-vis its own control systems when undertaking its controls. In March and September of each year it shall forward an appraisal of the situation to the budgetary authority.
Amendment 68
Section 2, Article 55 a (new)
Article 55a
The institution shall exercise the duties of authorising officer.
Amendment 69
Article 57, paragraph 1
   1. The authorising officer by delegation and subdelegation shall be responsible in each institution for implementing revenue and appropriations in accordance with the principles of sound financial management.
   1. The authorising officer by delegation and the authorising officer by subdelegation shall be responsible in each institution for implementing revenue and appropriations in accordance with the principles of legality, regularity and sound financial management.
Amendment 70
Article 57, paragraph 3
   3. Implementation of revenue shall comprise drawing up estimates of amounts receivable, establishing entitlements to be recovered and issuing recovery orders. It shall involve waiving established entitlements in appropriate cases.
   3. Implementation of revenue shall comprise drawing up estimates of amounts receivable, establishing entitlements to be recovered and issuing recovery orders. It shall involve waiving established entitlements, in accordance with the applicable provisions, in appropriate cases.
Amendment 71
Article 57, paragraph 5
   5. The authorising officer by delegation shall report to his institution on the performance of his duties, including on the results of the operations by reference to the objectives set, on the risks associated with these operations and on the use made of the resources provided. The authorising officer by delegation shall submit to the institution, to the internal auditor and to the accounting officer an annual activity report together with accounts .
   5. The authorising officer by delegation shall report to his institution on the performance of his duties in the form of an annual activity report comprising the results of the operations by reference to the objectives set, the risks associated with these operations, the use made of the resources provided and the operation of internal control systems . The authorising officer by delegation shall, at the same time, forward this report to the internal auditor and to the accounting officer.
Amendment 72
Article 57 a (new)
Article 57a
   1. The authorising officer by delegation shall set up, in accordance with the minimum standards set by each institution and taking into account the risks associated with the management environment and the nature of the actions financed, the organisational structure, the monitoring systems and the methods of internal control (ex ante and ex post) required for the performance of his tasks.
   2. Before it is authorised, the operational and financial aspects of each transaction shall be checked by two officials who are administratively independent of each other. The functions of initiation and verification of the transactions shall be kept separate.
   3. Any person in charge of the financial control of transactions shall have the appropriate professional skills and training. He shall respect a specific code of professional standards established by each institution.
   4. Any agent involved in the financial management and control of transactions who considers that a decision he is compelled to apply or to agree upon by his superior is irregular or contrary to the principle of sound financial management shall inform the authorising officer and the internal auditor of this in writing. In the case of any illegal activity, including fraud and corruption, liable to prejudice the interests of the Community, he shall report in accordance with applicable legislation, including the Staff Regulations.
Amendment 73
Article 58, paragraph 1, point (a)
   (a) for preparing and presenting the financial statements provided for in Title VI ;
   (a) for laying down the minimum accounting rules and the accounting systems to be used, and for validating these systems. The Commission's accounting officer shall be responsible for laying down the accounting standards, principles and methods applicable to the drawing up of the Community's consolidated financial statements ;
Amendment 74
Article 58, paragraph 1, point (b)
   (b) for laying down the minimum accounting rules and the accounting systems used by authorising officers and for validating these systems ;
   (b) for the management of cash resources ;
Amendment 75
Article 58, paragraph 1, point (c)
   (c) for proper implementation of payments, management of the treasury, collection of revenue and recovery of established entitlements.
   (c) for proper implementation of payments, collection of revenue and recovery of established entitlements in conformity with the information supplied by the authorising officer and the accounting rules laid down in this Regulation .
Amendment 76
Article 58, paragraph 1, point (ca) (new)
   (ca) for keeping the accounts and for preparing and presenting the financial statements provided for in Title VI.
Amendment 77
Article 58, paragraph 1, subparagraph 2
The accounting officer shall obtain all the information necessary for the purposes of the first subparagraph from the authorising officers.
1a. The accounting officer shall obtain all the information needed to fulfil his duties from the authorising officers.
Amendment 78
Article 58, paragraph 2
   2. Save as otherwise provided in this Financial Regulation or in any sectoral regulation , the accounting officer is alone empowered to manage monies and other assets. He shall be responsible for their safekeeping.
   2. Save as otherwise provided in this Financial Regulation, the accounting officer is alone empowered to manage monies and other assets. He shall be responsible for their safekeeping.
Amendments 79, 80 and 81
Article 59
For the payment of small sums, imprest accounts may be set up which shall be endowed by the institution's accounting officer and shall be placed under the responsibility of imprest administrators designated by the institution's accounting officer.
Each institution's accounting officer may designate one or more imprest account administrators, who shall be responsible for effecting the payment of small sums and/or the collection of revenue. The accounting officer shall to this end set up and endow imprest accounts. The amount of the sums in question shall be laid down in the implementing rules. Imprest account payments shall be made in person and always directly to the beneficiary.
Amendment 82
Article 60
Without prejudice to any disciplinary action, authorising officers by delegation and subdelegation, accounting officers and imprest administrators may be suspended from their duties by the authority which appointed them .
Without prejudice to any disciplinary action, the liability of authorising officers by delegation and subdelegation, accounting officers and imprest administrators shall be governed by the following provisions .
Amendment 83
Article 61 a (new)
Article 61 a
The superior authority of the institution may suspend financial actors as defined in Article 60 from their duties and oblige them to pay compensation if they have breached provisions of this Financial Regulation.
Persons concerned shall be entitled to appeal to the Court of First Instance against decisions of the superior authority. If necessary, payment of compensation shall not become due until after a ruling by the Court.
Amendment 84
Article 62, paragraphs 2 and 3
   2. An authorising officer by delegation or subdelegation who considers that a decision he is required to take is irregular or contrary to the principles of sound financial management shall inform his higher authority in writing. If the instruction is then confirmed in writing, the authorising officer by delegation or subdelegation may not be held liable.
Article 62a
   1. An authorising officer by delegation or subdelegation who considers that a decision he is required to take is irregular or contrary to the principles of sound financial management shall inform the delegating authority of this in writing. If the delegating authority then gives the authorising officer by delegation or subdelegation a reasoned instruction in writing to take the aforesaid decision, the officer may not be held liable.
Any decision taken after an authorising officer by delegation or subdelegation has written to his delegating authority must be so recorded in the accounting system.
The internal auditor shall include the number of reported cases and their follow-up in his annual audit report referred to in Article 81.
   3. In the event of subdelegation, the authorising officer by delegation continues to be responsible for the effectiveness of the control systems put in place and for the choice of the authorising officer by subdelegation.
   2. In the event of subdelegation, the authorising officer by delegation continues to be responsible for the effectiveness of the control systems put in place and for the choice of the authorising officer by subdelegation.
Amendment 85
Article 62 b (new)
Article 62b
The internal auditor shall report on individual cases of financial irregularity encountered in the course of his activities or on the basis of a request from the institution.
The report drawn up by the internal auditor shall identify the authorising officer concerned. It shall be referred to a specialised financial irregularities committee, composed of persons with relevant experience and attached directly to the Secretary-General of the institution.
The financial irregularities committee shall establish and identify the responsibility of the authorising officer and shall decide whether to refer the case to the disciplinary procedure under the Staff Regulations. Any decision to refer a case to the disciplinary procedure shall be binding on the institution.
Amendment 86
Chapter 4, Section 2, heading
Section 2
Section 3
Amendment 87
Article 63, introduction
An accounting officer shall be liable to disciplinary action and payment of compensation in particular where:
An accounting officer shall be liable in particular where:
Amendment 88
Article 63, point (c a) (new)
   (ca) he omits, within reasonable time limits, to recover amounts or to request from the authorising officer a waiver of recovery of amounts receivable.
Amendment 89
Article 64, introduction
An imprest administrator shall be liable to disciplinary action and payment of compensation in particular where:
An imprest administrator shall be liable in particular where:
Amendment 90
Article 64, point (ca) (new)
   (ca) he omits to collect revenue due.
Amendment 91
Chapter 5, Section 2, title
Estimate of amounts receivable
Forward schedule and estimate of amounts receivable
Amendment 92
Article 66, paragraph 1
   1. An estimate of the amount receivable shall first be made by the authorising officer in respect of any measure or situation which may give rise to or modify an amount owing to the Communities.
Deleted
Amendment 93
Article 66, paragraph 2
   2. By way of derogation from paragraph 1, no estimate of the amount receivable shall be made before Member States make directly available to the Commission the amounts of own resources defined in the Council Decision on the system of the Communities' own resources which are paid at fixed intervals by the Member States. The authorising officer shall issue a recovery order in respect of these amounts.
   2. The authorising officer shall draw up a forward schedule for making directly available to the Commission own resources defined in the Council Decision on the system of the Communities' own resources which are paid at fixed intervals by the Member States.
2a. Any measure or situation, other than those defined in paragraph 1, which is liable to generate or alter an amount receivable by the Communities shall give rise to an estimate of the amount receivable drawn up by the authorising officer.
2b. The forward schedule and the estimate of the amount receivable shall precede any recovery order.
Amendment 94
Article 67
A recovery order shall be drawn up by the authorising officer to establish every amount receivable that is identified as being certain, of a fixed amount and due. The conditions in which interest on late payment is due to the budget shall be laid down in the implementing rules.
A recovery order shall be drawn up by the authorising officer to establish any own resources placed directly at the disposal of the Commission and every amount receivable that is identified as being certain, of a fixed amount and due. The conditions in which interest on late payment is due to the budget shall be laid down in the implementing rules.
Amendments 95 and 96
Article 68
   1. The accounting officer shall act on recovery orders duly established by the authorising officer. He shall exercise due diligence to ensure that the Communities receive their revenue and shall see that their rights are safeguarded.
   1. The accounting officer shall act on recovery orders duly established by the authorising officer. He shall exercise due diligence to ensure that the Communities receive their revenue and shall see that their rights are safeguarded.
The accounting officer shall inform the authorising officer when revenue is not received by the due date. He shall, where appropriate, initiate the enforced recovery procedure.
The accounting officer shall inform the authorising officer when revenue is not received by the due date. He shall, where appropriate, initiate the enforced recovery procedure.
The accounting officer may recover amounts by offsetting them against equivalent claims that the Communities have on a debtor who himself has a claim on the Communities that is certain, of a fixed amount and due.
The accounting officer may recover amounts by offsetting them against equivalent claims that the Communities have on a debtor who himself has a claim on the Communities that is certain, of a fixed amount and due, under the conditions set out in the implementing rules.
   2. Where the authorising officer waives recovery of an established entitlement, he shall ensure that the waiver is in order and complies with the principle of sound financial management. He shall inform the accounting officer of the waiver so that it can be registered. The waiver decision must be substantiated and adopted by the authorising officer by delegation. The authorising officer by delegation shall refer any cases about which he has doubts to the higher authority for a decision.
   2. Where the authorising officer or authorising officer by delegation waives recovery of an established entitlement, he shall ensure that the waiver is in order, complies with the principle of sound financial management and is in accordance with clear criteria which must be laid down in the implementing rules . He shall inform the accounting officer of the waiver, in writing, so that it can be registered. The waiver decision must be substantiated and signed by the authorising officer by delegation.
Amendment 97
Article 68, paragraph 2 a (new)
2a. Article 62 shall apply to the cases mentioned under paragraphs 1 and 2.
Amendment 102
Article 72, introduction and points (a) to (c)
When drawing up acts of budget commitment, the authorising officer shall ensure that:
When drawing up a budget commitment, the authorising officer shall ensure that:
   (a) the expenditure has been charged to the correct item in the budget;
   (a) the expenditure is to be charged to the correct item in the budget;
   (b) the appropriations are available;
   (b) the appropriations are available;
   (c) the expenditure is in order and conforms to the relevant provisions, in particular of the budget and regulations, and of all acts adopted in accordance with the Treaties and of the regulations;
   (c) the expenditure conforms to the relevant provisions, in particular of the budget and regulations, and of all acts adopted in accordance with the Treaties and of the regulations;
Amendment 103
Article 72 a (new)
Article 72a
When registering a legal obligation, the authorising officer shall ensure that:
   (a) it is covered by the related budget commitment;
   (b) the expenditure conforms to the relevant provisions, in particular of the budget and regulations, and of all acts adopted in accordance with the Treaties and of the regulations;
   (c) the principle of sound financial management is complied with.
Amendment 107
Article 74
Authorisation is the act whereby the authorising officer, by issuing a payment order, instructs the accounting officer to pay an item of expenditure which he has validated.
Authorisation is the act whereby the authorising officer, after having checked that the appropriations are available , instructs the accounting officer by issuing a payment order to pay an amount due which he has validated.
Amendment 108
Chapter 6, after Article 74, Section 3 a (new)
Section 3a
Payments
Amendment 109
Article 75, paragraph 1, subparagraph 2
A distinction shall be made in the accounts between these different types of payment.
A distinction shall be made in the accounts between these different types of payment at the time they are made. The subsequent conversion of prefinancing payments to reimbursements, and the clearance of both of these by balancing payments, shall also be recorded in the accounts .
Amendment 110
Article 75, paragraph 2
   2. Only amounts paid by way of prefinancing shall yield interest until such time as they are definitively transferred to the final beneficiaries, save where they are made available to the Member States' authorities.
Deleted
Amendment 111
Article 75, paragraph 2 a (new)
2a. Prefinancing payments charged to the budget should be restricted to amounts demonstrably required to meet the Community's share of the necessary prefinancing of operations co-financed by the Communities.
Amendments 112 and 113
Chapter 6, Section 4
Section 4
Deleted
Payment of expenditure
Article 76
Payment of expenditure is the final act whereby the institution is discharged of its obligations towards its creditors.
Payment of expenditure shall be made by the accounting officer within the limits of the funds available.
Amendment 114
Chapter 6, Section 5, title
Time-limits for expenditure operations
Time-limits for payment operations
Amendments 115 and 116
Article 77
The validation, authorisation and payment of expenditure must be completed within the time-limits laid down in the implementing rules, which shall also specify the circumstances in which creditors paid late are entitled to receive default interest charged to the line from which the principal was paid.
If the payment of expenditure is not completed within the time-limits laid down in the implementing rules, creditors paid late are entitled to receive default interest charged to the budget line from which the principal was paid, in accordance with the provisions laid down in the implementing rules . At the end of the year, default interest shall be separately booked to the revenue and expenditure account.
Amendment 117
Article 77, paragraph 1 a (new)
Where the authorising officer or accounting officer is responsible for the delay, the provisions of Article 62(1) shall apply.
Amendment 228
Article 78
Article 78
   1. Once a month, the Commission shall send to the European Parliament and the Council aggregate figures, by chapter, on the implementation of the budget, both for revenue and for expenditure against all appropriations. These figures shall also show details of the utilisation of appropriations carried over.
Deleted
The figures shall be sent within ten working days following the end of each month.
   2. Three times a year, within the thirty working days following 31 May, 31 August and 31 December, the Commission shall send the European Parliament and the Council a report on implementation of the budget, covering both revenue and expenditure broken down by chapter, article and item. This report shall also give details of the utilisation of appropriations carried over from previous financial years.
   3. The figures and the report shall at the same time be sent to the Court of Auditors.
Amendment 119
Article 79, introductory clause
Where revenue and expenditure operations are managed by means of computer systems, the provisions of this Title and of Chapters 2 and 3 of Title VI of Part One shall apply with due allowance for the possibilities and requirements deriving from computerised management. To this end, in particular:
Deleted
Amendment 120
Article 79, point (b)
   (b) signatures may be added by a computerised or electronic procedure.
Deleted
Amendment 121
Article 79, point (b a) (new)
   (ba) back-ups shall be made at least once a day and stored in a secure storing device.
Amendment 122
Article 80
Each institution shall appoint an internal auditor responsible for providing the institution with guarantees, in accordance with the relevant international standards, concerning the proper operation of budget implementation systems and procedures. The internal auditor may be neither authorising officer nor accounting officer.
Each institution shall appoint an internal auditor responsible for providing the institution with guarantees, in accordance with the relevant international standards, concerning the proper operation of budget implementation systems and procedures. The internal auditor shall also oversee correct implementation of the budget. The internal auditor may be neither authorising officer nor accounting officer.
Amendment 123
Article 81
   - 1. Each institution shall designate the internal auditor according to the method appropriate to its specific characteristics and requirements. Each institution shall, according to its specific characteristics and requirements, decide the scope of the internal auditor's work and adopt detailed objectives and procedures for the internal audit function, in accordance with international internal auditing standards.
   1. The internal auditor shall assist his institution in dealing with risks, by issuing independent opinions on the quality of management and control systems and by issuing recommendations for improving the conditions of implementation of operations and promoting the economically sound use of the institution's resources.
   1. The internal auditor shall assist his institution in dealing with risks, by issuing independent opinions on the quality of management and control systems and by issuing recommendations for improving the conditions of implementation of operations and promoting the economically sound use of the institution's resources.
He shall be responsible:
The internal auditor shall be responsible, in particular :
   (a) for assessing the suitability and effectiveness of internal management systems and the performance of departments in implementing policies, programmes and actions by reference to the risks associated with them; and
   (a) for assessing the suitability and effectiveness of internal management systems and the performance of departments in implementing policies, programmes and actions by reference to the risks associated with them;
   (b) for assessing the suitability and quality of the internal control systems applicable to every budget implementation operation.
   (b) for assessing the suitability and quality of the internal control systems applicable to every budget implementation operation; and
   (ba) for monitoring the professional independence of the internal audits carried out under the responsibility of authorising officers by delegation.
   2. The internal auditor shall perform his tasks on all the institution's activities and departments. He shall enjoy full and unlimited access to files relating to revenue and expenditure, where necessary on the spot, including in the Member States and in third countries.
   2. The internal auditor shall perform his tasks on all the institution's activities and departments. He shall enjoy full and unlimited access to files relating to revenue and expenditure, where necessary on the spot, including in the Member States and in third countries. He shall have at his disposal the resources required to perform his duties.
   3. The internal auditor shall report to the institution on his findings and recommendations. The institution shall ensure that action is taken on recommendations resulting from audits.
   3. The internal auditor shall report to the institution and the European Parliament on his findings and recommendations. The institution shall ensure that action is taken on recommendations resulting from audits.
3a. The internal auditor shall submit an annual internal audit report to the institution showing the number and type of internal audits carried out, the audit recommendations made and the action taken on those recommendations. The report shall be published by the institution.
3b. Each institution shall be required to consider whether any recommendations set out in the annual internal audit reports of the other institutions could be applied to its own management and control systems.
3c. The internal auditor shall forward his annual audit report to the discharge authority.
Amendment 124
Article 82
Special rules applicable to the internal auditor shall be laid down by the institution and shall be such as to guarantee that he is independent in the performance of his duties. The internal auditor shall, in the performance of his duties, be liable to disciplinary action and payment of compensation as laid down in the Staff Regulations.
Special rules applicable to the internal auditor shall be laid down by the institution after the Court of Auditors has given its opinion. These rules shall be drawn up in accordance with the relevant international standards and shall guarantee the independence of the internal auditor in the performance of his duties. The internal auditor shall, in the performance of his duties, be liable to disciplinary action and payment of compensation as laid down in the Staff Regulations.
Amendment 125
Chapter 9 a and Article 82 a (new)
Chapter 9a
Financial corrections
Article 82a
   1. The Member States shall, in the first instance, bear the responsibility for investigating irregularities and shall make the financial corrections required in connection with any individual or systemic irregularity.
2 If, after completing the necessary verifications, the Commission concludes that a Member State has not complied with its obligations under paragraph 1 or that there are serious failings in the management or control systems which could lead to systemic irregularities, the Commission shall suspend the payments in question and, stating its reasons, request that the Member State submit its comments and, where appropriate, carry out any financial corrections, within a specified period of time and in accordance with the relevant provisions in the basic legislation in force.
   3. The provisions in paragraphs 1 and 2 shall apply to the whole budget.
Amendment 126
Chapter 9, heading
CHAPTER 9
TITLE IIIa
Amendment 127
Article 83, paragraph 1, point (d)
   (d) service contracts.
   (d) intellectual and non-intellectual service contracts.
Amendment 129
Article 84, paragraph 1
   1. All public contracts financed in whole or in part by the budget shall comply with the principles of transparency, proportionality, equal treatment and non-discrimination .
   1. All public contracts financed in whole or in part by the budget shall comply with the principles of transparency, proportionality and equal treatment.
Amendment 229
Article 84, paragraph 3
   3. The institutions shall reserve the right to suspend, refuse or recover at any time amounts paid for contracts in respect of which they feel that the award procedure was vitiated by error, irregularities or fraud.
Deleted
Amendment 131
Article 85, paragraph 2, subparagraph 3 and paragraph 3
The award notice need not be published where publication would hinder application of the law, would be contrary to the public interest or would harm the legitimate business interests of public or private undertakings or could distort fair competition between the suppliers.
The award notice need not be published where publication would hinder application of the law or would be contrary to the public interest.
   3. Contracts with a value not exceeding the thresholds provided for in Article 98 or Article 153 shall be advertised as appropriate.
   3. Contracts with a value not exceeding the thresholds provided for in Article 98 shall be advertised when reasonable.
Amendment 130
Article 85, paragraph 4
   4. The subject of the contract must be clearly defined in the documents relating to competitive tendering, including the specifications .
   4. The subject of the contract must be clearly defined in the documents relating to competitive tendering.
Amendment 259
Article 86, paragraph 1
   1. Procurement procedures involving competitive tendering shall take one of the following forms:
   1. Procurement procedures involving competitive tendering shall take one of the following forms in preferential order :
   (a) the open procedure;
   (a) the open procedure;
   (b) the restricted procedure;
   (b) the restricted procedure;
   (c) contests;
   (c) contests.
   (d) the negotiated procedure.
The negotiated procedure shall only be permitted under the conditions laid down in Article 87 and when options (a), (b) and (c) listed above have been exhausted. .
Amendment 133
Article 86, paragraph 3
   3. For contracts where the value does not exceed the thresholds provided for in Article 98 or Article 153 , the contracting authority may, in addition to the procedures mentioned in paragraph 1, apply simplified tendering procedures under which the candidates invited to tender are selected on the basis of objective criteria allowing genuine competition.
   3. For contracts where the value does not exceed the thresholds provided for in Article 98, the contracting authority may, in addition to the procedures mentioned in paragraph 1, apply simplified tendering procedures under which the candidates invited to tender are selected on the basis of objective criteria allowing genuine competition which shall be laid down before tenders are opened .
Amendment 134
Article 87, paragraph 2 a (new)
2a. If the number of negotiated procedures is increasing or is significantly higher than the average a report shall be sent to the institution and the discharge authority outlining the measures taken to reverse the trend.
Amendment 135
Article 89, paragraph 1, point (b)
   (b) are guilty of misrepresentation in supplying the information required by the contracting authorities as a condition of participation in a contract procedure;
   (b) are guilty of misrepresentation in supplying the information required by the contracting authorities as a condition of participation in a contract procedure or have failed to submit the information required ;
Amendments 136 and 253
Article 89, paragraph 2
   2. In addition to the cases provided for in paragraph 1, contracts may not be awarded to candidates or tenderers who, in another procurement or grant procedure financed by the Community budget, have been declared to be in serious breach of contract for failure to comply with their contractual obligations.
   2. In addition to the cases provided for in paragraph 1, contracts may not be awarded to candidates or tenderers who, in another procurement or grant procedure financed by the Community budget, have been found to be in serious breach of contract in respect of the Community budget, inter alia for failure to comply with their contractual obligations. They shall accordingly be entered on a list communicated to all Commission departments and the Member States.
Amendment 137
Article 90
Administrative or financial penalties may be imposed on candidates or tenderers who are excluded by virtue of Articles 88 and 89, after they have been given the opportunity to present their observations. These penalties may consist of the suspension or cancellation of funding for ongoing contracts or the exclusion of the candidate or tenderer concerned from contracts financed by the Community budget for a period of up to five years.
Administrative or financial penalties may be imposed on candidates or tenderers who are excluded by virtue of Articles 88 and 89, after they have been given the opportunity to present their observations. These penalties may consist of the suspension or cancellation of funding for ongoing contracts or the exclusion of the candidate or tenderer concerned from contracts financed by the Community budget for a period of up to five years. The duration of that period shall be determined by the institution concerned according to the seriousness of the facts.
Amendment 138
Chapter 1, Section 5, title
Section 5
Section 6
Amendments 140 and 141
Article 91, paragraph 2, point (b)
   (b) under the value-for-money procedure, the contract is awarded to the bid offering the best quality-price combination.
   (b) under the value-for-money procedure, the contract is awarded to the bid offering the best long-term quality-environment- price combination. In this case, if the authorising officer decides to set aside the opinion of the committee referred to in Article 92(3), he shall justify his decision accordingly.
Amendment 142
Chapter 1, Section 6, title
Section 6
Section 5
Amendment 144
Article 94
The contracting authority shall notify all candidates or tenderers whose applications or tenders are rejected of the grounds on which the decision was taken, and all tenderers whose tenders are admissible of the characteristics and relative advantages of the successful tender as well as the name of the tenderer to whom the contract is awarded.
The contracting authority shall notify all candidates or tenderers whose applications or tenders are rejected or not selected of the grounds on which the decision was taken, as well as the name of the tenderer to whom the contract is awarded.
Amendment 145
Article 95, paragraph 1
The contracting authority may, before signature of the contract, cancel the award procedure or abandon the procurement without the candidates or tenderers being able to claim any compensation.
The contracting authority may, before the signing of the contract, either abandon the contract or, in the event of an irregularity, cancel the award procedure without the candidates or tenderers being able to claim any compensation.
Amendment 146
Article 96
To guarantee implementation of contracts, the contracting authority may require contractors to lodge a security in advance.
To guarantee implementation of contracts, the contracting authority may, and, in certain cases envisaged by the implementing rules, must, require contractors to lodge a security in advance.
Amendment 147
Article 96 a (new)
Article 96a
Each institution shall maintain a central database containing the details of candidates and tenderers who are in one of the situations listed in Articles 88 and 89. The sole purpose of the database shall be to ensure the correct application of Articles 88 and 89. Each institution shall have access to the databases maintained by the other institutions.
Amendment 148
Article 96 b (new)
Article 96b
The institutions shall suspend implementation, refuse to make payment, or recover amounts already paid for contracts in respect of which the award procedure or implementation are vitiated by irregularities or fraud attributable to the contracting party.
Amendment 149
Article 98
The thresholds and time-limits applicable shall be those laid down in the Directives of the European Parliament and of the Council on the coordination of procedures for the award of public services, supply and works contracts, subject to Title III of Part Two .
The thresholds and time-limits applicable shall be those laid down in the Directives of the European Parliament and of the Council on the coordination of procedures for the award of public services, supply and works contracts.
Amendment 152
Article 101
   1. Grants are direct financial contributions, by way of donation , from the budget in order to finance:
   1. Grants are direct financial contributions from the budget in order to finance:
   (a) either the functioning of a body which pursues an aim of general European interest or has an objective forming part of a European Union policy;
   (a) either an action intended to help achieve an objective forming part of a European Union policy;
   (b) or action intended to help achieve an objective forming part of a European Union policy.
   (b) or the functioning of a body which pursues an aim of general European interest or has an objective forming part of a European Union policy ;
They shall be covered by a written agreement.
They shall be covered by a written agreement.
   2. Expenditure on the institutions' staff, loans and shareholdings, payment of damages, and procurement contracts shall not constitute grants.
   2. Financial assistance provided through the intervention of the Member States or of bodies designated by them ("transfers'), for example under the Common Agricultural Policy or the Structural Funds, shall not constitute a grant as defined in paragraph 1. Expenditure on the Community institutions" staff, loans and shareholdings, payment of damages, and procurement contracts shall not constitute grants.
2a. Grants in accordance with paragraph 1 shall be awarded by the Commission on the basis of the powers directly conferred on it by the Treaties
Amendment 153
Article 102, paragraph 1
   1. The award of grants is subject to the principles of transparency and equal treatment. They may not be cumulative or awarded retrospectively and they must involve co-financing.
   1. The award of grants is subject to the principles of transparency and equal treatment. They may not be cumulative or awarded retrospectively and they must involve co-financing. For the calculation of cofinancing requirements, duly substantiated contributions in kind may be taken into account.
Amendment 156
Article 109, paragraph 1
   1. Applications shall be evaluated, on the basis of pre-announced selection and award criteria, by a committee set up for that purpose.
   1. Applications shall be evaluated, on the basis of pre-announced selection and award criteria by a committee set up for that purpose.
In the case of grants made by the Commission in accordance with Article 101(2a), general selection and award criteria may be specified in the relevant budget remarks.
Amendment 157
Article 109 a (new)
Article 109a
In the case of grants made by the Commission in accordance with Article 101(2a), the payment of the advance as a result of the award of a grant shall be made within one month following the notification of the award. The balance of a grant shall be paid at the latest six months following notification of the award.
Amendment 159
Article 114
Each grant programme shall be evaluated to ensure that the results are consistent with the objectives set.
Each grant programme shall be evaluated to ensure that the results are consistent with the objectives set. The Commission shall forward the results of the evaluation to the budgetary authority, so that the evaluation for the year n-1 is available at the latest by 1 September of year n.
Amendment 160
Title VI, title, Chapter 1, title, Article 115
KEEPING AND PRESENTATION OF THE ACCOUNTS
KEEPING AND PRESENTATION OF THE FINANCIAL STATEMENTS
CHAPTER 1
CHAPTER 1
PRESENTATION OF THE ACCOUNTS
PRESENTATION OF THE FINANCIAL STATEMENTS
Article 115
   1. The financial statements shall consist of the balance sheet , the revenue and expenditure account and an Annex and shall form an indissoluble whole. They shall be presented in euro.
Article 115
   1. The financial statements shall consist of the budget out-turn account, the economic out-turn account , the revenue and expenditure account and an Annex and shall form an indissoluble whole. They shall be presented in million euro.
The financial statements shall be presented in the form laid down in the Council Directive on the annual accounts of certain types of companies, with account being taken of the specific features of the Communities.
   2. The balance sheet shall set out the financial situation at 31 December of the preceding financial year.
   2. The balance sheet shall set out the financial situation at 31 December of the preceding financial year.
The balance sheet shall be presented in the form laid down in the Council Directive on the annual accounts of certain types of companies, with account being taken of the specific features of the Communities.
   3. The revenue and expenditure account shall set out all budget operations for the year in terms of revenue and expenditure.
   3. The budget out-turn account shall set out all budget operations for the year in terms of revenue and expenditure.
The economic out-turn account is produced by adding the non-budgetary revenue and expenditure accounts to the aforementioned budget out-turn account.
   4. The Annex shall supplement and comment on the information provided in the balance sheet and the revenue and expenditure account, in particular explaining the methods used to draw them up and commenting on the figures they contain.
   4. The Annex shall supplement and comment on the information provided in the balance sheet and by the budget out-turn account and the economic out-turn account, in particular by explaining the methods used to draw them up and commenting on the figures they contain.
   5. The consolidated financial statements of the Communities shall present in aggregated form the financial information contained in the financial statements of each institution.
   5. The consolidated financial statements of the Communities shall present in aggregated form the financial information contained in the financial statements of each institution and body over which one or more Community institutions have a decisive influence .
   6. In addition to the financial statements, each institution shall draw up a report on budget implementation and an analysis of financial management.
   6. In addition to the financial statements, each institution and body to which paragraph 5 refers shall draw up a report on budget implementation and an analysis of financial management.
Amendment 161
Article 116, paragraph 2, point (ba) (new)
   (ba) transparency;
Amendments 162 and 163
Article 117
   1. The accounting officers of the other institutions shall send their provisional financial statements to the Commission's accounting officer by 1 March of the following year at the latest.
   1. The accounting officers of the institutions and of the bodies to which Article 115(5) refers shall send their provisional financial statements to the Court of Auditors and to the Commission's accounting officer by 1 March of the following year at the latest.
They shall also send him a report on budget implementation and an analysis of financial management.
By the same date, they shall send them a report on budget implementation and an analysis of financial management.
   2. The Commission accounting officer shall consolidate the provisional financial statements and shall send to the Court of Auditors, by 1 May of the following year at the latest, each institution's provisional financial statements together with the provisional consolidated financial statements of the Communities. He shall also send each institution's analysis of financial management to Parliament, the Council and the Court of Auditors by the same date.
   2. The Commission accounting officer shall consolidate the provisional financial statements and shall send to the Court of Auditors, by 1 April of the following year at the latest, the provisional consolidated financial statements of the Communities. He shall also send the consolidated budget implementation report and analysis of financial management to the European Parliament, the Council and the Court of Auditors by the same date.
Amendments 164 and 165
Article 118
   1. The Court of Auditors shall draw up observations on the provisional financial statements of each institution by 15 July at the latest to allow them to make the corrections which they deem necessary for their final financial statements.
   1. The Court of Auditors shall draw up observations on the provisional financial statements of each institution and body to which Article 115(5) refers by 15 June at the latest to allow them to make the corrections which they deem necessary for their final financial statements.
   2. Each institution shall draw up its final financial statements and send them to the Commission's accounting officer by 5 September of the following year at the latest with a view to drawing up the final consolidated financial statements.
   2. Each institution and body to which Article 115(5) refers shall be responsible for drawing up its own final financial statements and shall send them to the Commission's accounting officer and to the Court of Auditors by 15 July of the following year at the latest with a view to drawing up the final consolidated financial statements.
   3. After approving the final consolidated financial statements, the Commission shall send them to the European Parliament, the Council and the Court of Auditors by 30 September of the following year at the latest.
   3. After all its Members have approved the final consolidated financial statements, the Commission shall send them to the European Parliament, the Council and the Court of Auditors by 5 September of the following year at the latest.
   4. The final consolidated financial statements shall be published in the Official Journal of the European Communities together with the statement of assurance given by the Court of Auditors in accordance with Article 248 of the EC Treaty, Article 45c of the ECSC Treaty and Article 160c of the Euratom Treaty by 30 November the following year.
   4. The final consolidated financial statements shall be published in the Official Journal of the European Communities together with the statement of assurance given by the Court of Auditors in accordance with Article 248 of the EC Treaty, Article 45c of the ECSC Treaty and Article 160c of the Euratom Treaty by 5 October the following year.
Amendment 166
Before Article 119, Chapter 1 a, heading and title (new)
CHAPTER 1a
INFORMATION ON THE IMPLEMENTATION OF THE BUDGET
Amendment 167
Article 119 a (new)
Article 119a
   1. Once a month, the Commission shall send to the European Parliament and the Council aggregate figures, by chapter, on the implementation of the budget, both for revenue and for expenditure against all appropriations. These figures shall also show details of the utilisation of appropriations carried over.
The figures shall be sent within ten working days following the end of each month.
   2. Three times a year, within the thirty working days following 31 May, 31 August and 31 December, the Commission shall send the European Parliament and the Council a report on implementation of the budget, covering both revenue and expenditure broken down by chapter, article and item. This report shall also give details of the utilisation of appropriations carried over from previous financial years.
   3. The figures and the report shall at the same time be sent to the Court of Auditors.
Amendment 168
Article 120, paragraph 2
   2. The accounting methods and the accounting plan employed by the institutions shall be harmonised and adopted by the Commission's accounting officer.
   2. The accounting rules and methods resulting from the application of the principles set out in Article 116(2), and the rules governing the drafting of the financial statements and the accounting plan employed by the institutions and the bodies to which Article 115(5) refers, shall be harmonised and adopted by the Commission's accounting officer.
Amendment 169
Article 120, paragraph 3
   3. The general accounts shall show, by the double entry method, all revenue and expenditure for the financial year and is intended to establish the institution's assets.
   3. The general accounts shall show, by the double entry method, all budgetary and non-budgetary revenue and expenditure for the financial year and are intended to establish the institution's assets.
Amendment 170
Article 120, paragraph 5
   5. All accounting records shall be based on supporting documents to which they shall refer.
   5. All accounting records, including accounting adjustments, shall be based on supporting documents to which they shall refer.
Amendment 171
Article 120, paragraph 5 a (new)
5a. All transactions shall be recorded in the accounts in such a way that there is a full chronological record and a clear audit trail.
Amendment 172
Article 121, paragraph 2
   2. The accounting officer may , after the close of the budget year and up to the date of closure of the accounts, make any corrections which, without involving disbursement in respect of that year, are necessary for a full, true and fair presentation of the financial statements.
   2. The accounting officer must , after the close of the budget year and up to the date of closure of the accounts, make any corrections which, without involving disbursement in respect of that year, are necessary for a true and fair presentation of the financial statements which complies with the rules .
Amendment 173
Article 121a (new)
Article 121a
Where computerised systems and sub-systems are used to process transactions underlying the accounts, full descriptions of each system shall exist. Each description shall define the contents of all data fields and shall include details of how the system treats individual transactions. It shall describe how the system ensures that a full audit trail of every operation is kept. Such descriptions of systems shall be regarded as part of the accounts. These descriptions of accounting systems and sub-systems shall mention, where appropriate, the links between these systems and sub-systems and the central accounting system (especially as regards the transfer of data and the reconciliation of balances).
Amendment 174
Article 128, paragraphs 2 to 7
   2. The Court of Auditors shall transmit to the Commission and the institutions concerned, by 15 July at the latest, any observations which are, in its opinion, such that they should appear in the annual report. These observations must remain confidential. Each institution shall address its reply to the Court of Auditors by 31 October at the latest. The replies of institutions other than the Commission shall be sent to the Commission at the same time.
   2. The Court of Auditors shall transmit to the Commission and the institutions concerned, by 15 July at the latest, any observations which are, in its opinion, such that they should appear in the annual report. These observations must remain confidential. Each institution shall address its reply to the Court of Auditors by 30 September at the latest. The replies of institutions other than the Commission shall be sent to the Commission at the same time.
   3. The Commission shall inform Member States of the Court of Auditors' observations on the management of Community funds for which they are responsible under the rules applicable, whenever the Member States referred to are identified in those observations .
   3. The Commission shall inform Member States without delay of the Court of Auditors' observations on the management of Community funds for which they are responsible under the rules applicable.
   4. The Member States shall reply to the Commission by 30 September at the latest. The Commission shall transmit the reply, accompanied by its comments to the Court of Auditors, by 31 October .
   4. The Member States shall reply to the Commission by 31 August at the latest. The Commission shall transmit the reply, accompanied by its comments to the Court of Auditors, by 30 September .
   5. The annual report shall contain an assessment of the soundness of financial management.
   5. The annual report shall contain an assessment of the soundness of financial management.
   6. The annual report shall include a section for each institution. The Court of Auditors may add any summary report or general observations which it sees fit to make.
   6. The annual report shall be divided into sections for each institution. The Commission section shall be divided into subsections for each budget chapter. The Court of Auditors may add any summary report or general observations which it sees fit to make.
The Court of Auditors shall take all necessary steps to ensure that the replies of each institution to its observations are published immediately after the observations to which they relate.
The Court of Auditors shall take all necessary steps to ensure that the replies of each institution to its observations are published immediately after the observations to which they relate.
   7. The Court of Auditors shall transmit to the authorities responsible for giving discharge and to the other institutions, by 30 November at the latest, its annual report accompanied by the replies and shall ensure publication thereof in the Official Journal of the European Communities.
   7. The Court of Auditors shall transmit to the authorities responsible for giving discharge and to the other institutions, by 15 October at the latest, its annual report accompanied by the replies and shall ensure publication thereof in the Official Journal of the European Communities.
Amendment 175
Article 128 a (new)
Article 128a
Once a year, Members of the Court shall prepare a declaration setting out their outside activities, their financial interests and assets and the activities of their spouses. The declarations shall be annexed to the annual report.
Amendment 176
Article 129
At the same time as the annual report referred to in Article 128, the Court of Auditors shall provide the European Parliament and the Council with a statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions.
At the same time as the annual report referred to in Article 128, the Court of Auditors shall provide the European Parliament and the Council with separate statements of assurance corresponding to the sections and subsections referred to in Article 128(6), as to the reliability of the accounts and the legality and regularity of the underlying transactions. In its statements of assurance, the Court of Auditors shall identify, on a sampling basis, the areas where errors have occurred, the nature, number and size of those errors, and the institution and/or Member State responsible.
The institutions and the Member States shall set annual numerical targets for the reduction of the number and size of errors identified by the Court of Auditors. These targets shall be communicated to the Council and the European Parliament in the context of the discharge procedure (Article 276 of the EC Treaty)
Amendment 177
Article 130, paragraphs 2 and 3
   2. The special reports shall be transmitted to the institution or body concerned.
   2. The Court shall notify the institution concerned of all observations which are, in its opinion, such that they could appear in a special report .
The institution concerned shall have two and a half months within which to inform the Court of Auditors of any comments it wishes to make on the special reports in question.
The institution concerned shall have one and a half months within which to inform the Court of Auditors of any comments it wishes to make on the observations in question. The Court shall adopt the definitive version of the special report in question the following month.
Should the Court of Auditors decide to have any such reports published in the Official Journal of the European Communities, they shall be accompanied by the replies of the institutions concerned. Where the special report concerns the management of Community funds for which the Member States are responsible under the relevant rules, the Commission shall send the special report to the Member States identified in the Court of Auditors" observations.
Special reports shall be published in the Official Journal of the European Communities, accompanied by the replies of the institutions concerned. Where the observations referred to in paragraph 1 concern the management of Community funds for which the Member States are responsible under the relevant rules, the Commission shall send the observations in question to the Member States identified.
The Member States shall send their replies to the Commission within one and a half months of the adoption of the special report . The Commission shall transmit these replies to the Court of Auditors together with its remarks.
The Member States shall send their replies to the Commission within one month of the adoption of the observations in question . The Commission shall transmit these replies to the Court of Auditors together with its remarks.
The special reports shall be transmitted to the European Parliament and the Council, each of which shall decide, where appropriate in conjunction with the Commission, what action is to be taken in response.
The special reports, accompanied by the replies of the institutions or Member States in question, shall be transmitted without delay to the European Parliament and the Council, each of which shall decide, where appropriate in conjunction with the Commission, what action is to be taken in response.
   3. If the opinions referred to in paragraph 1 do not relate to proposals for legislation or draft legislation on which it has been consulted, they may be published by the Court of Auditors in the Official Journal of the European Communities. The Court of Auditors shall take its decision on publication after consulting the institution which requested the opinion or the institution concerned by the Court of Auditors' analysis. Opinions published shall be accompanied by the replies of the institutions concerned.
   3. The opinions referred to in paragraph 1 shall be published by the Court of Auditors in the Official Journal of the European Communities and shall be accompanied by the replies of the institutions concerned
Amendment 178
Article 131, paragraph 1
   1. The European Parliament, upon a recommendation from the Council acting by a qualified majority, shall, before 30 April of the year N + 2 give a discharge to the Commission in respect of the implementation of the budget for year N.
   1. The European Parliament, acting on a recommendation from the Council which shall act by a qualified majority, shall give, or refuse to give, a discharge to the Commission in respect of the implementation of the budget for year n before 30 April of the year n + 2 .
Amendment 179
Article 132, paragraph 3
   3. The Commission shall submit to the European Parliament, at the latter's request, any information required for the control of the implementation of the budget of the year in question. Access to confidential information and the arrangements for handling it shall comply with fundamental human rights, the protection of business secrecy, the provisions governing judicial and disciplinary proceedings and the interests of the Union.
   3. The Commission shall provide any information the European Parliament considers necessary, including confidential information. The arrangements for handling confidential information shall comply with the internal procedures of the European Parliament.
Amendment 186
Article 140
Earmarked revenue under this Title shall be earmarked in its entirety either to appropriations for the EAGGF Guarantee Section for financing expenditure on the common agricultural policy or to appropriations for the EAGGF Guarantee Section for rural development and accompanying measures .
The revenue under this Title shall be transferred to the budget of the European Union as revenue. It shall be set out in a separate item in the statement of revenue .
Amendment 193
Article 142, paragraph 4
   4. Payments shall be made subject to any financial corrections deemed necessary by the Commission or the Member States in order to comply with the rules referred to in Article 141.
Deleted
Amendment 196
Article 146, paragraph 2
   2. Within the budget title relating to the research policy area, the Commission may, by way of derogation from Article 21, make transfers between chapters of up to 15% of the appropriations on the line from which the transfer is made.
Deleted
Amendment 208
Article 157
Parts One and Three shall apply to the operation of the Office for Official Publications of the European Communities , hereinafter referred to as "the Office ", save as otherwise provided in this Title.
Parts One and Three shall apply to the operation of the European Offices set up by the Community Institutions , hereinafter referred to as "the Offices ", save as otherwise provided in this Title.
Amendment 209
Article 158
   1. The appropriations for the Office, the total amount of which shall be entered under a special budget line within the section of the budget relating to the Commission , shall be set out in detail in an Annex to that section.
   1. The appropriations for an Office, the total amount of which shall be entered under a special budget line within the section of the budget relating to the institution which set up the Office in question , shall be set out in detail in an Annex to that section.
The Annex shall take the form of a statement of revenue and expenditure, subdivided in the same way as the sections of the budget.
The Annex shall take the form of a statement of revenue and expenditure, subdivided in the same way as the sections of the budget.
The appropriations entered in that Annex shall cover all the financial requirements of the Office in the performance of its duties in the service of the Community institutions.
The appropriations entered in that Annex shall cover all the financial requirements of the Office in the performance of its duties in the service of the Community institutions.
   2. The Management Committee of the Office shall take decisions on transfers within the Annex provided for in paragraph 1. The Commission shall inform the budgetary authority of such transfers.
   2. The Director of the Office shall take decisions on transfers within the Annex provided for in paragraph 1. He shall inform the aforementioned institution and the budgetary authority of such transfers.
Amendment 210
Article 159
The Commission shall, in respect of the appropriations entered in the Annex for the Office, delegate the powers of authorising officer to the Director of the Office and shall set the limits and conditions for this delegation of powers .
The powers of authorising officer in respect of the appropriations in the Annex shall be exercised by the Director of the Office.
Amendment 211
Article 160, paragraphs 1 to 3
   1. The Office shall draw up analytical accounts of its expenditure, enabling the proportion of its services supplied to each of the institutions to be determined. The Management Committee shall lay down the criteria on which the accounting system shall be based.
Deleted
   2. The remarks concerning the specific budget line under which is entered the total appropriation for the Office shall show an estimate of the cost of services supplied by the Office to each of the institutions. This shall be based on the forecasts of the analytical accounts provided for in paragraph 1
   3. The Office shall notify the institutions concerned of the results of the analytical accounts.
Amendment 212
Article 161
The Management Committee of the Office shall determine the detailed rules for the implementation of this Title, and also specific rules governing the terms of sale of publications and the corresponding accounting system .
The institution which sets up the Office shall determine the detailed rules for the implementation of this Title. The Director of the Office shall determine specific rules governing the administrative and accounting operations of the Office .
Each institution shall retain the powers of authorisation for expenditure charged to the appropriations for the publication of all work entrusted to outside bodies by the Office. The net proceeds from the sale of the publications shall be used as earmarked revenue by the institution which drew up these publications, in accordance with Article 17.
Amendment 213
Article 163, paragraph 1
   1. Appropriations to cover all the financial requirements for the operation of OLAF in the exercise of its tasks and remits shall be entered under a special budget line within the section of the budget relating to the Commission. These appropriations shall be set out in detail in an Annex which shall take the form of a statement of revenue and expenditure, subdivided in the same way as the sections of the budget.
   1. Appropriations to cover all the financial requirements for the operation of OLAF in the exercise of its tasks and remits shall be entered under a special budget line within the section of the budget relating to the Commission. These appropriations shall be set out in detail in an Annex which shall take the form of a statement of revenue and expenditure, subdivided in the same way as the sections of the budget. The appropriations relating to the Supervisory Committee shall be set out in a separate chapter of that Annex. The establishment plan of OLAF shall be annexed to that of the Commission.
Amendment 214
Article 164
The Commission shall delegate the powers of authorising officer in respect of the appropriations entered in the Annex to the Commission Section relating to OLAF to the Director of OLAF and shall set the limits and conditions for this delegation of powers . The Director of OLAF shall be authorised to subdelegate his powers to staff covered by the Staff Regulations.
The Commission shall confer the powers of authorising officer in respect of the appropriations entered in the Annex to the Commission Section relating to OLAF on the Director of OLAF. After the Supervisory Committee has given its agreement, the Director shall adopt the rules for implementation of this Title. The Director of OLAF shall be authorised to subdelegate his powers to staff covered by the Staff Regulations.
Amendment 215
Article 165
The revenue and expenditure account and the balance sheet of OLAF shall form an integral part of the revenue and expenditure account and of the balance sheet of the Communities referred to in Article 115.
The revenue and expenditure account and the balance sheet of OLAF, drawn up by the Office, shall form an integral part of the revenue and expenditure account and of the balance sheet of the Communities referred to in Article 115.
Amendment 217
Article 169 a (new)
Article 169a
The artificial distinction between "compulsory" and "non-compulsory" expenditure shall be abolished on 1 January 2007 at the latest.
Amendment 218
Article 170
The EAGGF Guarantee appropriations for rural development and accompanying measures shall remain subject to Article 135 until the end of the period covered by the financial perspective, that is until 31 December 2006. Appropriate provisions shall be adopted after that date.
The EAGGF Guarantee appropriations for rural development and accompanying measures shall remain subject to Article 135, pending the adoption of the modifications needed to give effect to the principle of the differentiation of appropriations laid down in Article 6 . The Commission shall submit all the proposals needed to give effect to these modifications, including the modifications of this Regulation, by 31 December 2002, and the Council shall act on these proposals by 31 December 2004 at the latest.
Amendments 219 and 246
Article 172
In consultation with the European Parliament and the Council and after the other institutions have delivered their opinions, the Commission shall adopt rules for implementing this Financial Regulation.
In agreement with the European Parliament and the Council and after the other institutions have delivered their opinions, the Commission shall adopt the rules needed to implement all the provisions of this Financial Regulation.
The Commission shall commence the aforementioned consultations at the same time as it presents to the Council its proposals to amend the Financial Regulation.
Amendment 220
Article 173
Every three years, the European Parliament and the Council shall examine this Financial Regulation in the light of a proposal from the Commission.
Every three years, the European Parliament and the Council shall examine this Financial Regulation in the light of a proposal from the Commission.
Any financial regulations amending this Financial Regulation shall be adopted by the Council after recourse to the conciliation procedure, if the European Parliament so requests.
Any financial regulations amending this Financial Regulation and any other Council acts of general application which have appreciable financial implications, and of which the adoption is not required by virtue of acts already in existence, shall be subject to the conciliation procedure, if the European Parliament or the Council so requests. The procedure shall be initiated where the Council intends to depart from the opinion adopted by the European Parliament.
The conciliation shall take place in a "conciliation committee" consisting of the Council and representatives of the European Parliament. The Commission shall participate in the work of the conciliation committee.
The conciliation shall take place in a "conciliation committee" consisting of the Council and representatives of the European Parliament. The Commission shall participate in the work of the conciliation committee and shall take all the necessary initiatives with a view to reconciling the positions of the European Parliament and the Council. The President of the Council, in agreement with the President of the European Parliament, shall convene meetings of the Conciliation Committee. In fulfilling this task, the conciliation committee shall address the joint guideline of the Council on the basis of the amendments proposed by the European Parliament .
The aim of the conciliation procedure shall be to seek agreement between the European Parliament and the Council. The procedure should normally take place over a period not exceeding three months, unless the instrument in question must be adopted by a specific date or if the matter is urgent, in which case the Council may set an appropriate time limit.
The aim of the conciliation procedure shall be to reach agreement between the European Parliament and the Council on a joint text. . The procedure should normally take place over a period not exceeding three months, unless the instrument in question must be adopted by a specific date or if the matter is urgent, in which case the Council, in agreement with the European Parliament, may set an appropriate time limit.
Appropriate contacts may be established with a view to achieving a better understanding of the respective positions and thus to bringing the legislative procedure to a conclusion as quickly as possible.
When the positions of the two institutions are sufficiently close , the European Parliament may give a new opinion, after which the Council shall take definitive action.
When the conciliation committee has produced a joint text, the European Parliament may give a new opinion in order to approve that text, and the Council shall adopt the act in accordance with the joint text. Where the committee fails to produce a joint text within the set time limit, or if either of the two institutions fails to approve the proposed act, it shall be deemed not to have been adopted .
Amendment 221
Article 174
The financial rules of Community bodies having legal personality and receiving grants from the general budget must be modelled on this Financial Regulation . They may depart from them when the specific requirements of their individual operation so dictate.
The financial rules of Community bodies having legal personality and receiving grants from the general budget must be in accordance with framework legislation drawn up by the Commission in consultation with the European Parliament and the Council and after the Court of Auditors has given its opinion . They may depart from them only if the specific requirements of their individual operation so dictate.
Amendment 222
Article 175, paragraph 1
The Financial Regulation of 21 December 1977 is repealed.
The Financial Regulation of 21 December 1977 and any legislative provision which is contrary to this Financial Regulation are repealed.
Amendment 224
Annex a (new)
Annex a
List of bodies to which the principle of unity of the budget of the European Union laid down in Article 3(2)(cb) of the Financial Regulation applies:
   - Translation Centre for the Bodies of the European Union
   - Community Plant Variety Office
   - European Centre for the Development of Vocational Training (CEDEFOP)
   - European Foundation for the Improvement of Living and Working Conditions
   - European Agency for Safety and Health at Work
   - European Environment Agency
   - Office for Harmonisation in the Internal Market
   - European Agency for the Evaluation of Medicinal Products
   - European Monitoring Centre on Racism and Xenophobia
   - European Monitoring Centre for Drugs and Drug Addiction
   - European Training Foundation
   - OLAF
   - Europol
   - Eurojust
   - European Police College
   - European Agency for Reconstruction
   - European Maritime Safety Agency
   - European Aviation Safety Agency
   - European Food Safety Agency

(1) The matter was then referred back to committee pursuant to Rule 69(2).
(2) OJ C 96 E, 27.3.2001, p. 1.

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