Fruh, I.

Archive of European Integration

q 4 a, 6(!.European CommunitiesEUROPEAN PARLIAMENTWotkirrg Documents1978 - 197912 Deccmber 1978 rrccuMENT so7l78Reportdrawn up on bchdf of the Committee on Budgetson the budgetary and financial aspects of the propmal from the Commission ofthe European Communities to the Council (Doc. 3E3/78) for a regulationamending Regulation (EEC) No 72917O concerning the amount allotted to theEAGGF, Guidance SectionRapporteur: trtt t. fnijHInglirh EditionPE 56.154/fin.,By letter of 11 October 1978 the Prealdent of the Courrcil of tlre EuropeanCqurrunltles requc8tad the Europ.an Parltamcnt Eo dellver rn opinlon on th€ pro-poral frqn thc C@nl..lon of tha European Coqrunitles to the Councl.l for aregulatlm ancndlng Rcgulatlur (EEC) No. 729/70 correrntng tlre anount allottedto the EA(NIP, Guldance Setlon.ilhe Preli{stt of th€ European ParLiament referred thla proposal to theCqmittse or Bu@ets, for the budgetary and financial aspecta, and the Crnitteeon Agrleulture for the agrlcultural aspecta.On 29 Norrember 1978 the Corunittee on Budgets appointed !{r FrUh rapporteur.rt congidered thie propoaal at its meeting of 5 Deceqiber r9zg.At the aao€ meeting the cormittee unanimouely adopted the motion for aresolution.Present: Dlr Iange, chairman; tt{r Bang€mann and t'tr Cointat, vice-chairmen;!,lr FrUh, rappoiteur; Lord Bes&orough, Lord Bruce of Donington, l,lre Dahlerup,ljlr Inchauap6, l,lr Nielsen, l,tr Rlpamonti, !,lr Ryan, !4r Schrelber, t{t Shaw andl{r Spinelli.-3- PE 56. LSA/fLn.CONTENTSA.B.MOTION FOR A RESOLUTIONE:XPIAI{A TORY STA TEITIET-{TPaqe57-4- PE 56. L54/filn.AIh€ Cmoltte€ on Budgeta hereby subnits to the European Parliament thefollonlng notlon for a recolutiql, together rith explanatory staternent:MCITION TOR A RESOI,UTIONembodylng the oplnion of the European Parllancnt on the budgetary and tflnarrclal aspets of the propoaal frcm the Cilunlasion of Ehe EuroPeanCqnmunitieg to the Councll for a regulation amending negulatlon (EDC)No. 729/70 concerning the amount allottedto the EAGGF, Guldance section@,- having regard to the proposal frmr the Ccnunlesion of the EuloPean cmrrunitiesto the courrciI1,- having been coneulted by the Council (De. 383/78\ ,, having regard to the report of the Carmittee on Budgete (De. 5O7/7A1,I. Confirma its oppoaition to a ceillng being placed by regulation on theapproprlatlont of the EAGGF, Guidatrce Setlqt;2. Notel thc CmnniaaLon's propoaal to fix by budgetary Preedure theappropriationg alleated to th€ EAGGF, Guidance Setion;3. Considers that a five-year financing plan for expenditure under theEAGGF, Guidance Section, ehould be adjueted during the annual budgetarypreedure for the first financial year of each five-year Period;4. Fee1s that the Cqunission's estimates for the first five-year periodare too etatic and should be reviewed by the budgetary authority;5. Considers that the disadvantages of the ceiling on the EAGGF, GuidanceSection, can no longer be veiled by a legal fiction;6. RequeBts the Commission, therefore, to irrcorporate the follovringamendmente in its proposal, pursuant to Article L49, second paragra;rh,of the EEc Treatyt7. Reaervea the right to initiate the conciliation procedure should theCouncil intend to dePart from this opinion1 o, No. c 244, 14.10. tg78, p. 4-5- PE 56. L54/fin.I TXI PROK)St.U BY I HE ('Olllllssl()t\ (,1'THE EUROPEAN COMMTINI'fl EST\\lLNltbl) I b\ IRegulation amendlng Regulationthe amount allotad to thG(EEC) No. 729/7c concerningEA(NIF, Guidance SectionPreamble and recitala unchangedArticle IArticle 6 (5) of Regulation (EEc)No. 729/70 is amended to read asfollcrre :tEor the yeax L972 the aPPropriationsfor the Guidance Section of the Bundshall anount to 285 million unita ofaccount. From I ilanuarY 1973 to 31December 1979 theee aPPropriationsshall amount to 325 rnillion unita ofaccount per year.From I \Tanuary l98o aids attributableto the Guidance Section of the Fundare evaluated at an average of 84Omilllon European rrnits of account.The appropriation to be entercd Inthe budget shalI be flxed annuallyby budgetary Procedure ln functl onof the aid to be financed in theframework of common meaaures andspccial measures for that Year.However, fox each five-Year ;reriod,the total aid charged to the GuldanceSection of the Fund maY not exceed42OO million EuroPean units ofaccount. ftrie amount may be increasedby the Council, acting according tothe procedure laid down in the thirdsubparagraph of Article 43 (21 of theTreaty, only for measures Providedfor in paragraph 2.'Article IArticle 5 (5) of Regulation (EEc)No. 729/70 ie amended to read agfoLlorrg:unchangedArticle 2 unchangedI For complet,e text see oJ No. c 244' 14. IO- L978, P. 41al-6 PE 56.L54/fin.BEXPIAIBTOW STATEIIENT1. For aeveral years nolu Parliament has been calling for the removal ofthe ceiling on the EAGGF, Guidance Section.Ttris is mainly for political reasons: the ceiling clearly impedes thedevelopment of a genuine Community Sn1icy on agricultural Etructurea.parliament has repeatedly criticized the unaccePtable lad< of balancebetfleen spending - and hence the degree of Comunity responsibility - underthe Guarantee and Guidance Sections of the EAGGB.2. Ho\,eever, there are also budgetary considerations behind Parliament'sreguest for the removal of the ceiling. Parliament coneidere that, for thepreaent, ite main reaponsibilities lie in the budgetary aphere and that thesetting of even a multiagual ceiling, by means of a regulation adoPtedby the Council after aimply consulting Parliament, Prevents it fronexercising these reePonsibilitieE.3. From thiB point of view, the situation of the EAGGF, Guidance Section,had become extremely arnbiguous in recent yeara. Eo conceal the disadvantagesof an annual allocation fixed by regulation, which only by sheer chance canever match actual requirements, the Colf,nunity waa obliged to introduce areaerve fund, which waa Eoon sholvn to be a fiction.4. Nor,, thd, thiE fiction is becoming untenable, the cormieeion is proposinga solution whiclt is intended to be longer lasting.fn eome waye the solution iB extremely attractive. It is baaed on five-year estimates of exlrnditure under the Guidance Section, plus a emallcontingency reserver in thiE resPect the ProPosal is realistic.5. On the other hand, the Comnigsion's estimates'are Etatic and are nomore than a projection of current or propoEed measures. fhey make noallorvance for a rapid expansion in agricultural structural polic1', althoughparliament hae made suctr extrnneion one of the targets of its budgetary policy.PE 56.L14/fin.6. Above all, the proposal is unrealistic in that it ignores the fact thatthe Community has begun, and will continue, moves to coordinate budgetary andregulation-making functions, based on resPect for the resPonsibilities ofeach institution.7. In the case of the Regional Fund, Parliament has clearly stated it wouldaccept a multiannual reviervr only as a transitional measure and only with itsexpress approval during negotiations between institutions whose primaryconcern was Progress in the Community.g. The Corunission could have folloroed this example when it came to deal withthe problem of the EAGGF, Guidance Section. The desirability of five-yearestinates with a ceiling subject to review was clearly a matter for budgetarydecision falling within the terms of reference of the budgetary authority.Analvsis of the Commission's estimatesg. Itre Commission.E five-year estimates are based on the same technique andprinciples as the triennial estimates and the letter of amendnent relating tothe preliminary draft budget for the 1979 financial year. In its reporton the draft budget Parliament has already pointed out that these estimatesare static and therefore unsatisfactory. It has therefore proposed that theyshould be amended.IO. It is true that the Comnission provides for a substantial rate of increaEefrom IggO onwards and also proposes an annual reserve of 35 m EUA. However,this rate is not commensurate wittr the measures needed to ensure that theEAGGF, Guidance Section haE a significant effect on the redistribution ofregources.ll. In particular, the funds needed for individual projects (former individualprojects and common measures introduced to replace them) are between two andthree times higher than the current estimates.L2. Finally, the Commission's calculations take no account of the probableeffects of the enlargement of the Cornnunity on the operation and expenditureof ttre EAGGF, Guidance Section, during the first five-year period.13. 11tre budgetary authority will therefore require additional information inorder to assess, and then establish during the budgetary Procedure for thelgBO financial year, the amount of the provisional allotment and the averageannual all0tment.-8- PE 56.L54/fLn.

Report drawn up on behalf of the Committee on Budgets

on the budgetary and financial aspects of the proposal from the Commission of the European Communities to the Council (Doc. 383/78) for a regulation amending Regulation (EEC) No 729/70 concerning the amount allotted to the EAGGF, Guidance Section. EP Working Documents, document 507/78, 12 December 1978

Name not available

Report drawn up on behalf of the Committee on Budgets
on the budgetary and financial aspects of the proposal from the Commission of the European Communities to the Council (Doc. 383/78) for a regulation amending Regulation (EEC) No 729/70 concerning the amount allotted to the EAGGF, Guidance Section. EP Working Documents, document 507/78, 12 December 1978

http://aei.pitt.edu/95319/1/1978%2D79.78.507.pdf

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