Fördraget om ändring av vissa finansiella bestämmelser (1975)

31 . 12 . 77 Official Journal of the European Communities No L 359/ 1

TREATY

AMENDING CERTAIN FINANCIAL PROVISIONS OF THE TREATIES

ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITIES

AND OF THE TREATY ESTABLISHING

A SINGLE COUNCIL AND A SINGLE COMMISSION

OF THE EUROPEAN COMMUNITIES

No L 359 /2 Official Journal of the European Communities 31 . 12.77

HIS MAJESTY THE KING OF THE BELGIANS ,

HER MAJESTY THE QUEEN OF DENMARK,

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,

THE PRESIDENT OF THE FRENCH REPUBLIC,

THE PRESIDENT OF IRELAND ,

THE PRESIDENT OF THE ITALIAN REPUBLIC,

HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,

HER MAJESTY THE QUEEN OF THE NETHERLANDS ,

HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

HAVING regard to Article 96 of the Treaty establishing the European Coal and Steel Community,

HAVING regard to Article 236 of the Treaty establishing the European Economic Community,

HAVING regard to Article 204 of the Treaty establishing the European Atomic Energy Community,

WHEREAS^, as of 1 January 1975 , the budget of the Communities is financed entirely from the Communities' own resources;

WHEREAS the complete replacement of financial contributions of Member States by the Communities' own resources requires a strengthening of the budgetary powers of the Assembly ;

WHEREAS, for the same reasons, the implementation of the budget should be more closely supervised,

HAVE DECIDED to amend certain financial provisions of the Treaties establishing the European Communities and of the Treaty establishing a single Council and a single Commission of the European Communities, and to this end have designated as their Plenipotentiaries:

His Majesty the King of the Belgians:

R. VAN ELSLANDE, Minister for Foreign Affairs and for Cooperation with the Developing Countries ;

Her Majesty the Queen of Denmark :

Niels ERSB0LL, Ambassador Extraordinary and Plenipotentiary, Permanent Representative to the European Communities ;

31 . 12 . 77 Official Journal of the European Communities No L 359/3

The President of the Federal Republic of Germany :

Hans-Dietrich GENSCHER, Federal Minister for Foreign Affairs ;

The President of the French Republic :

Jean-Marie SOUTOU, Ambassador of France, Permanent Representative to the European Communities ;

The President of Ireland :

Garret FITZGERALD , Minister for Foreign Affairs ;

The President of the Italian Republic :

Mariano RUMOR, '

Minister for Foreign Affairs, President-in-Office of the Council of the European Communities ;

His Royal Highness the Grand Duke of Luxembourg :

Jean DONDELINGER, Ambassador Extraordinary and Plenipotentiary, Permanent Representative to the European Communities ;

Her Majesty the Queen of the Netherlands :

L. J. BRINKHORST, State Secretary for Foreign Affairs ;

Her Majesty the Queen of the United Kingdom of Great Britain and Northern Ireland :

Sir Michael PALLISER, KCMG, Ambassador Extraordinary and Plenipotentiary, Permanent Representative to the European Communities ;

WHO, having exchanged their Full Powers, found in good and due form, HAVE AGREED AS FOLLOWS :

No L 359/4 Official Journal of the European Communities 31 . 12. 77

CHAPTER I

PROVISIONS AMENDING THE TREATY ESTABLISHING THE EUROPEAN COAL AND STEEL COMMUNITY

Article 1 4. The draft administrative budget shall be placed before the Assembly not later than 5 October of the year preceding that in which the After Article 7 of the Treaty establishing the budget is to be implemented. European Coal and Steel Community the following subparagraph is added : The Assembly shall have the right to amend the draft administrative budget, acting by a majority ' The audit shall be carried out by a Court of of its members and to propose to the Council , Auditors acting within the limits of the powers acting by an absolute majority of the votes cast, conferred upon it by this Treaty.' modifications to the draft budget relating to expenditure necessarily resulting from this Treaty or from acts adopted in accordance therewith. Article 2 If, within 45 days of the draft administrative budget being placed before it, the Assembly has Article 78 of the Treaty establishing the European given its approval, the administrative budget Coal and Steel Community is replaced by the shall stand as finally adopted . If within this following : period the Assembly has not amended the draft administrative budget nor proposed any 'Article 78 modifications thereto, the administrative budget shall be deemed to be finally adopted. 1 . The financial year shall run from 1 January to 31 December. If within this period the Assembly has adopted amendments or proposed modifications, the draft The administrative expenditure of the administrative budget together with the Community shall comprise the expenditure of the amendments or proposed modifications shall be High Authority, including that relating to the forwarded to the Council . functioning of the Consultative Committee, and that of the Assembly, the Council, and of the Court of Justice. 5. After discussing the draft administrative budget with the High Authority and, where 2. Each institution of the Community shall, appropriate, with the other institutions concerned, before 1 July, draw up estimates of its the Council shall act under the following administrative expenditure. The High Authority conditions : shall consolidate these estimates in a preliminary draft administrative budget. It shall attach thereto ( a) the Council may, acting by a qualified an opinion which may contain different estimates. majority, modify any of the amendments adopted by the Assembly ; The preliminary draft budget shall contain an estimate of revenue and an estimate of (b) with regard to the proposed modifications : expenditure. — where a modification proposed by the 3 . The High Authority shall place the Assembly does not have the effect of preliminary draft administrative budget before the increasing the total amount of the Council not later than 1 September of the year expenditure of an institution, owing preceding that in which the budget is to be in particular to the fact that the increase implemented . in expenditure which it would involve would be expressly compensated by one The Council shall consult the High Authority or more proposed modifications and, where appropriate, the other institutions correspondingly reducing expenditure, the concerned whenever it intends to depart from the Council may, acting by a qualified preliminary draft budget. majority, reject the proposed modifica­ The Council shall, acting by a qualified majority, tion . In the absence of a decision to reject establish the draft administrative budget and it, the proposed modification shall stand forward it to the Assembly. as accepted ,

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— where a modification proposed by the reject the draft administrative budget and ask for Assembly has the effect of increasing the a new draft to be submitted to it. total amount of the expenditure of an 9 . A maximum rate of increase in relation to institution, the Council may, acting by a the expenditure of the same type to be incurred qualified majority, accept this proposed during the current year shall be fixed annually for modification . In the absence of a decision the total expenditure other than that necessarily to accept it, the proposed modification resulting from this Treaty or from acts adopted in shall stand as rejected , accordance therewith . — where, in pursuance of one of the two The High Authority shall, after consulting the preceding subparagraphs, the Council has Economic Policy Committee, declare what this rejected a proposed modification, it may, maximum is as it results from : acting by a qualified majority, either — the trend , in terms of volume, of the gross retain the amount shown in the draft national product within the Community, administrative budget or fix another amount . — the average variation in the budgets of the Member States , and The draft administrative budget shall be modified on the basis of the proposed modifications — the trend of the cost of living during the accepted by the Council . preceding financial year.

If, within 15 days of the draft administrative The maximum rate shall be communicated, budget being placed before it, the Council has not before 1 May, to all the institutions of the modified any of the amendments adopted by the Community. The latter shall be required to Assembly and if the modifications proposed by conform to this during the budgetary procedure, the latter have been accepted, the administrative subject to the provisions of the fourth and fifth budget shall be deemed to be finally adopted . The subparagraphs of this paragraph . Council shall inform the Assembly that it has not modified any of the amendments and that the If, in respect of expenditure other than that proposed modifications have been accepted. necessarily resulting from this Treaty or from acts adopted in accordance therewith, the actual rate If within this period the Council has modified one of increase in the draft administrative budget or more of the amendments adopted by the established by the Council is over half the Assembly or if the modifications proposed by the maximum rate, the Assembly may, exercising its latter have been rejected or modified, the right of amendment, further increase the total modified draft administrative budget shall again amount of that expenditure to a limit not be forwarded to the Assembly. The Council shall exceeding half the maximum rate. inform the Assembly of the results of its deliberations . Where the Assembly, the Council or the High Authority considers that the activities of the Communities require that the rate determined 6. "Within 15 days of the draft administrative according to the procedure laid down in this budget being placed before it, the Assembly, paragraph should be exceeded, another rate may which shall have been notified of the action taken be fixed by agreement between the Council, on its proposed modification, may, acting by a acting by a qualified majority, and the Assembly, majority of its members and three-fifths of the acting by a majority of its members and votes cast, amend or reject the modifications to its three-fifths of the votes cast. amendments made by the Council and shall adopt the administrative budget accordingly. If within 10. Each institution shall exercise the powers this period the Assembly has not acted, the conferred upon it by this Article, with due regard administrative budget shall be deemed to be for the provisions of this Treaty and for acts finally adopted . adopted in accordance therewith, in particular those relating to the Communities' own resources 7. When the procedure provided for in this and to the balance between revenue and Article has been completed, the President of the expenditure . Assembly shall declare that the administrative budget has been finally adopted. 11 . Final adoption of the administrative budget shall have the effect of authorizing and requiring 8 . However, the Assembly, acting by a the High Authority to collect the corresponding majority of its members and two-thirds of the revenue in accordance with the provisions of Article 49 .' votes cast, may, if there are important reasons,

No L 359/6 Official Journal of the European Communities 31 . 12. 77

Article3¶

In Article 78a of the Treaty establishing the European In Article 78c of the Treaty establishing the European Coal and Steel Community, '78f' is replaced by '78h\ Coal and Steel Community, '78f' is replaced by '78h'.

Article6¶

Article 4 Article 78d of the Treaty establishing the European Coal and Steel Community is replaced by the Article 78b of the Treaty establishing the European following : Coal and Steel Community is replaced by the following : 'Article 78d

The High Authority shall submit annually to the Council and to the Assembly the accounts of the 'Article 78b preceding financial year relating to the implementation of the administrative budget. The 1 . If, at the beginning of a financial year, the High Authority shall also forward to them a financial statement of the assets and liabilities of administrative budget has not yet been voted, a sum equivalent to not more than one-twelfth of the Community in the field covered by that the budget appropriations for the preceding budget.' financial year may be spent each month in respect of any chapter or other subdivision of the Article 7 administrative budget in accordance with the provisions of the Regulations made pursuant to Article 78e of the Treaty establishing the European Article 78h ; this arrangement shall not, however, Coal and Steel Community is replaced by the have the effect of placing at the disposal of the following : High Authority appropriations in excess of one twelfth of those provided for in the draft 'Article 78e administrative budget in course of preparation. 1 . A Court of Auditors is hereby established. The High Autority is authorized and required to 2. The Court of Auditors shall consist of nine impose the levies up to the amount of the members . appropriations for the preceding financial year, but shall not thereby exceed the amount which 3 . The members of the Court of Auditors shall would have resulted from the adoption of the be chosen from among persons who belong or draft administrative budget. have belonged in their respective countries to external audit bodies or who are especially qualified for this office. Their independence must 2. The Council may, acting by a qualified be beyond doubt. majority, provided that the other conditions laid down in paragraph 1 are observed, authorize 4. The members of the Court of Auditors shall expenditure in excess of one-twelfth . The be appointed for a term of six years by the authorization and requirement to impose the Council, acting unanimously after consulting the levies may be adjusted accordingly. Assembly. However, when the first appointments are made, If the decision relates to expenditure which does four members of the Court of Auditors , chosen not necessarily result from this Treaty or from by lot, shall be appointed for a term of office of acts adopted in accordance therewith, the Council four years only. shall forward it immediately to the Assembly ; The members of the Court of Auditors shall be within 30 days the Assembly, acting by a majority of its members and three-fifths of the votes cast, eligible for reappointment. may adopt a different decision on the expenditure They shall elect the President of the Court of in excess of the one-twelfth referred to in Auditors from among their number for a term of paragraph 1 . This part of the decision of the three years . The President may be re-elected. Council shall be suspended until the Assembly has taken its decision. If within the said period the 5 . The members of the Court of Auditors shall, Assembly has not taken a decision which differs in the general interest of the Community, be from the decision of the Council , the latter shall completely independent in the performance of be deemed to be finally adopted .' their duties .

31 . 12 . 77 Official Journal of the European Communities No L 359/7

In the performance of these duties, they shall administrative revenue of the Community, neither seek nor take instructions from any including the revenue from the tax for the benefit government or from any other body. They shall of the Community levied on the salaries, wages refrain from any action incompatible with their and emoluments of officials and other servants of duties . the latter. It shall also examine the accounts of all revenue and expenditure of all bodies set up by 6. The members of the Court of Auditors may the Community in so far as the relevant not, during their term of office, engage in any constituent instrument does not preclude such other occupation, whether gainful or not. When examination . entering upon their duties they shall give a solemn undertaking that, both during and after their term 2 . The Court of Auditors shall examine of office, they will respect the obligations arising whether all revenue referred to in paragraph 1 has therefrom and in particular their duty to behave been received and all expenditure referred to in with integrity and discretion as regards the that paragraph has been incurred in a lawful and acceptance, after they have ceased to hold office, regular manner and whether the financial of certain appointments or benefits. management has been sound . 7. Apart from normal replacement, or death, The audit of revenue shall be carried out on the the duties of a member of the Court of Auditors basis both of the amounts established as due and shall end when he resigns, or is compulsorily the amounts actually paid to the Community. retired by a ruling of the Court of Justice pursuant to paragraph 8 . The audit of expenditure shall be carried out on the basis both of commitments undertaken and The vacancy thus caused shall be filled for the remainder of the member's term of office . payments made.

Save in the case of compulsory retirement, These audits may be carried out before the members of the Court of Auditors shall remain in closure of accounts for the financial year in office until they have been replaced . question .

8 . A member of the Court of Auditors may be 3 . The audit shall be based on records and, if deprived of his office or of his right to a pension necessary, performed on the spot in the institutions or other benefits in its stead only if the Court of of the Community and in the Member States . In Justice, at the request of the Court of Auditors, the Member States the audit shall be carried out finds that he no longer fulfils the requisite in liaison with the national audit bodies or, if conditions or meets the obligations arising from these do not have the necessary powers, with the his office . competent national departments . These bodies or departments shall inform the Court of Auditors 9 . The Council, acting by a qualified majority, whether they intend to take part in the audit. shall determine the conditions of employment of the President and the members of the Court of The institutions of the Community and the Auditors and in particular their salaries, national audit bodies or, if these do not have the allowances and pensions . It shall also, by the necessary powers, the competent national same majority, determine any payment to be made instead of remuneration . departments, shall forward to the Court of Auditors, at its request, any document or 10. The provisions of the Protocol on the information necessary to carry out its task. privileges and immunities of the European Communities applicable to the Judges of the 4. The Court of Auditors shall draw up an Court of Justice shall also apply to the members annual report after the close of each financial of the Court of Auditors .' year. It shall be forwarded to the institutions of the Community and shall be published, together with the replies of these institutions to the Article 8 observations of the Court of Auditors , in the Official Journal of the European Communities . Article 78f of the Treaty establishing the European Coal and Steel Community is replaced by the The Court of Auditors may also, at any time, following : submit observations on specific questions and deliver opinions at the request of one of the 'Article 78f intitutions of the Community .

1 . The Court of Auditors shall examine the It shall adopt its annual reports or opinions by a account of all administrative expenditure and majority of its members .

No L 359/8 Official Journal of the European Communities 31 . 12. 77

It shall assist the Assembly and the Council in and the Assembly in turn shall examine the exercising their powers of control over the accounts and the financial statement referred to in implemention of the budget. Article 78 d, and the annual report by the Court of Auditors together with the replies of the 5 . The Court of Auditors shall also draw up institutions under audit to the observations of the a separate annual report stating whether the Court of Auditors .' accounting other than that for the expenditure and revenue referred to in paragraph 1 and the Article 10 financial management by the High Authority relating thereto have been effected in a regular manner. It shall draw up this report within six The following provisions shall be added to the months of the end of the financial year to which Treaty establishing the European Coal and Steel the accounts refer and shall submit it to the High Community : Authority and the Council. The High Authority shall forward it to the Assembly.' 'Article 78h

The Council, acting unanimously on a proposal Article 9 from the High Authority and after consulting the Assembly and obtaining the opinion of the Court of Auditors, shall : The following provisions shall be added to the Treaty establishing the European Coal and Steel (a) make Financial Regulations specifying in Community : particular the procedure to be adopted for establishing and implementing the administra­ 'Article 78g tive budget and for presenting and auditing accounts ; The Assembly, acting on a recommendation from the Council which shall act by a qualified ( b ) lay down rules concerning the responsibility majority, shall give a discharge to the High of authorizing officers and accounting officers Authority in respect of the implementation of the and concerning appropriate arrangements for administrative budget. To this end, the Council inspection .'

CHAPTER II

PROVISIONS AMENDING THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY

Article1¶

1 . The financial year shall run from 1 January to 31 December. After Article 4 of the Treaty establishing the European Economic Community the following 2. Each institution of the Community shall, paragraph is added : before 1 July, draw up estimates of its expenditure The Commission shall consolidate '3 . The audit shall be carried out by a Court of these estimates in a preliminary draft budget. It Auditors acting within the limits of the powers shall attach thereto an opinion which may contain conferred upon it by this Treaty.' different estimates .

The preliminary draft budget shall contain an estimate of revenue and an estimate of expenditure. Article 12 3 . The Commission shall place the preliminary draft budget before the Council not later than 1 Article 203 of the Treaty establishing the European September of the year preceding that in which the Economic Community is replaced by the following : budget is to be implemented.

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The Council shall consult the Commission and, — where a modification proposed by the where appropriate, the other institutions Assembly has the effect of increasing the concerned whenever it intends to depart from the total amount of the expenditure of an preliminary draft budget. institution, the Council may, acting by a qualified majority, accept this proposed modification . In the absence of a decision The Council acting by a qualified majority, establish the draft budget and forward it to the to accept it, the proposed modification Assembly. shall stand as rejected,

— where, in pursuance of one of the two preceding subparagraphs, the Council 4. The draft budget shall be placed before the has rejected a proposed modification, it Assembly not later than 5 October of the year may, acting by a qualified majority, either preceding that in which the budget is to be retain the amount shown in the draft implemented . budget or fix another amount.

The Assembly shall have the right to amend the The draft budget shall be modified on the basis of draft budget, acting by a majority of its members, the proposed modifications accepted by the and to propose to the Council, acting by an Council. absolute majority of the votes cast, modifications to the draft budget relating to expenditure necessarily resulting from this Treaty or from acts If, within 15 days of the draft budget being placed adopted in accordance therewith. before it, the Council has not modified any of the amendments adopted by the Assembly and if the If, within 45 days of the draft budget being placed modifications proposed by the latter have been before it, the Assembly has given its approval, the accepted, the budget shall be deemed to be finally budget shall stand as finally adopted. If within adopted. The Council shall inform the Assembly this period the Assembly has not amended the that it has not modified any of the amendments draft budget nor proposed any modifications and that the proposed modifications have been thereto, the budget shall be deemed to be finally accepted. adopted. If within this period the Council has modified one If within this period the Assembly has adopted or more of the amendments adopted by the amendments or proposed modifications, the draft Assembly or if the modifications proposed by the budget together with the amendments or latter have been rejected or modified, the proposed modifications shall be forwarded to the modified draft budget shall again be forwarded to Council . the Assembly. The Council shall inform the Assembly of the results of its deliberations.

5 . After discussing the draft budget with the Commission and, where appropriate, with the 6. Within 15 days of the draft budget being other institutions concerned, the Council shall act placed before it, the Assembly, which shall have under the following conditions : been notified of the action taken on its proposed modifications, may, acting by a majority of its (a) the Council may, acting by a qualified members and three-fifths of the votes cast, amend majority, modify any of the amendments or reject the modifications to its amendments adopted by the Assembly ; made by the Council and shall adopt the budget accordingly. If within this period the Assembly ( b) with regard to the proposed modifications : has not acted, the budget shall be deemed to be — where a modification proposed by the finally adopted. Assembly does not have the effect of increasing the total amount of the 7. When the procedure provided for in this expenditure of an institution, owing in Article has been completed, the President of the particular to the fact that the increase in Assembly shall declare that the budget has been expenditure which it would involve would finally adopted. be expressly compensated by one or more proposed modifications correspondingly reducing expenditure, the Council may, 8 . However, the Assembly, acting by a acting by a qualified majority, reject the majority of its members and two-thirds of the proposed modification . In the absence of votes cast, may if there are important reasons a decision to reject it, the proposed reject the draft budget and ask for a new draft to modification shall stand as accepted, be submitted to it.

No L 359/ 10 Official Journal of the European Communities 31 . 12 . 77

9 . A maximum rate of increase in relation to 'Article 204 the expenditure of the same type to be incurred If at the beginning of a financial year, the budget during the current year shall be fixed annually for has not yet been voted, a sum equivalent to not the total expenditure other than that necessarily more than one-twelfth of the budget resulting from this Treaty or from acts adopted in appropriations for the preceding financial year accordance therewith . may be spent each month in respect of any chapter or other subdivision of the budget in The Commission shall, after consulting the accordance with the provisions of the Regulations Economic Policy Committee , declare what this made pursuant to Article 209 ; this arrangement maximum rate is as it results from : shall not, however, have the effect of placing at — the trend, in terms of volume, of the gross the disposal of the Commission appropriations in national product within the Community, excess of one-twelfth of those provided for in the draft budget in course of preparation. — the average variation in the budgets of the Member States , The Council may, acting by a qualified majority, provided that the other conditions laid down in and the first subparagraph are observed, authorize — the trend of the cost of living during the expenditure in excess of one-twelfth. preceding financial year. If the decision relates to expenditure which does not necessarily result from this Treaty or from The maximum rate shall be communicated, before 1 May, to all the institutions of the acts adopted in accordance therewith, the Council shall forward it immediately to the Assembly ; Community. The latter shall be required to within 30 days the Assembly, acting by a majority conform to this during the budgetary procedure, of its members and three-fifths of the votes cast, subject to the provisions of the fourth and fifth may adopt a different decision on the expenditure subparagraphs of this paragraph. in excess of the one-twelfth referred to in the first subparagraph . This part of the decision of the If, in respect of expenditure other than that Council shall be suspended until the Assembly necessarily resulting from this Treaty or from acts has taken its decision . If within the period the adopted in accordance therewith, the actual rate Assembly has not taken a decision which differs of increase in the draft budget established by the from the decision of the Council, the latter shall Council is over half the maximum rate, the be deemed to be finally adopted . Assembly may, exercising its right of amendment, further increase the total amount of that The decisions referred to in the second and third expenditure to a limit not exceeding half the subparagraphs shall lay down the necessary maximum rate . measures relating to resources to ensure application of this Article.' Where the Assembly, the Council or the Commission consider that the activities of the Communities require that the rate determined Article 14 according to the procedure laid down in this paragraph should be exceeded, another rate may The following provisions shall be added to the be fixed by agreement between the Council, Treaty establishing the European Economic acting by a qualified majority, and the Assembly, Community : acting by a majority of its members and three-fifths of the votes cast . 'Article 205a 10. Each institution shall exercise the powers The Commission shall submit annually to the conferred upon it by this Article, with due regard Council and to the Assembly the accounts of the for the provisions of the Treaty and for acts preceding financial year relating to the adopted in accordance therewith, in particular implementation of the budget. The Commission those relating to the Communities' own resources shall also foryvard to them a financial statement and to the balance between revenue and of the assets and liabilities of the Community.' expenditure .'

Article 15 Article 13 Article 206 of the Treaty establishing the European Article 204 of the Treaty establishing the European Economic Community shall be replaced by the Economic Community is replaced by the following : following:

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'Article 206 or other benefits in its stead only if the Court of Justice, at the request of the Court of Auditors 1 . A Court of Auditors is hereby established. finds that he no longer fulfils the requisite 2 . The Court of Auditors shall consist of nine conditions or meets the obligations arising from members . his office.

3 . The members of the Court of Auditors shall 9. The Council, acting by a qualified majority, be chosen from among persons who belong or shall determine the conditions of employment of have belonged in their respective countries to the President and the members of the Court of external audit bodies or who are especially Auditors and in particular their salaries, qualified for this office. Their independence must allowances and pensions . It shall also, by the be beyond doubt. same majority, determine any payment to be made instead of remuneration . 4. The members of the Court of Auditors shall be appointed for a term of six years by the 10. The provisions of the Protocol on the Council, acting unanimously after consulting the privileges and immunities of the European Assembly. Communities applicable to the Judges of the Court of Justice shall also apply to the members However, when the first appointments are made, of the Court of Auditors .' four members of the Court of Auditors , chosen by lot, shall be appointed for a term of Article 16 office of four years only. The members of the Court of Auditors shall be The following provisions shall be added to the eligible for reapointment. Treaty establishing the European Economic They shall elect the President of the Court of Community : Auditors from among their number for a term of three years . The President may be re-elected. 'Article 206a

5 . The members of the Court of Auditors shall, 1 . The Court of Auditors shall examine the in the general interest of the Community, be accounts of all revenue and expenditure of the completely independent in the performance of Community. It shall also examine the accounts of their duties . all revenue and expenditure of all bodies set up In the performance of these duties, they shall by the Community in so far as the relevant constituent instrument does not preclude such neither seek nor take instructions from any examination . government or from any other body. They shall refrain from any action incompatible with their 2. The Court of Auditors shall examine duties . whether all revenue has been received and all 6. The members of the Court of Auditors may expenditure incurred in a lawful and regular not, during their term of office, engage in any manner and whether the financial management other occupation, whether gainful or not. When has been sound . entering upon their duties they shall give a solemn The audit of revenue shall be carried out on the undertaking that, both during and after their term basis both of the amounts established as due and of office, they will respect the obligations arising the amounts actually paid to the Community. therefrom and in particular their duty to behave with integrity and discretion as regards the The audit of expenditure shall be carried out on the basis both of commitments undertaken and acceptance, after they have ceased to hold office, of certain appointments or benefits . payments made. These audits may be carried out before the 7. Apart from normal replacement, or death, closure of accounts for the financial year in the duties of a member of the Court of Auditors question . shall end when he resigns, or is compulsorily retired by a ruling of the Court of Justice pur­ 3 . The audit shall be based on records and, if suant to paragraph 8 . necessary, performed on the spot in the The vacancy thus caused shall be filled for the institutions of the Community and in the Member remainder of the member's term of office. States . In the Member States the audit shall be carried out in liaison with the national audit Save in the case of compulsory retirement, bodies or, if these do not have the necessary members of the Court of Auditors shall remain in powers, with the competent national departments. office until they have been replaced. These bodies or departments shall inform the 8 . A member of the Court of Auditors may be Court of Auditors whether they intend to take deprived of his office or of his right to a pension part in the audit.

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The institutions of the Community and the majority, shall give a discharge to the national audit bodies or, if these do not have the Commission in respect of the implementation of necessary powers, the competent national the budget. To this end, the Council and the departments, shall forward to the Court of Assembly in turn shall examine the accounts and Auditors, at its request, any document or the financial statement referred to in Article 205 information necessary to carry out its task. and the annual report by the Court of Auditors together with the replies of the institutions under 4. The Court of Auditors shall draw up an audit to the observations of the Court of annual report after the close of each financial Auditors .' year. It shall be forwarded to the institutions of the Community and shall be published, together Article 18 with the replies of these institutions to the observations of the Court of Auditors, in the Official Journal of the European Communities. Article 209 of the Treaty establishing the European Community shall be replaced by the following: THe Court of Auditors may also, at any time, submit observations on specific questions and 'Article 209 deliver opinions at the request of one of the institutions of the Community. The Council, acting unanimously on a proposal from the Commission and after consulting the It shall adopt its annual reports or opinions by a Assembly and obtaining the opinion of the Court majority of its members. of Auditors, shall : (a) make Financial Regulations specifying in It shall assist the Assembly and the Council in particular the procedure to be adopted for exercising their powers of control over the establishing and implementing the budget and implementation of the budget.' for presenting and auditing accounts ;

(b) determine the methods and procedure Article 17 whereby the budget revenue provided under the arrangements relating to the Communi­ ties' own resources shall be made available to The following provisions shall be added to the the Commission, and determine the measures Treaty establishing the European Economic to be applied, if need be, to meet cash Community : requirements ; ( c) lay down rules concerning the responsibility 'Article 206b of authorizing officers and accounting officers The Assembly, acting on a recommendation from and concerning appropriate arrangements for the Council which shall act by a qualified inspection .'

CHAPTER III

PROVISIONS AMENDING THE TREATY ESTABLISHING THE EUROPEAN ATOMIC ENERGY COMMUNITY

Article19¶

Article 177 of the Treaty establishing the European After Article 3 of the Treaty establishing the Atomic Energy Community is replaced by the European Atomic Energy Community the following following: paragraph is added : 'Article 177 '3 . The audit shall be carried out by a Court of Auditors acting within the limits of the powers 1 . The financial year shall run from 1 January conferred upon it by this Treaty.' to 31 December.

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Within the meaning of this Article, "budget" shall (b ) with regard to the proposed modifications : include the operating budget and the research and — where a modification proposed by the investment budget. Assembly does not have the effect of 2. Each institution of the Community shall, increasing the total amount of the before 1 July, draw up estimates of its expenditure of an institution, owing in particular to the fact that the increase in expenditure. The Commission shall consolidate these estimates in a preliminary draft budget. It expenditure which it would involve would be expressly compensated by one or more shall attach thereto an opinion which may contain different estimates . proposed modifications correspondingly reducing expenditure, the Council may, The preliminary draft budget shall include an acting by a qualified majority, reject the estimate of revenue and an estimate of proposed modification . In the absence of expenditure. a decision to reject it, the proposed modification shall stand as accepted, 3 . The Commission shall place the preliminary — where a modification proposed by the draft budget before the Council not later than Assembly has the effect of increasing the 1 September of the year preceding that in which total amount of the expenditure on an the budget is to be implemented. institution, the Council may, acting by a The Council shall consult the Commission and, qualified majority, accept this proposed where appropriate, the other institutions modification . In the absence of a decision concerned whenever it intends to depart from the to accept it, the proposed modification preliminary draft budget. shall stand as rejected,

The Council shall, acting by a qualified majority, — where, in pursuance of one of tlie two establish the draft budget and forward it to the preceding subparagraphs, the Council has Assembly. rejected a proposed modification, it may, acting by a qualified majority, either 4. The draft budget shall be placed before the retain the amount shown in the draft Assembly not later than 5 October of the year budget or fix another amount. preceding that in which the budget is to be implemented. The draft budget shall be modified on the basis of the proposed modifications accepted by the The Assembly shall have the right to amend the Council . draft budget acting by a majority of its members, and to propose to the Council, acting by an absolute majority of the votes cast, modifications If, within 15 days of the draft budget being placed to the draft budget relating to expenditure before it, the Council has not modified any of the necessarily resulting from this Treaty or from acts amendments adopted by the Assembly and if the adopted in accordance therewith . modifications proposed by the latter have been accepted, the budget shall be deemed to be finally If, within 45 days of the draft budget being placed adopted. The Council shall inform the Assembly before it, the Assembly has given its approval, the that it has not modified any of the amendements budget shall stand as finally adopted. If within and that the proposed modifications have been this period the Assembly has not amended the accepted. draft budget or proposed any modifications thereto, the budget shall be deemed to be finally If within this period the Council has modified one adopted. or more of the amendements adopted by the If within this period the Assembly has adopted Assembly or if the modifications proposed by the amendments or proposed modifications, the draft latter have been rejected or modified, the budget together with the amendments or modified draft budget shall again be forwarded to proposed modifications shall be forwarded to the the Assembly. The Council shall inform the Council . Assembly of the results of its deliberations .

5 . After discussing the draft budget with the 6. Within 15 days of the draft budget being Commission and, where appropriate, with the placed before it, the Assembly, which shall have other institutions concerned, the Council shall act been notified of the action taken on its proposed under the following conditions : modifications may, acting by a majority of its (a) the Council may, acting by a qualified members and three-fifths of the votes cast, amend majority, modify any of the amendments or reject the modifications to its amendments adopted by the Assembly ; made by the Council and shall adopt the budget

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accordingly. If within this period the Assembly 10. Each institution shall exercise the powers has not acted, the budget shall be deemed to be conferred upon it by this Article, with due regard finally adopted . for the provisions of this Treaty and for acts adopted in accordance therewith, in particular those relating to the Communities' own resources 7. When the procedure provided for in this and to the balance between revenue and Article has been completed, the President of the Assembly shall declare that the budget has been expenditure.' finally adopted.

Article 21 8 . However, the Assembly, acting by a majority of its members and two-thirds of the Article 178 of the Treaty establishing the European votes cast may, if there are important reasons, Atomic Energy Community is replaced by the reject the draft budget and ask for a new draft to be submitted to it. following :

9 . A maximum rate of increase in relation to 'Article 178 the expenditure of the same type to be incurred If, at the beginning of a financial year, the budget during the current year shall be fixed annually for has not yet been voted, a sum equivalent to not the total expenditure other than that necessarily more than one-twelfth of the budget appropri­ resulting from this Treaty or from acts adopted in ations for the preceding financial year may be accordance therewith . spent each month in respect of any chapter or The Commission shall, after consulting the other subdivision of the budget in accordance with Economic Policy Committee, declare what this the provisions of the Regulations made pursuant maximum rate is , as it results from : to Article 183 ; this arrangement shall not, how­ ever, have the effect of placing at the disposal of — the trend, in terms of volume, of the gross the Commission appropriations in excess of one­ national product within the Community, twelfth of those provided for in the draft budget in the course of preparation . — the average variation in the budgets of the Member States, The Council may, acting by a qualified majority, and provided that the other conditions laid down in the first subparagraph are observed, authorize — the trend of the cost of living during the expenditure in excess of one-twelfth. preceding financial year. If the decision relates to expenditure which does The maximum rate shall be communicated, not necessarily result from this Treaty or from before 1 May, to all the institutions of the acts adopted in accordance therewith, the Council Community. The latter shall be required to shall forward it immediately to the Assembly ; conform to this during the budgetary procedure, within 30 days the Assembly, acting by a majority subject to the provisions of the fourth and fifth of its members and three-fifths of the votes cast, subparagraphs of this paragraph. may adopt a different decision on the expenditure If, in respect of expenditure other than that in excess of the one-twelfth referred to in the first necessarily resulting from this Treaty or from acts subparagraph. This part of the decision of the adopted in accordance therewith, the actual rate Council shall be suspended until the Assembly has of increase in the draft budget established by the taken its decision. If, within this period, the Council is over half the maximum rate, the Assembly has not taken a decision which differs Assembly may, exercising its right of amendment, from the decision of the Council , the latter shall further increase the total amount of that be deemed to be finally adopted. expenditure to a limit not exceeding half the maximum rate . The decisions referred to in the second and third subparagraphs shall lay down the necessary Where the Assembly, the Council or the measures relating to resources to ensure ap­ Commission considers that the activities of the plication of this Article.' Communities require that the rate determined according to the procedure laid down in this Article 22 paragraph should be exceeded, another rate may be fixed by agreement between the Council, acting by a qualified majority, and the Assembly, The following provisions shall be added to the acting by a majority of its members and three­ Treaty establishing the European Atomic Energy fifths of the votes cast. Community :

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'Article 179a therefrom and in particular their duty to behave with integrity and discretion as regards the The Commission shall submit annually to the acceptance, after they have ceased to hold office, Council and to the Assembly the accounts of the of certain appointments or benefits . preceding financial year relating to the implementation of the budget. The Commission 7. Apart from normal replacement, or death, shall also forward to them a financial statement the duties of a member of the Court of Auditors of the assets and liabilities of the Community.' shall end when he resigns, or is compulsorily retired by a ruling of the Court of Justice pursuant to paragraph 8 . Article 23 The vacancy thus caused shall be filled for the Article 180 of the Treaty establishing the European remainder of the member's term of office . Atomic Energy Community is replaced by the following : Save in the case of compulsory retirement under the provisions of paragraph 8 , members of the 'Article 180 Court of Auditors shall remain in office until they have been replaced . 1 . A Court of Auditors is hereby established. 8 . A member of the Court of Auditors may be 2. The Court of Auditors shall consist of nine deprived of his office or of his right to a pension members . or other benefits in its stead only if the Court of Justice, at the request of the Court of Auditors 3 . The members of the Court of Auditors shall finds that he no longer fulfils the requisite be chosen from among persons who belong or conditions or meets the obligations arising from his office . have belonged in their respective countries to external audit bodies or who are especially 9 . The Council, acting by a qualified marjority, qualified for this office. Their independence must shall determine the conditions of employment of be beyond doubt. the President and the members of the Court of 4. The members of the Court of Auditors shall Auditors and in particular their salaries, allowances and pensions. It shall also, by the be appointed for a term of six years by the same majority, determine any payment to be Council , acting unanimously after consulting the made instead of remuneration . Assembly. However, when the first appointments are made, 10. The provisions of the Protocol on the four members of the Court of Auditors , chosen privileges and immunities of the European by lot, shall be appointed for a term of office of Communities applicable to the Judges of the four years only. Court of Justice shall also apply to the members of the Court of Auditors .' The members of the Court of Auditors shall be eligible for reappointment. Article 24 They shall elect the President of the Court of Auditors from among their number for a term of three years . The President may be re-elected. The following provisions shall be added to the Treaty establishing the European Atomic Energy 5 . The members of the Court of Auditors shall , Community : in the general interest of the Community, be 'Article 180a completely independent in the performance of their duties . 1 . The Court of Auditors shall examine the In the performance of these duties, they shall accounts of all revenue and expenditure of the neither seek nor take instructions from any Community. It shall also examine the accounts of government, or from any other body. They shall all revenue and expenditure of all bodies set up refrain from any action incompatible with their by the Community in so far as the relevant duties . constituent instrument does not preclude such examination . 6. The members of the Court of Auditors may not, during their term of office, engage in any 2 . The Court of Auditors shall examine other occupation, whether gainful or not. When whether all revenue has been received and all entering upon their duties they shall give a solemn expenditure incurred in a lawful and regular undertaking that, both during and after their term manner and whether the financial management of office, they will respect the obligations arising has been sound .

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The audit of revenue shall be carried out on the Article 25 basis both of the amounts established as due and The following provisions shall be added to the the amounts actually paid to the Communities. Treaty establishing the European Atomic Energy The audit of expenditure shall be carried out on Community : the basis both of commitments undertaken and payments made. ' Article 180b

These audits may be carried out before the The Assembly, acting on a recommendation from closure of accounts for the financial year in the Council which shall act by a qualified question . majority, shall give a discharge to the Commission in respect of the implementation of 3 . The audit shall be based on records and, if the budget. To this end, the Council and the necessary, performed on the spot in the Assembly in turn shall examine the accounts and institutions of the Community and in the Member the financial statement referred to in Article 179a, States . In the Member States the audit shall be and the annual report by the Court of Auditors carried out in liaison with the national audit together with the replies of the institutions under bodies or, if these do not have the necessary audit to the observations of the Court of powers, with the competent national departments. Auditors .' These bodies or departments shall inform the Court of Auditors whether they intend to take Article 26 part in the audit.

The institutions of the Community and the The following provisions shall be substituted for national audit bodies or, if the latter do not have Article 183 of the Treaty establishing the European the necessary powers, the competent national Atomic Energy Community : departments, shall forward to the Court of 'Article 183 Auditors, at its request, any document or information necessary to carry out its task. The Council, acting unanimously on a proposal from the Commission and after consulting the 4. The Court of Auditors shall draw up an Assembly and obtaining the opinion of the Court annual report after the close of each financial of Auditors , shall : year. It shall be forwarded to the institutions of ( a ) make Financial Regulations specifying in the Community and shall be published, together particular the procedure to be adopted for with the replies of these institutions to the establishing and implementing the budget and observations of the Court of Auditors , in the for presenting and auditing accounts ; Official Journal of the European Communities. ( b) determine the methods and procedure The Court of Auditors may also, at any time, whereby the budget revenue provided for submit observations on specific questions and under the arrangements relating to the deliver opinions at the request of one of the Communities' own resources , shall be made institutions of the Community . available to the Commission, and determine the measures to be applied , if need be, to It shall adopt its annual reports or opinions by a meet cash requirements ; majority of its members. ( c) lay down rules concerning the responsiblity It shall assist the Assembly and the Council in of authorizing officers and accounting officers exercising their powers of control over the and concerning appropriate arrangements for implementation of the budget.' inspection .'

CHAPTER IV

PROVISIONS AMENDING THE TREATY ESTABLISHING A SINGLE COUNCIL AND A SINGLE COMMISSION OF THE EUROPEAN COMMUNITIES

Article27¶

1 . The powers and jurisdiction conferred upon Article 22 of the Treaty establishing a single Council the Court of Auditors established by Article 78e and a single Commission of the European of the Treaty establishing the European Coal and Communities shall be replaced by the following : Steel Community, by Article 206 of the Treaty

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establishing the European Economic Community, of Auditors of the European Communities shall and by Article 180 of the Treaty establishing the exercise the powers and jurisdiction conferred, European Atomic Energy Community shall be before the entry into force of this Treaty, upon exercised in accordance with those Treaties by a the Audit Board of the European Communities single Court of Auditors of the European and upon the Auditor of the European Communities constituted as provided in these Coal and Steel Community under the conditions Articles . laid down in the various instruments referring to the Audit Board and to the Auditor. In all these instruments the words "Audit Board" and 2. Without prejudice to the powers and "Auditor" shall be replaced by the words " Court jurisdiction referred to in paragraph 1 , the Court of Auditors".'

CHAPTER V

FINAL PROVISIONS

Article28¶

This Treaty shall enter into force on the first day of 1 . The members of the Court of Auditors shall be the month following the deposit of the instrument of appointed upon the entry into force of this Treaty. ratification by the last signatory State to take this step . 2 . The terms of office of the members of the Audit Board and that of the auditor shall expire on the day If this Treaty enters into force during the budgetary they submit their report on the financial year procedure, the Council shall, after consulting the preceding that in which the members of the Court of Assembly and the Commission, adopt the measures Auditors are appointed ; their powers of audit shall required in order to facilitate the application of this be confined to operations relating to that financial Treaty to the remainder of the budgetary procedure. year. Article 31

Article 29 This Treaty, drawn up in a single original in the Danish, Dutch, English, French, German, Irish and This Treaty shall be ratified by the High Contracting Italian languages, all seven texts being authentic, Parties in accordance with their respective consti­ shall be deposited in the archives of the Government tutional requirements. The instruments of ratification of the Italian Republic, which shall transmit a shall be deposited with the Government of the Italian certified copy to each of the Governments of the Republic. other signatory States.

Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne traktat.

Zu Urkund dessen haben die unterzeichneten Bevollmächtigten ihre Unterschriften unter diesen Vertrag gesetzt.

In witness whereof, the undersigned Plenipotentiaries have affixed their signatures below this Treaty.

En foi de quoi, les plénipotentiaires soussignés ont apposé leurs signatures au bas du présent traité.

Da fhianu sin, chuir na Lanchumhachtaigh thios-sinithe a lamh leis an gConradh seo.

In fede di che, i plenipotenziari sottoscritti hanno apposto le loro firme in calce al presente trattato .

Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder deze Verdrag hebben gesteld.

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Udfærdiget i Bruxelles, den toogtyvende juli nitten hundrede og femoghalvfjerds.

Geschehen zu Brüssel am zweiundzwanzigsten Juli neunzehnhundertfünfundsiebzig.

Done at Brussels on the twenty-second day of July in the year one thousand nine hundred and seventy-five.

Fait à Bruxelles, le vingt-deux juillet mil neuf cent soixante-quinze.

Arna dhéanamh sa Bhruiséil, an dóú la is fiche de mhí Iúil, mile naoi gcéad seachtó a cuig.

Fatto a Bruxelles, addì ventidue luglio millenovecentosettantacinque.

Gedaan te Brussel, de tweeëntwintigste juli negentienhonderd vijfenzeventig.

Pour Sa Majesté le roi des Belges Voor Zijne Majesteit de Koning der Belgen

For Hendes Majestæt Danmarks Dronning

Für den Präsidenten der Bundesrepublik Deutschland

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Pour le président de la République française

Thar ceann Uachtaran na hEireann

Per il presidente della Repubblica italiana

Pour Son Altesse Royale le grand-duc de Luxembourg

Voor Hare Majesteit de Konigin der Nederlanden

For Her Majesty the Queen of the United Kingdom of Great Britain and Northern Ireland