The Governments of the Member States and the European Commission were represented as follows:
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Belgium: Mr Philippe MAYSTADT |
Deputy Prime Minister, Minister for Finance and Foreign Trade |
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Denmark: Mr Michael DITHMER |
State Secretary for Economic Affairs |
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Germany: Mr Theo WAIGEL Mr Jürgen STARK Mr Klaus BÜNGER |
Federal Minister for Finance State Secretary, Federal Ministry of Finance State Secretary, Federal Ministry of Economic Affairs |
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Greece: Mr Yiannos PAPANTONIOU |
Minister for the National Economy and Finance |
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Spain: Mr Jaime CARUANA |
Director General, Ministry of Economy and Finance |
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France: Mr Dominique STRAUSS-KAHN |
Minister for Economic Affairs, Finance and Industry |
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Ireland: Mr Charlie McCREEVY |
Minister for Finance |
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Italy: Mr Carlo Azeglio CIAMPI Mr Vincenzo VISCO |
Minister for the Treasury Minister for Finance |
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Luxembourg: Mr Jean-Claude JUNCKER Mr Robert GOEBBELS |
Prime Minister and Minister for Finance Minister for Economic Affairs |
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Austria: Mr Rudolf EDLINGER |
Federal Minister for Finance |
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Netherlands: Mr Gerrit ZALM |
Minister for Finance |
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Portugal: Mr António de SOUSA FRANCO Mr Fernando TEIXEIRA dos SANTOS |
Minister for Finance State Secretary for the Treasury and Finance |
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Finland: Mr Sauli NIINISTÖ Mr Raimo SAILAS |
Minister for Finance State Secretary for Finance |
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Sweden: Mr Erik ÅSBRINK Ms Kari LOTSBERG |
Minister for Finance State Secretary for Finance |
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United Kingdom: Mr Gordon BROWN Ms Helen LIDDELL |
Chancellor of the Exchequer Economic Secretary to the Treasury |
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Commission: Mr Jacques SANTER Mr Yves-Thibault de SILGUY Mr Erkki LIIKANEN Mr Mario MONTI |
President Member Member Member |
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Other participants: Mr Bernhard FRIEDMANN Sir Brian UNWIN Sir Nigel WICKS Mr Henri BOGAERT |
Chairman of the Court of Auditors President of the European Investment Bank Chairman of the Monetary Committee Chairman of the Economic Policy Committee |
REPORT ON THE COURT OF AUDITORS FOR 1996
The Council took note of the presentation by Mr Bernhard FRIEDMANN, President of the Court of Auditors, outlining the main findings of the Court's annual report in respect of the implementation of the general budget of the European Communities for the financial year 1996. Referring in particular to the Court's refusal to give a positive Statement of Assurance on the reliability of accounts, Mr FRIEDMANN stated that this did not imply that accounts did not give altogether a correct view of the implementation of the budget but that the rate of irregularities identified is still too high. He also informed the Council that the Court intends to submit in the future more special reports during the year which would shorten the annual report.
In his intervention, Commissioner LIIKANEN recalled that the financial management of the Community budget was the responsibility of both the Commission and Member States (who are responsible for implementing 85% of the budget). He drew Ministers' attention to some of the areas where financial management has already become more efficient and indicated areas where improvements are still needed. He stressed that the Commission had drawn heavily on the positive experience gained with the initiative SEM 2000 (Sound and Efficient Management), when drafting the forthcoming proposals on structural funds and CAP linked to Agenda 2000.
The debate allowed Ministers to express their appreciation for the work of the Court of Auditors and to present their initial comments on the Court's findings. In this context, the Presidency indicated that at the ECOFIN session in May Ministers will have an opportunity to take up in substance some of the points raised by the Court, on the basis of a report on budget implementation to be presented by the Commission.
In conclusion, the Council adopted a recommendation on the discharge to be given to the Commission for the financial year 1996 accompanied by comments on specific areas, including on the abovementioned Statement of Assurance. This document will be transmitted to the European Parliament in the follow-up of the discharge procedure.
In its introduction to the comments accompanying the recommendation on discharge, the Council recognizes the need to ensure that taxpayers' money is spent properly and wisely. As part of the tight budgeting applied by Member States and the Community, it is essential that implementation, scrutiny and accountability at all levels involved should be effective and of a very high standard. In drawing up these comments, the Council has paid particular attention to the following:
- lessons to be drawn for the future. All those responsible for administering Community resources can learn from mistakes made and follow the examples set by good practice. This is particularly important at a time when the Union is considering policy reforms, especially in the agricultural and structural sectors, as well as with enlargement in prospect;
- achieving results. Sound financial management should ensure that money is properly spent and accounted for. However, it is also important that the aims of expenditure are clear and are achieved as effectively as possible. The Community needs to assess its needs and priorities rigorously, legislate clearly, monitor progress and evaluate results in particular by considering their real impact and not merely establishing that all appropriations have been implemented. This should allow for the wise use of scarce resources.
For the third year running, the Court of Auditors has been unable to give a positive assurance overall as to the legality and regularity of the transactions underlying payments for the financial year. The Council finds the excessively high incidence of errors unacceptable. It calls on the Commission and the Member States to continue with their aim of reducing this so as to arrive at a positive statement of assurance in the near future. Although it is too soon to be able to discern a trend, the lower incidence of errors for the EAGGF Guarantee Section, as a result of the introduction of a new accounts clearance procedure, is to be welcomed. The higher incidence of errors for the Structural Funds gives cause for concern.
The Council calls on all those involved to endeavour to show greater care in administering those Funds. The Council welcomed the Commission's adoption of detailed data sheets setting out eligibility criteria and precise standards for the checks by Member States on operations co-financed by the Structural Funds. It will study closely the effect of these measures. The new Structural Funds Regulations must fully reflect the lessons learnt from financial management in the current programming period.
The Council welcomes the improved presentation of the report by the Court of Auditors, which summarizes key points in an accessible, informative way and includes the statement of assurance. It also welcomes the following up of earlier reports. The Council takes the view that in future years' reports the Court should consider the action taken in response to its observations by the Commission, the other institutions and the Member States.
Emphasizing the imperative need to save money and avoid wastage, the Council recommends that the Commission should:
- propose a budget for 1999 clearly reflecting the finding by the Court of Auditors that over-generous budgeting is liable to result in insufficiently strict financial management;
- propose reforms and a new financial perspective in the context of Agenda 2000 that follow the principles of sound financial management and tight budgeting;
- rationalize the number of programmes, ensuring that they do not overlap, so as to improve the efficiency of financial management (e.g. measures for SMEs);
- set for future programmes unambiguous, non-conflicting objectives, bearing in mind the observations by the Court of Auditors concerning programmes such as PHARE, TACIS etc.;
- refocus or discontinue activities with poor performance and poor evaluation results (as done for MEDIA II in the light of evaluation of MEDIA I);
- continue to work with non-member countries, especially applicants for membership of the European Union, in order to improve their administrative machinery and ensure that money reaches beneficiaries sooner and is spent to good effect;
- avoid, as far as possible, the bunching of commitments and payments at the end of the financial year. A smoother pattern of transactions should make for better management and better financial control;
- propose policy reforms which avoid the financial management problems experienced with present and past policies (including the CAP and the Structural Funds);
- organize its departments in such a way as to improve their efficiency and coordination (bearing in mind the Court's findings concerning, for instance, SMEs and external action);
- scrupulously comply with the principle of legal bases in implementing the budget.
The Council welcomes:
- the Commission's continued efforts in implementing all stages of its SEM 2000 initiative, which is greatly helping to improve financial management, although further efforts will be needed in order to reap the full benefits. Prevention of wastage is essential;
- the measures already taken by the Commission concerning recovery of misspent monies, reduction of advances and elimination of dormant commitments (chiefly in the case of PHARE and TACIS);
- the Commission's generally constructive response to the findings made by the Court of Auditors. All those involved in the administration of Community funds need to work together to resolve problems of fraud and wastage;
- the undertaking given by the Commission to submit, in the first half of 1998, a discussion paper on reform of the Financial Regulation;
- the Commission's decision to clarify rules and procedures for dealing with irregularities involving the institution. The Council calls on the other institutions to review their own procedures in the same spirit in order to protect the Community's financial interests.
While pointing out that the Commission is responsible for budget implementation, the Council recommends Member States to:
- ensure that appropriations reach intended beneficiaries in good time;
- carry out the checks incumbent upon them and in particular ensure that accounting trails are sound;
- cooperate fully in recovering misspent monies.
The Council also considers that for a number of parts of the budget it is the shared responsibility of the Commission and the Member States to ensure sound financial management. It notes that, once the Treaty of Amsterdam is ratified, Member States will be required to cooperate with the Commission to ensure that appropriations are used in accordance with the principle of sound financial management. The Council considers that cooperation helps the Commission to propose clear legislation and implementing rules and to provide Member States with precise guidance. Cooperation also enables Member States to ensure that management of funds at national level and at other levels of their administration is sound. To this end the Council calls on the Commission to take advantage of the better working of the network of budgetary experts in the Member States and of the evaluation network. The work of the SEM 2000 personal representatives' group is a good illustration of what can be achieved through cooperation. Member States and the Commission should prepare for implementation by continuing to improve cooperation between them in the context of their shared responsibility.
Discharge recommendations are valuable if they result in remedial action and prevention of mistakes and fraud in future. Given that the Commission's follow-up report () shows effective measures to have been taken in some areas, the Council calls on the Commission to pay particular attention to its detailed recommendations relating to recurrent criticisms.
For the first time, the follow-up report includes responses from Member States. The Council welcomes this in the belief that Member States can learn from each other's experience.
The Council lastly points to the importance it attaches to dialogue between the Court of Auditors and the Member States, particularly in the exchanging of sectoral letters and Member States' replies. The Council wishes to see such dialogue continue in a spirit of equity.
The Council's recommendation to the European Parliament contains specific comments on the following chapters: Own Resources, Budgetary Management, Agriculture: Common Market Organizations for plant and animal products (beef and veal premium schemes and selected BSE-related measures, certain procedural aspects of export refunds on beef and veal), the Regional and Social sectors, the Guidance Section of the EAGGF, Common Policy on Fisheries and the Sea, Research and Technological Development, Industrial Policy - Media, Cooperation with Developing and Third Countries and measures in favour of the Countries of Central and Eastern Europe and the newly independent states (former Soviet Union). Further comments relate to management and administrative appropriations of the institutions and bodies of the European Communities.
TAX-POLICY PACKAGE - FOLLOW-UP
- Establishment of the Code of Conduct Group (Business Taxation) - Council conclusions ()
"THE COUNCIL OF THE EUROPEAN UNION,
1 recalls that the Council and the Representatives of the Governments of the Member States, meeting within the Council, adopted on 1st December 1997 a Resolution on a code of conduct for business taxation (), paragraph H of which foresees that a Group will be established by the Council to assess the tax measures that may fall within the scope of the code and to oversee the provision of information on those measures;
2. confirms the establishment of a Code of Conduct Group (Business Taxation) (hereinafter called the Group), set up within the framework of the Council, to assess the tax measures that may fall within the scope of the Code of Conduct for business taxation and to oversee the provision of information on those measures, without prejudice to the respective competences of Member States and the Community in the fields covered by the work of the Group and without prejudice to Article 151 of the Treaty as regards preparing the work of the Council;
3. notes that the work of the Group is accorded political importance and agrees that this should be reflected in the appointment by each Member State and the Commission of a high level representative and a deputy member. The Member States and the Commission may also appoint up to two alternates who may stand in for the high-level representative or the deputy if either is unable to attend a meeting of the Group;
4. agrees that the Chairman of the Group appointed from among the representatives of the Member States will serve for two years from the date of appointment ; should the Chairman leave office before this period has elapsed, the chair will be taken by the first Vice-Chairman until a new Chairman has been appointed;
5. expresses confidence that the Chairman will be appointed by common accord, but agrees that, if necessary, the Chairman shall be elected by a majority of the high-level representatives of the Group;
6. agrees that the Member State whose representative is appointed Chairman shall have two representatives on the Group, for the Chairman's period of office;
7. agrees that the first Vice-Chairman will be designated from among the representatives of the Member States by the delegation holding the Presidency of the Council, for the duration of its term of office, and that a second Vice-Chairman will be designated by the delegation who is next to hold the Presidency of the Council, for the six month period prior to the commencement of its term of office;
8. agrees that if the Member State of the Chairman holds the Presidency of the Council, or is next in line to do so, then a Vice-Chairman shall not be appointed by that Member State during the Chairman’s period of office and the Group will consequently have only one Vice-Chairman for that period;
8a. agrees that the rules in paragraphs 4 to 8 above shall be reviewed two years after the date of appointment of the first Chairman of the Group; ()
9. agrees that the Chairman and Vice-Chairmen, together with one representative from the Commission and assisted by the General Secretariat of the Council, will form a preparatory group which will help facilitate the work of the Group; notes the important role of the Commission in supporting the work of the Group, as set out in the Code of Conduct, notably in paragraph I, and in participating in the follow-up work of the Group; notes that, since the Group operates within the framework of the Council, the Secretariat function will be assumed by the General Secretariat of the Council; and is confident that the General Secretariat of the Council and Commission will liaise closely with each other to develop a collaborative approach to ensure an efficient and effective working relationship;
10. agrees that the Group shall meet not less than twice a year at a high level to facilitate a political orientation to the work of the group and that meetings of the group shall be convened by the Chairman on his own initiative or at the request of at least one third of the members of the Group;
11. agrees that, subject to the formal agreement of the Council, and in order to assist the work of the Group one or more sub-groups may be established to consider particular issues ;
12. agrees that the work of the Group shall be confidential;
13. agrees that the reports of the Group forwarded to Council will reflect either the unanimous opinion of its members or the various opinions expressed in the course of the discussion;
14. agrees that, subject to the formal agreement of the Council, any further rules of procedure of the Group may be established ."
- Interest and royalty payments between companies
The Council heard a presentation by Commissioner MONTI of the proposal adopted by his Institution on 4 March for a directive on interest and royalty payments between associated companies. The Council invited its competent bodies to examine this proposal with a view to its adoption in due course.
This proposal which deals with the second of the three elements of the taxation package agreed by the ECOFIN Council on 1 December 1997, is based on Article 100 and therefore requires unanimity. It is designed to eliminate taxes levied at source on payments of interests and royalties between associated companies of different Member States. It would include interest and royalty payments made between the permanent establishments of these companies with cross-shareholdings of at least 25%.
It is recalled that the proposal presented at the end of 1990, and withdrawn in 1994, was limited to payments between parent companies and their subsidiaries.
The proposal includes provisions
- to ensure that Member States are not precluded from taking steps to combat fraud or abuse,
- to allow Member States not to apply the Directive to payments which qualify for a special tax rate lower than the rate normally applied,
- to give a transitional period to Greece and Portugal; as net importers of capital and technology, these countries would be allowed to apply a withholding of 10% during the first two years and 5% during the following three years following the entry into force of the Directive.
The Commission would report on the operation of this Directive three years following its entry into force, with a view to a possible extension of its scope.
- Taxation of savings
With regard to this third element of the fiscality package, Commissioner MONTI confirmed that his Institution will table shortly a proposal for a directive concerning taxation of savings based on the "coexistence model", under which each Member State would either operate a withholding tax or provide information on savings income to other Member States.
ELECTRONIC COMMERCE
The Council heard a statement by the French Minister introducing his government's memorandum on electronic trade. This paper has already been submitted to the Telecommunications Council on 26 February. It sets out guidelines and measures which France regards as desirable to implement quickly in order to develop electronic commerce, in particular on the European market.
The Commission recalled that it had already drawn the attention of the Council to the need for international coordination in this field in its communication of February 1997 on Globalisation and the Information Society.
In the course of a short exchange of views Ministers highlighted the important implications of the development of a global electronic market place for the completion of the Single Market as well as for growth and employment. The President indicated that he would bring this item back for a further discussion in ECOFIN before the end of the UK Presidency, aiming at defining a common position, notably on taxation and consumer aspects, in view of the OECD Ministerial Conference to be held next October in Ottawa. The Council mandated the Committee of Permanent Representatives to define the procedure of the follow-up to this matter.
PREPARATION OF STAGE 3 OF EMU
The Council took note of the EMU timetable submitted by the Presidency which sets out in detail the work to be carried out during the UK Presidency in preparation for stage 3 of EMU and indicates the deadlines to be met.
In this context, the President and Commissioner de SILGUY reminded delegations that legal convergence of national provisions relating notably to the independence of Central Banks had to be completed as a matter of urgency.
Commissioner de SILGUY also presented his Institution's proposal for a Council decision on the detailed provisions concerning the composition of the Economic and Financial Committee which will replace the Monetary Committee. The Commission proposes that Member States, the Commission and the ECB each appoint two members; the EFC would thus have 34 members; EFC members should be selected among experts possessing outstanding competence in the economic and financial field and Member States should appoint members among senior officials of the administration and national central banks.
With a view to completing the preparatory work for the setting up of the ECB, Commissioner de SILGUY also presented four legislative proposals concerning the European Central Bank which will have to be adopted before the latter starts operating (at the very latest immediately after 1 July 1998):
- Decision on the consultation of the ECB by national authorities on draft legislative provisions;
- Decision on the statistical data to be used for the determination of the key for subscription of the capital of the ECB;
- Regulation amending Regulation n. 260/68 which lays down the conditions and procedure for applying the tax for the benefit of the EC (salaries of ECB officials);
- Regulation amending Regulation n. 549/69 determining the categories of officials and other servants of the EC to whom the provisions of Article 12, the second paragraph of Article 13 and Article 14 of the Protocol on the Privileges and Immunities of the Communities apply (the last two proposals aim at granting ECB officials the status of EU officials).
Finally, Commissioner de SILGUY reported on the outcome of the Round Table meeting of representatives of professional and consumer groups which was held on 24 February to discuss the practical aspects of the introduction of the euro.
EIB LENDING TO BOSNIA-HERZEGOVINA
The Council heard a presentation by Commissioner de SILGUY of the report adopted by his Institution on 4 March, following a request by the German delegation at the last ECOFIN, on the possibility of an extension of guaranteed EIB lending to Bosnia-Herzegovina.
The Commissioner indicated that, given the urgency of the reconstruction needs of this country, the Commission favoured an extension of guaranteed EIB financing to Bosnia-Herzegovina of up to 100 MECU as a special and exceptional action.
On behalf of the EIB, the President, Sir Brian UNWIN, declared the readiness of the Bank to proceed to such extension of its financing.
In conclusion, the Council invited the Commission to present a formal proposal concerning the extension of the Community guarantee to EIB lending for this country, which should respect the existing Financial Perspective.
OTHER DECISIONS
Adopted without discussion.
FINANCIAL MARKET LEGISLATION
"CAD II" Directive (amending Directive 93/6/EEC on the capital adequacy of investment firms and credit institutions)
Following political agreement which was reached on 17 November 1997 subject to the European Parliament's opinion, the Council formally adopted its common position on the draft Directive amending Directive 93/6/EEC on the capital adequacy of investment firms and credit institutions ("CAD II" Directive). The common position will be forwarded to the European Parliament in accordance with the codecision procedure.
The common position aims at updating the 1993 Directive on Capital Adequacy which set common standards for the own funds of investment firms and banks engaged in investment business, and established a common framework for monitoring the risk incurred by such firms. The update concerns notably the use of internal risk-management models for calculating capital requirements of market risks and the introduction of measures which ensure that appropriate capital is available to cover the market risks inherent in commodities and commodity derivatives business. The common position further aims at updating and adjusting the 1993 Directive in order to take account of recent developments on the financial markets and of developments in international banking supervision (entering into force on 1 January 1998 of certain proposals agreed by the Basle Committee on Banking Supervision).
"Expanded matrix" Directive (amending Directives 77/780/CEE, 89/647/EEC, 93/6/CEE)
Following political agreement reached on 17 November 1997, the Council formally adopted its common position on the draft Directive amending Article 12 of Directive 77/780/EEC on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions, Articles 2, 5, 6, 7, 8 and Annexes II and III of Directive 89/647/EEC on a solvency ratio for credit institutions and Article 2 and Annex II of Directive 93/6/EEC on the capital adequacy of investment firms and credit institutions. The common position will be forwarded to the European Parliament in the framework of the codecision procedure.
The aim of the common position is to introduce a number of amendments to the above-mentioned Directives, either to take account of recent developments in the financial sector, to remedy the shortcomings of those Directives or to reflect changes in the supervisory treatment of over-the-counter derivative instruments as adopted on a wider international level.
"Mortgage credit" Directive (amending Directive 89/647/EEC on a solvency ratio for credit institutions)
Following political agreement reached on 17 November 1997, the Council formally adopted its common position on the draft directive amending Directive 89/647/EEC on a solvency ratio for credit institutions. The common position will be forwarded to the European Parliament in accordance with the codecision procedure.
The common position amends some provisions of the basic Directive with regard to risk weighting of certain categories of assets when calculating the solvency ratio of a credit institution. It also allows mortgage-backed securities to be treated as the underlying loans, if the competent authorities consider that they are equivalent in the light of the credit risk. Furthermore it introduces some optional provisions which, until 31 December 2006,
- extend to all Member States the possibility of weighting mortgages on commercial property at 50%, subject to certain conditions, (until 1996 this possibility was granted only to Austria, Denmark, Germany and Greece),
- allow the competent authorities of the Member States to authorize their credit institutions to apply a 50% risk weighting to the portion of loans to commercial properties secured by shares in Finnish housing companies,
- allow Member States to continue the derogation permitting a 50% weighting on certain property leasing transactions.
TAXATION
Derogation from the 6th VAT directive concerning the United Kingdom
The Council decided to authorize the United Kingdom to extend application of a measure derogating from the 6th VAT directive (77/388/EEC), which it had been granted in 1995, in order to simplify the collection of tax on the leasing of private cars.
The derogation granted is designed to restrict to 50% the right of the hirer or lessee of a car to deduct the VAT on the hire or leasing transaction where the car is used for private purposes. It also authorizes the United Kingdom to waive the VAT payable on the private use of the car in question.
It will reduce the administrative burden on traders, who are not required to keep records of private mileage.
This derogation is authorized until 31 December 1998.
ECOFIN STATISTICS
The Council adopted a Regulation on the organization of a labour force sample survey in the Community.
The survey will be conducted by the Member States each year in order to provide the Commission with comparable statistical information on the level and pattern of national trends in employment and unemployment.
It will be a continuous survey providing quarterly and annual results; however those Member States which are not in a position to implement a continuous survey may carry out an annual survey only, to take place in the spring.
The Regulation defines the units and scope of the survey, the observation methods as well as the representativeness of the sample.
The Commission will be assisted by the Statistical Programme Committee in the implementation of the Regulation.
BUDGET
Council conclusions on the action taken on the discharge for 1995
1. The Council welcomes the report on the action taken in response to the comments of the European Parliament and the Council on the procedure for the discharge for 1995. It is particularly satisfied that for the first time this report contains the Member States' replies to the Court of Auditors' comments.
2. The Council considers this an important step towards improving the dialogue between the Court, the Commission and the Member States. It hopes that the Member States will meet the Commission's request to reply to the relevant comments in the 1996 report.
3. The Council recalls that in the introduction to its comments accompanying the Council recommendation for the discharge to be given to the Commission in respect of the implementation of the 1995 budget, it had asked the Commission to follow a number of general principles aimed at improving the management of the Community budget.
4. The Council notes with satisfaction:
* the Commission's intention to improve the quality of the financial statements linked to legislative proposals and to define more clearly objectives that can be monitored
* the Commission's decision to publish its first annual progress report
* the early discussion of the Commission's budgetary priorities held in January 1997 and in January of this year
* the measures taken to achieve more realistic estimates in the budget
* the introduction of new rules governing delegations' powers and the Commission's wish to reduce the number of small programmes
* the Commission's efforts aimed at cancelling previous commitments.
5. However, the Council recognizes the fact that improvements in the financial management system will require a sustained effort over several years. Its comments on the implementation of the 1996 budget are therefore an invitation to the Commission to continue its efforts, particularly as regards the establishment of clear objectives, more realistic budget estimates and the monitoring of the level of outstanding commitments.
EXTERNAL RELATIONS
Baltic states - Implementing Regulations of the Europe Agreements
Further to the entry into force, on 1 February 1998, of the Europe Agreements with Estonia, Latvia and Lithuania, the Council adopted three implementing Regulations.
These Regulations concern both the management of quotas and tariff ceilings laid down in the Europe Agreements and the procedures for taking possible safeguard and trade protection measures. Similar regulations were adopted when the Europe Agreements entered into force with the other associated countries of central and eastern Europe.
EEA - telecommunication services
The Council approved, on behalf of the Community, the Decision of the EEA Joint Committee amending Annex XI (telecommunication services) to the EEA Agreement.
The aim is to incorporate into the Agreement the acquis adopted recently in the field of telecommunication services (cf. Directive 95/62/EC on the application of open network provision to voice telephony).
Trade in certain processed agricultural products - Switzerland and Norway
The Council adopted the Regulation renewing for 1998 the measures laid down in Regulation (EC) No 1416/95 establishing certain concessions in the form of Community tariff quotas in 1995 for certain processed agricultural products in favour of Switzerland and Norway.
Since they joined the EU in 1995 Austria, Finland and Sweden apply the provisions of the preferential agreements concluded by the EC with Switzerland and Norway, it being understood that all amendments required as a result of enlargement will be the subject of additional protocols. Pending the conclusion of these protocols, the autonomous trade measures - renewed today - are necessary to take into account the trade arrangements for processed agricultural products which existed between the new Member States and Switzerland and Norway.
GSP - least developed countries
The Council adopted the Regulation amending the scheme of generalized preferences established by Regulations (EC) Nos 3281/94 and 1256/96 so as to include in it basic industrial products not yet included and agricultural products not under quota in the Lomé Convention.
The objective of this Regulation is to grant the least developed countries which are not party to the Lomé Convention benefits equivalent to those enjoyed by countries which are party to that Convention, in line with the Council conclusions of 2 June 1997 on the implementation of the results of the WTO Singapore Ministerial Conference.
UN Convention to combat desertification
The Council approved, on behalf of the Community, the UN Convention to combat desertification in those countries experiencing serious drought and/or desertification, particularly in Africa.
The Convention calls for effective action at all levels, supported by international cooperation and partnership arrangements, in the framework of an integrated approach with a view to contributing to the achievement of sustainable development in affected areas. As several of the objectives of this Convention directly concern the Community's sphere of competence (e.g. environment policy, development cooperation, science and technological research policy), the EC is a party to it along side the Member States, which have all already ratified the Convention.
Development cooperation - coordination between the EC and Member States
In line with its conclusions of 5 June 1997, the Council approved the guidelines for strengthening operational coordination between the Community and the Member States in the field of development cooperation. These new guidelines, which take account of the 1994 guidelines and the lessons learnt in the pilot phase, are based on the following principles:
- coordination activities should be tailored to the specific situation in each country, and in each sector or area of development cooperation;
- they should be carried out in close cooperation with the recipient country, with a view to strengthening its capacity to assume its responsibility for and ownership of its development strategies and programmes and reinforcing the government's lead role in general aid coordination;
- EU coordination should be linked to other existing donor coordination mechanisms at the country level;
- the coordination activities should ensure a coherent EU input in wider donor coordination mechanisms and consistency with common policy guidelines adopted by the Council;
- EU coordination must be undertaken in such a way that it maximises the added value for the beneficiary countries.
In order to achieve this operational coordination meetings between representatives of the Member States and the EC delegation could be held i.a. to establish and maintain an up-to-date overview of the sectoral priorities currently supported, enhance complementarity of Community and national cooperation activities, adopt a common approach on coordination with other donors etc.
Other modalities of operational coordination include exchanges of information between the Member States and the Commission on their respective development policies, joint studies carried out in cooperation with the partner country, joint programmes undertaken in cooperation with the partner country, and possible harmonisation of procedures.
The Council will examine the general progress achieved on the basis of these guidelines in the second half of 1998, and will study the possibility of further developing these guidelines.
INTERNAL MARKET
Robert Schuman Project
Following the political agreement reached at the "Internal Market" Council of 27 November 1997, the Council adopted by qualified majority, the German, Netherlands and Swedish delegations voting against (), the common position on a Decision establishing an action programme to improve awareness of Community law for the legal professions (Robert Schuman project). This common position will now be forwarded to the European Parliament for second reading under the co-decision procedure.
The Robert Schuman project is designed to improve knowledge of Community law among the legal professions – judges, prosecutors and lawyers - to ensure that the internal market can work properly.
For further information, see Press release No. 12667/97 (Presse 361) of 27 November 1997.
AGRICULTURE
Additional levy in the milk sector
The Council adopted an amendment to Regulation EEC n° 3950/92 establishing an additional levy in the milk and milk product sector.
This amendment, which falls under the agreement on the Price Package 1997/98, aims at extending for a period of two years the derogation applying in the territory of the former German Democratic Republic concerning the allocation of the reference quantity in a provisional (and not definitive) way. This final extension is allowed in view of the difficulties encountered in the restructuring of holdings producing milk on leased land.
FISHERIES
Agreement with Senegal
The Council adopted the Regulation on the conclusion of the Protocol establishing fishing rights and financial compensation between the European Economic Community and the Government of the Republic of Senegal on fishing off the coast of Senegal for the period from 1 May 1997 to 30 April 2001.
The Protocol establishes the trawler and tuna fishing rights to be apportioned between the Member States as follows:
Category 1: 331 GRT (Gross Register Tonnes) Greece
" 2: 3750 GRT Spain
" 3: 1800 GRT, of which
800 Italy and
1000 Spain
" 4: 4119 GRT, of which
3749 Spain and
370 Portugal
" 5: 5 Spain, 7 France
" 6: 23 Spain, 18 France
" 7: 20 Spain, 3 Portugal
The percentage of the catch that owners of Community freezer tuna trawlers are obliged to land directly, shall be apportioned as follows:
- vessels flying the French flag 44%
- " " the Spanish flag 56%.
The financial compensation provided for in the Agreement is set at 48 MECUs, payable in four equal parts over the period covered by the Agreement.
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Adoption by written procedure :
"FISCALIS" PROGRAMME in the area of indirect taxation
The Council adopted on 3 March by written procedure the decision establishing a programme of Community action to improve the indirect taxation systems of the internal market, the so-called "Fiscalis" Programme, thereby concluding the co-decision procedure with the European Parliament.
The text of the decision is identical to the common position adopted by the Council on 26 January 1998, which the European Parliament has approved in its second reading on 18 February without amendments.
The programme will be established for the period 1 January 1998 to 31 December 2002, with a financial framework set at 40 MECU.
The objectives of the programme are the following:
- enable officials to achieve a high common standard of understanding of Community law and its implementation in the field of indirect taxation;
- secure efficient, effective and extensive cooperation among Member States and between them and the Commission;
- ensure the continuing improvement of administrative procedures in this area.
The programme comprises actions concerning communication and information-exchange systems, manuals and guides, exchanges of officials, seminars and multilateral controls as well as a common training initiative in the field of indirect taxation systems.
The Commission, which will be responsible for the implementation of this programme, will be assisted in this task by the Standing Committee on Administrative Cooperation in the field of Indirect Taxation (Committee procedure IIb).
The programme will be subject to continuous evaluation, carried out jointly by the Commission and Member States.