CONTINUATION OF THE 1996 BUDGETARY PROCEDURE

Before the start of proceedings, the Council met a delegation from the European Parliament comprising:

- Mr SAMLAND, Chairman of the Committee on Budgets,

- Mr ELLES, Rapporteur for the 1996 budget (Commission section),

- Mr MIRANDA, Rapporteur for the other sections of the 1996 budget,

- Mr BRINKHORST, Mr COLOM i NAVAL, Mr DELL'ALBA, Mr DI PRIMA, Mr FABRE­AUBRESPY, Ms GHILARDOTTI, Mr ELLETT­BOWMAN, Mr KÖNIG, Ms MUELLER, Mr REHN, Mr TOMLINSON and Mr WYNN, Members of the Committee on Budgets.

At the meeting, the European Parliament representatives outlined to the Council the Parliament's approach during its first reading of the 1996 draft budget on 24 October 1995.

The Council emphasized certain aspects to which it attached particular importance, inter alia, the budgetary provisions for MEDA, the trans-European networks, the international fisheries agreements and the Community agencies set up following the 1993 European Council in Brussels.

The exchange of views brought the positions of the two arms of the Budget Authority closer on several aspects.

o

o o

The Council then gave a second reading to the draft general budget of the European Communities for 1996. It adopted a position on all the proposed modifications and amendments voted by the European Parliament at first reading.

As in previous financial years, the Council wanted rigorous budgetary discipline to continue to be the touchstone for the 1996 budget, bearing in mind the efforts Member States will have to make in their own national budgets. The Council thus emphasized the need to leave significant margins below the ceilings for financial perspective headings.

The overall expenditure adopted by the Council at the end of its second reading of the 1996 draft budget amounted to (in million ECU - round figures):

Commitment appropriations (C/A) 86.288,1

Payment appropriations (P/A) 81.592,9

including non-compulsory expenditure (C/A) 42.872,1

(P/A) 38.168,9

The breakdown of the appropriations is as follows:

(in million ECU - round figures)

C/A P/A

Common agricultural policy 38.554,0 38.554,0

Other measures 2.274,0 2.274,0

Structural Funds 26.579,0 23.722,7

Other structural measures 108,0 108,0

Cohesion funds 2.444,0 1.919,0

Research 3.183,1 3.096,6

Other internal policies 2.015,4 1.839,4

External measures 5.173,6 4.121,9

Administrative expenditure:

- Commission 2.674,4 2.674,4

- Other institutions 1.429,7 1.429,7

Monetary reserve 500,0 500,0

Emergency aid reserve 323,0 323,0

Reimbursements, guarantees, reserves 323,0 323,0

Compensations 701,0 701,0


The increases in NCE over the 1995 budget thus amount to 8,71% for commitment appropriations and 8,89% for payment appropriations.

The Council instructed its President to forward the results of its second reading of the draft budget to the European Parliament.

LETTER OF AMENDMENT

The Council drafted a letter of amendment designed to adapt the budgetary structure of Section II (Council) of the 1996 draft general budget to the interinstitutional cooperation agreements reached in the field of administrative expenditure.

STATEMENT OF ASSURANCE

The Council noted that the Court of Auditors had on 10 November 1995 communicated the statement of assurance as to the reliability of the Community's accounts for the financial year 1994.

The Council instructed the Permanent Representatives Committee to take the necessary steps for a report to be produced as soon as possible so that the Council might comment on the content of the statement.

MISCELLANEOUS DECISIONS

(Adopted without debate. Where these are legislative acts, votes against or abstentions are indicated).

Review of the "own resources" Regulations

The Council adopted joint guidelines with a view to amending

- the 1989 Regulation on the system of own resources.

This amendment of the arrangements for placing own resources at the Community's disposal takes account of experience acquired over the past few years. It is intended in particular to improve the possibilities for the Commission to monitor the flow of information from Member States on the making available of own resources and thus better apply the anti-fraud provisions.

- the 1977 Regulation, with a view to revising Article 102 of the Financial Regulation in order to align it on the new procedure for clearing the accounts of the EAGGF Guarantee Section laid down by Council Regulation (EC) No 1287/95 of 22 May 1995 amending Regulation (EEC) No 729/70 on the financing of the common agricultural policy.

It is intended in particular to specify the budgetary treatment of decisions to refuse financing by the Fund of expenditure not carried out in compliance with Community rules.

These joint guidelines will be forwarded to the European Parliament under the conciliation procedure.

Antidumping

The Council adopted Regulations extending for two months the provisional antidumping duty on imports of

- peroxodisulphates (persulphates) originating in the People's Republic of China

- monosodium glutamate originating in Indonesia, the Republic of Korea, Taiwan and Thailand.

Morocco-Turkey: olive oil

The Council authorized the Commission to negotiate with Morocco and with Turkey Agreements in the form of exchanges of letters fixing the additional amount to be deducted from the duty on imports into the Community of untreated olive oil originating in each of these two countries.

Customs Union

The Council decided on the autonomous opening for the second half of 1995 of a specific tariff quota for preserved mushrooms originating in China for a quantity of 2 200 tonnes (net drained weight).

This quota is opened pending the outcome of the negotiations initiated in accordance with Article XXIV.6 of the GATT 1994 with members of the World Trade Organization on the adjustment of Community concessions following the latest enlargement of the Community.

Fisheries

The Council adopted the Decision on the provisional application of the Protocol laying down for the period 21 May 1995 to 20 May 1998, the fishing opportunities and the financial compensation provided for by the Agreement between the Community and the Government of the Republic of Madagascar on fishing in Madagascar waters.

The Protocol provides for the grant, over the three-year period referred to, of licences authorizing 42 freezer tuna seiners and 16 Community surface longliners to fish simultaneously in the Madagascar fishing zone. At the Community's request, certain permits may be granted to other categories of fishing vessel.

The amount of Community compensation has been fixed at ECU 1,35 million for the duration of the Protocol. This amount covers an annual catch weight of 9 000 tonnes of tunas in Madagascar waters. In addition, the Community will contribute to the funding of Madagascar's scientific activities in fisheries and to staff training.

Transport

The Council adopted, with the German and UK delegations voting against, the common position with a view to amending Regulation (EEC) No 1101/89 on structural improvements in inland waterway transport.

The purpose of the proposal for a Regulation is to create an appropriate legal basis for the Community budget to be implemented in this area.

The common position provides for the possibility of adding Community contributions, restricted to 1995, to the financial resources of the Member States concerned and to other resources provided for in Regulation No 1101/89.

The Council also formally adopted, after finalization of the texts, a Resolution on the problems posed by congestion and crisis situations in air traffic in Europe.

The following paragraph should be added at the end of the text on which substantive agreement was reached at the Transport Council meeting on 28 September 1995 (see Press Release 9984/95 (PRESSE 269)):

(The Council) "NOTES that the Commission intends to submit its White Paper on air traffic management before the end of 1995".

Appointment

The Council adopted the Decision appointing Mr A.B. SAKKERS a member of the Committee of the Regions in place of Mrs BRANDENBURG­VOLGELZANG for the remainder of the latter's term of office, which runs until 25 January 1998.