Budgetary discipline: amendments following the European Council of Edinburgh

The Edinburgh European Council having agreed to maintain the budget discipline imposed by Council Decision 88/377/EC by taking action to strengthen the said measures, the Commission proposed specifying the nature of the adaptations and improvements to be applied to the arrangements currently in force in respect of budgetary discipline. a) EAGGF Guarantee Section expenditure: agricultural guidelines were to be extended and would henceforth apply to all expenditure on agricultural activities and on the reformed CAP (support for markets, land set-aside, aid to income, fisheries guarantee fund, etc.). The financial reserve could also be used to meet the cost of monetary realignment between Member States. An allowance of ECU 400 million would be maintained; the reserve would be mobilised in the event of this sum being exceeded. b) Reserves linked to external actions: the proposal sought to create a reserve of ECU 300 million for operations involving loans and loan guarantees issued by the Community to non-member countries in order to permit the financing of a guarantee fund; it also sought to set up a reserve for emergency aid to non-member countries. The allocation was to be ECU 200 million for 1993 and 1994 and ECU 300 million for each year from 1995 to 1999. �