Budgetary discipline

In adopting the report drafted by Mr. Ioannis AVEROFF (EPP, GR), the European Parliament proposed that the act to be adopted should, like in the past, be a Council Decision, and not a Council Regulation as proposed by the Commission. The Parliament advocates adaptations to the proposed text so as to make it correspond with the Inter-Institutional Agreement (IIA) adopted on 6 May 1999. It stresses that the necessary measures concerning agricultural expenditures be taken in such a way as to respect the respective powers of the institutions in budgetary matters. To strengthen transparency, the Commission must, every year report to the budgetary authority concerning the measures taken. The Commission has to use its management powers in respect of the Treaty and related regulations. In cases where there is a risk that the ceilings laid down are exceeded for the sub-headings 1a (market expenditures) or 1b (rural development), the Commission may, as provided for in the IIA, propose a revision of the financial perspectives. The Parliament also wants the unused credits to be carried over to the following year and that they should not be repaid to the Member States. The Parliament called for the agricultural guideline to be reviewed on the basis of a report from the Commission to the Council and the Parliament before the first enlargement of the Union so that any necessary adjustments can be made.�