EC General budget: 8th amendment 1977 Financial regulation including 3rd phase of EMU (euro, Stability Pact)

OBJECTIVE: limited amendment of the Financial Regulation in order to take account of the introduction of the euro as the common currency in certain Member States and the adoption of the Stability and Growth Pact and in particular the excessive deficit procedure which it entails. COMMUNITY MEASURE: Council Regulation (EC, ECSC, EURATOM) no. 2779/98 amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities. CONTENTS: the Regulation seeks to make limited amendments to the Financial Regulation in order to take account of the start of the third phase of economic and monetary union which involves the introduction of the euro, replacing both the ecu and the national currencies of the participating Member States. With regard to the implementation of the excessive deficit procedure, a mechanism is provided which will ensure that the revenue from fines imposed on Member States by the Council is allocated to expenditure to be divided between the Member States participating in the euro which have no excessive deficit, while at the same time guaranteeing that the transactions in question comply with the requirements of budgetary transparency. ENTRY INTO FORCE: 1 January 1999.�