Budgetary discipline

PURPOSE: to repeal Council Regulation 2040/2000 on budgetary discipline.

PROPOSED ACT: Council Regulation

CONTENT: the 2006 “Interinstitutional Agreement (IIA) on budgetary disciple and sound financial Management” has made many of the provisions contained in Council Regulation 2040/2000 obsolete. The redundant provisions refer to:

-          Part I concerning agricultural expenditure;

-          Budgetary discipline for agriculture in Part I; and

-          Part II concerning reserves for external operations. The reserve for loan guarantees has been replaced, for the 2007-2013 period, by a new budge line under heading 4 “the EU as a global player”.

The Commission is therefore proposing to repeal Regulation 2040/2000.