BUDGET: PROPOSALS ON THE RECASTING OF THE FINANCIAL REGULATION.

• Position: Brief Article

The Commission feels that its initial proposal was generally "well received" by other institutions. However, the demands of the European Parliament and the Court of Auditors have drawn reservations and highlighted differences within the Commission (see European Report 2628 for further details).Key points of the amendment:- the need for sectoral rules to comply with the principles of the Financial Regulation. The Commission did not agree to take over the idea put forward by the institutions that the Financial Regulation should have pre-eminence over sectoral regulations, but it accepted their approach of ensuring that the sectoral regulations do not depart from the principles of the Financial Regulation;- tightening of internal control within authorising departments. Following Parliament's lead, the Commission believes that in return for the dropping of central ex ante controls by the financial controller, every assurance is given that internal controls by authorising officers comply with modern control standards;- the creation of a panel to assist the authority which imposes discipline in the application of the liability of authorising officers. On this point the Commission has taken over an amendment by Parliament which corresponded to an idea already expressed in the Reform White Paper;- incorporation of the timetable for the presentation of the accounts. The Commission proposes, as suggested by Parliament and the Court of Auditors, that all dates be brought forward by a month (presentation of the accounts by 31 March of the following year instead of 1 May as is the case at present) so that the whole procedure leading up to the presentation of the Court of Auditors report will be one month earlier (31 October instead of 30 November) thereby enabling the discharge authority to begin work earlier on the process culminating in Parliament's discharge decision (30 April of year n+2).--The initial proposal was examined by the Court of Auditors, which gave...