No L 108/6 Official Journal of the European Communities 25. 4. 97 COUNCIL REGULATION (EC) No 723/97 of 22 April 1997 on the implementation of Member States’ action programames on control of EAGGF Guarantee Section expenditure THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission (*), Having regard to the opinion of the European Par- liament (), Whereas Article 8 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy () lays down that Member States are to take the measures necessary to satisfy them- selves that transactions financed by the European Agricul- tural Guidance and Guarantee Fund, (EAGGF) are actu- ally carried out and are executed correctly, prevent and deal with irregularities and recover sums lost as a result of irregularities or negligence; Whereas the part-financing introduced by Council Regu- lation (EEC) No 307/91 of 4 February 1991 of reinforcing the monitoring of certain expenditure chargeable to the Guarantee Section of the European Agricultural Guidancee and Guarantee Fund (%) lapsed at the end of the 1995 financial year for the first twelve Member States and will do so at the end of the 1997 financial year for the three new Member States; Whereas the Commission has sent a report to the Council on the implementation of Regulation (EEC) No 307/91 during the period 1991 to 1993, expressing the view that the Member States should continue to receive financial assistance for the monitoring of expenditure chargeable to the EAGGF Guarantee Section, in view of the Com- munity financial interest at stake; Whereas provision should be made, for a certain period and within the limit of the appropriations available, for Community financing for Member States’ action programmes in the field of control of expenditure in- volving measures to amend or improve their monitoring structures or make them more effective; Whereas the programmes must have a number of features enabling the Commission, with full knowledge of the facts, to evaluate the measures proposed by the Member States; Whereas the programmes may be of a multiannual nature; whereas, it is appropriate therefore that information re- () OJ No C 336, 14. 12. 1995, p. 3. @) O] No C 117, 22. 4. 1996, p. S1. () OJ No L 94, 28. 4. 1970, p. 13. Regulation as last amended by Regulation (EC) No 1287/95 (OJ No L 125, 8. 6. 1995, p. 1). () OJ No L 37,9.2.1991, p. 5. Regulation as amended by Regu- lation (EC) No 3235/94 (OJ No L 338, 28. 12. 1994, p. 16). lating to the annual instalments to be presented by Member States each year should be specified; Whereas provision should be made for consultation of the Fund committee on the annual instalments which may qualify for Community financing; Whereas it should be specified that the Commission is to set the maximum amount of the Community contribu- tion for each annual instalment; Whereas systems of control and direct elctronic informa- tion exchange between the Member States and the Commission covering the control of certain expenditure should be maintained and developed; Whereas is should be laid down that the financing provided for in this Regulation cannot be combined with other Community financing; Whereas, since the provisions laid down in this Regula- tion concern the EAGGF, Guarantee Section, the expenditure covered by Community co-financing should be regarded as intervention within the meaning of Article 3 of Regulation (EEC) No 729/70, HAS ADOPTED THIS REGULATION: Article 1 1.  The Community shall contribute towards the costs incurred by Member States in implementing new action programmes, arising out of new Community obligations, approved by the Commission and aimed at improving the structures or effectiveness of EAGGF Guarantee Section expenditure controls. 2. The measures provided for in the programmes referred to in paragraph 1 may cover initial expenditure on the creation or reorganization of inspection sevices, including the redeployment or recruitment of inspectors and their assignments, the purchase or hire of equipment and facilities required for the performance of controls, the organization of training and briefing and any other appro- priate means of reinforcing the effectiveness of controls. Article 2 1.  Member States shall submit the action programmes for which they wish to receive Community financing to