No L 293/14 Official Journal of the European Communities 12. 11. 94 COUNCIL DECISION of 31 October 1994 on budgetary discipline (94/729/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 43, 209 and 235 thereof, Having regard to the proposal from the Commission (1), Having regard to the ‘opinion of the European Parliament (2), Having regard to the opinion of the Court of . Auditors (3), Whereas, at its meeting in Edinburgh on 11 and 12 December 1992, the European Council decided to retain and strengthen the budgetary discipline introduced by Decision 88/377/EEC (4) and confirmed that all Community expenditure should be subject to the principles of sound public finance and budgetary discipline; Whereas budget discipline is. important in all policies to ensure a sustainable relationship between commitments, - payments and available own resources; Whereas a new Interinstitutional Agreement including the financial perspective for 1993 to 1999 was concluded on 29 October 1993 between the European Parliament, the Council and the Commission for the purposes of implementing budgetary discipline and improving the annual budgetary procedure; Whereas, on the basis of the European Council’s conclusions, the institutions also agreed to maintain unchanged the reference base and the rate of increase of the agricultural guideline and to extend the guideline to all expenditure under the reformed common agricultural policy and to expenditure under the fisheries guarantee fund and income subsidies; Whereas the mechanisms for the depreciation of stocks formed during the budget year should be retained; (1) OJ No C 68, 11. 3. 1993, p. 8. (2) OJ No C 329, 6. 12. 1993, p. 100. (3) OJ No C 170, 21. 6. 1993, p. 20. (4) OJ No L 185, 15. 7. 1988, p. 29. Whereas the annual agricultural price proposals and any other proposals for measures involving expenditure under the EAGGF Guarantee Section must comply with the limit laid down by the agricultural guideline; Whereas expenditure arising from application of environmental measures in the agricultural sector, the Community aid scheme for forestry measures and the aid scheme for early retirement from farming is multiannual in nature and accordingly is subject to special monitoring; Whereas, if there is a risk of the appropriations in a given chapter being exceeded, corrective measures should be taken to remedy the situation whenever such action might be effective; whereas those measures do not necessarily have an effect on the budget during the budget year concerned and it may be necessary in such circumstances to take measures to  increase appropriations; : Whereas a monetary reserve should be entered in the budget in the form of provisional appropriations in order to deal not only with the financial consequences of movements in the dollar/fecu market rate but also with those of monetary realignments within the European Monetary System; Whereas, with the gradual implementation of the reform of the common agricultural policy, expenditure is likely to be less sensitive to changes in the dollar/ecu rate; whereas the monetary reserve can therefore be reduced from ECU 1000 million to ECU 500 million from 1995; Whereas provision should be made for the possibility of reducing or temporarily suspending the monthly advances when the information communicated by the Member States does not enable the Commission to confirm that the Community rules applicable have been observed or indicates a clear misuse of Community funds; Whereas the institutions have agreed that a reserve relating to Community loans and loan guarantees to non-member countries and in those countries must be entered in the budget in the form of provisional appropriations so that the Guarantee Fund set up by Council Regulation (EC, Euratom) No 2728/94 of