Amended proposal for a Council Regulation (Euratom, ECSC, EC) amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities
COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 28. 10. 1997 COM(97) 542 final 96/0189 (CNS) AMENDED PROPOSAL FOR A COUNCIL REGULATION (Euratom, ECSC, EC) amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (presented by the Commission pursuant to Article 189a(2) of the EC Treaty and the second paragraph of Article 119 of the Euratom Treaty) EXPLANATORY MEMORANDUM 1. On 26 July 1996 the Commission approved a proposal1 for the amendment of the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities2 on the basis of its recommendations under the plan to improve financial management (SEM 2000). Parliament delivered its opinion on this proposal at the 14-18 July part-session. It called for a number of amendments, most of which the Commission is able to accept. 3 The Court of Auditors was also consulted under Article 209 of the EC Treaty. It gave its opinion on 10 July 1997. 4 2. With the exception of some purely stylistic alterations, the main amendments proposed by Parliament which the Commission has incorporated in this amended proposal concern the points listed below: (a) the principle that where commitments are cancelled, amounts unduly paid are to be recovered and that interest will accrue in respect of those amounts as of the due date set out in the debit note; (b) tightening of the provisions governing the delegation or sub-delegation of powers to authorise commitments or payments, to require that the rules of procedure of each institution specify the powers delegated; (c) the provisions covering subcontracting are also tightened to rule out the possibility of subcontracting in matters relating to the exercise of European public office; (d) stricter accounting arrangements for the refund of taxes; (e) in connection with Commission decisions which constitute commitment of expenditure, the financial controller shall take the appropriate steps to ensure that the individual legal commitments correspond to the budget commitment from which they derive and may apply spot checks; (f) the financial controller's prior approval of commitment proposals and payment orders may also be granted on the basis of spot checks. 3. The Commission, however, could not accept Parliament's other amendments concerning: 1 COM(96) 351 final. 2 OJ L 356, 31. 12. 1977, p. 1. 3 OJ. 4 OJ. - Article 15(6) (supplementary and/or amending budgets), since this amendment concerns a matter that has already been resolved by the Council's adoption of Regulation (. )5; - Article 22(4) (in part), which aims to prevent the exercise of a discretionary power under a Community policy being delegated or subdelegated; this amendment is inappropriate since only delegation within each institution is concerned; - Article 27(6), since Parliament's amendment is inconsistent with the budgetary principle of booking a net amount where prices include tax to be refunded by the Member States; - Article 36(3a) (new), since this amendment deals with conflicts of interest. In relation to the Commission, the main party concerned by the amendment, this is an area already covered by the SEM 2000 programme; - Article 38(1 )(b), since there is no justification for favouring two budgetary principles in the matter of the correct charging of expenditure; - Article 39, as this amendment unduly limits the power of each institution to overrule a decision by its financial controller to withhold approval; - Article 58(3), as it is too rigid with regard to the treatment of tenders in public procurement procedures. 4. The Court of Auditors opinion made no concrete amendments to the Commission's initial proposal, but some of the Court's comments covered amendments by Parliament which the Commission has accepted (Articles 22(4a), 24, 37, 47,112). The Court recommends a complete revision of the Financial Regulation and offers a critical analysis of the current text. The Commission will certainly take account of this study and begin its own assessment of a possible recasting of the Financial Regulation. * * The Commission, in accordance with Article 189a(2) of the EC Treaty and the second paragraph of Article 119 of the Euratom Treaty, has drawn up this amended proposal which is being presented for the continuation of the procedure. Revision of the Financial Regulation following the changes to the system for the clearance of the EAGGF Guarantee Section accounts. AMENDED PROPOSAL FOR A COUNCIL REGULATION (Euratom, ECSC, EC) amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (presented by the Commission pursuant to Article 189a(2) of the EC Treaty and the second paragraph of Article 119 of the Euratom Treaty) In the light of the opinions of Parliament and the Court of Auditors the Commission has amended its proposal as follows: INITIAL PROPOSAL (COM(96)351 final of 26. 7. 1996) AMENDED PROPOSAL THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 78h thereof, Having regard to the Treaty establishing the European Community, and in particular Article 209 thereof, Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 183 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Court of Auditors, Having regard European Parliament, to the opinion of the Whereas the conciliation instituted by the joint declaration of 4 March 1975 by the European Parliament, the Council and the Commission has taken place within a conciliation committee; Whereas 21 December 1977 the Financial Regulation of the applicable to INITIAL PROPOSAL (COM(96)351 final of 26. 7. 1996) AMENDED PROPOSAL budget general the European of Communities1 ('the Financial Regulation') must be amended to improve financial management within the institutions; Whereas the management of commitments is sometimes subject to considerable delays and the control of ongoing commitments must therefore be strengthened; Whereas there must be strict control of the subdelegation of powers to sign financial documents; whereas staff who exercise powers which are not delegated or subdelegated to them or exercise powers in excess of the limits of the powers expressly conferred on them must be made liable to disciplinary action and, where appropriate, to payment of compensation; Whereas, if management of Community programmes is subcontracted, this must be governed by appropriate provisions to guarantee the transparency of operations and lay down the procedure for the entry in the accounts of the funds generated and available the in programmes in question; financing for use the financial controller Whereas is responsible for the internal audit of his institution; whereas, in this respect, he must be consulted about setting up and altering inventory systems and systems of financial management used by the authorising officers; whereas the analysis of financial management should also be submitted to the financial controller; Whereas account must be taken of the deriving requirements the computerised financial systems management; from of 1 OJ L 356, 31. 12. 1977, p. l. Regulation last amended by Council Regulation (EC, Euratom, ECSC) No 2335/95 of 18 September 1995 (OJ L 240, 7. 10. 1995, p. 12). INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL Whereas the system of accounts must be improved; Whereas the Financial Regulation should contain provisions for the entry in the accounts of traditional own resources, which have their own specific features different from the other own resources (VAT and GNP); the institution Whereas the legal comrhitments made by and the accounting to Financial submitted commitments the central recorded Control and accounts must correspond exactly, while leaving a reasonable length of time for the conclusion of the legal commitments in cases where the Commission's decisions of principle of as expenditure; commitment count in Whereas time limits should be set for the procedure for overruling the withholding of approval by the financial controller; Whereas, with the introduction of the statement of assurance, it is essential that the discipline required with regard to inventories be strengthened by laying down the respective duties of the authorising officer and the accounting officer; for the procedure the Whereas authorisation of transfers between chapters in the EAGGF Guarantee Section should the Commission be adjusted additional time to present its proposals for transfer; to allow the Financial IX of Whereas Title Regulation should be amended to bring it into line with the criteria of transparency, publicity and competition contained in the Council directives on the award of contracts and the international agreements to which the European Community is a signatory, INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL HAS ADOPTED THIS REGULATION: Article 1 1. Article 1 is amended as follows: 1. Article 1 is amended as follows: (a) The first subparagraph of paragraph 7 (a) The first subparagraph of paragraph 7 is replaced by the following: is replaced by the following: time "7. The legal commitments entered into for measures extending over more than one financial year and the corresponding commitment proposals shall contain a for implementation which must appear on the commitment proposals and must be specified to the recipient in due form. Any commitments not used six months after this date shall be cancelled in accordance with Article 7(6). "; limit as Commitment "7. proposals submitted pursuant to Article 36 and legal corresponding Ihê commitments, the insofar implementation thereof extends over more than one financial yearr shall for time contain implementation which must be notified to the recipient in due legal form. Commitments not used six this date shall be months after cancelled accordance with in Article 7(6). "; limit a (aa) The third paragraph 7 following: subparagraph replaced by of the is The Commission may, in special circumstances, extend the time limit these implementation far of commitments, where appropriate reasons are given by the recipients. ': (b) A fourth subparagraph is added to (b) A fourth subparagraph is added to paragraph 7 as follows: paragraph 7 as follows: "In this case, the date shall be put back in accordance with the same procedure as that provided for in Articles 36 the commitment proposal and shall be the notified appropriate legal form. ". the recipient for 39 to to in as "In this case, the date shall be adjusted in accordance with the same procedure commitment proposal and shall be notified to the recipient by means of an additional contract or in any other appropriate legal form. ". the 2. Article 7 is amended as follows: (a) In the first indent of point (a) of paragraph 2 is "which replaced by "relating", the semi colon is omitted and "these amounts must" is replaced by "must"; relate" INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL (b) Paragraph 6 i: replaced by the (b) Paragraph 6 is replaced by the following: following: commitments appropriations in budget "When headings where there is a distinction between commitment appropriations are and payment cancelled - as a result of total or the partial non-implementation of projects they were for which earmarked - in any financial year after that in which the commitment appropriations were entered in the budget, the appropriations concerned shall, as a rule, lapse. In addition, any amounts unduly paid shall be recovered. ". for which in budget "When commitments headings where there is a distinction between commitment appropriations and payment appropriations are cancelled - as a result of total or partial non-implementation of the projects they were earmarked - in any financial year after that in which the commitment appropriations were entered in the budget, the appropriations concerned shall, as a rule, lapse. Amounts unduly paid shall be recovered in accordance with the procedures provided for in Articles 28 and 29. Interest shall accrue in respect of those amounts as of the due date set out in the debit note, in accordance implementing measures with provided for in Article 139. ". the \. Article 22 is amended as follows: 3. Article 22 is amended as follows: (a) A fourth subparagraph is added to (a) A fourth subparagraph is added to paragraph 4: paragraph 4: been delegated "Any member of staff who authorises commitments or payments without having or subdelegated the necessary powers or in excess of the limits of the powers expressly conferred upon him shall render himself liable to disciplinary action and, where appropriate, to payment in of accordance with Title V. "; compensation of or subdelegated commitments staff who "Any member authorises or payments without having been the delegated necessary powers in accordance with the institutions' rules of procedure or in excess of the limits of the powers expressly conferred upon him shall render himself liable to action disciplinary and, where of to appropriate, compensation in accordance with Title V. Each institution shall adopt the shall rules which procedure acts of subdelegation. Such acts shall give obligatorily details of the powers conferred,"; payment issuing specify for INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL (b)A new paragraph is inserted: (b) A new paragraph is inserted: "4a. When Commission the subcontracts the implementation of the contracts certain programmes, concluded must all contain appropriate provisions for ensuring the transparency of the subcontracted operations in accordance with the implementing rules provided for in Article 139. for for the the When ensuring contracts "4a. institutions commission an outside person, body or firm to perform a Community and activity. subcontracts concluded that purpose must contain all appropriate provisions the transparency of the contracted and subcontracted operations, and in particular the provisions concerning the etc. generated, the keeping of accounts and the recovery of amounts unduly implementing rules paid. The provided for in Article 139 shall establish the rules intended to ensure Ms regards management of the institutions, regulation of transparency interest as the payments made generate the to If subcontractors interest which may be used to finance the programmes the following procedure shall be applied: question, in than six months, - periodically, at intervals of no more recovery orders shall be issued for the interest generated by these funds, which will then be booked to the statement of revenue; - at the same time, appropriations in the corresponding amount, for both commitments and payments the shall be made available of heading initial expenditure expenditure was charged. ". in statement the the to which of The amounts paid to subcontractors shall be credited to interest-bearing accounts. Without prejudice to any provisions that might be contained in specific basic instruments relating to Community policies the interest in question shall be used to finance these activities. To that ond, the following be procedure applied: shall - periodically, at intervals of no more than six months, recovery orders shall be issued for the interest generated by these funds, which will then be booked to the statement of revenue; - at the same time, appropriations for the corresponding amount, in both commitments and payments the shall be made available of heading initial expenditure expenditure was charged. ". in statement the the to which of The fourth and fifth paragraphs of the Article 24 are following: replaced by 4. The fourth and fifth paragraphs of the Article 24 are following: replaced by INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL inventory systems of "The financial controller must be consulted on the setting up and alteration of the accounting systems the and institution to which he is attached and on the setting up and alteration of the systems of financial management used by authorising officers. He shall have access to the data of such systems. Monitoring shall be carried out by that official by means of inspection of the files relating to expenditure and revenue and, if necessary, on the spot. The financial controller shall be responsible for the internal audit of the institution, in accordance with the implementing rules provided for in Article 139. ". 5. The following paragraph is inserted after in the Article 25: paragraph fourth inventory systems of "The financial controller must be consulted on the setting up and alteration of the accounting systems the and institution to which he is attached and on the setting up and alteration of financial management used by authorising officers. He shall have access to the data of such systems. systems the of Monitoring shall be carried out by that official by means of inspection of the files relating to expenditure and revenue and, if necessary, on the spot. The financial controller shall be responsible for the internal audit of the institution, in accordance with the implementing rules provided for in Article 139. That audit shall include the effectiveness of the management and control systems and verification that operations have been effected in a regular manner. ". assessment of The following paragraph is inserted after in the Article 25: paragraph fourth "The accounting officer must be consulted on the setting up and alteration of the accounting systems of financial management used by authorising officers, where such systems are intended to supply data to the central accounts. He shall, at his request, have access to the data of such systems. ". "The accounting officer shall be consulted on the setting up and alteration of the accounting systems of financial management used by authorising officers, where such systems are intended to supply data to the central accounts. He shall, at his request, have access to the data of such systems. The accounting officer shall also be consulted on the the setting up and alteration of inventory systems. ". 6. Article 27 is amended as follows: >. Article 27 is amended as follows: (a) In paragraph 2, point (f) is deleted and points (g) and (h) become points (f) and (g) respectively. (a) In paragraph 2, point (f) is deleted and points (g) and (h) become points (f) and (g) respectively. INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL (b) The following paragraph is inserted (b) The following paragraph is inserted after paragraph 2: after paragraph 2: "3. Notwithstanding Article 4, where products or services supplied to the Commission incorporate taxes which are refunded by Member States pursuant to the Protocol on Privileges and Immunities, the net price shall be charged to the budget. The refund of these taxes shall be monitored the separately accounts. "; in incorporate "3. Notwithstanding Article 4, where products or services supplied to the Commission taxes which are refunded by Member States pursuant to the Protocol on Privileges and Immunities, the net price shall be charged to the budget. in The refund of these taxes shall be separately monitored the accounts. Such refund shall be recorded by entry of the definitive amount in the institution's accounts at the latest in the year following the financial year it was collected,"; in which (c) Paragraphs 3 and 4 are renumbered 4 (c) Paragraphs 3 and 4 are renumbered and 5 respectively; 4 and 5 respectively; (d) In paragraph 5, which is renumbered 6, the letter (g) is replaced by the letter (f) and the letter (h) by the letter (g). (d) In paragraph 5, which is renumbered 6, the letter (g) is replaced by the letter (0 and the letter (h) by the letter (g). K The following paragraph is added to Article 28: "3. Notwithstanding paragraph 1, no forward estimate shall be made for the own resources defined in Article 2(1) and (2) of Council Decision 94/728, which are paid at fixed the Member States, intervals by before the Member States make the amounts available directly to the Commission. The authorising officer responsible shall issue a recovery order for them. The recovery orders for the revenue referred to at Article 2(1 )(a) and (b) of that Decision shall be based on the monthly statements of entitlements established by the Member States, which they send to the Commission. 10 INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL they have The recovery orders shall be sent to the financial controller for approval. After his approval, they shall be registered by the accounting officer in accordance with the implementing rules provided for in Article 139. ". received 8. Article 36 is amended as follows: 8. Article 36 is amended as follows: (a) The correction in concerns version. the French paragraph 1 language (a) The correction in paragraph 1 language the French concerns version. (b) Paragraphs 2 and 3 are replaced by (b) Paragraphs 2 and 3 are replaced by the following: the following: by taken decisions "2. Without prejudice to Article 99, the the Commission in accordance with the provisions authorising it to grant financial aid from the various funds or similar operations shall constitute commitments of expenditure. Unless these decisions stipulate a different in time accordance with the abovementioned provisions, these commitments shall cover the legal corresponding commitments up to 31 December of year n+L cost individual implementation limit for total the of by taken decisions "2. Without prejudice to Article 99, the the Commission in accordance with the provisions authorising it to grant financial aid from the various funds or similar operations shall constitute commitments of expenditure. Unless these decisions stipulate a different in time limit for implementation the accordance abovementioned provisions, these commitments shall cover the total cost of the corresponding individual legal to 31 December o f year n+I. commitments with up During the period of implementation referred to in the first subparagraph, the conclusion of each individual legal commitment shall be registered by the authorising officer in the central accounts and booked to the commitment referred to in the first subparagraph. During the period of implementation referred to in the first subparagraph, the conclusion of each individual legal commitment shall be registered by the authorising officer in the central accounts and booked to the commitment referred to in the first subparagraph. The financial controller shall take the necessary steps to guarantee adequate control of the separate legal commitments. 11 INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL The unused balance shall be released after the time limit is laid down. The unused balance shall be released after the time limit is laid down. exact account The procedure implementing for paragraphs 1 and 2 shall ensure that is kept of an commitments and authorisations in terms of actual needs and that the commitments specific the overall budget correspond commitment provided for by the Commission decision. The procedure the determined shall implementing rules provided for in Article 139. ". legal to by be 3. account The procedure implementing for paragraphs 1 and 2 shall ensure that is kept of an exact commitments and authorisations in terms of actual needs andr as regards paragraph 2. that the specific legal commitments correspond the to overall commitment provided for by the Commission decision. The procedure shall be determined by implementing the rules provided for in Article 139. ". budget £& The following paragraph is added to Article 37: in for individual to subparagraph "The proposals for commitments referred to in Article 3 6m and the legal proposals commitments referred the. of second Article 36(2) may be subject to spot checks. Such checks shall be carried out under a system which identifies risk sectors, in which there is a high probability that the conditions set in Article 38(1) will not be out Individual commitments fulfilled, shall be checked systematically in risk sectors. ". In Article 39, the second and third paragraphs are the following: replaced by "Cases where approval is withheld and the authorising officer maintains his proposal shall be referred for a decision to the superior authority of institution among the competent those two first paragraphs of Article 22 within two months of the date of the decision to withhold approval. listed the in 12 INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL Except where the availability of the appropriations is in doubt, the said superior authority may, by a decision stating the full reasons therefor, taken on its sole responsibility, overrule such a refusal. This decision shall be final and binding with effect from the approval was date withheld. taken by It must be 15 February of year n+1. It shall be communicated for information to the financial controller. The superior authority of each institution shall inform the Court of Auditors of all such decisions within one month. ". on which 10. shall be added In the third indent of Article 44, the after following "national currency": "However, when payment orders are sent to the banks computerised of by procedures, the amount need not be expressed in words,". means 10a. A third subparagraph is added to Article 46(1) as follows; to authorise "The decision the balance shall be adopted within the time in laid limit Article 1(7),", down 10b. A third paragraph Article 47 as follows: is added to "Prior approval may be given on the basis of a spot check; this shall be carried out under a system which identifies risk sectors, in which there the is a high probability conditions set out in the second paragraph will not be fulfilled. Payment orders shall be checked systematically in risk sectors. ". that 13 INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL iOc. The following article is inserted in Title IV; Article S5a "The power and authority of the institutions to conclude contracts in the performance of tasks involving the exercise of public office may not be ceded or transferred in any way by the institutions to persons or bodies other the European than Community's institutions or bodies set by the European Community. " Two new paragraphs are added to Article second after paragraph: the 65 "The inventory system shall be established by the authorising officer with the technical assistance of the accounting officer. This inventory system, which shall be administered the authorising officer, shall by provide system of accounts with all the appropriate information needed to draw up the institution's balance sheet. the central 11. Three new paragraphs are added to Article 65 after the second paragraph: 11 "The inventory system established and administered by the authorising officer with the technical assistance of the accounting officer and under his shall provide system of accounts with all the appropriate information needed to draw up the institution's balance sheet. the central supervision technical shall For this purpose, the inventory and accounting be systems organised in such a way as to ensure the concordance of the information they each contain and the possibility that operations can be audited from the time the equipment is acquired and entered in the inventory to the time when it is decommissioned or scrapped. to The institutions shall each adopt, for their own purposes, provisions the the keeping of relating equipment their recorded respective balance sheets and shall departments the determine responsible for this task. ". in to The institutions shall each adopt, for their own purposes, provisions the keeping of the relating equipment their recorded respective balance sheets and shall departments the determine responsible inventory for system. ". the in 14 INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL 12. Article 70 is amended as follows: (a) In the first paragraph, the word "budgetary" shall be replaced by "expenditure and revenue". (b) In the second paragraph, point (a) is replaced by the following: "(a) accounts of expenditure and revenue, subdivided into separate two subcategories: - accounts of budgetary expenditure and revenue, which allow implementation of the budget to be monitored and the balance for the financial year to be determined, of non- - accounts expenditure budgetary revenue, which and complement the previous accounts and can be used to produce a broader accounting result. ". 13. The following article is inserted: "Article 70a in the The rules for the entry accounts of the depreciation of assets and the rules for writing down the value of assets and for constituting provisions shall be determined by the implementing rules provided for in Article 139. ". 15 INITIAL PROPOSAI, (COM(96)351 final of 26. 7. 1996) AMENDED PROPOSAL 13a, Article 76 following; is replaced by the and administrators "The liability of authorising officers, financial controllers, accounting accounting Officers, assistant Officers of advance funds to disciplinary action if necessary, payment of and, compensation may be determined in accordance with the provisions of Articles 22 and 86 to 89 of the Staff Regulations of officials of the European Communities. any reports All relevant data or information. including and withholdings of approval by the shall be. controller, financial communicated the authority [Q empowered to initiate the procedure concerning and financial responsibility",. disciplinary 14. Article 79 following: is replaced by the to its transmit financial controller, "Each institution shall, not later than 1 March, the Commission, after submitting them to the information required for drawing up the revenue and expenditure account sheet and a and contribution to the analysis of the financial management referred to in Article 80. ". the balance In Article 104(2), "one month before 31 January" by "luJanuary". replaced is 15. In Article 104(2), "one month' replaced by "21 days". is 15. 16 INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) AMENDED PROPOSAL 16. Article 109(3) following: is replaced by the of the and shall notify "It shall transmit to the Commission the results of the for agreement examination tendering procedure and a proposal for the award of the contract. It shall sign contracts, additions to contracts and estimates the Commission thereof. For contracts, additions to contracts, and estimates, the Commission, where appropriate, individual shall commitments in accordance with the procedures laid down in Articles 36 to 39. Individual commitments shall the commitments count under financing agreements provided for in Article 106(2), in second accordance with subparagraph of Article 36(2). ". towards the enter into the 17. Article 112 following: is replaced by the 17. Article 112 is replaced by the following: Title IV, "Notwithstanding this section shall apply to cases in which the Commission, in connection with external aid financed from the budget of the European Communities, acts as contracting authority in the award of works, supply or service contracts not covered by the Council directives coordinating the award of public works, supply or service contracts or by the Plurilateral Agreement on Government Procurement concluded Trade the within Organisation. ". World "The provisions of this section shall apply instead of those under Title IV to cases in which the Commission, in connection with external aid financed from the budget of the European Communities, acts as contracting authority in the award of works, supply or service contracts not covered: - - the by directives Council coordinating the award of public works, supply or service contracts or by the Plurilateral Agreement on Government Procurement concluded Trade the World within Organisation. ". 17 INITIAL PROPOSAL (COM(96) 351 final of 26. 7. 1996) T AMENDED PROPOSAL 18. Article 113 following: is replaced by the "The procedure to be followed for the award of works, supply or service contracts financed from the budget of for the European Communities recipients of external aid shall be specified in the financing agreement or the following principles. ". the contract, subject to Article 2 This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at. , For the Council The President 18 ISSN 0254-1475 COM(97) 542 final DOCUMENTS EN 12 oi Catalogue number : CB-CO-97-570-EN-C ISBN 92-78-26286-2 Office for Official Publications of the European Communities L-2985 Luxembourg 19