Budgetary treaties of the European Communities

Last updated
Budgetary Treaty of 1970
Treaty amending Certain Budgetary Provisions of the Treaties establishing the European Communities and of the Treaty establishing a Single Council and a Single Commission of the European Communities
Signed22 April 1970
Location Luxembourg City, Luxembourg
Effective1 January 1971
Signatories The Six
Budgetary Treaty of 1975
Treaty amending Certain Financial Provisions of the Treaty establishing the European Communities and of the Treaty establishing a Single Council and a Single Commission of the European Communities
Signed22 July 1975
Location Brussels, Belgium
Effective1 June 1977
Signatories All then-9 EC members

The Budgetary treaties of the European Communities were two treaties in the 1970s amending the Treaty of Rome in respects to powers over the Community budget.

The first treaty, signed in 1970, gave the European Parliament the last word on what is known as "non-compulsory expenditure" (compulsory spending is that resulting from EC treaties or from legislation adopted pursuant to the treaties (including agriculture) and international agreements; the rest is non-compulsory). The second treaty, signed in 1975, gave Parliament the power to reject the budget as a whole and created the European Court of Auditors. However, the Council continued to have the last word on compulsory spending (in that it could over-rule Parliament's amendments by a qualified majority) while Parliament continued to have the last word (within a maximum rate of increase) on non-compulsory spending. [1] [2]

As a result of these treaties, the budgetary authority of what is now the European Union is held jointly by the Council of the European Union and the European Parliament. However, the detailed procedures were later changed by the Lisbon Treaty which provided that Parliament and Council must jointly agree on all items of expenditure, abolishing the distinction between compulsory and non-compulsorey expenditure.

Parliament is also responsible for giving discharge to the European Commission on the implementation of previous year's budget, on the basis of the annual report of the European Court of Auditors. It has refused to give discharge twice, in 1984 and in 1998. On the latter occasion this led to the resignation of the Santer Commission. [3]

See also

Related Research Articles

<span class="mw-page-title-main">Council of the European Union</span> Institution of the European Union

The Council of the European Union, often referred to in the treaties and other official documents simply as the Council, and informally known as the Council of Ministers, is the third of the seven Institutions of the European Union (EU) as listed in the Treaty on European Union. It is one of two legislative bodies and together with the European Parliament serves to amend and approve or veto the proposals of the European Commission, which holds the right of initiative.

<span class="mw-page-title-main">European Union</span> Supranational political and economic union of 27 states

The European Union (EU) is a supranational political and economic union of 27 member states that are located primarily in Europe. The union has a total area of 4,233,255 km2 (1,634,469 sq mi) and an estimated total population of over 448 million. The EU has often been described as a sui generis political entity combining the characteristics of both a federation and a confederation.

<span class="mw-page-title-main">European Economic Community</span> Former international organisation

The European Economic Community (EEC) was a regional organisation created by the Treaty of Rome of 1957, aiming to foster economic integration among its member states. It was subsequently renamed the European Community (EC) upon becoming integrated into the first pillar of the newly formed European Union in 1993. In the popular language, however, the singular European Community was sometimes inaccurately used in the wider sense of the plural European Communities, in spite of the latter designation covering all the three constituent entities of the first pillar.

<span class="mw-page-title-main">European Parliament</span> Directly elected legislature of the European Union

The European Parliament (EP) is one of the legislative bodies of the European Union and one of its seven institutions. Together with the Council of the European Union, it adopts European legislation, following a proposal by the European Commission. The Parliament is composed of 705 members (MEPs). It represents the second-largest democratic electorate in the world, with an electorate of 375 million eligible voters in 2009.

<span class="mw-page-title-main">European Commission</span> Executive branch of the European Union

The European Commission (EC) is part of the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission headed by a President. It includes an administrative body of about 32,000 European civil servants. The Commission is divided into departments known as Directorates-General (DGs) that can be likened to departments or ministries each headed by a Director-General who is responsible to a Commissioner.

<span class="mw-page-title-main">European Committee of the Regions</span> Institution of the European Union

The European Committee of the Regions (CoR) is the European Union's (EU) assembly of local and regional representatives that provides sub-national authorities with a direct voice within the EU's institutional framework.

<span class="mw-page-title-main">European Court of Auditors</span> Institution of the European Union

The European Court of Auditors is the supreme audit institution of the European Union (EU). It was established in 1975 in Luxembourg and is one of the seven EU institutions. The Court comprises one member from each EU member state supported by approximately 800 civil servants.

<span class="mw-page-title-main">Santer Commission</span> European Commission between 23 January 1995 and 15 March 1999

The Santer Commission was the European Commission in office between 23 January 1995 and 15 March 1999. The administration was led by Jacques Santer.

<span class="mw-page-title-main">Institutions of the European Union</span> Decision-making bodies of the European Union

The institutions of the European Union are the seven principal decision-making bodies of the European Union and the Euratom. They are, as listed in Article 13 of the Treaty on European Union:

<span class="mw-page-title-main">Politics of the European Union</span> Political system of the European Union

The political structure of the European Union (EU) is similar to a confederation, where many policy areas are federalised into common institutions capable of making law; the competences to control foreign policy, defence policy, or the majority of direct taxation policies are mostly reserved for the twenty-seven state governments. These areas are primarily under the control of the EU's member states although a certain amount of structured co-operation and coordination takes place in these areas. For the EU to take substantial actions in these areas, all Member States must give their consent. Union laws that override State laws are more numerous than in historical confederations; however, the EU is legally restricted from making law outside its remit or where it is no more appropriate to do so at a state or local level (subsidiarity) when acting outside its exclusive competences. The principle of subsidiarity does not apply to areas of exclusive competence.

<span class="mw-page-title-main">Alain Lamassoure</span> French politician

Alain Lamassoure is a French politician and Member of the European Parliament for the south-west of France. He was a member of Les Républicains, which is part of the European People's Party, and was the chairman of the European Parliament's Committee on Budgets from July 2009 until June 2014.

<span class="mw-page-title-main">Delors Commission</span> 1st Commission of the European Union

The Delors Commission was the administration of Jacques Delors, the eighth President of the European Commission. Delors presided over the European Commission for three terms. The first term lasted from 1985 to 1988, the second until 1992 and the final one until 1994, making Delors the longest serving president, and his Commission is also seen as the most successful at advancing European integration. It was the only Commission to serve three times, and Delors served five two-year terms. The third Commission was the first Commission of the European Union, the Maastricht Treaty having come into force in 1993.

The Committee on Budgetary Control (CONT) is a committee of the European Parliament. with 30 permanent members. It can be seen as the European Union's internal "political watchdog", seeking to identify undesirable developments within EU institutions and other bodies and then to elaborate constructive suggestions for improvement.

<span class="mw-page-title-main">European Union legislative procedure</span> Procedures for the adoption of legislation in the European Union

The European Union adopts legislation through a variety of legislative procedures. The procedure used for a given legislative proposal depends on the policy area in question. Most legislation needs to be proposed by the European Commission and approved by the Council of the European Union and European Parliament to become law.

<span class="mw-page-title-main">Budget of the European Union</span> Monetary budget of the EU

The budget of the European Union is used to finance EU funding programmes and other expenditure at the European level.

A government budget is a projection of the government's revenues and expenditure for a particular period of time often referred to as a financial or fiscal year, which may or may not correspond with the calendar year. Government revenues mostly include taxes while expenditures consist of government spending. A government budget is prepared by the government or other political entity. In most parliamentary systems, the budget is presented to the legislature and often requires approval of the legislature. Through this budget, the government implements economic policy and realizes its program priorities. Once the budget is approved, the use of funds from individual chapters is in the hands of government ministries and other institutions. Revenues of the state budget consist mainly of taxes, customs duties, fees and other revenues. State budget expenditures cover the activities of the state, which are either given by law or the constitution. The budget in itself does not appropriate funds for government programs, hence need for additional legislative measures. The word budget comes from the Old French bougette.

European Union (EU) concepts, acronyms, and jargon are a terminology set that has developed as a form of shorthand, to quickly express a (formal) EU process, an (informal) institutional working practice, or an EU body, function or decision, and which is commonly understood among EU officials or external people who regularly deal with EU institutions.

<span class="mw-page-title-main">History of the European Union (1993–2004)</span> Aspect of history

The history of the European Union between 1993 and 2004 was the period between its creation and the 2004 enlargement. The European Union was created at the dawn of the post–Cold War era and saw a series of successive treaties laying the ground for the euro, foreign policy and future enlargement. Three new member states joined the previous twelve in this period and the European Economic Area extended the reach of the EU's markets to three more.

<span class="mw-page-title-main">Treaty of Lisbon</span> 2007 treaty amending the constitutional basis of the European Union

The Treaty of Lisbon is an international agreement that amends the two treaties which form the constitutional basis of the European Union (EU). The Treaty of Lisbon, which was signed by all EU member states on 13 December 2007, entered into force on 1 December 2009. It amends the Maastricht Treaty (1992), known in updated form as the Treaty on European Union (2007) or TEU, as well as the Treaty of Rome (1957), known in updated form as the Treaty on the Functioning of the European Union (2007) or TFEU. It also amends the attached treaty protocols as well as the Treaty establishing the European Atomic Energy Community (EURATOM).

<span class="mw-page-title-main">Budget accountability in the European Union</span>

The European Union employs a variety of public accountability measures to review and reform budgets across government. As the EU's budget is at risk of maladministration, every year the Court of Auditors reports on the management of the budget. European Union auditors have stated that as they implement more transparency and double-entry book-keeping systems, it is likely to improve budget management.

References

  1. "Budgetary power". European Parliament . Retrieved 2007-06-12.
  2. "How is the budget decided?". European Parliament. Archived from the original on 2007-05-20. Retrieved 2007-06-12.
  3. "Budgetary control: 1996 discharge raises issue of confidence in the Commission". Europa (web portal). 1999. Retrieved 2007-10-15.