Regulation 1976/1172 - Financial mechanism - Main contents

official title

 

Legal instrument	Regulation
Number legal act	Regulation 1976/1172
Original proposal	COM(1975)410
CELEX number i	31976R1172

Avis juridique important

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Council Regulation (EEC) No 1172/76 of 17 May 1976 setting up a financial mechanism

Official Journal L 131 , 20/05/1976 P. 0007 - 0009

Greek special edition: Chapter 10 Volume 1 P. 0106

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( 1 ) OJ N C 7 , 12 . 1 . 1976 , P . 17 .

( 2 ) OJ N L 94 , 28 . 4 . 1970 , P . 19 .

( 3 ) OJ N L 116 , 1 . 5 . 1973 , P . 1 .

( 4 ) OJ N L 106 , 12 . 5 . 1971 , P . 1 .

( 5 ) OJ N L 3 , 5 . 1 . 1971 , P . 1 .

COUNCIL REGULATION ( EEC ) N 1172/76

OF 17 MAY 1976

SETTING UP A FINANCIAL MECHANISM

THE COUNCIL OF THE EUROPEAN COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY , AND IN PARTICULAR ARTICLE 235 THEREOF ,

HAVING REGARD TO THE PROPOSAL FROM THE COMMISSION ,

HAVING REGARD TO THE OPINION OF THE EUROPEAN PARLIAMENT ( 1 ) ,

WHEREAS CONDITIONS INCOMPATIBLE WITH THE PROPER FUNCTIONING OF THE COMMUNITY COULD ARISE WHEN A MEMBER STATE'S ECONOMY , WHILST IN A SPECIAL SITUATION , IS FORCED TO BEAR A DISPROPORTIONATE BURDEN IN THE FINANCING OF THE COMMUNITY BUDGET ;

WHEREAS , IN ACCORDANCE WITH THE GUIDELINES LAID DOWN BY THE HEADS OF GOVERNMENT AT PARIS ON 10 DECEMBER 1974 AND ELABORATED BY THEM IN DUBLIN ON 10 AND 11 MARCH 1975 , SUCH CONDITIONS SHOULD BE PREVENTED FROM ARISING DURING THE PROCESS OF CONVERGENCE OF THE ECONOMIES OF THE MEMBER STATES BY PROVIDING THAT A PAYMENT SHOULD BE MADE FROM THE BUDGET OF THE COMMUNITIES TO THE MEMBER STATE IN QUESTION ;

WHEREAS THE TREATY MAKES NO PROVISION FOR SPECIFIC POWERS TO CREATE SUCH A FINANCIAL MECHANISM ; WHEREAS , THEREFORE , ARTICLE 235 MUST BE USED FOR THIS PURPOSE ,

HAS ADOPTED THIS REGULATION :

ARTICLE 1

A FINANCIAL MECHANISM IS HEREBY SET UP , UNDER THE CONDITIONS SET OUT IN THE FOLLOWING ARTICLES , CONSISTING OF PAYMENTS FROM THE BUDGET OF THE COMMUNITIES TO MEMBER STATES IN A SPECIAL ECONOMIC SITUATION WHOSE ECONOMIES BEAR A DISPROPORTIONATE BURDEN IN THE FINANCING OF THAT BUDGET .

ARTICLE 2

ON A REASONED APPLICATION FROM A MEMBER STATE , SUBMITTED NOT LATER THAN 30 JUNE , THE COMMISSION SHALL ASSESS THE FACTS OF THE SITUATION HAVING ESTABLISHED , ON THE BASIS OF PROVISIONAL DATA , THAT THE FOLLOWING CONDITIONS ARE MET SIMULTANEOUSLY :

( A ) THE PER CAPITA GROSS NATIONAL PRODUCT ( GNP ) OF THE MEMBER STATE IS LESS THAN 85 % OF THE AVERAGE PER CAPITA GNP FOR THE COMMUNITY ;

( B ) THE GROWTH RATE OF THE PER CAPITA GNP IN REAL TERMS OF THE MEMBER STATE IS LESS THAN 120 % OF THE AVERAGE RATE FOR THE COMMUNITY ;

( C ) THE PAYMENTS MADE BY THE MEMBER STATE TO THE BUDGET OF THE COMMUNITIES FOR THE FINANCIAL YEAR IN PROGRESS PURSUANT TO DECISION 70/243/ECSC , EEC , EURATOM OF 21 APRIL 1970 ON THE REPLACEMENT OF FINANCIAL CONTRIBUTIONS FROM MEMBER STATES BY THE COMMUNITIES' OWN RESOURCES ( 2 ) , EXCEED BY MORE THAN 10 % THE AMOUNT IT WOULD HAVE TO PAY IF THE PART OF THE BUDGET COVERED BY THE AFOREMENTIONED DECISION WERE FINANCED BY THE MEMBER STATES ON THE BASIS OF THE PROPORTION OF THEIR GNP TO THE TOTAL GNP OF THE MEMBER STATES FOR THE SAME FINANCIAL YEAR .

THE FIGURES REFERRED TO IN ( A ) AND ( B ) SHALL BE CALCULATED , AS MOVING AVERAGES , FROM THE RESULTS FOR THE PREVIOUS THREE YEARS .

THE CALCULATIONS PROVIDED FOR IN THIS ARTICLE SHALL BE MADE USING CURRENT MARKET EXCHANGE RATES .

ARTICLE 3

ON ASSESSING THE FACTS OF THE SITUATION , THE COMMISSION SHALL IF NECESSARY ENTER IN AN APPROPRIATE SUBDIVISION OF THE PRELIMINARY DRAFT BUDGET FOR THE YEAR FOLLOWING THE YEAR IN WHICH THE MEMBER STATE'S APPLICATION WAS MADE AN APPROPRIATION EQUAL TO THE PROVISIONAL AMOUNT OF THE PAYMENT , CALCULATED AS FOLLOWS :

( A ) THE EXCESS AMOUNT DETERMINED IN ACCORDANCE WITH ARTICLE 2 ( C ) SHALL BE DIVIDED INTO TRANCHES EQUAL TO 5 % OF THE AMOUNT REFERRED TO IN ARTICLE 2 ( C ) IN FINE ; FOR THE TRANCHES THUS OBTAINED , THE PAYMENT SHALL BE AS FOLLOWS :

TRANCHES PAYMENT

_ FROM 0 TO 5 % ... NIL

_ FROM 5 * 0001 % TO 10 % ... 50 %

_ FROM 10 * 0001 % TO 15 % ... 60 %

_ FROM 15 * 0001 %...

This text has been adopted from EUR-Lex.

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