Budgetary treaties of the European Communities
Encyclopedia
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
(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 still has the last word on compulsory spending while Parliament has the last word on non-compulsory spending.
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
. Parliament is responsible for discharging the implementation of previous budgets, on the basis of the annual report of the European Court of Auditors
. It has refused to approve the budget only twice, in 1984 and in 1998. On the latter occasion it led to the resignation of the Santer Commission
.
Treaty of Rome
The Treaty of Rome, officially the Treaty establishing the European Economic Community, was an international agreement that led to the founding of the European Economic Community on 1 January 1958. It was signed on 25 March 1957 by Belgium, France, Italy, Luxembourg, the Netherlands and West Germany...
in respects to powers over the Community budget.
The first treaty, signed in 1970, gave the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...
the last word on what is known as "non-compulsory expenditure" (compulsory spending is that resulting from EC treaties
Treaties of the European Union
The Treaties of the European Union are a set of international treaties between the European Union member states which sets out the EU's constitutional basis. They establish the various EU institutions together with their remit, procedures and objectives...
(including agriculture
Common Agricultural Policy
The Common Agricultural Policy is a system of European Union agricultural subsidies and programmes. It represents 48% of the EU's budget, €49.8 billion in 2006 ....
) 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
European Court of Auditors
The Court of Auditors is the fifth institution of the European Union . It was established in 1975 in Luxembourg to audit the accounts of EU institutions...
. However, the Council still has the last word on compulsory spending while Parliament has the last word on non-compulsory spending.
As a result of these treaties, the budgetary authority of what is now the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
is held jointly by the Council of the European Union
Council of the European Union
The Council of the European Union is the institution in the legislature of the European Union representing the executives of member states, the other legislative body being the European Parliament. The Council is composed of twenty-seven national ministers...
and the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...
. Parliament is responsible for discharging the implementation of previous budgets, on the basis of the annual report of the European Court of Auditors
European Court of Auditors
The Court of Auditors is the fifth institution of the European Union . It was established in 1975 in Luxembourg to audit the accounts of EU institutions...
. It has refused to approve the budget only twice, in 1984 and in 1998. On the latter occasion it led to the resignation of the Santer Commission
Santer Commission
The Santer Commission was the European Commission in office between 23 January 1995 and 15 March 1999. The administration was led by Jacques Santer ....
.