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Chapter 29 - Finance and Budgetary Provisions
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December 2004

Background - Main elements of the Financial and Budgetary Provisions acquis

The acquis in the field of financial and budgetary provisions effectively covers the rules concerning the organisation, the establishment and the implementation of the EU budget. The acquis under this chapter consists of regulations and decisions (e.g. the financial regulation, and the own resources decision) which will be directly applicable by candidate countries upon accession and, therefore, do not require transposition into their national legislation.

However, the effective application of these regulations and decisions by the day of accession has to be ensured. This will to a large degree depend on measures covered by other chapters of the acquis. For example, the ability to adequately establish the traditional own resources (customs and agricultural duties) will mainly depend on progress under the customs and agriculture chapters; the basis for the correct calculation of the GNI-based contribution to the EU budget is covered by the statistics chapter; the VAT-based contribution will depend to a large degree on the chapter taxation, and measures needed to ensure adequate protection of the Community's financial interests are mainly covered by the financial control chapter.

Effective administrative capacity for the co-ordination, calculation, collection, payment and control of own resources also has to be assured. This administrative function is usually carried out through a central co-ordinating 'Own Resource Unit' in the Finance Ministry and is the main area of preparatory action directly required of the candidate countries under this chapter.

Though the acquis imposes no set model for the organisation and working of a country's public finances, every appropriate step must be taken to guarantee the sound financial management of Community budget resources. The specific national financial and budgetary measures needed to guarantee the proper implementation of the various Community spending programmes must be examined and their application monitored in the context of negotiations on the relevant chapters.

State of play

The financial and budgetary provisions chapter has been closed in the ten new member states in December 2002 and with Bulgaria and Romania in December 2004. In general terms, Bulgaria and Romania are in the process of establishing and developing the necessary central co-ordinating 'Own Resources Units' referred to above and are bringing budgetary legislation, systems and procedures in line with EU norms. The Commission will monitor up to accession the level of preparedness of these countries to apply the EU system of own resources and will continue to provide technical assistance where necessary.

For the state of play concerning the necessary changes required for customs, VAT and the alignment with EU statistical norms (ESA 95), please refer to the appropriate chapters.

Following agreement on an overall financial package for the three year period 2007-2009 worth over €15 billion in favour of Bulgaria and Romania, both countries withdrew their requests for transitional arrangements for own resources contributions. With this financial package, both countries can expect to be significant net beneficiaries of the EU budget.

Compliance with the acquis

The latest assessment of each candidate country’s compliance with the acquis under this chapter heading, can be found in the 2003 Regular Reports, available at:
http://ec.europa.eu/enlargement/archives/key_documents/reports_2004_en.htm .

Country by country

Bulgaria

  • Chapter opened: second half of 2001
  • Status: closed in December 2004 (provisionally closed June 2004)

Cyprus (New Member State)

  • Chapter opened: first half of 2000
  • Status: Closed December 2002

Czech Republic (New Member State)

  • Chapter opened: first half of 2000
  • Status: Closed December 2002

Estonia (New Member State)

  • Chapter opened: first half of 2000
  • Status: Closed December 2002

Hungary (New Member State)

  • Chapter opened: first half of 2000
  • Status: Closed December 2002

Latvia (New Member State)

  • Chapter opened: first half of 2001
  • Status: Closed December 2002

Lithuania (New Member State)

  • Chapter opened: first half of 2001
  • Status: Closed December 2002

Malta (New Member State)

  • Chapter opened: first half of 2001
  • Status: Closed December 2002

Poland (New Member State)

  • Chapter opened: first half of 2000
  • Status: Closed December 2002

Romania

  • Chapter opened: December 2002
  • Status: closed in December 2004 (provisionally closed June 2004)

Slovakia (New Member State)

  • Chapter opened: first half of 2001
  • Status: Closed December 2002

Slovenia (New Member State)

  • Chapter opened: first half of 2000
  • Status: Closed December 2002
- updated: 17/12/2004
 
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