European Communities financial report 1988

Abstract

The first financial report of the Communities was warmly welcomed. It is now my pleasure to publish this, the report for 1988. The year 1988 was the first for which the principles of budgetary discipline defined at the Copenhagen and Brussels Summits were applied. In June the Financial Regulation was modified to reinforce the idea of annuality in the budget by, among other things, setting stricter controls on carrying forward appropriations and enforcing the cancellation of unused appropriations. Tighter controls on agricultural spending and the strengthening of the early-warning system together with the introduction of management measures and 'stabilizers' all contributed to the better results in this sector. The year 1988 also saw the introduction of the new system of revenue designed to bring the budget into balance. While the new revenue arrangements were being finalized the additional funding was provided by an intergovernmental agreement, a part of which was not paid over until 1989 and is therefore not reflected in the results of the year 1988