15.7.88 Official Journal of the European Communities No L 185/3 COUNCIL REGULATION (ECSC, EEC, EURATOM) No 2049/88 of 24 June 1988 amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities THE COUNCIL OF THE EUROPEAN COMMUNITIES., Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 78h thereof, Having regard to the Treaty establishing the European Economic Community, and in particular Article 209 thereof, Having regard to the Treaty establishing the Eufopean Atomic Energy Community, and in particular Article 183 thereof, Having regard to the proposal from the Commission (*), Having regard to the opinion of the European Parliament (2), Having regard to the opinion of the Court of Auditors (3), Whereas the conciliation provided for in the Joint Declaration of 4 March 1975 of the European Parliament, the Council and the Commission (*) took place in a Conciliation Committee; Whereas the Financial Regulation of 21 December 1977 (%), as last amended by Regulation (ECSC, EEC, Euratom) No 1600/88 (¢}, must be amended to give effect to the conclusions of the Brussels European Council of 11 to 13 February 1988 concerning stricter annual management of appropriations, the financing arrangements for the common agricultural policy and the possibility of entering a ‘negative reserve’ when the budget is established; Whereas, in the interests of improved budgetary management and greater transparency of appropriations, differentiated appropriations unused at the end of the financial year should as a rule lapse; whereas, however, the Commission should be empowered to effect some carry-overs on the basis of specific criteria; whereas certain appropriations which have been released from commitment may be made available again only on the basis of specific criteria and only after a Commission decision; Whereas the strengthening of the principles of annuality cannot call into question the achievement of the objectives fixed for the Communities’ policies; (1) OJ No C 99, 14. 4. 1988, p. 9. (2) Opinion delivered on 16 June 1988 (not yet published in the Official Journal). (3) OJ No C 166, 25. 6. 1988, p. 3. (*) O] No C 89, 22. 4. 1975, p. 1. () OJ No L 356, 31. 12. 1977, p. 1. (%) O] No L 143, 10. 6. 1988, p. 1. Whereas the Financial Regulation must reflect the arrangements for-financing the Guarantee Section of -the European Agricultural Guidance and -Guarantee Fund (EAGGF) to take account of the amendments to Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (7), as last amended by Regulation (EEC) No 2048/88 (&); Whereas an appropriate provision must be inserted to allow a negative reserve limited to a specific amount to be entered in the budget, HAS ADOPTED THIS REGULATION: Article 1 The Financial Regulation of 21 December 1977 is hereby amended as follows: 1. In Article 1, the following paragraph 3a is inserted: ‘3a. The legal commitments entered into for measures extending over more than one financial year shall contain a time limit for implementation which must be specified to the recipient in due form when the aid is granted. This time limit shall be determined with due regard to the need for multiannual implementation of the operations financed and the specific conditions of implementation in relation to the various spheres of intervention. The Commission may, in special circumstances, adjust the time limit for implementation of these commitments, on the basis of appropriate proof supplied by the recipients.’ 2. In Article 6, point 2 is replaced by the following: ‘2. In the case of budget headings where a distinction is made between commitment appropriations and payment appropriations, commitment appropriations and payment appropriations which have not been used at the end of the financial year (") OJ No L 94, 28. 4. 1970, p. 13. (*) See page 1 of this Official Journal.