9.2.91 Official Journal of the European Communities No L 37/5 COUNCIL REGULATION (EEC) No 307/91 of 4 February 1991 on reinforcing the monitoring of certain expenditure chargeable to the Guarantee Section of the European Agricultural Guidance and Guarantee Fund THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parli- ament {'), Whereas, pursuant to Article 8 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (), as last amended by Regulation (EEC) No 2048/88 (*), Member States are to take the measures necessary to satisfy themselves that the transactions financed by the European Agricultural Guidance and Guarantee Fund (EAGGF) are actually carried out and are executed correctly, to prevent and deal with irregularities and to recover sums lost as a result of irregularities or negligence ; Whereas the monitoring and detection of fraud and ir- regularities in connection with exports of agricultural products, products exported as goods not falling within Annex II to the Treaty and measures applicable to certain sectors or certain products must be reinforced ; Whereas the Member States must be encouraged to take measures to step up controls in these areas; Whereas the resulting financial effort may, for some Member States, entail considerable additional budget expenditure, not least with regard to the requirements in respect of the nature and frequency of checks on goods laid down by Regulation (EEC) No 386/90 (*), and provi- sion should be made for a Community financial contribu- tion over a certain period; Whereas account must be taken of the diversity of the administrative structures existing in the Member States ; whereas the latter should therefore be authorized to take reinforcement measures in accordance with differing procedures, () OJ No C 324, 24. 12. 1990. () OJ No L 94, 28. 4. 1970, p. 13. () OJ No L 185, 15. 7. 1988, p. 1. () OJ No L 42, 16. 2. 1990, p. 6. HAS ADOPTED THIS REGULATION : Article 1 1.  Where a Member State, in accordance with para- graph 2, reinforces the monitoring and detection of fraud and irregularities in connection with exports of agricul- tural products and products exported as goods not falling within Annex II to the Treaty, the Commuity shall, during a period of five years beginning on the first day of the month following entry into force of this Regulation, bear part: — of the remuneration of the agents referred to in para-- graph 2 occupying supplementary posts created after the entry into force of this Regulation, which is to be fixed on a flat-rate basis throughout the Community, — of the cost of training and briefing agents employed on the duties referred to in paragraph 2. — of the cost of equipping agents employed on the duties referred to in paragraph 2, — of the costs arising from the monitoring work entrusted to the approved surveillance firms and lab- oratories referred to in paragraph 2, up to a total amount of ECU 10 million per year. The Community financial contribution shall be 50 % for the first three years and 25 % for fourth and fifth years. This amount shall, each year, be allocated by the Commission among the Member States which apply therefor, in proportion to their average expenditure on export refunds for agricultural products and for agricul- tural products exported as goods not falling within Annex II to the Treaty, as taken into account for the last two financial years, within the meaning of Article 101 of the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (%), as last amended by Regulation (Euratom, ECSC, EEC) No 610/90 (). However, during the first three years, the amount applied by way of expenditure on refunds shall be at least equivalent, in the case of Spain, to two-thirds of the amount taken into account for Italy and, in the case of Portugal, to two-thirds of the amount taken into account for Greece. () OJ No L 356, 31. 12. 1977, p. 1. (9 OJ No L 70, 16. 3. 1990, p. 1.