§ Mr. Spearingasked the Secretary of State for Foreign and Commonwealth Affairs if, under Article 203 of the Treaty of Rome, as amended, a refusal by the EEC Assembly to accept a budget means that the budget of the previous year is applicable for a second year.
§ Mr. JuddThe contingency to which my hon. Friend refers is covered in Article 204 of the Treaty of Rome, as amended by the Treaty of 22nd July 1975. Article 204 states that, if the budget has not been voted by the start of the Community's financial year—i.e., 1st January—a sum equivalent to not more than one-twelfth of the budget appropriations for the preceding financial year may be spent each month. However, subject to certain qualifications stated in Article 204, the Council may authorise expenditure in excess of one-twelfth.