§ Mr. Gouldasked the Prime Minister what additional powers over expenditure have been granted to the European Assembly since the United Kingdom joined the European Economic Community; and what has been the increase in the burden of European Economic Community taxation over the same period.
§ The Prime MinisterSince the United Kingdom's accession on 1 January 1973, there has only been one treaty which gave additional powers over expenditure to the European Parliament. This was the
Treaty amending certain financial provisions of the Treaties establishing the European Community and of the Treaty establishing a single Council and a single Commission of the European Communitiessigned on 22 July 1975. A copy of this treaty is in the Library of the House. The main additional powers given to the Parliament under this treaty were as follows:
- (i) The Parliament, acting by a majority of its members and two-thirds of the votes cast, can if there are important reasons reject the draft budget and ask for a new draft to be submitted to it.
- (ii) If the draft budget has not been adopted by 31 December and the monthly one-twelfths system, as foreseen in Article 204 of the Treaty of Rome, is in operation, the Parliament can decide to spend more than the monthly one-twelfth for non-obligatory chapters which previously was decided by the Council.
- (iii) The original Treaty provided that the discharge to the Commission in respect of the implementation of the budget would be granted by the Council and the Parliament. The Treaty on 22 July 1975 gave that power wholly to the European Parliament, acting on a recommendation from the Council.
The budget of the European Economic Community, which is financed by member states, has increased from 5,134 meua—approximately £2,580 million—in 1973 to 25,361 mecu — approximately £14,920 million — in 1984.
NOTE: Exchange rates used:
1973: £1 = 1.99 European units of account.
1984: £1 = 1.7 European currency units.