Ministers' Deputies
Notes on the Agenda

Notes(2000)502 26 June 2000
————————————————

717 Meeting, 13 July 2000
11 Administration and Logistics

11.2 General budgetary framework for 2001 - Proposal by the Secretary General to set up an "Intervention Fund"
Item prepared by the GR-AB

Reference documents
CM/Del/Dec(2000)696/11.1c, 715/1.1

CM(2000)83

SG/Inf(2000)1 and 18

GR-AB(2000)CB1 and CB7

————————————————

Action
In the light of the opinion of the Budget Committee and the recommendation of the GR-AB, the Deputies are invited to adopt the attached draft decisions.


————————————————

It is recalled that in his proposed General budgetary framework for 2001 (document SG/Inf(2000)1), the Secretary General stated "For the sake of helping to ensure financing of unexpected activities and continuity of projects which run over several budgetary years, it would be helpful to adopt the decision that ‘financial results’ of the ordinary budget be put automatically into a ‘intervention fund’ - outside the ordinary budget - and be used for purposes decided by the Committee of Ministers acting on proposals from the Secretary General."

At the meeting of the GR-AB held on 11 January 2000 (see the synopsis of that meeting GR-AB(2000)CB1) the Group considered the Secretary General’s proposal for the Budgetary Procedure - Budgetary calendar for 2001. Summing-up the discussion at that meeting, the Chairman noted, inter alia, that the Budget Committee should be invited to advise on the technical aspects of the proposal concerning the financial results of future years. Subsequently, at their 696th Meeting (3 February 2000, Item 11.1c), the Deputies invited the Budget Committee to consider the technical aspects of the Secretary General’s proposal concerning the future financial results of the Ordinary Budget and to report back.

At its May 2000 session, the Budget Committee examined the Secretary Generals proposal. Paragraphs 33-37 of the report of that meeting (CM(2000)83) state:

Credit balance

33. The Committee restated its position that, in principle, the credit balance belonged to the member states and should be paid back to them.

34. The Committee did not think that it was prudent to automatically set aside, on a permanent basis, appropriations for unknown non-specific purposes. The Committee felt that this would be a procedure which would severely weaken budgetary control mechanisms.

35. Accordingly, the Committee recommended that in the event that an intervention fund was to be set up, it should not be financed by means of the automatic transfer of the credit balance to such a fund.

36. The Committee accepted that there was a need for the Council of Europe to have a capacity to react quickly to events. However, the Committee recommended that any such system should be established within the framework of the annual budget either as a pre-financed item or to be financed as and when the need occurred, for example as a separate budget line in respect of which member states would be called upon to make contributions only as and when the Committee of Ministers authorised specific expenditure.

37. The Committee discussed other possible uses of the credit balance and concluded that, given the fact that member states had a clear and indeed large liability in respect of accrued future pension rights, it would be able to recommend a decision regarding the automatic transfer of the credit balance only if the transfer was to be used for the clearly defined purpose of financing the future reserve fund for pensions.

At the meeting of the GR-AB held on 15 June 2000, the Group recommended the adoption of the following draft decisions.

At their 715th meeting (21 June 2000, item 1.1), the Deputies agreed to postpone consideration of this item to the present meeting.

 

DRAFT DECISIONS

717th meeting – 13 July 2000

Item 11.2

General budgetary framework for 2001 - Proposal by the Secretary General to set up an "Intervention Fund"

(CM/Del/Dec(2000)696/11.1c, 715/1.1, CM(2000)83, SG/Inf(2000)1 and 18, GR-AB(2000)CB1 and CB7)

 

Decisions

The Deputies

1. instructed the Secretary General to prepare the budget for 2001 and future years with a separate budget line (Intervention fund) in respect of which member states would be called upon to make contributions only as and when the Committee of Ministers authorised specific expenditure;

2. took note with great interest of the Budget Committee’s recommendation regarding the automatic transfer of the credit balance for the financing of a possible future reserve fund for Council of Europe staff pensions and agreed to resume consideration of this matter in the framework of their consideration of the General accounts of the Council of Europe for the financial year 1999.



 Top

 

  Related Documents
 
   Meetings
 
   Other documents