Press Release: Commission radically overhauls EU financial rules

The European Commission proposed 26 July 2000 a radical overhaul of the Union's Financial Regulation. This sets out the basic rules for the financial management of the Union. Budget Commissioner Michaele Schreyer, who proposed the overhaul, said: “The reform of the Union's financial management system has been a major priority of this Commission and is a key feature of the modernisation of the Union's finances and administration. We intend to pursue this vital step with prudence and determination.” The main purpose of the proposal is to simplify and reorganise the Financial Regulation by creating a single legal instrument to bring together the principles and essential rules of budgetary and financial management. This will include basic rules or contracts, grants, devolution of external aid management and the Structural Funds. The detailed and more technical provisions are transferred to the Implementing Regulation (a Commission Regulation). This contains complementary provisions, which are needed for the implementation of the basic rules, but do not affect their substance.