Britain: An official handbook > 1993

BRITAIN 1993: AN OFFICIAL HANDBOOK
of its members a proposal adopted by the
Council if agreement could not be reached
between the two institutions in a new joint
Conciliation Committee. This procedure,
applying mainly to Community policies
subject to qualified majority voting in the
Council, would cover internal market
legislation, common policies for research and
development, training and education,
culture, health, consumer affairs and the
environment programme.
The Parliament would also have
additional powers under the Treaty to
investigate alleged contraventions or
maladministration in the implementation of
Community law and to scrutinise the
Commission’s management of Community
finances.
New applications for Community
membership must receive the assent of an
absolute majority of the Parliament, as must
the conclusion of agreements establishing an
association with other countries which
involves reciprocal agreements.
Court of Justice
The Court of Justice, consisting of 13
judges, adjudicates on the meaning of the
Treaties and on any measures taken by the
Council of Ministers and the Commission. It
is the final authority on Community law. Its
rulings must be applied in member states,
which would be fined under the terms of the
Maastricht Treaty for failing to comply with
a judgment of the Court.
There is also a Court of First Instance,
created to relieve the Court of Justice of
some of its workload.
Court of Auditors
The Court of Auditors examines all
Community revenue and expenditure to
see that it has been legally received and
spent, and to ensure sound financial
management. The Maastricht Treaty
would increase the Court’s status by
making it an official Community
institution, alongside the Council of
Ministers, the Commission, the Parliament
and the Court of Justice.
Policy Implementation
Community policies are implemented by:
• regulations which are legally binding on
all member states;
• directives which are binding on the
member states to which they are
addressed, but which allow national
authorities to decide on methods of
implementation;
• decisions which are binding on those to
whom they are addressed, such as
member states, firms or individuals; and
• recommendations and opinions, which
have no binding force.
The Council of Ministers can also indicate
a general policy direction through resolutions.
Finance
The Community is financed by:
• a system of levies on agricultural imports;
• customs duties;
• contributions from member states based
on value added tax (VAT) levied on a
harmonised base, which is capped at 55
per cent of a member’s gross national
product (GNP); and
• contributions from member states based
on GNP.
These are known as ‘own resources’.
When it first joined the Community,
Britain made a net contribution to the
Community substantially in excess of that
justified by its share of GNP. Following
negotiations to put this right, Britain has
received since 1984 an annual abatement of
its contribution equal to two-thirds of the gap
(in the previous year) between what Britain
would have paid to the allocated budget if it
had been financed by uncapped VAT, and its
share of receipts.
Internal Policies
The Single Market
The Single European Act commits member
states to establish a genuine single market by
the end of 1992. The single market
64