Introductory text

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 308 thereof,

Having regard to the proposal from the Commission, submitted following consultation with the Economic and Financial Committee,

Having regard to the opinion of the European Parliament^f1,

Having regard to the opinion of the European Central Bank^f2,

Whereas:

The scope and intensity of the international financial crisis affects the potential demand for Community medium-term financial assistance in the Member States outside the euro area and calls for a significant raising of the ceiling for the outstanding amount of loans to be granted to Member States laid down in Council Regulation (EC) No 332/2002^f3 from EUR 25 billion to EUR 50 billion.

In the light of recent experience gained in the functioning of medium-term financial assistance, the tasks and responsibilities of the Commission and of the Member States concerned with the implementation of Regulation (EC) No 332/2002 should be clarified. In addition, the conditions for granting the financial assistance should be set out in detail in a Memorandum of Understanding to be concluded between the Commission and the Member State concerned.

The rules guiding some aspects of the financial management of Community financial assistance should be clarified. For operational reasons, the Member State concerned should be asked to place the financial assistance received in a special account with its National Central Bank and to transfer the amounts due to an account with the European Central Bank a few days prior to their due dates.

Sound management of the Community financial assistance received is of paramount importance. Therefore, without prejudice to Article 27 of the Statute of the European System of Central Banks and of the European Central Bank, this Regulation should provide for the possibility for the European Court of Auditors and the European Anti-Fraud Office, when they deem necessary, to carry out controls in the Member State receiving Community medium-term financial assistance, as already provided for in the existing loan agreements.

Regulation (EC) No 332/2002 should therefore be amended accordingly.

This Regulation should apply immediately to all new loan agreements and to the existing loan agreements if and when they are revised,

HAS ADOPTED THIS REGULATION: