What changed

(11)(12) In light of thosethe findings,findings of the European Court of Auditors, it is necessary to amend Regulation (EU) No 472/2013 to clarify the objective and scope of post-programme surveillance, in order to increase itsconsistency coherencebetween withthat theRegulation Europeanand the economic governance framework of the Union and avoid a duplication of reporting requirements. Specifically,In particular, post-programme surveillance should focus on monitoring and assessing the repayment capacity of the concerned Member State regardingconcerned to repay the financial assistance received, taking into account the economic, budgetary and financial condition of that Member State. That surveillanceIt should also cover the implementation of certain reforms, to the extent that those are not already subject to monitoring under the national medium-term fiscal-structural plan. Finally, post-programme surveillance should identify the need for corrective measures to mitigate risks to the repaymentcapacity of the Member State concerned to repay the financial assistance received. Post-programme surveillance is without prejudice to the power of other lenders, such as the ESM, the EFSF and other relevant international financial institutions, to carry out tasks under their own legal frameworks.

(12)(13) It is also necessary to amend Regulation (EU) No 472/2013 to make post-programme surveillance more proportionate to risks, by introducing a tiered system of surveillance that differentiates the level of scrutiny according to repayment risk of the financial assistance received and the need for corrective measures. In particular, five years after the application of post-programme surveillance,surveillance starts, the Commission should be allowedable to carry out a specific assessment of the Member State's capacity to repay the financial assistance received. IfWhere the Commission concludes that there are no material risks to the Member State's capacity to repay the financial assistance over the medium-term,medium term, it should be possible to suspend the regular assessments for a period of five years, subjectprovided tothat there is no material change of thein circumstances. Before concluding itsthat specific assessment, the Commission should askrequest the opinion of the Economic and Financial Committee for its opinion.(EFC).

(15) In order to preserve transparency, accountability and ownership for the decisions taken, the documents and acts to be provided by the Commission to the Council as specified in this Regulation should be made available to the European Parliament without undue delay.

(e) in paragraph 5, the second subparagraph is replaced by the following:

▌

(a) ▌Every quarter, the Commission shall communicate its assessment to the competent committee of the European Parliament and to the EFC. In that assessment, it shall examine, in particular, whether further measures are needed.’;

‘Where a Member State requests financial assistance from one or several other Member States or third countries, the EFSM, the ESM or the IMF, it shall prepare, in agreement with the Commission, acting in liaison with the ECB and, where appropriate, with the IMF, a draft macroeconomic adjustment programme, which shall include annual budgetary targets. In accordance with Article 32(2) of Regulation (EU) 2024/1263, where a Member State has an active national medium-term fiscal-structural plan,plan and that Member State becomes subject to a macroeconomic adjustment programme, that national medium-term fiscal-structural planplan, including any commitments regarding the common priorities of the Union referred to in Article 13, point (c), of Regulation (EU) 2024/1263, shall be taken into account in the design of the macroeconomic adjustment programme.’;programme.’;’

‘The draft macroeconomic adjustment programme shall take into account the practice and institutions for wage formation. It shall also take into account the national medium-term fiscal structural plan of the Member State concerned and be consistent with its commitments regarding the Union’s common priorities referred to in Article 13, point (c), of Regulation (EU) 2024/1263’;formation.’;

(iii) the fifth subparagraph is replaced by the following:

‘The draft macroeconomic adjustment programme shall fully observe Article 152 TFEU and Article 28 of the Charter of Fundamental Rights of the European Union. The Commission shall inform the Chair and Vice-Chairs of the competent committee of the European Parliament of the progress made in the preparation of the draft macroeconomic adjustment programme. That information shall be treated as confidential.’;

(10a) Article 18(11) isthe replacedfollowing byArticle theis following:inserted:

‘1. The European Parliament may invite representatives of the Council and of the Commission to enter into a dialogue on the application of this Regulation.

‘Article 18a Administrative arrangements with the ESM and other relevant financial institutions

2. Information transmitted by the Commission to the Council or any of its preparatory bodies in the context of this Regulation or its implementation shall simultaneously be made available to the European Parliament, subject to confidentiality arrangements if necessary. Relevant outcomes of discussions held in Council preparatory bodies shall be shared with the competent committee of the European Parliament.

3. The Member State concerned may request the Commission to redact sensitive or confidential information, the disclosure of which would jeopardise public interests of that Member State. In such a case, the Commission shall liaise with the European Parliament and the Council regarding how the redacted information can be made available to them in a confidential manner in accordance with the applicable rules.’;

(11) the following Article 18a is inserted:

‘Article 18a

Administrative arrangements with the ESM and other relevant financial institutions