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From · report parliamentary committee draft · 2023-01-23 CJ13-PR-740802 on the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (recast)

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To · Plenary report · 2023-05-04 A-9-2023-0180 on the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (recast)

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DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

– having regard to the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts,

– having regard to the letter of ~~...~~25 April 2023 sent by the Committee on Legal Affairs to the Committee on Budgets and the Committee on Budgetary Control in accordance with Rule 110(3) of its Rules of Procedure,

– having regard to the joint deliberations of the Committee on Budgets and the Committee on Budgetary Control under Rule 58 of the Rules of Procedure,

– having regard to the letter from the Committee on Industry, Research and Energy,

– having regard to the report of the Committee on Budgets and the Committee on Budgetary Control ~~(A90000/2023),~~(A9-0180/2023),

A. whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the Commission proposal does not include any substantive amendments other than those identified as such in the proposal and whereas, as regards the codification of the unchanged provisions of the earlier acts together with those amendments, the proposal contains a straightforward codification of the existing texts, without any change in their substance;

Proposal for a regulation

Recital 151

~~Or. en~~

~~Justification~~

~~The revision of the Financial Regulation provides the occasion to generalise the rules found in sectoral legislation where it is deemed appropriate.~~

Amendment 2

Proposal for a regulation

~~Recital 24 a (new)~~

Recital 11

~~Or. en~~

~~Justification~~

As stated in Parliament's resolution of 24 November 2021, the respect for the fundamental values enshrined in Article 2 of the Treaty and in the Charter of Fundamental Rights is paramount for the protection of the Union's financial interests and should therefore be monitored. This explanatory Recital is linked to admissible amendments to Article 6 and Article 33 of the proposal.

Amendment 3

Proposal for a regulation

Recital 2411 ba (new)

~~Or. en~~

~~Justification~~

As stated in Parliament's resolution of 24 November 2021, the principle of social conditionality, included in the new CAP 2021-27, should be applied horizontally to Union funding. This explanatory Recital is linked to admissible amendments to Article 33 of the proposal.

Amendment 4

Proposal for a regulation

~~Recital 24 c (new)~~

Recital 15

~~Or. en~~

Justification

As stated in Parliament's resolution of 24 November 2021, data tracking gender, climate and biodiversity-related spending should be comprehensively collected so that the impact of the implementation of the budget can be properly assessed. This explanatory Recital is linked to admissible amendments to Article 33 of the proposal.

The revision of the Financial Regulation provides the occasion to generalise the rules found in sectoral legislation where it is deemed appropriate.

Amendment 5

Proposal for a regulation

~~Recital 24 d (new)~~

Recital 21

~~Or. en~~

~~Justification~~

As stated in Parliament's resolution of 24 November 2021, data tracking gender, climate and biodiversity-related spending should be comprehensively collected so that the impact of the implementation of the budget can be properly assessed. It is crucial that the corresponding necessary indicators be designed to avoid any excessive administrative burden. This explanatory Recital is linked to admissible amendments to Article 33 of the proposal.

Amendment 6

Proposal for a regulation

~~Recital 27~~

Recital 23 a (new)

~~Or. en~~

~~Justification~~

The objectives and scope of the new IT system put in place by the Commission should be better detailed. A single integrated and interoperable information and monitoring system should allow for the electronic recording and storage of data on the recipients of Union funding, including their beneficial owners, and make that data available for data-mining and risk-scoring. The system should provide a clear overview of the distribution and potential concentration of the (aggregated) Union funds disbursed.

Amendment 7

Proposal for a regulation

~~Recital 27 a (new)~~

Recital 24

~~Or. en~~

~~Justification~~

The new single information and monitoring system should be interoperable and automatically exchange information from relevant sources, where feasible in real time. This Recital elaborates on the updated description of the new IT system and is linked with the admissible amendment to Recital 27.

Amendment 8

Proposal for a regulation

~~Recital 29~~

Recital 24 a (new)

~~Or. en~~

~~Justification~~

~~As stated in Parliament's resolution of 24 November 2021, the information on recipients on the Financial Transparency System should include whether the recipient receives state aid.~~

Amendment 9

Proposal for a regulation

~~Recital 43~~

Recital 24 b (new)

~~Or. en~~

~~Justification~~

The minimum content of the comprehensive overview of borrowing and lending operations to be provided by the Commission together with the draft budget should be specified so that not only the budgetary authority receives thorough information, but also understands the data and methodology used by the Commission to estimate the interest due.

Amendment 10

Proposal for a regulation

Recital ~~103~~25

~~Or. en~~

~~Justification~~

The EDES exclusion criteria should as far as possible be made compatible and interoperable with the risk indicators used by the new IT system that will succeed Arachne, in order to increase data quality and effectiveness of both systems.

Amendment 11

Proposal for a regulation

~~Recital 141 a (new)~~

Recital 27

~~Or. en~~

~~Justification~~

'Gold plating' by Member States, whereby additional administrative obligations are imposed over and above EU rules, should be avoided. This amendment is linked to the surrounding Recitals, which are part of the recast.

Amendment 12

Proposal for a regulation

~~Recital 160~~

Recital 27 a (new)

~~Or. en~~

~~Justification~~

It should be clarified that identifying conflicts of interest has to take into account the special features of EU programmes with voluntary participation. This amendment is linked to the contents of Recital 45 and parts of Articles 61 and 139, which are part of the recast.

Amendment 13

Proposal for a regulation

~~Recital 194 a (new)~~

Recital 28

~~Or. en~~

~~Justification~~

The lessons learned from providing small-scale support during the pandemic to small and medium-sized enterprises and individual applicants should be implemented by introducing a new category of a very low value grant of an amount of up to EUR 5000 in order to improve efficiency and reduce bureaucracy. This is linked to the simplification and crisis management aims of the recast.

Amendment 14

Proposal for a regulation

~~Recital 219 a (new)~~

Recital 29

~~Or. en~~

~~Justification~~

Amendment 15

Proposal for a regulation

~~Recital 219 b (new)~~

Recital 33

~~Or. en~~

~~Justification~~

Amendment 16

Proposal for a regulation

~~Recital 219 c (new)~~

Recital 40

~~Or. en~~

Justification

As stated in paragraph 3 of the initiative report adopted ahead of the publication of this proposal, this revision must seek to reinforce transparency, accountability and democratic scrutiny of the EU budget. On this ground there is no reason to limit this publication to European Commission.

Amendment 17

Proposal for a regulation

~~Recital 219 d (new)~~

Recital 43

~~Or. en~~

~~Justification~~

Amendment 18

Proposal for a regulation

~~Recital 219 e (new)~~

Recital 103

~~Or. en~~

~~Justification~~

Amendment 19

Proposal for a regulation

~~Recital 219 f (new)~~

Recital 104

~~Or. en~~

~~Justification~~

Amendment 20

Proposal for a regulation

~~Recital 219 g (new)~~

Recital 134

~~Or. en~~

~~Justification~~

Amendment 21

Proposal for a regulation

~~Recital 219 h (new)~~

Recital 140

~~Or. en~~

~~Justification~~

Amendment 22

Proposal for a regulation

Recital ~~219~~141 ia (new)

~~Or. en~~

Justification

Amendment 23

Proposal for a regulation

~~Recital 219 j (new)~~

Recital 150

~~Or. en~~

~~Justification~~

Amendment 24

Proposal for a regulation

~~Recital 219 k (new)~~

Recital 160

~~Or. en~~

~~Justification~~

Parliament's resolution of 24 November 2021 asked for the budgetary authority to be able to scrutinise and authorise, as appropriate, the Commission’s borrowing and lending operations. The introduction of the diversified funding strategy and common liquidity pool in Regulation 2022/2434 provides the possibility to establish an annual 'debt ceiling' for funds borrowed under the strategy, to be set by Parliament and Council during the annual budgetary procedure.

Amendment 25

Proposal for a regulation

Recital ~~246~~165

~~Or. en~~

~~Justification~~

The new Article on Union contribution to global initiatives has an unclear scope of application, unclear added value and creates several issues as regards control of expenditure. At this stage, it is safer to delete it.

Amendment 26

Proposal for a regulation

~~Recital 256~~

Recital 194 a (new)

~~Or. en~~

Justification

Waiting for the adoption of the programmes under the post-2027 MFF in order to start using the new single integrated and interoperable information and monitoring system is disproportionately long. A date of application of 1 January 2026 should provide sufficient time for the development of the system and the adaptation of the various involved systems.

The lessons learned from providing small-scale support during the pandemic to small and medium-sized enterprises and individual applicants should be implemented by introducing a new category of a very low value grant of an amount of up to EUR 10000 in order to improve efficiency and reduce bureaucracy. This is linked to the simplification and crisis management aims of the recast.

Amendment 27

Proposal for a regulation

~~Article 2 – paragraph 1 – point 31 a (new)~~

Recital 219 a (new)

~~Or. en~~

~~Justification~~

A new definition is needed to align the Financial Regulation with the recently adopted Regulation (EU) 2022/2560 on foreign subsidies distorting the internal market. This amendment is in line with the aim of the recast, see for instance Recitals 5 and 15.

Amendment 28

Proposal for a regulation

~~Article 2 – paragraph 1 – point 58~~

Recital 219 b (new)

~~Or. en~~

~~Justification~~

~~The definition of recipient should be extended to cover every entity receiving EU funds, including subcontractors, subsidiaries, umbrella organisations and chains of entities.~~

Amendment 29

Proposal for a regulation

~~Article 2 – paragraph 1 – point 65 a (new)~~

Recital 219 c (new)

~~Or. en~~

~~Justification~~

The definition of recipient should be extended to cover every entity receiving EU funds, including subcontractors, subsidiaries and umbrella organisations. This new definition of sub-beneficiary is needed for coherence with the amendment to the definition of beneficiary (point 58 of this Article).

Amendment 30

Proposal for a regulation

~~Article 2 – paragraph 1 – point 73 a (new)~~

Recital 219 d (new)

~~Or. en~~

~~Justification~~

The lessons learned from providing small-scale support during the pandemic to small and medium-sized enterprises and individual applicants should be taken on board by introducing a new category of a very low value grant of an amount of up to EUR 5000 in order to improve efficiency and reducing bureaucracy. This is linked to the simplification and crisis management aims of the recast.

Amendment 31

Proposal for a regulation

~~Article 6 – title~~

Recital 219 e (new)

~~Or. en~~

~~Justification~~

As stated in Parliament's resolution of 24 November 2021, the respect for the fundamental values enshrined in Article 2 of the Treaty and in the Charter of Fundamental Rights is paramount for the protection of the Union's financial interests. This amendment is linked to the new paragraph 2 of this Article on compliance with the Rule of Law Conditionality Regulation.

Amendment 32

Proposal for a regulation

~~Article 6 – paragraph 2 a (new)~~

Recital 219 f (new)

~~Or. en~~

~~Justification~~

As stated in Parliament's resolution of 24 November 2021, the respect for the fundamental values enshrined in Article 2 of the Treaty and in the Charter of Fundamental Rights is paramount for the protection of the Union's financial interests. This amendment is linked to the new paragraph 2 of this Article on compliance with the Rule of Law Conditionality Regulation.

Amendment 33

Proposal for a regulation

~~Article 7 – paragraph 2 – subparagraph 2 – point c~~

Recital 219 g (new)

~~Or. en~~

~~Justification~~

~~Technical adaptation linked to the amendments to Articles 14 and 15 of the proposal.~~

Amendment 34

Proposal for a regulation

~~Article 7 – paragraph 2 – subparagraph 2 – point e~~

Recital 219 h (new)

~~Or. en~~

~~Justification~~

~~Clarification of the terminology used in view of the changes put forward in Articles 21 and 22 of the proposal.~~

Amendment 35

Proposal for a regulation

~~Article 14 – paragraph 1~~

Recital 219 i (new)

~~Or. en~~

~~Justification~~

Parliament's resolution of 24 November 2021 suggested that the re-use of decommitted appropriations as a result of full or partial non-implementation of projects should be extended to include all appropriations. As in the case of NDICI, decommitments will be automatically kept in the budget on the budget line of origin, with no discretion by the budgetary authority. The budgetary authority can and will of course use voted appropriations to re-balance the amounts on the budget lines on which decommitments are reused. This amendment is linked to the amendment to delete Article 15.

Amendment 36

Proposal for a regulation

~~Article 15~~

Recital 219 j (new)

~~Or. en~~

~~Justification~~

The deletion of this Article, together with the amendment to Article 14(1) of the proposal, ensures that decommitted appropriations are automatically kept in the budget, in line with Parliament's resolution of 24 November 2021.

Amendment 37

Proposal for a regulation

~~Article 22 – paragraph 1 – subparagraph 1 – point c~~

Recital 219 k (new)

~~Or. en~~

~~Justification~~

In its resolution of 24 November 2021, Parliament asked that assigned revenue form an integral part of the EU budget and be adopted by the budgetary authority as part of that budget. Sufficiently detailed information should be provided to the budgetary authority in the proposed annex to the draft budget which forms an integral part of the budget.

Amendment 38

Proposal for a regulation

~~Article 22 – paragraph 2 – subparagraph 1 – point c a (new)~~

Recital 246

~~Or. en~~

~~Justification~~

In its resolution of 24 November 2021, Parliament asked that assigned revenue form an integral part of the EU budget and be adopted by the budgetary authority as part of that budget. When the creation of assigned revenue is provided for in a basic act (as it was the case for NextGenerationEU), the activation should be a prerogative of the budgetary authority. This amendment is linked to the admissible amendment to point c of paragraph 1 of this Article.

Amendment 39

Proposal for a regulation

~~Article 25 – paragraph 3 – subparagraph 2 – point c a (new)~~

Recital 248

~~Or. en~~

~~Justification~~

~~It is useful to specify that in-kind donations should not pose a risk to internal security or public order.~~

Amendment 40

Proposal for a regulation

~~Article 33 – paragraph 2 – point c a (new)~~

Recital 254

~~Or. en~~

~~Justification~~

As stated in Parliament's resolution of 24 November 2021, the respect for the fundamental values enshrined in Article 2 of the Treaty and in the Charter of Fundamental Rights is paramount for the protection of the Union's financial interests and should therefore be monitored. This amendment is linked to point (d) of the same paragraph, which is included in the recast, and to the admissible amendment to paragraph 3 of the same Article.

Amendment 41

Proposal for a regulation

~~Article 33 – paragraph 2 – point d~~

Recital 256

~~Or. en~~

Justification

The original formulation of this paragraph is ambiguous as regards the scope of the application of the do no significant harm principle. The amendment clarifies that in general the principle applies, unless specific provisions in applicable sectoral legislation (for instance in the field of research) stipulate otherwise.

Amendment 42

Proposal for a regulation

Article 332 – paragraph 21 – point d22 a– ~~(new)~~point b

~~Or. en~~

~~Justification~~

As stated in Parliament's resolution of 24 November 2021, the principle of social conditionality, included in the new CAP 2021-27, should be applied horizontally to Union funding. This amendment is linked to point (d) of the same paragraph, which is included in the recast, and to the admissible amendment to paragraph 3 of the same Article.

Amendment 43

Proposal for a regulation

Article 332 – paragraph 31 – point 31 a (new)

~~Or. en~~

~~Justification~~

Amendment 44

Proposal for a regulation

Article 362 – paragraph 21 – point d48

~~Or. en~~

~~Justification~~

There should be a single integrated and interoperable information and monitoring system that allows for the electronic recording and storage of data on the recipients of Union funding, including their beneficial owners, and makes that data available for data-mining and risk-scoring. The system should provide a clear overview of the distribution and potential concentration of the (aggregated) Union funds disbursed.

Amendment 45

Proposal for a regulation

Article 362 – paragraph 61 – ~~introductory~~point ~~part~~65 a (new)

~~Or. en~~

Amendment 46

Proposal for a regulation

Article 362 – paragraph 61 – point 73 a (new)

~~Or. en~~

~~Justification~~

~~The new single integrated and interoperable information and monitoring system should record the complete set of data which is needed for its purposes.~~

Amendment 47

Proposal for a regulation

Article ~~36 – paragraph~~ 6 – ~~point b~~title

~~Or. en~~

~~Justification~~

~~The new single integrated and interoperable information and monitoring system should record the complete set of data which is needed for its purposes.~~

Amendment 48

Proposal for a regulation

Article ~~36 – paragraph~~ 6 – ~~point~~paragraph b2 a (new)

~~Or. en~~

~~Justification~~

~~The new single integrated and interoperable information and monitoring system should record the complete set of data which is needed for its purposes.~~

Amendment 49

Proposal for a regulation

Article 367 – paragraph 72 – subparagraph 12 – point c

~~Or. en~~

Justification

The objectives and scope of the single integrated and interoperable information and monitoring system should be better detailed. Interoperability with relevant databases, automatic real-time exchange of information, a proportionate set of risk indicators and the protection of personal data are paramount. The system must provide a clear aggregated overview of the distribution and potential concentration of Union funds.

Technical adaptation linked to the amendments to Articles 14 and 15 of the proposal.

Amendment 50

Proposal for a regulation

Article 367 – paragraph 72 – subparagraph 12 a– ~~(new)~~point e

~~Or. en~~

Justification

It is crucial to ensure the quality of the data used for data-mining and risk-scoring functions in the single integrated and interoperable information and monitoring system. A list of possible actions and measures to achieve this goal should be detailed.

Clarification of the terminology used in view of the changes put forward in Articles 21 and 22 of the proposal.

Amendment 51

Proposal for a regulation

Article 3614 – paragraph ~~7 – subparagraph 2~~1

~~Or. en~~

~~Justification~~

~~Parliament and Council should also have access to the single integrated and interoperable information and monitoring system within the exercise of their budgetary and control competences.~~

Amendment 52

Proposal for a regulation

Article 3614 – paragraph 71 – subparagraph 31 a (new)

~~Or. en~~

~~Justification~~

~~Clarification of the Commission's competences in relation to the single integrated and interoperable information and monitoring system.~~

Amendment 53

Proposal for a regulation

Article 3614 – paragraph 101 a– subparagraph 1 b (new)

~~Or. en~~

~~Justification~~

~~It is important that Parliament and Council receive timely thorough aggregated information on the recipients and beneficial owners of Union funding.~~

Amendment 54

Proposal for a regulation

~~Article 36 – paragraph 10 b (new)~~

Article 15

~~Or. en~~

~~Justification~~

Data should be kept in the single integrated and interoperable information and monitoring system for a proportionate amount of time, which allows the system to fulfil its purpose. This amendment also addresses in part the observations of the European Data Protection Supervisor.

Amendment 55

Proposal for a regulation

Article 3822 – paragraph 1 – subparagraph 1 – point c

~~Or. en~~

~~Justification~~

~~Clarification that the information on the recipients of Union funds must be made available on a single website.~~

Amendment 56

Proposal for a regulation

Article 3822 – paragraph 12 – subparagraph 21 – point c a (new)

~~Or. en~~

~~Justification~~

~~Clarification that the information on the recipients of Union funds must be made available on a single website.~~

Amendment 57

Proposal for a regulation

Article 3825 – paragraph 3 – subparagraph 2 – point ec a (new)

~~Or. en~~

~~Justification~~

~~As stated in Parliament's resolution of 24 November 2021, the information on recipients on the Financial Transparency System should include whether the recipient receives state aid.~~

Amendment 58

Proposal for a regulation

Article 3825 – paragraph 3 – subparagraph ~~1 –~~2 ~~point~~a b(new)

~~Or. en~~

~~Justification~~

~~The aggregated amount of all the funds paid to a single recipient should be taken into account when deciding whether the threshold for publication is applicable.~~

Amendment 59

Proposal for a regulation

Article 3833 – paragraph 42 – ~~subparagraph~~point 3b

~~Or. en~~

Amendment 60

Proposal for a regulation

Article 3833 – paragraph 52 – ~~subparagraph~~point 1c a (new)

~~Or. en~~

~~Justification~~

~~This amendment is needed for coherence with the admissible amendment to paragraph 4 of this Article.~~

Amendment 61

Proposal for a regulation

Article 3833 – paragraph 52 – ~~subparagraph~~point 2d

~~Or. en~~

~~Justification~~

~~This amendment is needed for coherence with the admissible amendment to paragraph 4 of this Article.~~

Amendment 62

Proposal for a regulation

Article 3833 – paragraph 72 – point d a (new)

~~Or. en~~

~~Justification~~

~~While rules on the protection of personal data must be respected, a data retention period of two years is too short to ensure that the system fulfils its intended purpose.~~

Amendment 63

Proposal for a regulation

Article 4133 – paragraph 3 ~~– subparagraph 1 – point d~~

~~Or. en~~

Amendment 64

Proposal for a regulation

Article 5236 – paragraph 12 – point d ~~– point iii – indent 3~~

~~Or. en~~

~~Justification~~

Amendment 65

Proposal for a regulation

Article 5936 – paragraph 3 – point b a (new)

~~Or. en~~

~~Justification~~

To facilitate the implementation of the EPPO’s appropriations, it should be possible for the EPPO, in the framework of its investigative and prosecutorial tasks, to conclude financing agreements with the competent national authorities and, to the extent necessary, service level agreements, as well as agreements and contracts with recipients without having recourse to a public procurement procedure, where procurement is not possible. The amendments to this Article are linked to parts of the recast dealing with the EPPO, inter alia in Articles 36, 57 and 139 and several Recitals.

Amendment 66

Proposal for a regulation

Article 5936 – paragraph 36 b– ~~(new)~~introductory part

~~Or. en~~

~~Justification~~

Amendment 67

Proposal for a regulation

Article 36 – paragraph 6 – point a

Amendment 68

Proposal for a regulation

Article 36 – paragraph 6 – point a a (new)

Amendment 69

Proposal for a regulation

Article 36 – paragraph 6 – point a b (new)

Amendment 70

Proposal for a regulation

Article 36 – paragraph 6 – point a c (new)

Amendment 71

Proposal for a regulation

Article 36 – paragraph 6 – point b

Amendment 72

Proposal for a regulation

Article 36 – paragraph 6 – point b a (new)

Amendment 73

Proposal for a regulation

Article 36 – paragraph 7 – subparagraph 1

Amendment 74

Proposal for a regulation

Article 36 – paragraph 7 – subparagraph 2

Amendment 75

Proposal for a regulation

Article 36 – paragraph 7 – subparagraph 3

Amendment 76

Proposal for a regulation

Article 36 – paragraph 7 a (new)

Amendment 77

Proposal for a regulation

Article 36 – paragraph 8 – subparagraph 1 a (new)

Amendment 78

Proposal for a regulation

Article 36 – paragraph 8 – subparagraph 1 b (new)

Amendment 79

Proposal for a regulation

Article 36 – paragraph 9

Amendment 80

Proposal for a regulation

Article 36 – paragraph 10 a (new)

Amendment 81

Proposal for a regulation

Article 36 – paragraph 10 b (new)

Amendment 82

Proposal for a regulation

Article 38 – paragraph 1 – subparagraph 1

Amendment 83

Proposal for a regulation

Article 38 – paragraph 1 – subparagraph 2

Amendment 84

Proposal for a regulation

Article 38 – paragraph 2 – introductory part

Amendment 85

Proposal for a regulation

Article 38 – paragraph 2 – point a

Amendment 86

Proposal for a regulation

Article 38 – paragraph 2 – point b

Amendment 87

Proposal for a regulation

Article 38 – paragraph 2 – point c a (new)

Amendment 88

Proposal for a regulation

Article 38 – paragraph 2 – point e a (new)

Amendment 89

Proposal for a regulation

Article 38 – paragraph 3 – subparagraph 1 – point b

Amendment 90

Proposal for a regulation

Article 38 – paragraph 3 – subparagraph 1 – point d

Amendment 91

Proposal for a regulation

Article 38 – paragraph 4 – subparagraph 3

Amendment 92

Proposal for a regulation

Article 38 – paragraph 5 – subparagraph 1

Amendment 93

Proposal for a regulation

Article 38 – paragraph 5 – subparagraph 2

Amendment 94

Proposal for a regulation

Article 38 – paragraph 6 – subparagraph 1

Amendment 95

Proposal for a regulation

Article 38 – paragraph 6 – subparagraph 2

Amendment 96

Proposal for a regulation

Article 38 – paragraph 7 – subparagraph 1

Amendment 97

Proposal for a regulation

Article 38 a (new)

Amendment 98

Proposal for a regulation

Article 41 – paragraph 3 – subparagraph 1 – point d

Amendment 99

Proposal for a regulation

Article 41 – paragraph 3 – subparagraph 1 – point e

Justification

Amendment 100

Proposal for a regulation

Article 52 – paragraph 1 – point d – point iii – indent 3

Amendment 101

Proposal for a regulation

Article 59 – paragraph 3 a (new)

Amendment 102

Proposal for a regulation

Article 59 – paragraph 3 b (new)

Amendment 103

Proposal for a regulation

Article 59 – paragraph 3 c (new)

Amendment 104

Proposal for a regulation

Article 61 – paragraph 2

Amendment 105

Proposal for a regulation

Article 63 – paragraph 1

Amendment 106

Proposal for a regulation

Article 63 – paragraph 4 – subparagraph 1 – point a a (new)

Amendment 107

Proposal for a regulation

Article 63 – paragraph 8 – subparagraph 1 – point c

Amendment 108

Proposal for a regulation

Article 63 – paragraph 8 – subparagraph 1 – point c a (new)

Amendment 109

Proposal for a regulation

Article 109 – paragraph 4 – subparagraph 2 a (new)

~~Or. en~~

Justification

Amendment adopted as part of Parliament's mandate for inter-institutional negotiations on the stand-alone proposal to revise the Financial Regulation as regards competition fines.

Amendment 68110

Proposal for a regulation

Article 117 – paragraph 1 – subparagraph 1 a (new)

~~Or. en~~

Amendment 111

~~Justification~~

The specific circumstances of Union delegations in third countries, when they are exceptional and duly justified, should be taken into account when setting time limits for payments. This amendment is linked to parts of the recast dealing with Union delegations in third countries, inter alia in Articles 179 and 180.

~~Amendment 69~~

Proposal for a regulation

Article 117 – paragraph 3 – subparagraph 34 a (new)

~~Or. en~~

Amendment 112

~~Justification~~

~~This amendment is linked to the content of subparagraph 4 of the same paragraph, which is part of the recast.~~

~~Amendment 70~~

Proposal for a regulation

Article 126 – paragraph 1 – subparagraph 1 – point a – point i

Amendment 113

Proposal for a regulation

Article 126 – paragraph 1 – subparagraph 1 – point a – point ii

~~Or. en~~

Amendment 114

~~Justification~~

Financing not linked to costs has been used for NextGenerationEU and causes serious concerns for audit and control. The implementation steps of the relevant operation should be measured and auditable, and the results achieved tangible. This amendment is linked to admissible amendments to increase democratic accountability of the budget, inter alia to Articles 22, 52 and 224a.

~~Amendment 71~~

Proposal for a regulation

Article 126 – paragraph 1 – subparagraph 2

Amendment 115

Proposal for a regulation

Article 126 – paragraph 1 – subparagraph 2 a (new)

Amendment 116

Proposal for a regulation

Article 128 a (new)

~~Or. en~~

Justification

'Gold plating' by Member States, whereby additional administrative obligations are imposed over and above EU rules, should be avoided. This amendment is linked to the Recitals surrounding the new proposed Recital 141a, which are part of the recast.

Amendment 72117

Proposal for a regulation

Article 131 – title

Amendment 118

Proposal for a regulation

Article 133 – paragraph 2 – introductory part

Amendment 119

Proposal for a regulation

Article 133 – paragraph 3 – subparagraph 1 – point c a (new)

Amendment 120

Proposal for a regulation

Article 138 – paragraph 1 – subparagraph 1

Amendment 121

Proposal for a regulation

Article 138 – paragraph 2 – subparagraph 4 – point l

~~Or. en~~

Amendment 122

~~Amendment 73~~

Proposal for a regulation

Article 139 – paragraph 1 – point e – point iii

Amendment 123

Proposal for a regulation

Article 139 – paragraph 1 – point g

Amendment 124

Proposal for a regulation

Article 139 – paragraph 2 – subparagraph 1

Amendment 125

Proposal for a regulation

Article 139 – paragraph 9 – subparagraph 1 – point a

~~Or. en~~

Amendment 126

~~Justification~~

~~Technical correction.~~

~~Amendment 74~~

Proposal for a regulation

Article 139 – paragraph 10 – subparagraph 1 – introductory part

~~Or. en~~

Amendment 127

~~Justification~~

~~Technical correction.~~

~~Amendment 75~~

Proposal for a regulation

Article 139 – paragraph 10 – subparagraph 2

~~Or. en~~

Amendment 128

~~Justification~~

~~Technical correction.~~

~~Amendment 76~~

Proposal for a regulation

Article 142 – paragraph 1 – subparagraph 1 – point b – point i

Amendment 129

Proposal for a regulation

Article 142 – paragraph 1 – subparagraph 1 – point b – point ii

Amendment 130

Proposal for a regulation

Article 142 – paragraph 1 – subparagraph 1 – point b – point ii a (new)

Amendment 131

Proposal for a regulation

Article 143 – paragraph 1 – subparagraph 1 – introductory part

Amendment 132

Proposal for a regulation

Article 144 – paragraph 1 – subparagraph 1 – point d

Amendment 133

Proposal for a regulation

Article 144 – paragraph 1 – subparagraph 1 – point d a (new)

~~Or. en~~

Amendment 134

Proposal for a regulation

Article 151 a (new)

Amendment 135

Proposal for a regulation

Article 153 – paragraph 5 – subparagraph 2

Justification

It is necessary to align the Financial Regulation with the recently adopted Regulation (EU) 2022/2560 on foreign subsidies distorting the internal market. This amendment is in line with the aim of the recast, see for instance Recitals 5 and 15.

While the intention of the Commission with this new provision is understandable, it runs the risk of restricting competition, especially if participants are not allowed to submit their application documents by post or by courier service. To ensure that the decision remains justified and comprehensible for all applicants, the contracting authority should document its reasons for the decision.

Amendment 77136

Proposal for a regulation

Article 169 – paragraph 2 – subparagraph 6

Amendment 137

Proposal for a regulation

Article 169 – paragraph 3 a (new)

Amendment 138

Proposal for a regulation

Article 176 – paragraph 3 – subparagraph 1 – point c – point i

~~Or. en~~

Justification

Technical correction.

Amendment 78139

Proposal for a regulation

Article 179 – paragraph 1 – subparagraph 2 a (new)

~~Or. en~~

Justification

The same provisions applicable to the procurement of Union Delegations should also apply ~~by analogy to EPLOs and equivalent Parliament offices in third countries.~~

Amendment 79140

Proposal for a regulation

Article 196 – paragraph 3 – point e

~~Or. en~~

Justification

The lessons learned from providing small-scale support during the pandemic to small and medium-sized enterprises and individual applicants should be implemented by introducing a new category of a very low value grant of an amount of up to EUR 5000 in order to improve efficiency and reducing bureaucracy. This is linked to the simplification and crisis management aims of the recast.

Amendment 80141

Proposal for a regulation

Article 200 – paragraph 1 – point c a (new)

~~Or. en~~

Justification

The lessons learned from providing small-scale support during the pandemic to small and medium-sized enterprises and individual applicants should be implemented by introducing a new category of a very low value grant of an amount of up to EUR 5000 in order to improve efficiency and reducing bureaucracy. This is linked to the simplification and crisis management aims of the recast.

Amendment 81142

Proposal for a regulation

Article 217 – title

~~Or. en~~

Justification

The CPF is organised in compartments, and it can happen that there are at the same time over- and under-provisioned compartments, so the Commission may have to simultaneously request replenishment of one and repay a surplus from another back to the budget. It would be more efficient to allow transfer of surplus provisions from fully constituted over-provisioned compartments to compartments facing challenges. This in turn makes the concept of effective provisioning rate obsolete. The amendments to this Article are linked to admissible amendments to Articles 22, 52 and 224a.

Amendment 82143

Proposal for a regulation

Article 217 – paragraph 1

~~Or. en~~

Justification

Amendment 83144

Proposal for a regulation

Article 217 – paragraph 2

~~Or. en~~

Justification

Amendment 84145

Proposal for a regulation

Article 217 – paragraph 3

~~Or. en~~

Justification

Amendment 85146

Proposal for a regulation

Article 217 – paragraph 4 – introductory part

~~Or. en~~

Justification

Amendment 86147

Proposal for a regulation

Article 217 – paragraph 4 – point a

~~Or. en~~

Justification

Amendment 87148

Proposal for a regulation

Article 224 – paragraph 2

~~Or. en~~

Amendment 149

~~Justification~~

~~Amendment 88~~

Proposal for a regulation

Article 224 – paragraph 7

~~Or. en~~

Amendment 150

~~Justification~~

~~Amendment 89~~

Proposal for a regulation

Article 224 a (new)

~~Or. en~~

Amendment 151

~~Justification~~

Since the recast proposal was published, the Financial Regulation has been amended by Regulation 2022/2434 of 6 December 2022 as regards the establishment of a diversified funding strategy as a general borrowing method. It is therefore necessary to include the amended provisions in the recast. As Parliament has called for the budgetary authority to be able to scrutinise and authorise, as appropriate, the Commission’s borrowing and lending operations, an annual 'debt ceiling' for funds borrowed under the strategy is introduced, to be set during the annual budgetary procedure.

~~Amendment 90~~

Proposal for a regulation

Article 238 – paragraph 1 – subparagraph 3

~~Or. en~~

Justification

As stated in Parliament's resolution of 24 November 2021, Parliament should have an appropriate role in the setting up, supervision and scrutiny of trust funds, including for emergency and post-emergency actions. The amendments to this Article give Parliament and Council the power to approve any trust fund, and are linked to admissible amendments to increase democratic accountability of the budget, inter alia to Articles 52 and 224a.

Amendment 91152

Proposal for a regulation

Article 238 – paragraph 1 – subparagraph 4

~~Or. en~~

Justification

Amendment 92153

Proposal for a regulation

Article 238 – paragraph 1 – subparagraph 4 a (new)

~~Or. en~~

Justification

For trust funds for emergency and post-emergency action, it is appropriate that a time limit is set for the approval by Parliament and Council, so as to preserve the possibility to act in an emergency. This kind of trust funds should be deemed approved unless Parliament or Council object within that time limit. The amendments to this Article are linked to admissible amendments to increase democratic accountability of the budget, inter alia to Articles 52 and 224a.

Amendment 93154

Proposal for a regulation

Article 238 – paragraph 2

~~Or. en~~

Justification

Amendment 94155

Proposal for a regulation

Article 240 – paragraph 1

~~Or. en~~

Amendment 156

~~Justification~~

~~Amendment 95~~

Proposal for a regulation

Article ~~244~~240 – paragraph 1 ~~– subparagraph 1~~ a (new)

~~Or. en~~

Amendment 157

~~Justification~~

~~Non-financial donations of supplies should be possible once a certain level of depreciation has been reached.~~

~~Amendment 96~~

Proposal for a regulation

Article 240 – paragraph 2 – subparagraph 1 – point iii

Amendment 158

Proposal for a regulation

Article 240 – paragraph 2 – subparagraph 1 – point iv

Amendment 159

Proposal for a regulation

Article 240 – paragraph 2 – subparagraph 1 – point v

Amendment 160

Proposal for a regulation

Article 240 – paragraph 2 – subparagraph 1 – point v a (new)

Amendment 161

Proposal for a regulation

Article 240 – paragraph 2 – subparagraph 2

Amendment 162

Proposal for a regulation

Article 244 – paragraph 2 – subparagraph 1 a (new)

Amendment 163

Proposal for a regulation

Article 260 – paragraph 1

~~Or. en~~

Justification

It should be clearly stated that the examination by the Court of Auditors must also include assigned revenue. This amendment is needed for coherence with admissible amendments to Article 22.

Amendment 97164

Proposal for a regulation

Article 265 – paragraph 3

Amendment 165

Proposal for a regulation

Article 265 – paragraph 3 a (new)

~~Or. en~~

Amendment 166

~~Justification~~

As stated in Parliament's resolution of 24 November 2021, Parliament should be explicitly responsible for scrutinising the budget implementation by the other institutions in the discharge procedure. This amendment is linked to admissible amendments to increase democratic accountability of the budget, inter alia to Articles 22, 52 and 224a.

~~Amendment 98~~

Proposal for a regulation

Article 266 – paragraph 1

~~Or. en~~

Amendment 167

~~Justification~~

It should be clearly stated that the discharge procedure must cover assigned revenue as well as liabilities arising from borrowing and lending operations, as also called for in Parliament's resolution of 24 November 2021. This amendment is needed for coherence with admissible amendments to Articles 22, 52 and 224a.

~~Amendment 99~~

Proposal for a regulation

Article 267 – paragraph 2

~~Or. en~~

Amendment 168

~~Justification~~

As stated in Parliament's resolution of 24 November 2021, the requirement for Union institutions and bodies to report on the measures taken in response to the decision on discharge would benefit from the setting of a reasonable deadline for reporting on the measures taken. This amendment is linked to admissible amendments to increase democratic accountability of the budget, inter alia to Articles22, 52 and 224a.

~~Amendment 100~~

Proposal for a regulation

Article 271 – paragraph 61 – subparagraph 1 – point a

~~Or. en~~

Amendment 169

~~Justification~~

~~It is not appropriate for structural renovations of buildings to be financed through loans.~~

~~Amendment 101~~

Proposal for a regulation

Article 271 – paragraph 61 – subparagraph 31 – point b

~~Or. en~~

Amendment 170

~~Justification~~

~~It is not appropriate for structural renovations of buildings to be financed through loans.~~

~~Amendment 102~~

Proposal for a regulation

Article 271 – paragraph ~~6 – subparagraph 4~~2

~~Or. en~~

Amendment 171

~~Justification~~

~~It is not appropriate for structural renovations of buildings to be financed through loans.~~

~~Amendment 103~~

Proposal for a regulation

Article 271 – paragraph 3 – subparagraph 1

Amendment 172

Proposal for a regulation

Article 275 – paragraph 2 a (new)

Amendment 173

Proposal for a regulation

Article 275 – paragraph 3

~~Or. en~~

Justification

Amendment ~~104~~174

Proposal for a regulation

Article 275 – paragraph 4

~~Or. en~~

Justification

Amendment ~~105~~175

Proposal for a regulation

Annex I – Part 1 – Section 2 – point 6 – point 6.2

Amendment 176

Proposal for a regulation

Annex I – Part 1 – Section 2 – point 6 – point 6.3 – point b

Amendment 177

Proposal for a regulation

Annex I – Part 1 – Section 2 – point 6 – point 6.6

Amendment 178

Proposal for a regulation

Annex I – Part 1 – Section 2 – point 16 – point 16.3 – point g a (new)

~~Or. en~~

Justification

EXPLANATORY STATEMENT

More importantly, the recently adopted Regulation 2022/2434 of 6 December 2022 amended the Financial Regulation by introducing a diversified funding strategy as a general borrowing method, based on a flexible pooling of funding instruments, so that the Commission can borrow for different initiatives into the same ‘pot’ at the best market conditions. The adopted changes must be reflected in the recast, and provide in addition the occasion to introduce a much needed form of oversight of the Commission’s borrowing and lending operations, in the form of a yearly ‘debt ceiling’ that the budgetary authority can set (and if necessary revise) in the context of the annual budgetary procedure.

 Union values. The rapporteurs welcome the inclusion in the proposal of the compliance with the Rule of law Conditionality Regulation (EU, Euratom) 2020/2092 as a general principle. They propose to include the respect of fundamental rights as a general principle as ~~well, and to develop clear, concise indicators to monitor compliance with Union values in the use of EU funds in order to protect the EU financial interests.~~well.

 Tracking and mainstreaming of EU policies. The rapporteurs propose to clarify the application of the do no significant harm principle proposed by the Commission. In addition, they propose that the principle of social conditionality be applied horizontally to EU funding, following its inclusion in the new CAP 2021-27, and that concise and proportionate performance indicators are introduced to monitor the impact of Union spending on gender equality, as well as to track spending on climate change mitigation and adaptation and the protection of biodiversity, all without imposing excessive administrative burden.

 Decommitments. The rapporteurs propose that the re-use of decommitted appropriations as a result of full or partial non-implementation of projects should be extended to include all appropriations. By analogy with what is already the case in external action pursuant to the NDICI Regulation, decommitments should be automatically kept in the budget on the budget line of origin. The budgetary authority will then be able to use appropriations voted in the context of the budgetary-procedure to re-balance the amounts on the budget lines on which decommitments are reused, so as to ensure the most efficient use of funds.budget.

 Trust funds. The rapporteurs introduce amendments to guarantee an appropriate role of Parliament in the setting up, supervision and scrutiny of trust funds. Parliament and Council should be empowered to approve trust funds for emergency and post-emergency actions as they do for trust funds for thematic actions, but within a short defined timeframe to preserve the emergency character of the actions.

Finally, the rapporteurs believe that the transition period proposed by the Commission before the use of the new system is made mandatory is disproportionately long and propose to bring the date of application of the system forward, while still providing sufficient time for the development and adoption of the system.

Other amendments are proposed, inter alia to ~~remove the ambiguously defined possibility for the Union to contribute to global initiatives outside standard rules, to~~ align the Financial Regulation to the recently adopted Regulation (EU) 2022/2560 on foreign subsidies distorting the internal market, to streamline the management of the common provisioning fund, to improve oversight on forms of Union contribution with financing not linked to costs, to introduce a provision to avoid ‘gold-plating’ resulting into excessive administrative burden, and to improve the provisions in relation to the EPPO, Union delegation in third countries and Parliament’s liaison offices, and building projects financed through loans. The amendment adopted as part of Parliament's mandate for inter-institutional negotiations on the stand-alone proposal to revise the Financial Regulation as regards competition fines is also included for coherence.

The rapporteurs believe that the amendments proposed are key to a fruitful revision of this central legislative tool that increases transparency, accountability and democratic scrutiny and improves the implementation of the EU budget.

Amendments to parts of the proposal which remain unchanged ('white parts') were necessary for pressing reasons relating to the internal logic of the text or because the amendments are inextricably linked to other admissible amendments.

In line with Rule 110(3) of EP Rules of Procedure, there is an inextricable link between the amendments adopted in BUDG/CONT in this procedure.

09.03.2023

LETTER OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Ms Monika Hohlmeier

Chair

Committee on Budgetary Control

BRUSSELS

Subject: Opinion on Financial rules applicable to the general budget of the Union (recast) (COM(2022)0223 – C90179-2022 – 2022/0162(COD))

Dear Mr Chair,

Under the procedure referred to above, the Committee on Industry, Research and Energy has been asked to submit an opinion to your committee and to the Committee on Budgetary Control. At its meeting of 13 July 2022, the committee decided to send the opinion in the form of a letter. It considered the matter at its meeting of 9 March 2023 and adopted the opinion at that meeting.

The opinion consists of the following amendments, which, in accordance with the usual treatment of opinions under Rule 56, I kindly ask you to put to the vote during the vote on the report in your committee:

ITRE 1

Article 14 – paragraph 1

Where budgetary commitments are decommitted in any financial year after the year in which they were made as a result of the total or partial non-implementation of the actions for which they were earmarked, the appropriations corresponding to such decommitments shall be made available again to the benefit of the budget line of origin.

Justification

The consequence of the amendment returning the decommitments to the benefit of the budget lines of origin, would address directly the problems with research decommitments.

ITRE 2

Article 15

deleted

Justification

A technical deletion necessary in view of the amendment to Art. 14

ITRE 3

Article 33 – paragraph 2 – point d

(d) programmes and activities shall, where feasible and appropriate, in accordance with the relevant sector-specific rules, be implemented to achieve their set objectives without doing significant harm to the environmental objectives of climate change mitigation, climate change adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and control and the protection and restoration of biodiversity and ecosystems, as set out in Article 9 of Regulation (EU) 2020/852 of the European Parliament and of the Council.

Justification

The amendment alters the Commission proposal on including the Do No Significant Harm principle in the FR. It creates the possibility to specify the application of the principle in sectoral legislation. This would allow ITRE to determine the scope and manner of application appropriate for, for example, the research programme. ITRE has commented on this scope and manner of application already in the past, for example in paragraph 41 of the EIC Implementation INI.

Yours sincerely,

CristianSilviu Buşoi

6.12.2022

OPINION OF THE COMMITTEE ON REGIONAL DEVELOPMENT

for the Committee on Budgets and the Committee on Budgetary Control

on the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (recast)

(COM(2022/0223) – C90179/2022 – 2022/0162(COD))

Rapporteur for opinion: Daniel Buda

AMENDMENTS

The Committee on Regional Development calls on the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulation

Recital 1

Amendment 2

Proposal for a regulation

Recital 9

Amendment 3

Proposal for a regulation

Recital 21

Amendment 4

Proposal for a regulation

Recital 24

Amendment 5

Proposal for a regulation

Recital 27

Amendment 6

Proposal for a regulation

Recital 29

Amendment 7

Proposal for a regulation

Recital 103

Amendment 8

Proposal for a regulation

Recital 115

Amendment 9

Proposal for a regulation

Recital 134

Amendment 10

Proposal for a regulation

Recital 140

Amendment 11

Proposal for a regulation

Recital 150

Amendment 12

Proposal for a regulation

Recital 158

Amendment 13

Proposal for a regulation

Recital 161

Amendment 14

Proposal for a regulation

Recital 165

Amendment 15

Proposal for a regulation

Recital 178

Amendment 16

Proposal for a regulation

Recital 248

Amendment 17

Proposal for a regulation

Recital 256

Amendment 18

Proposal for a regulation

Article 2 – paragraph 1 – point 1

Amendment 19

Proposal for a regulation

Article 2 – paragraph 1 – point 5

Amendment 20

Proposal for a regulation

Article 2 – paragraph 1 – point 20

Amendment 21

Proposal for a regulation

Article 2 – paragraph 1 – point 22 – point b

Amendment 22

Proposal for a regulation

Article 6 – paragraph 1

Justification

The addition of the respect for rule of law and fundamental rights among the principles is needed for reasons relating to the internal logic of the text and it is strictly linked to the modification proposed on art. 6, paragraph 2.

Amendment 23

Proposal for a regulation

Article 6 – paragraph 2

Amendment 24

Proposal for a regulation

Article 33 – paragraph 2 – point d

Amendment 25

Proposal for a regulation

Article 36 – paragraph 2 – point d

Amendment 26

Proposal for a regulation

Article 36 – paragraph 3 – point c

Amendment 27

Proposal for a regulation

Article 36 – paragraph 6 – point a

Amendment 28

Proposal for a regulation

Article 36 – paragraph 7 – subparagraph 1

Amendment 29

Proposal for a regulation

Article 36 – paragraph 7 – subparagraph 2

Amendment 30

Proposal for a regulation

Article 56 a (new)

Justification

This new article on budget implementation in accordance with the principle of respect for rule of law and fundamental rights is needed for reasons relating to the internal logic of the text and it is strictly linked to the modification proposed on art. 6, paragraph 2.

Amendment 31

Proposal for a regulation

Article 63 – paragraph 5 – point b

Justification

The purpose of this addition is to bring more closely into line the provisions of Article 63(5)(b) of the Financial Regulation and those of Article 77(3)(b) of Regulation (EU) No 1060/2021 laying down common provisions for the programming period 2021-2027, clearly obviating the need to draw up two separate documents for the programming period 2021-2027: the annual summary drawn up by the managing authority and the annual control report drawn up by the audit authority.

Amendment 32

Proposal for a regulation

Article 168 – paragraph 5 – point b

Justification

Addition of Article 182(1) setting thresholds for external actions. Procedures involving calls for expression of interest are applicable to external actions, under point 13.1 of Annex I, which relates to both limit categories - referred to in Article 179 (1) (new) and Article 182 (1) (new).

Amendment 33

Proposal for a regulation

Article 212 – paragraph 5 – subparagraph 2

Amendment 34

Proposal for a regulation

Annex I – Part 2 – point 34 – point 34.2 – paragraph 2

Justification

Point 34 is not mentioned under point 37 (new) as exempt from external actions. We accordingly propose the inclusion of reference to the new Article 182(1), which sets out the thresholds for external actions.

PROCEDURE – COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

25.4.2023

LETTER OF THE COMMITTEE ON LEGAL AFFAIRS

Ms Monika Hohlmeier

Chair

Committee on Budgetary control

BRUSSELS

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on a proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (recast) (COM(2022)0223 – C90179/2022 – 2022/0162(COD))

Dear Chairs,

The Committee on Legal Affairs has examined the proposal referred to above pursuant to Rule 110 on recasting of Parliament's Rules of Procedure.

Paragraph 3 of that Rule reads as follows:

“If the committee responsible for legal affairs considers that the proposal does not entail any substantive changes other than those identified as such in the proposal, it shall inform the committee responsible for the subject matter thereof.

In such a case, over and above the conditions laid down in Rules 180 and 181, amendments shall be admissible within the committee responsible for the subject-matter only if they concern those parts of the proposal which contain changes.

However, amendments to parts of the proposal which remain unchanged may, by way of exception and on a case-by-case basis, be accepted by the Chair of the committee responsible for the subject matter if he or she considers that this is necessary for pressing reasons relating to the internal logic of the text or because the amendments are inextricably linked to other admissible amendments. Such reasons must be stated in a written justification to the amendments.”

Following the here attached opinion of the Consultative Working Party of the Legal Services of the Parliament, the Council and the Commission, which has examined the recast proposal, and in keeping with the recommendations of the Rapporteur, the Committee on Legal Affairs considers that the proposal in question does not include any substantive changes other than those identified as such and that, as regards the codification of the unchanged provisions of the earlier act with those substantive amendments, the proposal contains a straightforward codification of the existing text, without any change in its substance.

As regards the amendments originating from a later act, that is Regulation (EU, Euratom) 2022/2434, which was proposed and adopted after the proposal for the recast of Regulation (EU, Euratom) 2018/1046 was submitted, the Committee on Legal Affairs considers that those amendments should also be incorporated into the final text of the recast version of Regulation (EU, Euratom) 2018/1046.

In conclusion, at its meeting of 25 April 2023, the Committee on Legal Affairs unanimously decided to recommend that the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, proceed to examine the above proposal in accordance with Rule 110.

Yours sincerely,

Adrián Vázquez Lázara

Encl.: Opinion of the Consultative Working Party.

Annex

Brussels, 11 April 2023

OPINION

FOR THE ATTENTION OF THE EUROPEAN PARLIAMENT

THE COUNCIL

THE COMMISSION

Proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union

COM(2022)0223 of 16.5.2022 – 2022/0162(COD)

Having regard to the Inter-institutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts, and in particular to point 9 thereof, the Consultative Working Party consisting of the respective legal services of the European Parliament, the Council and the Commission met on 19 January, 25 January and 2 February 2023 for the purpose of examining the aforementioned proposal submitted by the Commission.

At those meetings, an examination of the proposal for a Regulation of the European Parliament and of the Council recasting Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union resulted in the Consultative Working Party’s establishing, by common accord, as follows.

1. The following should have been marked with the grey-shaded type generally used for identifying substantive amendments:

- the deletion of recital 181 of Regulation (EU, Euratom) 2018/1046;

- in Article 14(1), the replacement of the words ‘without prejudice to’ with the word ‘notwithstanding’;

- in Article 32(2), first subparagraph, the adding of the words ‘under Article 9(1), point (b), of Regulation (EU, Euratom) 2020/2093’;

- in Article 32(2), third subparagraph, the adding of the words ‘for assistance under Article 9(1), point (b), of Regulation (EU, Euratom) 2020/2093’;

- in Article 38(2)(b), the adding of the words ‘first and last’;

- in Article 49(1), second subparagraph, the replacement of the reference made to ‘point (c) of the first subparagraph of Article 30(1)’ with a reference to ‘Article 30(2), point (a)’;

- in Article 62(1), first subparagraph, point (a), the replacement of the article number ‘153’ with ‘157’;

- in Article 62(1), first subparagraph, point (c), introductory wording, the replacement of the article number ‘149’ with ‘153’;

- in Article 93(4), first subparagraph, introductory wording, the replacement of the reference made to ‘Article 143(2)’ with a reference to ‘Article 146(2), subparagraph 1, points (a) and (b)’;

- in Article 113(4), first subparagraph, the deletion of the words ‘either’ and ‘or’;

- in Article 138(4), second subparagraph, the adding of the indication ‘and (8)’;

- in Article 139(1), point (c)(iv), the deletion of the word ‘procedure’;

- in Article 139(4), point (f)(ii), the adding of the word ‘or’;

- in Article 162(2), the replacement of the reference made to ‘Article 155(5)’ with a reference to ‘Article 159(8)’;

- in Article 200(1), point (d), the replacement of the reference made to ‘point (c) of the first subparagraph of Article 62(1)’ with a reference to ‘Article 62(1), first subparagraph, point (b)’;

- in Article 253(1), point (d), the replacement of the reference made to ‘Article 118(4)’ with a reference to ‘Article 119(8)’;

- in Article 275(1), the deletion of the third sentence of Article 279(1) of Regulation (EU, Euratom) 2018/1046;

- in Article 278, second paragraph, the replacement of the date ‘2 August 2018’ with the indication ‘[...]’;

- in the introductory wording of point 20.2 of Annex I, the adding of the words ‘in particular’.

2. In Article 41(2), first subparagraph, the reference made to ‘the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management’ should have been replaced with a reference to ‘the Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources’. The corresponding footnote no. 69 should read ‘OJ L 4331, 22.12.2020, p. 28’.

3. In Article 139(1), point (d)(iv), the words ‘in Article 4 of that Decision’ should have been replaced by the words ‘in Article 14 of that Directive’.

In consequence, examination of the proposal has enabled the Consultative Working Party to conclude, without dissent, that the proposal does not comprise any substantive amendments other than those identified as such.

The Working Party also concluded, as regards the codification of the unchanged provisions of the earlier act with those substantive amendments, that, at the time when proposal COM(2022) 223 final was submitted by the Commission to the European Parliament and to the Council, that proposal contained a straightforward codification of the existing legal text, without any change in its substance. However, after the submission of proposal COM(2022) 223 final, the Commission also submitted proposal COM(2022) 596 final and, as a result of the relevant legislative procedure, Regulation (EU, Euratom) 2022/2434 of the European Parliament and of the Council of 6 December 2022 amending Regulation (EU, Euratom) 2018/1046 as regards the establishment of a diversified funding strategy as a general borrowing method was adopted and published in the Official Journal. The amendments originating from Regulation (EU, Euratom) 2022/2434 should therefore be incorporated in the final text of the recast version of Regulation (EU, Euratom) 2018/1046.

F. DREXLER J.B. LAIGNELOT D. CALLEJA CRESPO

Jurisconsult acting Director-General Director-General

PROCEDURE – COMMITTEE RESPONSIBLE

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE