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REPORT (2018/2070(ACI))

On conclusion of an 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

A-9-2020-0261

Committee on Constitutional Affairs · Rapporteur: Esteban González Pons

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The Committee on Constitutional Affairs approves the conclusion of a new Interinstitutional Agreement between Parliament, the Council and the Commission on budgetary discipline, cooperation in budgetary matters and sound financial management, and on new own resources. The agreement replaces the 2013 Interinstitutional Agreement and sets out rules for implementing the 2021-2027 multiannual financial framework, including a roadmap for new own resources to cover the costs of the European Union Recovery Instrument (Next Generation EU). It provides for Parliament's involvement in the governance of external assigned revenue under Next Generation EU, and for monitoring spending on climate and biodiversity objectives, gender equality and the UN Sustainable Development Goals. It also lays down rules on the quality and comparability of data on the final beneficiaries of Union funding, on cooperation and dialogue during multiannual financial framework negotiations, and on the mobilisation of special instruments.

Committee position. The Committee on Constitutional Affairs approves the conclusion of the Interinstitutional Agreement and instructs its President to sign it and arrange its publication.

Key points

  1. Parliament approves the conclusion of the Interinstitutional Agreement annexed to the decision.
  2. The agreement replaces the Interinstitutional Agreement of 2 December 2013 on budgetary discipline, cooperation in budgetary matters and sound financial management.
  3. It contains a new annex with a roadmap for introducing new own resources over 2021-2027, sufficient to cover the interests and repayment costs of the European Union Recovery Instrument (Next Generation EU).
  4. Revenue from own resources above repayment needs continues to fund the Union budget as general revenue, and the roadmap does not preclude further proposals for new own resources during 2021-2027.
  5. A new part on cooperation aims to ensure appropriate involvement of the budgetary authority in the governance of external assigned revenue under Next Generation EU, referring to a joint declaration on budgetary scrutiny of proposals based on Article 122 TFEU.
  6. The agreement provides for monitoring spending on climate and biodiversity objectives, gender equality and the UN Sustainable Development Goals, including a 30% climate spending target and a biodiversity spending target of 7.5% from 2024 and 10% in 2026 and 2027.
  7. A new part introduces standardised measures to collect, compare and aggregate information on the final beneficiaries of Union funding.
  8. The agreement includes provisions on cooperation and dialogue during multiannual financial framework negotiations, to facilitate adoption of the framework and promote consultation and reconciliation of positions.
  9. It safeguards existing provisions and adds arrangements on mobilising special instruments: the European Globalisation Adjustment Fund, the Solidarity and Emergency Aid Reserve, the Brexit Adjustment Reserve, the Single Margin Instrument and the Flexibility Instrument.
  10. It provides for further targeted adjustments on the transparency of programming and forecasts.
  11. The Council is required to share necessary information with Parliament in the discharge procedure concerning the European Council and the Council.
  12. The agreement is horizontal in application and does not prevent co-legislators from agreeing additional measures in specific regulations on data quality or on the involvement of the budgetary authority.

Who is affected

  • European Parliament, Council and Commission: bound by the agreement's provisions on budgetary discipline, cooperation and sound financial management.
  • The Council: must share information with Parliament in the discharge procedure concerning the European Council and the Council.
  • Beneficiaries of Union funding: standardised measures will apply to the collection and comparison of data on final beneficiaries.
  • Regional and local authorities: highlighted role in achieving a recovery symmetrical between regions under the Recovery and Resilience Facility.

Figures and deadlines

  • 30% of the overall Union budget: climate spending target.
  • 7.5% from 2024: new multiannual financial framework biodiversity annual spending target.
  • 10% in 2026 and 2027: biodiversity annual spending target.
  • 2021-2027: period of the multiannual financial framework and the roadmap for new own resources.

Legal basis: Articles 295, 310, 311, 312, 323 and 324 of the Treaty on the Functioning of the European Union.