Skip to content
REPORT (COM(2022)0223 – C90179/2022 – 2022/0162(COD))

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)

A-9-2023-0180

Committee on Budgets Committee on Budgetary Control · Rapporteur: Nils Ušakovs, Monika Hohlmeier

Official HTML ↗ PDF DOCX
✦ In shortFull textProcedure & committee votes
✦ In short · AI summary of this text, generated 26 Sept 2026

Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's amended version of the Commission proposal to recast the financial rules for the EU budget. It adds respect for Union values and fundamental rights, gender and climate spending indicators, a single interoperable data system on fund recipients, and a diversified funding strategy for borrowing. It makes decommitted appropriations available again to the budget line of origin, deletes Article 15, and requires Parliament and Council approval of the yearly maximum amount the Commission may borrow. It introduces a very low value grant of up to EUR 10 000, rules against gold-plating, and aligns the rules with the foreign subsidies regulation.

Committee position. The committees propose to amend the Commission proposal to strengthen transparency, accountability and democratic scrutiny, introduce a single data system, a diversified funding strategy, and respect for Union values, while simplifying rules and reducing administrative burden.

Key points

  1. Parliament adopts its first-reading position on the recast of the financial rules, taking into account the Consultative Working Party's recommendations.
  2. The Commission and member states must ensure respect for Union values and fundamental rights, including non-discrimination and the Charter, when implementing the budget.
  3. Performance indicators must measure spending impact on gender equality and track spending on climate change mitigation and adaptation and biodiversity protection.
  4. Programmes must respect the do-no-significant-harm principle, social and employment conditions, and the values in Article 2 TEU.
  5. A single integrated and interoperable information and monitoring system must record data on recipients and beneficial owners, allow real-time retrieval, and be accessible to the Commission, member states, Parliament, Council, Court of Auditors, OLAF and EPPO.
  6. The Commission must report annually to Parliament and Council on aggregated recipient data and publish recipient information on a single website.
  7. Decommitted appropriations are made available again to the budget line of origin, with exceptions for the Single Margin Instrument and Flexibility Instrument, and Article 15 is deleted.
  8. A diversified funding strategy becomes the single method for borrowing, with a common liquidity pool, and Parliament and Council approve the yearly maximum borrowing amount.
  9. A very low value grant of up to EUR 10 000 is created, with simplified documentation for applicants.
  10. Union institutions and bodies must refrain from imposing additional administrative burden beyond Union legislation, and the Commission reports annually on reducing it.
  11. The rules are aligned with the foreign subsidies regulation, including notification of foreign financial contributions in procurement above EUR 250 million and EUR 4 million thresholds.
  12. The new data system obligations apply from 1 January 2026, and the Commission must inform Parliament and Council when it accepts in-kind donations.

Who is affected

  • Member states implementing the EU budget, which must record data in the new system and transmit information on exclusion situations.
  • Recipients of EU funds, including sub-beneficiaries and contractors, whose data will be recorded and published.
  • The Commission, which must set up the data system, implement the diversified funding strategy, and report to Parliament and Council.
  • The European Parliament and the Council, which must approve the yearly maximum borrowing amount and trust funds.
  • Small and medium-sized enterprises and individual applicants, who can benefit from very low value grants of up to EUR 10 000.

Figures and deadlines

  • Very low value grant: up to EUR 10 000.
  • Data storage period: maximum 10 years from the last payment claim.
  • Publication of recipient information: no later than 30 June of the following year.
  • Personal data removal: five years after the end of the financial year of the legal commitment.
  • Application date for the new data system: 1 January 2026.
  • Foreign subsidies notification thresholds: EUR 250 million contract value and EUR 4 million aggregate contributions per third country.
  • Non-financial donations of non-perishable supplies: not before depreciated value is 80% of purchase price.
  • Repayment of fines: within 60 days of cancellation or reduction.

Legal basis: Article 294(2) and Article 322(1) of the Treaty on the Functioning of the European Union and Article 106a of the Treaty establishing the European Atomic Energy Community.