Sittings · Document

DRAFT REPORT (COM(2023)0692 – C90408/2023 – 2023/0397(COD)) 2024-02-09

On the proposal for a regulation of the European Parliament and of the Council on establishing the Reform and Growth Facility for the Western Balkans

Committee on Foreign Affairs Committee on Budgets · Rapporteur: Tonino Picula, Karlo Ressler

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DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council on establishing the Reform and Growth Facility for the Western Balkans

(COM(2023)0692 – C90408/2023 – 2023/0397(COD))

(Ordinary legislative procedure: first reading)

– having regard to the Commission proposal to Parliament and the Council (COM(2023)0692),

– having regard to Article 212 and Article 322(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90408/2023),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to Rule 59 of its Rules of Procedure,

– having regard to the report of the Committee on Foreign Affairs and the Committee on Budgets (A90000/2024),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment 1

Proposal for a regulation

Citation 3 a (new)

Text proposed by the Commission

Amendment

Having regard to the Joint declaration of the European Parliament, the Council and the Commission relating to the exceptional nature of the Ukraine Facility;

Or. en

Amendment 2

Proposal for a regulation

Recital -1 (new)

Text proposed by the Commission

Amendment

(-1) The Union is founded on the values of democracy, the rule of law and respect for human rights, which are part of the Copenhagen criteria, which are the key set of criteria for EU membership.

Or. en

Amendment 3

Proposal for a regulation

Recital -1 a (new)

Text proposed by the Commission

Amendment

(-1 a) The enlargement process is built on established criteria and fair and rigorous conditionality. Each beneficiary is assessed on its own merits. For the prospect of enlargement to become a reality, a firm commitment to ‘fundamentals first’ remains essential. The ‘fundamentals first’ approach links the rule of law and fundamental rights with the two other crucial areas of the accession process: economic governance – strengthened focus on economic development and improved competitiveness – and the strengthening of democratic institutions and public administration reform. Progress towards accession depends on each applicant’s respect for the Union’s values and its capacity to undertake and implement the necessary reforms to align its political, institutional, legal, administrative and economic systems with the rules, standards, policies and practices of the Union, while promoting good neighbourly relations.

Or. en

Amendment 4

Proposal for a regulation

Recital -1 b (new)

Text proposed by the Commission

Amendment

(-1 b) The Instrument for Pre-Accession assistance (IPA) is the main financial mechanism to prepare accession countries for their future membership of the Union.

Or. en

Amendment 5

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2) There is a need to bring forward some of the advantages of Union membership before accession. Economic convergence is at the heart of these benefits. Currently, the convergence of Western Balkans in terms of GDP per capita expressed in purchasing power standards remains low at between 30% and 50% of the Union average and is not progressing fast enough.

(2) There is a need to bring forward some of the advantages of Union membership before accession. Alongside democratic transition and respect for fundamental rights and values, economic convergence is at the heart of these benefits. Currently, the convergence of Western Balkans in terms of GDP per capita expressed in purchasing power standards remains low at between 30% and 50% of the Union average and is not progressing fast enough.

Or. en

Amendment 6

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

(5) To achieve these goals, special emphasis with respect to investment areas should be placed on sectors that are likely to function as key multipliers for social and economic development: connectivity, including transport, energy, green and digital transitions, education and skills development.

(5) To achieve these goals, special emphasis with respect to investment areas should be placed on sectors that are likely to function as key drivers for social and economic development: SMEs, connectivity, including transport, energy, green and digital transitions, research and innovation, education and skills development.

Or. en

Amendment 7

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) Union support under the Facility should not replace the bilateral and regional support provided under Regulation (EU) 2021/1529 of the European Parliament and of the Council4 , focussing on preparing the Beneficiaries for Union membership, but complement it and add to it, while using already existing mechanisms and structures where possible. The approach should build on the existing enlargement methodology, notably the 2020 Revised Methodology5 , and the Economic and Investment Plan6 from the same year.

(8) Union support under the Facility should reinforce the bilateral and regional support provided under Regulation (EU) 2021/1529 of the European Parliament and of the Council4 , focussing on preparing the Beneficiaries for Union membership, while using already existing mechanisms and structures where possible. The approach should build on the existing enlargement methodology, notably the 2020 Revised Methodology5 , and the Economic and Investment Plan6 from the same year.

__________________

4 Regulation (EU) 2021/1529 of the European Parliament and of the Council of 15 September 2021 establishing the Instrument for Pre-Accession assistance (IPA III) (OJ L 330, 20.9.2021, p. 1, ELI: http://data.europa.eu/eli/reg/2021/1529/oj).

5 COM (2022) 57 final.

6 COM(2020) 641 final.

Or. en

Amendment 8

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9) The support under the Facility should be provided to meet general and specific objectives, based on established criteria and with clear payment conditions. The general objectives of the Facility should be to accelerate regional economic integration, progressive integration with the Union single market, socio-economic convergence of Western Balkans economies and alignment with Union laws, rules, standards, policies and practices with a view to Union membership. The Facility should also help accelerate reforms related to fundamentals of the enlargement process, including rule of law, public procurement and State aid control, public finance management and fight against corruption. These objectives should be pursued in a mutually reinforcing manner.

(9) The support under the Facility should be provided to meet general and specific objectives, based on established criteria and with clear payment conditions. The general objectives of the Facility should be to accelerate regional economic integration, progressive integration with the Union single market, socio-economic convergence of Western Balkans economies and alignment with Union laws, rules, standards, policies and practices with a view to Union membership. The Facility should also help accelerate reforms related to fundamentals of the enlargement process, including rule of law, democratic transition, public procurement and State aid control, public finance management and fight against corruption and organised crime. These objectives should be pursued in a mutually reinforcing manner.

Or. en

Amendment 9

Proposal for a regulation

Recital 10

Text proposed by the Commission

Amendment

(10) The Facility should promote the development effectiveness principles, respecting additionality to the support provided under other Union programmes and instruments and striving to avoid duplication between assistance under this Regulation and other assistance provided by the Union, the Member States, third countries, multilateral and regional organisations and entities.

(10) The Facility should respect additionality to the support provided under other Union programmes and instruments and avoid duplication between assistance under this Regulation and other assistance provided by the Union, the Member States, third countries, multilateral and regional organisations and entities. In particular, any overlaps with support provided under Regulation (EU) 2021/1529 should be avoided.

Or. en

Amendment 10

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

(16) The Commission, in cooperation with the Member States and the Beneficiaries, should contribute to increased transparency and accountability in the delivery of assistance, including by implementing appropriate internal control systems and anti-fraud policies. The support under the Facility should be made available under the preconditions that each of the Beneficiaries continues to respect and uphold effective democratic mechanisms and institutions, including a multi-party parliamentary system, and the rule of law, and to guarantee respect for human rights, including the rights of persons belonging to minorities. Another pre-condition should be that Serbia and Kosovo engage constructively in the normalisation of their relations with a view to fully implementing all their respective obligations stemming from the Agreement on the Path to Normalisation and its Implementation Annex as well as all past Dialogue Agreements and engage in negotiations on the Comprehensive Agreement on normalisation of relations.

(16) The Commission, in cooperation with the Member States and the Beneficiaries, should contribute to increased transparency and accountability in the delivery of assistance, including by implementing appropriate internal control systems and anti-fraud policies. The support under the Facility should be made available under the preconditions that each of the Beneficiaries respects and upholds effective democratic mechanisms and institutions, including a functioning multi-party parliamentary system, media freedom and the rule of law, and guarantees respect for human rights, including the rights of persons belonging to minorities. Another pre-condition should be that Serbia and Kosovo engage constructively in the normalisation of their relations with a view to fully implementing all their respective obligations stemming from the Agreement on the Path to Normalisation and its Implementation Annex as well as all past Dialogue Agreements and engage in negotiations on the Comprehensive Agreement on normalisation of relations.

Or. en

Amendment 11

Proposal for a regulation

Recital 20

Text proposed by the Commission

Amendment

(20) Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 TFEU should apply to this Regulation. Those rules are laid down in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council9 and determine in particular the procedure for establishing and implementing the budget through grants, procurement, indirect management, financial assistance, blending operations and the reimbursement of external experts, and provide for checks on the responsibility of financial actors.

__________________

9 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, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/20 (OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj).

Or. en

Amendment 12

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21) Restrictions of eligibility in award procedures under the Facility should be allowed on account of the specific nature of the activity or when the activity affects security or public order.

deleted

Or. en

Amendment 13

Proposal for a regulation

Recital 23 a (new)

Text proposed by the Commission

Amendment

(23 a) Considering the fact that facilities are instruments responding to exceptional situations, their financing and governance arrangements should ensure full accountability and scrutiny to the budgetary authority;

Or. en

Amendment 14

Proposal for a regulation

Recital 26

Text proposed by the Commission

Amendment

(26) The Reform Agendas should include targeted reform measures and priority investment areas, along with payment conditions in the form of qualitative and quantitative steps that indicate satisfactory progress or completion of those measures, and an indicative timetable for the implementation of those measures. Those steps should be planned for no later than 31 August 2027, although the overall completion of the measures to which such steps refer may extend beyond 2027 but not later than 31 December 2028.

(26) The Reform Agendas should include targeted reform measures and priority investment areas, along with payment conditions in the form of measurable qualitative and quantitative steps as well as milestones and targets indicating satisfactory progress or completion of those measures, and an indicative timetable for the implementation of those measures. The Reform Agendas should also include an indicative ex-ante costing of reforms and investments. Those steps should be planned for no later than 31 August 2027, although the overall completion of the measures to which such steps refer may extend beyond 2027 but not later than 31 December 2028.

Or. en

Amendment 15

Proposal for a regulation

Recital 27

Text proposed by the Commission

Amendment

(27) The Reform Agendas should include an explanation of the Beneficiary’s system to effectively prevent, detect and correct irregularities, corruption, fraud and conflicts of interests, when using the funds provided under the Facility, and the arrangements that aim to avoid double funding from the Facility and other Union programmes as well as other donors.

(27) The Reform Agendas should include an explanation of the Beneficiary’s system to effectively prevent, detect and correct irregularities, corruption, fraud and conflicts of interests, when using the funds provided under the Facility, and the arrangements to avoid double funding from the Facility and other Union programmes as well as other donors.

Or. en

Amendment 16

Proposal for a regulation

Recital 28

Text proposed by the Commission

Amendment

(28) Measures under the Reform Agendas should, where appropriate, contribute to improving an efficient public finance management and control system, fight against corruption, fraud and organised crime, and to an effective system of State aid control, aiming at ensuring fair conditions for all undertakings. Such measures should be implemented by the Beneficiary by an indicative date which could be set, appropriate for each measure, in the early stage of implementation of the Facility.

(28) Measures under the Reform Agendas should contribute to improving an efficient public finance management and control system, fight against corruption, fraud and organised crime, and to an effective system of State aid control, aiming at ensuring fair conditions for all undertakings. Such measures should be implemented by the Beneficiary by an indicative date which could be set, appropriate for each measure, in the early stage of implementation of the Facility.

Or. en

Amendment 17

Proposal for a regulation

Recital 29

Text proposed by the Commission

Amendment

(29) The Commission should assess each Reform Agenda based on the list of criteria set out in this Regulation. In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission to approve those Reform Agendas. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council11 . The Commission will duly take into account Council decision 2010/427/EU and the role of the EEAS where appropriate, and in particular when monitoring the fulfilment of the precondition for Union support.

(29) The Commission should assess each Reform Agenda based on the list of criteria set out in this Regulation. In order to ensure uniform conditions for the implementation of this Regulation, the Commission should be empowered to adopt a delegated act. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council11 . The Commission will duly take into account Council decision 2010/427/EU and the role of the EEAS where appropriate, and in particular when monitoring the fulfilment of the precondition for Union support.

__________________

11 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13, ELI: http://data.europa.eu/eli/reg/2011/182/oj).

Or. en

Amendment 18

Proposal for a regulation

Recital 30

Text proposed by the Commission

Amendment

(30) The Commission implementing decision referred to in this Regulation should at the same time constitute a work programme within the meaning of Article 110(2) of the Financial Regulation in respect of the amount of non-repayable financial support under this Regulation.

(30) The delegated act referred to in this Regulation should at the same time constitute a work programme within the meaning of Article 110(2) of the Financial Regulation in respect of the amount of non-repayable financial support under this Regulation.

Or. en

Amendment 19

Proposal for a regulation

Recital 31

Text proposed by the Commission

Amendment

(31) Given the need for flexibility in the implementation of the Facility, it should be possible for a Beneficiary to make a reasoned request to the Commission to amend the implementing decision, where the Reform Agenda, including relevant payment conditions, is no longer achievable, either partially or totally, because of objective circumstances. A Beneficiary should be able to make a reasoned request to amend the Reform Agenda, including by proposing addenda where relevant.

(31) Given the need for flexibility in the implementation of the Facility, it should be possible for a Beneficiary to make a reasoned request to the Commission to amend the delegated act, where the Reform Agenda, including relevant payment conditions, is no longer achievable, either partially or totally, because of objective circumstances. A Beneficiary should be able to make a reasoned request to amend the Reform Agenda, including by proposing addenda where relevant.

Or. en

Amendment 20

Proposal for a regulation

Recital 32

Text proposed by the Commission

Amendment

(32) The Commission should be able to amend the implementing decision, in particular to take into account a change of the amounts available.

(32) The Commission should be able to propose to amend the delegated act, in particular to take into account a change of the amounts available.

Or. en

Amendment 21

Proposal for a regulation

Recital 34

Text proposed by the Commission

Amendment

(34) A Facility Agreement should be concluded with each Beneficiary to set up the principles of the financial cooperation between the Union and the Beneficiary, and to specify the necessary mechanisms related to control, supervision, monitoring, evaluation, reporting and audit of Union funding under the Facility, rules on taxes, duties and charges and measures to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest. Consequently, a loan agreement should also be concluded with each Beneficiary setting out specific provisions for the management and implementation of funding provided in the forms of loans.

(34) A Framework Agreement should be concluded with each Beneficiary to set up the principles of the financial cooperation between the Union and the Beneficiary, and to specify the necessary mechanisms related to control, supervision, monitoring, evaluation, reporting and audit of Union funding under the Facility, rules on taxes, duties and charges and measures to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest. Consequently, a loan agreement should also be concluded with each Beneficiary setting out specific provisions for the management and implementation of funding provided in the forms of loans.

Or. en

Amendment 22

Proposal for a regulation

Recital 41

Text proposed by the Commission

Amendment

(41) It is important to guarantee both flexibility and programmability in providing Union support to the Western Balkans Beneficiaries. For that purpose, funds under the Facility should be released according to a fixed semi-annual schedule, subject to availability of funding, based on a request for the release of funds submitted by the Beneficiaries and following verification by the Commission of the satisfactory fulfilment of both the general conditions related to macro-financial stability, sound public financial management, transparency and oversight of the budget and the relevant payment conditions. Where a payment condition is not fulfilled in accordance with the indicative timeline set in the decision approving the Reform Agenda, the Commission could withhold part or whole of the funds corresponding to that condition. The disbursement of the corresponding withheld funds could take place during the next window for the release of funds and up to twelve months after the original deadline set out in the indicative timeline, provided the payment conditions have been fulfilled. In the first year of implementation, this deadline should be extended to 24 months from the initial negative assessment.

(41) It is important to guarantee both flexibility and programmability in providing Union support to the Western Balkans Beneficiaries. For that purpose, funds under the Facility should be released according to a fixed semi-annual schedule, subject to availability of funding, based on a request for the release of funds submitted by the Beneficiaries and following verification by the Commission of the satisfactory fulfilment of both the general conditions related to macro-financial stability, sound public financial management, transparency and oversight of the budget and the relevant payment conditions, that is the implementation of the relevant measures. Where a payment condition is not fulfilled or the relevant measures are not implemented in accordance with the indicative timeline set in the decision approving the Reform Agenda, the Commission could withhold part or whole of the funds corresponding to that condition. The disbursement of the corresponding withheld funds could take place during the next window for the release of funds and up to twelve months after the original deadline set out in the indicative timeline, provided the payment conditions have been fulfilled or the relevant measures have been implemented. In the first year of implementation, this deadline should be extended to 24 months from the initial negative assessment.

Or. en

Amendment 23

Proposal for a regulation

Recital 41 a (new)

Text proposed by the Commission

Amendment

(41 a) To support the appropriate level of transparency that benefits the protection of the EU financial interests, the final recipient for support from the Facility shall be the natural person or entity that de facto receives the EU funding, being the contractor or sub-contractor in the case of contracting authority. Government ministries, agencies, or bodies that oversee, regulate, or administer the funds should only be considered final recipients when they are themselves involved in the execution and direct application of the work or service and bear the associated costs.

Or. en

Amendment 24

Proposal for a regulation

Recital 43

Text proposed by the Commission

Amendment

(43) In the framework of the Union’s restrictive measures, adopted on the basis of Article 29 of the Treaty on European Union (TEU) and 215(2) of the Treaty on the Functioning of the European Union (TFEU), no funds or economic resources may be made available, directly or indirectly, to or for the benefit of designated legal persons, entities or bodies. Such designated entities, and entities owned or controlled by them, therefore cannot be supported by the Facility.

(43) In the framework of the Union’s restrictive measures, adopted on the basis of Article 29 of the Treaty on European Union (TEU) and 215(2) of the Treaty on the Functioning of the European Union (TFEU), no funds or economic resources may be made available, directly or indirectly, to or for the benefit of designated legal persons, entities or bodies, or to third-country operators facilitating circumvention of EU sanctions. Such designated entities, and entities owned or controlled by them, therefore cannot be supported by the Facility.

Or. en

Amendment 25

Proposal for a regulation

Recital 44

Text proposed by the Commission

Amendment

(44) In accordance with Regulation (EU, Euratom) 2018/1046, Regulation (EU, Euratom) 883/2013 of the European Parliament and of the Council13 and Council Regulations (EC, Euratom) No 2988/9514 , (Euratom, EC) No 2185/9615 and (EU) 2017/193916 , the financial interests of the Union are to be protected by means of proportionate measures, including measures relating to the prevention, detection, correction and investigation of irregularities, fraud, corruption, conflict of interest, double funding, to the recovery of funds lost, wrongly paid or incorrectly used.

__________________

13 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1, ELI: http://data.europa.eu/eli/reg/2013/883/oj).

14 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1, ELI: http://data.europa.eu/eli/reg/1995/2988/oj).

15 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2, ELI: http://data.europa.eu/eli/reg/1996/2185/oj).

16 Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1, ELI: http://data.europa.eu/eli/reg/2017/1939/oj).

Or. en

Amendment 26

Proposal for a regulation

Recital 45 a (new)

Text proposed by the Commission

Amendment

(45 a) The Commission should ensure that the financial interests of the Union are effectively protected under the Facility. To this end, an independent Audit Board should be set up to provide the Commission with information on possible mismanagement of funds and guarantee that a declaration of assurance is obtained through an independent external audit. The Audit Board should be subject to the reporting obligations to EPPO, in accordance with Article 24(1) of Regulation (EU) 2017/1939. Such information should be made available to OLAF and EPPO, when applicable, and where appropriate to the relevant Western Balkans Beneficiary authorities. The Commission, with the assistance of the Union delegations, should be entitled to perform checks on how the Western Balkans Beneficiary implement funds along the whole project life cycle. The Commission should be provided with sufficient funding and human resources to perform the audit and checks. The Audit Board should ensure regular dialogue and cooperation with the European Court of Auditors.

Or. en

Amendment 27

Proposal for a regulation

Recital 48

Text proposed by the Commission

Amendment

(48) Furthermore, the beneficiaries should report the irregularities including fraud which have been the subject of a primary administrative or judicial finding, without delay, to the Commission and keep the latter informed of the progress of administrative and legal proceeding. With the objective of alignment to good practices in Member States, this reporting should be done by electronic means, using the Irregularity Management System, established by the Commission.

(48) Furthermore, the beneficiaries should report the irregularities including fraud which have been the subject of a primary administrative or judicial finding, without delay, to the Audit Board and the Commission and keep them informed of the progress of administrative and legal proceedings. With the objective of alignment to good practices in Member States, this reporting should be done by electronic means, using the Irregularity Management System, established by the Commission.

Or. en

Amendment 28

Proposal for a regulation

Recital 48 a (new)

Text proposed by the Commission

Amendment

(48 a) In order to measure progress on the objectives of the Facility, the Commission and the Beneficiary should establish a clear correlation between the amounts paid made available to the Beneficiary, in non-repayable financial support and loans and the costs incurred for the achievement of indicators.

Or. en

Amendment 29

Proposal for a regulation

Recital 51

Text proposed by the Commission

Amendment

(51) The Commission should provide an annual report on the progress with the implementation of the Regulation and the Facility to the European Parliament and to the Committee referred to in this Regulation. The annual report should include a detailed assessment of the added value and additionality of this Facility, of synergies and complementarities between support covered under this Facility and Regulation (EU) 2021/1529, as well as a description of the arrangements and measures taken by the Commission to avoid double funding, with a view to protecting the Union budget.

Or. en

Amendment 30

Proposal for a regulation

Recital 55

Text proposed by the Commission

Amendment

(55) Given the ambitious general objectives of this Facility within a short implementation period, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,

(55) This Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,

Or. en

Amendment 31

Proposal for a regulation

Article 1 – paragraph 2

Text proposed by the Commission

Amendment

2. The Facility shall provide assistance to the Western Balkans for the delivery of socio-economic reforms and investments to implement their respective Reform Agendas, as set out in Chapter III.

2. The Facility shall complement Regulation (EU) 2021/1529 to provide assistance to the Western Balkans for the delivery of socio-economic reforms and investments to implement their respective Reform Agendas, as set out in Chapter III.

Or. en

Amendment 32

Proposal for a regulation

Article 2 – paragraph 1 – point 1

Text proposed by the Commission

Amendment

1. ‘Beneficiary’ means any of the following: Albania, Bosnia and Herzegovina, Kosovo17 , Montenegro, North Macedonia and Serbia.

1. ‘Beneficiary’ means any of the following: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia.

__________________

17 *This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence

Or. en

Amendment 33

Proposal for a regulation

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

Text proposed by the Commission

Amendment

2 a. ‘Rule of Law Report’ means the annual Communication on Rule of Law and accompanying staff working documents.

Or. en

Amendment 34

Proposal for a regulation

Article 2 – paragraph 1 – point 3

Text proposed by the Commission

Amendment

3. ‘Facility Agreement’ means an arrangement concluded between the Commission and the Beneficiary laying down the principles of the financial cooperation between the Beneficiary and the Commission under this Regulation. This arrangement constitutes a financing agreement within the meaning of Article 114(2) of Regulation (EU, Euratom) 2018/1046 as regards Funds under Article 6(2) point a.

3. ‘Framework Agreement’ means an arrangement concluded between the Commission and the Beneficiary laying down the principles of the financial cooperation between the Beneficiary and the Commission under this Regulation. This arrangement constitutes a financing agreement within the meaning of Article 114(2) of Regulation (EU, Euratom) 2018/1046 as regards Funds under Article 6(2) point a.

Or. en

Amendment 35

Proposal for a regulation

Article 2 – paragraph 1 – point 8 a (new)

Text proposed by the Commission

Amendment

8 a. ‘Final recipient’ means a contractor, sub-contractor, remunerated external expert or a person or entity receiving prizes or funds under the Facility.

Or. en

Amendment 36

Proposal for a regulation

Article 3 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) accelerate alignment with Union values, laws, rules, standards, policies and practices with a view to Union membership

(c) in line with the general objective of the IPA III, accelerate alignment with Union values, laws, rules, standards, policies and practices with a view to Union membership

Or. en

Amendment 37

Proposal for a regulation

Article 3 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

2. The specific objectives of the Facility shall include to:

2. The specific objectives of the Facility shall be to:

Or. en

Amendment 38

Proposal for a regulation

Article 3 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) boost regional economic integration in particular through progress in the establishment of the Common Regional Market;

(b) boost regional economic integration in particular through tangible progress in the establishment of the Common Regional Market;

Or. en

Amendment 39

Proposal for a regulation

Article 3 – paragraph 2 – point d

Text proposed by the Commission

Amendment

(d) support regional economic integration and enhanced integration with the EU single market through improved connectivity in the region in line with Transeuropean Networks;

(d) support regional economic integration, cohesion and enhanced integration with the EU single market through improved connectivity in the region in line with Transeuropean Networks;

Or. en

Amendment 40

Proposal for a regulation

Article 3 – paragraph 2 – point j a (new)

Text proposed by the Commission

Amendment

(j a) reinforce regional and cross-border cooperation, as well as people-to-people contacts.

Or. en

Amendment 41

Proposal for a regulation

Article 4 – paragraph -1 (new)

Text proposed by the Commission

Amendment

-1. The enlargement policy framework defined by the European Council and the Council, the agreements that establish a legally binding relationship with the beneficiaries, as well as resolutions of the European Parliament, communications of the Commission and joint communications of the Commission and the High Representative of the Union for Foreign Affairs and Security Policy, shall constitute the overall policy framework for the implementation of this Regulation. The Commission shall ensure coherence between the assistance under this Regulation and the enlargement policy framework.

Or. en

Amendment 42

Proposal for a regulation

Article 4 – paragraph 1

Text proposed by the Commission

Amendment

1. Cooperation under the Facility shall be based on and shall promote the development effectiveness principles, across all modalities, namely ownership of development priorities by the Beneficiaries, a focus on results, inclusive partnerships, transparency and mutual accountability. The cooperation shall be based on effective and efficient resources allocation and use.

1. Cooperation under the Facility shall be needs based and shall promote the development effectiveness principles, across all modalities, namely ownership of development priorities by the Beneficiaries, a focus on results, inclusive partnerships, transparency and mutual accountability. The cooperation shall be based on effective and efficient resources allocation and use.

Or. en

Amendment 43

Proposal for a regulation

Article 4 – paragraph 2

Text proposed by the Commission

Amendment

2. Support from the Facility shall be additional to the support provided under other Union programmes and instruments. Activities eligible for funding under this Regulation may receive support from other Union programmes and instruments provided that such support does not cover the same cost. The Commission shall ensure complementarities and synergies between the Facility and other Union programmes, with a view to avoiding the duplication of assistance and double funding. There shall be no overlap between support provided under this Regulation and Regulation (EU) 2021/1529.

Or. en

Amendment 44

Proposal for a regulation

Article 4 – paragraph 3

Text proposed by the Commission

Amendment

3. In order to promote the complementarity and efficiency of their action, the Commission and the Member States shall cooperate and shall strive to avoid duplication between assistance under this Regulation and other assistance provided by the Union, the Member States, third countries, multilateral and regional organisations and entities, such as international organisations and the relevant international financial institutions, agencies and non-Union donors, in line with the established principles for strengthening operational coordination in the field of external assistance, including through enhanced coordination with Member States at local level.

3. In order to promote the complementarity and efficiency of their action, the Commission and the Member States shall cooperate and shall avoid duplication between assistance under this Regulation and other assistance provided by the Union, the Member States, third countries, multilateral and regional organisations and entities, such as international organisations and the relevant international financial institutions, agencies and non-Union donors, in line with the established principles for strengthening operational coordination in the field of external assistance, including through enhanced coordination with Member States at local level.

Or. en

Amendment 45

Proposal for a regulation

Article 4 – paragraph 3 – point 1 (new)

Text proposed by the Commission

Amendment

(1) The provision of macro-financial assistance shall not fall within the scope of this Facility.

Or. en

Amendment 46

Proposal for a regulation

Article 4 – paragraph 6 – point 1 (new)

Text proposed by the Commission

Amendment

(1) In line with the EU partnership Principle and the EU Code of Conduct, the Commission shall ensure that relevant stakeholders, including the national Parliaments of the Western Balkan countries, local and regional authorities, social partners as well as civil society organisations, are duly and fairly consulted and have timely access to relevant information to allow them to meaningfully participate in shaping the design and the implementation of activities eligible for funding under this Facility, and in the related monitoring, scrutiny and evaluation processes.

Or. en

Amendment 47

Proposal for a regulation

Article 4 – paragraph 7

Text proposed by the Commission

Amendment

7. The Commission, in cooperation with the Member States and the Beneficiaries, shall contribute to the implementation of Union commitments to increased transparency and accountability in the delivery of assistance, including by promoting the implementation and reinforcement of internal control systems and anti-fraud policies, and by making information on the volume and allocation of assistance available through web-based databases, and shall ensure that data is comparable and can be easily accessed, shared and published.

7. The Commission, in cooperation with the Member States and the Beneficiaries, shall contribute to the implementation of Union commitments to increased transparency and accountability in the delivery of assistance, through the implementation and reinforcement of internal control systems and anti-fraud policies, and by compulsory making information on the volume and allocation of assistance, to the level of the final recipient, available through a single web-portal, and shall ensure that data is comparable and can be easily accessed, shared and published.

Or. en

Amendment 48

Proposal for a regulation

Article 5 – paragraph 1

Text proposed by the Commission

Amendment

1. Preconditions for the support under the Facility shall be that the Beneficiaries continue to uphold and respect effective democratic mechanisms, including a multi-party parliamentary system, and the rule of law, and guarantee respect for all human rights obligations, including the rights of persons belonging to minorities. Another pre-condition shall be that Serbia and Kosovo engage constructively in the normalisation of their relations with a view to fully implementing all their respective obligations stemming from the Agreement on the Path to Normalisation and its Implementation Annex as well as all past Dialogue Agreements and engage in negotiations on the Comprehensive Agreement on normalisation of relations.

1. Preconditions for the support under the Facility shall be that the Beneficiaries improve, uphold and respect effective democratic mechanisms, including a functioning multi-party parliamentary system, media freedom and the rule of law, also in view of threats to the EU Financial interests, and guarantee respect for all human rights obligations, including the rights of persons belonging to minorities.

Another precondition shall be full alignment with the Union’s common foreign and security policy, including adoption of restrictive measures against Russia, as well as with EU visa requirements for third countries.

Another pre-condition shall be that Serbia and Kosovo engage constructively with clearly measurable progress and tangible results in the normalisation of their relations with a view to fully implementing all their respective obligations stemming from the Agreement on the Path to Normalisation and its Implementation Annex as well as all past Dialogue Agreements and engage in negotiations on the Comprehensive Agreement on normalisation of relations.

Or. en

Amendment 49

Proposal for a regulation

Article 5 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission shall monitor the fulfilment of the preconditions set out in paragraph 1 before funds are released to Beneficiaries under the Facility and throughout the period of the support provided under the Facility taking duly into account the latest Enlargement Package. The Commission may adopt a decision concluding that some of these preconditions are not met, and in particular, withhold the release of funds referred to in Article 21, irrespective of the fulfilment of payment conditions referred to in Article 16(3).

2. The Commission shall monitor the fulfilment of the preconditions set out in paragraph 1 before funds, including pre-financing, are released to Beneficiaries under the Facility and throughout the period of the support provided under the Facility taking duly into account the latest Rule of Law Report, Enlargement Package and relevant resolutions of the European Parliament.. Enlargement Package. The Commission may adopt a decision concluding that some of these preconditions are not met, and in particular, withhold the release of funds referred to in Article 21, irrespective of the fulfilment of payment conditions referred to in Article 16(3). The Commission shall withhold the release of funds in cases of a persistent lack of progress, serious deficiencies and regression on rule of law and fundamental reforms. The Commission’s assessment shall be transmitted simultaneously to the European Parliament and the Council.

The Commission shall develop clear guidelines on the application of conditionality for the release of funding.

Or. en

Amendment 50

Proposal for a regulation

Article 6 – paragraph 3 – point 1 (new)

Text proposed by the Commission

Amendment

(1) The budgetary nomenclature of the Facility shall be structured according to its specific objectives, in view of ensuring full transparency and accountability to the budgetary authority.

Or. en

Amendment 51

Proposal for a regulation

Article 6 – paragraph 6

Text proposed by the Commission

Amendment

6. The resources referred to in paragraph 2 point (b) may be used for technical and administrative assistance for the implementation of the Facility, such as preparatory actions, monitoring, control, audit and evaluation activities, which are required for the management of the Facility and the achievement of its objectives, in particular studies, meetings of experts, trainings, consultations with the Beneficiary authorities, conferences, consultation of stakeholders, information and communication actions, including inclusive outreach actions, and corporate communication of the political priorities of the Union, insofar as they are related to the objectives of this Regulation, expenses linked to IT networks focusing on information processing and exchange, corporate information technology tools, as well as all other expenditure at headquarters and Union delegations for the administrative and coordination support needed for the Facility. Finally, expenses may also cover the costs of other supporting activities such as quality control and monitoring of projects or programmes on the ground and the costs of peer counselling and experts for the assessment and implementation of reforms and investments.

6. The resources referred to in paragraph 2 point (b) may be used for technical and administrative assistance for the implementation of the Facility, such as impact assessments, preparatory actions, monitoring, control, audit and evaluation activities, which are required for the management of the Facility and the achievement of its objectives, in particular studies, meetings of experts, trainings, consultations with the Beneficiary authorities, conferences, consultation of stakeholders, including local and regional authorities and civil society organisations, information and communication actions, including inclusive outreach actions, and corporate communication of the political priorities of the Union, insofar as they are strictly related to the objectives of this Regulation, expenses linked to IT networks focusing on information processing and exchange, corporate information technology tools, as well as all other expenditure at headquarters and Union delegations for the administrative and coordination support needed for the Facility. Finally, expenses may also cover the costs of other supporting transparency activities such as quality control and monitoring of projects or programmes on the ground and the costs of peer counselling and experts for the assessment and implementation of reforms and investments. In case of using resources for auditing purposes, conflict of interests between the entity performing the audit and other activities of that entity in the framework of the Facility, such as consulting or administrative and coordination support, quality control and monitoring of projects, shall be disclosed and prevented.

Or. en

Amendment 52

Proposal for a regulation

Article 7 – paragraph 3

Text proposed by the Commission

Amendment

3. Depending on the required operational and financial capacity, the entrusted entity implementing blending operations may be the European Investment Bank or the European Investment Fund, multilateral international financial institutions, such as the European Bank for Reconstruction and Development, or bilateral European finance institutions, such as development banks. Whenever possible, the implementation of blending operations under the Facility shall be complemented by additional forms of financial support, from either Member States or third parties.

Or. en

Amendment 53

Proposal for a regulation

Article 7 – paragraph 3 – point 1 (new)

Text proposed by the Commission

Amendment

(1) Member States, third countries, international organisations, international financial institutions or other sources may provide additional financial contributions, including for the implementation of blending operations under the Facility. Such contributions shall constitute external assigned revenue within the meaning of Article 21(2), points (a)(ii), (d), and (e) of Regulation (EU, Euratom) 2018/1046.

Or. en

Amendment 54

Proposal for a regulation

Article 8 – paragraph 6 – point b

Text proposed by the Commission

Amendment

(b) where the action or specific award procedures affect security or public order, in particular concerning strategic assets and interests of the Union, its Member States, or any of the Beneficiaries, including the security, resilience and protection of integrity of digital infrastructure (including 5G network infrastructure), communication and information systems, and related supply chains.

Or. en

Amendment 55

Proposal for a regulation

Article 9 – title

Text proposed by the Commission

Amendment

Facility Agreement

Framework Agreement

Or. en

Amendment 56

Proposal for a regulation

Article 9 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission shall conclude a Facility Agreement with each Beneficiary for the implementation of the Facility setting out the obligations and payment conditions of the Beneficiaries for the disbursement of Facility funding.

1. The Commission shall conclude a Framework Agreement with each Beneficiary for the implementation of the Facility setting out specific arrangements for the management, control, supervision, monitoring, evaluation, reporting and audit of funds under the Facility, as well as to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest.

Or. en

Amendment 57

Proposal for a regulation

Article 9 – paragraph 2

Text proposed by the Commission

Amendment

2. The Facility Agreement shall be complemented by loan agreements in accordance with Article 17, setting out specific provisions for the management and implementation of funding provided in the forms of loans.

2. The Framework Agreement shall be complemented by loan agreements in accordance with Article 17, setting out specific provisions for the management and implementation of funding provided in the forms of loans. Framework agreements, including any related documentation, shall be transmitted to the European Parliament and the Council simultaneously and without delay and shall be made public.

Or. en

Amendment 58

Proposal for a regulation

Article 9 – paragraph 3

Text proposed by the Commission

Amendment

3. Funding shall only be granted to the Beneficiaries after the respective Facility Agreements and the applicable loan agreements have entered into force.

3. Funding including pre-financing shall only be granted to the Beneficiaries after a positive assessment by the Commission of fulfilment of the preconditions in Article 5, and the respective Framework Agreements and the applicable loan agreements have entered into force.

Or. en

Amendment 59

Proposal for a regulation

Article 9 – paragraph 4

Text proposed by the Commission

Amendment

4. The Facility Agreement and the loan agreements concluded with each of the Beneficiaries, and agreements concluded with person or entities receiving Union funds, shall ensure that the obligations set out in Article 129 of Regulation (EU, Euratom) 2018/1046 are fulfilled.

4. The Framework Agreement and the loan agreements concluded with each of the Beneficiaries, and agreements concluded with person or entities receiving Union funds, shall ensure that the obligations set out in Article 129 of Regulation (EU, Euratom) 2018/1046 are fulfilled.

Or. en

Amendment 60

Proposal for a regulation

Article 9 – paragraph 5 – introductory part

Text proposed by the Commission

Amendment

5. The Facility Agreement shall lay down the necessary detailed provisions concerning:

5. The Framework Agreement shall lay down the necessary detailed provisions concerning:

Or. en

Amendment 61

Proposal for a regulation

Article 9 – paragraph 5 – point a

Text proposed by the Commission

Amendment

(a) the commitment of the Beneficiary to progress towards more efficient and effective control systems, and to strengthen the fight against money laundering, terrorism financing, tax avoidance, tax fraud or tax evasion;

(a) the commitment of the Beneficiary to make decisive progress towards a robust legal framework to fight fraud, and establish more efficient and effective control systems, including appropriate mechanisms and measures to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest as well as to strengthen the fight against money laundering, organised crime, the misuse of public funds, terrorism financing, tax avoidance, tax fraud or tax evasion, and other illegal activities affecting the funds provided under the Facility;

Or. en

Amendment 62

Proposal for a regulation

Article 9 – paragraph 5 – point e a (new)

Text proposed by the Commission

Amendment

(e a) the recognition of the responsibilities of the Audit Board referred to in Article XX, and the modalities of the Western Balkans Beneficiaries’ cooperation with it;

Or. en

Amendment 63

Proposal for a regulation

Article 9 – paragraph 5 – point f

Text proposed by the Commission

Amendment

(f) the measures to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest, and the obligation to notify the Commission and OLAF without delay of suspected or actual cases of irregularities, fraud, corruption and conflict of interests and their follow-up;

(f) the measures to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest, and the obligation to notify the Audit Board, the Commission and OLAF and, where applicable, the EPPO, without delay of suspected or actual cases of irregularities, fraud, corruption and conflict of interests and other illegal activities affecting the funds provided under the Facility and their follow-up, including when they concern the entity implementing the fund under the loan agreement ;

Or. en

Amendment 64

Proposal for a regulation

Article 9 – paragraph 5 – point g

Text proposed by the Commission

Amendment

(g) the obligations referred to in Articles 22 and 23, including precise rules and timeframe on collection of data by the Beneficiary and access for the Commission and OLAF;

(g) the obligations referred to in Articles 22 and 23, including precise rules and timeframe on collection of data by the Beneficiary and access for the Commission and OLAF, European Court of Auditors, OLAF and where applicable EPPO, including for information held by the entity implementing the fund under the loan agreement;

Or. en

Amendment 65

Proposal for a regulation

Article 9 – paragraph 5 – point g a (new)

Text proposed by the Commission

Amendment

(g a) to provide a similar level of access to information and authority to carry out on-the-spot controls as the Commission and the Court of Auditors to the independent external auditor appointed by the Audit Board;

Or. en

Amendment 66

Proposal for a regulation

Article 9 – paragraph 5 – point i

Text proposed by the Commission

Amendment

(i) the right of the Commission to reduce proportionately the support provided under the Facility and recover any amount spent to achieve the objectives of the Facility or to ask for early repayment of the loan, in cases of irregularities, fraud, corruption and conflicts of interests affecting the financial interests of the Union that have not been corrected by the Beneficiary, or of a serious breach of an obligation resulting from the Facility Agreement;

(i) the right of the Commission to reduce proportionately the support provided under the Framework and recover any amount spent to achieve the objectives of the Facility or to ask for early repayment of the loan, in cases of irregularities, fraud, corruption and conflicts of interests affecting the financial interests of the Union that have not been corrected by the Beneficiary, or of a serious breach of an obligation resulting from the Facility Agreement;

Or. en

Amendment 67

Proposal for a regulation

Article 10 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission shall inform the European Parliament and the Council of commitment appropriations carried over in accordance with Article 12(6) of Regulation (EU, Euratom) 2018/1046.

2. The Commission shall submit to the European Parliament and the Council information on commitment appropriations carried over, including the amounts involved, in accordance with Article 12(6) of Regulation (EU, Euratom) 2018/1046.

Or. en

Amendment 68

Proposal for a regulation

Article 11 – paragraph 2

Text proposed by the Commission

Amendment

2. The Reform Agendas shall set out the reforms to be undertaken by the Beneficiary, as well as investment areas, towards the achievement of the general and specific objectives set out in Article 3. The Reform Agendas shall comprise measures for the implementation of reforms through a comprehensive and coherent package. In the areas of fundamentals, including the rule of law, the fight against corruption, fundamental rights and the freedom of expression, the Reform Agendas shall reflect the assessments in the most recent Enlargement Package.

2. The Reform Agendas shall provide an overarching framework to achieve the general and specific objectives set out in Article 3, setting out the reforms to be undertaken by the Beneficiary, as well as investment areas. The Reform Agendas shall comprise measures for the implementation of reforms and investments through a comprehensive and coherent package. In the areas of fundamentals, including the rule of law, the fight against corruption, fundamental rights and the freedom of expression, the Reform Agendas shall reflect the assessments in the most recent Enlargement Package and the Rule of law report. The Reform Agendas shall include an estimation of the financial amounts needed for the implementation of the reforms and investments under the Facility in line with the general and specific objectives set out in Article 3.

Or. en

Amendment 69

Proposal for a regulation

Article 11 – paragraph 6

Text proposed by the Commission

Amendment

6. The Commission shall invite the Beneficiaries to submit within three months from the entry into force of this Regulation their respective Reform Agendas.

6. The Commission shall invite the Beneficiaries to submit within three months from the entry into force of this Regulation their respective Reform Agendas. The Commission shall transmit the Beneficiaries’ Reform Agendas to the European Parliament and the Council.

Or. en

Amendment 70

Proposal for a regulation

Article 11 – paragraph 7

Text proposed by the Commission

Amendment

7. In case of a redistribution of support under the Facility leading to a Beneficiary receiving additional support, the Commission shall invite the Beneficiary to submit within three months a revised Reform Agenda for the remaining duration of the Facility. The Commission shall inform the European Parliament and the Council prior to taking any decision on the redistribution of financial support and inviting Beneficiaries to submit a revised Reform Agenda.

Or. en

Amendment 71

Proposal for a regulation

Article 12 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

The Facility shall incentivise the implementation of the Reform Agenda of each Beneficiary by putting payment conditions on the release of funds. These payment conditions shall apply to funds under Article 6(2) point (a) and Article 6(3) and shall take the form of qualitative or quantitative steps. Such steps shall reflect progress on specific socio-economic reforms, including on fundamentals of the enlargement process and rule of law, linked to the achievement of the different objectives of the Facility, set out in Article 3, consistent with the latest Enlargement Package.

The Facility shall incentivise the implementation of the Reform Agenda of each Beneficiary by putting payment conditions on the release of funds. These payment conditions shall apply to funds under Article 6(2) point (a) and Article 6(3) and shall take the form of measurable qualitative or quantitative steps, and be linked to the achievement of concrete milestones and targets. Such steps shall reflect progress on specific socio-economic reforms, including on fundamentals of the enlargement process and rule of law, linked to the achievement of the different objectives of the Facility, set out in Article 3, consistent with the latest Enlargement Package and the Rule of Law Report.

Or. en

Amendment 72

Proposal for a regulation

Article 12 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

The fulfilment of the payment conditions shall trigger full or partial release of funds, depending on the degree of their completion.

The fulfilment of the payment conditions shall trigger full or partial release of funds, depending on the degree of their completion and fulfilment of the preconditions mentioned in Article 5.

Or. en

Amendment 73

Proposal for a regulation

Article 13 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) measures constituting a coherent, comprehensive and adequately balanced response to the objectives set out in Article 3, including structural reforms, investments, and measures to ensure compliance with preconditions if appropriate;

(a) measures constituting a needs-based coherent, comprehensive and adequately balanced response to the objectives set out in Article 3, including structural reforms, investments, and measures to ensure compliance with preconditions if appropriate;

Or. en

Amendment 74

Proposal for a regulation

Article 13 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) an explanation of how the measures are consistent with the principles, strategies, plans and programmes referred to in Article 11;

(b) an explanation of how the measures are consistent with the principles, strategies, plans and programmes referred to in Article 4 and 11;

Or. en

Amendment 75

Proposal for a regulation

Article 13 – paragraph 1 – point d

Text proposed by the Commission

Amendment

(d) for the reforms and investments, an indicative timetable, and the envisaged payment conditions for release of funds in the form of qualitative and quantitative steps to be implemented by 31 August 2027 at the latest;

(d) for the reforms and investments, a legally binding timetable, an indicative ex-ante costing and measurable qualitative and quantitative steps in the form of concrete targets and milestones to be implemented by 31 August 2027 at the latest;

Or. en

Amendment 76

Proposal for a regulation

Article 13 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e) the arrangements for the effective monitoring, reporting and evaluation of the Reform Agenda by the Beneficiary, including the relevant indicators set out in paragraph 2;

(e) the arrangements for the effective monitoring, reporting and evaluation of the Reform Agenda by the Beneficiary, applying methodologies from the Better Regulation Guidelines, including the proposed measurable qualitative and quantitative steps and the relevant indicators set out in paragraph 2;

Or. en

Amendment 77

Proposal for a regulation

Article 13 – paragraph 1 – point f

Text proposed by the Commission

Amendment

(f) an explanation of the Beneficiary’s system to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interests and to enforce State aid control rules;

(f) an explanation of the Beneficiary’s system and planned measures to effectively prevent, detect and correct irregularities, fraud, corruption, high-level corruption and conflicts of interests and to enforce State aid control rules, and the proposed measures to address existing deficiencies;

Or. en

Amendment 78

Proposal for a regulation

Article 13 – paragraph 1 – point f a (new)

Text proposed by the Commission

Amendment

(f a) for the preparation and, where available, for the implementation of national Reform Agendas, a summary of the consultation process, conducted in accordance with the national legal framework, of relevant stakeholders, including national Parliaments, local and regional representative bodies and authorities, social partners and civil society organisations, and how the input of those stakeholders is reflected in national Reform Agendas;

Or. en

Amendment 79

Proposal for a regulation

Article 13 – paragraph 1 – point f b (new)

Text proposed by the Commission

Amendment

(f b) the arrangements that aim to avoid double funding from the Facility and other Union programmes or donors, in particular support provided under Regulation (EU) 2021/1529;

Or. en

Amendment 80

Proposal for a regulation

Article 13 – paragraph 1 – point f c (new)

Text proposed by the Commission

Amendment

(f c) information on the actual and planned contributions from other donors;

Or. en

Amendment 81

Proposal for a regulation

Article 13 – paragraph 1 – point f d (new)

Text proposed by the Commission

Amendment

(f d) an explanation how Beneficiary countries shall ensure an adequate level of protection of the financial interests of the Union by applying comparable standards as provided for in Regulation (EU, Euratom) 2018/1046 and other related Union law;

Or. en

Amendment 82

Proposal for a regulation

Article 13 – paragraph 2

Text proposed by the Commission

Amendment

2. The Reform Agendas shall be results-based and include indicators for assessing progress towards the achievement of the general and specific objectives set out in. These indicators shall be based, where appropriate and relevant, on internationally agreed indicators and those already available related to Beneficiaries' policies. Indicators shall also be coherent to the extent possible, with the key corporate indicators included in the Instrument for Pre-Accession assistance (IPA III) Results Framework, in the EFSD+ Results Measurement Framework and in the WBIF.

deleted

Or. en

Amendment 83

Proposal for a regulation

Article 13 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2 a. The Commission shall be empowered to adopt delegated acts to supplement this Regulation in order to set out the common indicators to be used for reporting on the progress and for the purpose of monitoring and evaluation of the Framework towards the achievement of the general and specific objectives;

Or. en

Amendment 84

Proposal for a regulation

Article 13 – paragraph 2 b (new)

Text proposed by the Commission

Amendment

2 b. The Reform Agendas shall be results-based and include indicators for assessing progress towards the achievement of the general and specific objectives set out in. These indicators shall be based, on internationally agreed indicators and those already available related to Beneficiaries' policies. Indicators shall also be coherent to the extent possible, with the key performance indicators included in the Instrument for Pre-Accession assistance (IPA III) Results Framework, in the EFSD+ Results Measurement Framework and in the WBIF. The indicators shall be defined Specific, Measurable, Achievable, Relevant, and Time-Bound. Each indicator will provide for quantitative and qualitative thresholds in order for the payment conditions to be considered as satisfactorily fulfilled. Indicators shall be included in the Decision referred to in Article 15.

Or. en

Amendment 85

Proposal for a regulation

Article 14 – paragraph 3 – point a

Text proposed by the Commission

Amendment

(a) whether the Reform Agenda represents a relevant, comprehensive, coherent and adequately balanced response to the objectives set out in Article 3;

(a) whether the Reform Agenda represents a needs-based relevant, comprehensive, coherent and adequately balanced response to the objectives set out in Article 3;

Or. en

Amendment 86

Proposal for a regulation

Article 14 – paragraph 3 – point a a (new)

Text proposed by the Commission

Amendment

(a a) whether the Reform Agenda and its measures are consistent with the principles, strategies, plans and programmes referred to in Article 4 and 11;

Or. en

Amendment 87

Proposal for a regulation

Article 14 – paragraph 3 – point e

Text proposed by the Commission

Amendment

(e) whether the Reform Agenda appropriately addresses potential risks in compliance with preconditions and payment conditions;

(e) whether the Reform Agenda comply with the relevant preconditions and payment conditions;

Or. en

Amendment 88

Proposal for a regulation

Article 14 – paragraph 3 – point g

Text proposed by the Commission

Amendment

(g) whether the arrangements proposed by the Beneficiary are expected to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interests, when using the funds provided under the Facility, and ensure that there is no double funding from the Facility and other Union programmes as well as other donors from the Facility and other Union programmes as well as other donors.

(g) whether the arrangements proposed by the Beneficiary are expected to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interests, , as well as, to effectively investigate and prosecute criminal offences affecting the funds provided under the Facility, and ensure that there is no double funding from the Facility and other Union programmes, in particular support provided under Regulation (EU) 2021/1259, as well as other donors from the Facility and other Union programmes as well as other donors.

Or. en

Amendment 89

Proposal for a regulation

Article 14 – paragraph 3 – point g a (new)

Text proposed by the Commission

Amendment

(g a) whether the Reform Agenda effectively reflects the inputs of relevant stakeholders, including national parliaments, local and regional representative bodies and authorities, social partners and civil society organisations.

Or. en

Amendment 90

Proposal for a regulation

Article 15 – title

Text proposed by the Commission

Amendment

Commission implementing decision

Delegated act on supplementary provisions

Or. en

Amendment 91

Proposal for a regulation

Article 15 – paragraph 1

Text proposed by the Commission

Amendment

1. In case of a positive assessment, the Commission shall approve by means of an implementing decision the Reform Agenda submitted by the Beneficiary, in accordance with Article 14 or, where applicable, of its amendment submitted in accordance with Article 16. That implementing decision shall be adopted in accordance with the examination procedure referred to in Article 27(2).

1. In case of a positive assessment of the Reform Agenda submitted by the Beneficiary, in accordance with Article 14 or, where applicable, of its amendment submitted in accordance with Article 16, the Commission is empowered to adopt a delegated act in accordance with Article 26 to supplement this Regulation with provisions setting out the matters referred to in paragraphs 2 and 3 of this Article.

Or. en

Amendment 92

Proposal for a regulation

Article 15 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission implementing decision shall set out the reforms to be implemented by the Beneficiary, the investment areas to be supported and the payment conditions stemming from the Reform Agenda, including the indicative timetable.

2. The delegated act shall set out the reforms to be implemented by the Beneficiary, the investment areas to be supported and the payment conditions stemming from the Reform Agenda, including the indicative timetable, the milestones and targets required for the disbursal of the amounts referred to in Article 6(1) point (a) and (2).

Or. en

Amendment 93

Proposal for a regulation

Article 15 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

3. The Commission implementing decision shall also lay down:

3. The delegated act shall also lay down

Or. en

Amendment 94

Proposal for a regulation

Article 15 – paragraph 3 – point d

Text proposed by the Commission

Amendment

(d) the arrangements and timetable for monitoring, reporting and implementation of the Reform Agenda including, where relevant, measures necessary for complying with Article 24;

(d) the arrangements and timetable for monitoring, reporting and implementation of the Reform Agenda, in particular the involvement of the national Parliaments of the beneficiary countries and other stakeholders including, where relevant, measures necessary for complying with Article 24;

Or. en

Amendment 95

Proposal for a regulation

Article 15 – paragraph 3 – point e a (new)

Text proposed by the Commission

Amendment

(e a) the Commission’s assessment of the preconditions as mentioned in Article 5;

Or. en

Amendment 96

Proposal for a regulation

Article 15 – paragraph 3 – point e b (new)

Text proposed by the Commission

Amendment

(e b) the arrangements for partial payments, indicating precisely the proportion of each relevant payment condition in each instalment scheduled to be released;

Or. en

Amendment 97

Proposal for a regulation

Article 15 – paragraph 3 – point e c (new)

Text proposed by the Commission

Amendment

(e c) how the reversal of measures and/or non-fulfilment of preconditions after completion of the Facility shall be assessed;

Or. en

Amendment 98

Proposal for a regulation

Article 15 – paragraph 3 – point e d (new)

Text proposed by the Commission

Amendment

(e d) the obligation for the Beneficiary to lodge a financial guarantee, acceptable to the accounting officer of the Commission, of 5 % of the financial envelop of the Reform Agenda. The guarantee shall be enforceable on demand by the Commission when it assesses that, after the implementation period of the Facility has ended, the Beneficiary has reversed at least one measure in the Reform Agenda.

Or. en

Amendment 99

Proposal for a regulation

Article 16 – paragraph 1

Text proposed by the Commission

Amendment

1. Where the Reform Agenda, including relevant payment conditions, is no longer achievable by the Beneficiary, either partially or totally, because of objective circumstances, the Beneficiary may propose an amended Reform Agenda. In that case, the Beneficiary may make a reasoned request to the Commission to amend its implementing decision referred to in Article 15(1).

Or. en

Amendment 100

Proposal for a regulation

Article 16 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission may amend the implementing decision, in particular to take into account a change of the amounts available in line with the principles under Article 21.

2. The Commission may, after informing the European Parliament and the Council, amend the delegated act, in particular to take into account a change of the amounts available in line with the principles under Article 21.

Or. en

Amendment 101

Proposal for a regulation

Article 16 – paragraph 3

Text proposed by the Commission

Amendment

3. Where the Commission considers that the reasons put forward by the Beneficiary justify an amendment to the Reform Agenda, the Commission shall assess the amended Agenda in accordance with Article 14 and may amend the implementing decision referred to in Article 15(1) without undue delay.

3. Where the Commission considers that the reasons put forward by the Beneficiary justify an amendment to the Reform Agenda, the Commission shall assess the amended Agenda in accordance with Article 14 and may amend the delegate act referred to in Article 15(1) without undue delay.

Or. en

Amendment 102

Proposal for a regulation

Article 17 – paragraph 3 – subparagraph 2

Text proposed by the Commission

Amendment

In addition to and by way of derogation from Article 220(5) of Regulation (EU, Euratom) 2018/1046, the loan agreement shall contain the amount of pre-financing and rules on clearing of pre-financing.

In addition to and by way of derogation from Article 220(5) of Regulation (EU, Euratom) 2018/1046, the loan agreement shall contain the amount of pre-financing and rules on clearing of pre-financing. The Commission shall transmit to the European Parliament and the Council, simultaneously, the following elements:

(a) the amount of the loan in EUR;

(b) the average maturity;

(d) the maximum number of instalments and a clear and precise repayment schedule.

Or. en

Amendment 103

Proposal for a regulation

Article 17 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

3 a. The loan agreement shall be transmitted simultaneously to the European Parliament and the Council.

Or. en

Amendment 104

Proposal for a regulation

Article 18 – paragraph 2

Text proposed by the Commission

Amendment

2. The provisioning shall be paid to the common provisioning fund. It may also cover loans for macrofinancial assistance in accordance with Article 31(5) of Regulation (EU) 2021/947.The provisioning rate shall be reviewed at least every three years from the entry into force of this Regulation.

2. The provisioning shall be paid to the common provisioning fund through a specific budget line. The provisioning rate shall be reviewed at least once per year from the entry into force of this Regulation.

Or. en

Amendment 105

Proposal for a regulation

Article 18 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission is empowered to adopt a delegated act in accordance with Article 26 to amend the provisioning rate while applying the criteria set out in Article 211(2) of the Regulation (EU, Euratom) 2018/1046. The Commission shall inform the European Parliament and the Council about the outcome of the review.

Or. en

Amendment 106

Proposal for a regulation

Article 19 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission implementing decision referred to in Article 15 shall lay down the amount of funds to be made available for use under the WBIF.

2. The delegated act referred to in Article 15 shall lay down the amount of funds to be made available for use under the WBIF.

Or. en

Amendment 107

Proposal for a regulation

Article 19 – paragraph 6

Text proposed by the Commission

Amendment

6. This financing shall not be made available for investments to the supported by the joint fund until the decision referred to in Article 21(3) has been adopted.

6. This financing shall not be made available for investments to be supported by the joint fund until the decision referred to in Article 21(3) has been adopted.

Or. en

Amendment 108

Proposal for a regulation

Article 19 – paragraph 7

Text proposed by the Commission

Amendment

7. Financing under the Facility provided from the loans as referred to in Article 6(5), shall be made available through the WBIF under the loan agreement between the Commission and the Beneficiaries in accordance with Article 17(2). Combined for all loan agreements, there shall be maximum twelve requests for disbursements per year from the fund managers of the joint fund referred to in Article 12(2) to the Commission. Investment projects and programmes may receive support from two financing sources referred to in paragraph 1 as well as from other Union programmes and instruments, subject to that such support from different sources, programmes and instruments provides for additionality and does not cover the same cost. For each investment project or programme, the Commission shall provide a detailed assessment to the WBIF Operational Board of its added value and additionality, synergies and complementarities with other Union programmes, in particular support provided under Regulation (EU) 2021/1529, as well as the arrangements taken in order to avoid the duplication of assistance and double funding.

Or. en

Amendment 109

Proposal for a regulation

Article 20 – paragraph 1

Text proposed by the Commission

Amendment

1. Following the submission of the Reform Agenda to the Commission, the Beneficiary may request the release of a pre-financing of up to 7% of the total amount foreseen under this Facility in accordance with Article 6(4).

No pre-financing shall be made available in case of deficiencies in the Beneficiaries’ control system that are addressed by specific measures in the Reform Agenda as described in Article 13 (f).

Or. en

Amendment 110

Proposal for a regulation

Article 20 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission may release the requested pre-financing after the adoption of its implementing decision referred to in Article 15 and the entry into force of the Facility Agreement and of the loan agreement referred to. The funds shall be released in accordance with Article 21(3) first sentence, and subject to the respect of the preconditions set out in Article 5.

Or. en

Amendment 111

Proposal for a regulation

Article 21 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission shall assess without undue delay whether the Beneficiary has achieved satisfactory fulfilment of the payment conditions set out in the Commission implementing decision referred to in Article 15(1). The satisfactory fulfilment of these payment conditions shall presuppose that measures related to the same reforms for which the Beneficiary had achieved satisfactory fulfilment in prior decisions have not been reversed by the Beneficiary. The Commission may be assisted by experts.

2. The Commission shall assess without undue delay whether the Beneficiary has achieved satisfactory fulfilment of the payment conditions set out in the delegated act referred to in Article 15(1). The satisfactory fulfilment of these payment conditions shall presuppose that measures related to the same reforms for which the Beneficiary had achieved satisfactory fulfilment in prior decisions have not been reversed by the Beneficiary. The Commission may be assisted by experts.

Or. en

Amendment 112

Proposal for a regulation

Article 21 – paragraph 3

Text proposed by the Commission

Amendment

3. Where the Commission makes a positive assessment of the satisfactory fulfilment of all applicable conditions, it shall adopt without undue delay a decision authorising the release of funds corresponding to these conditions. That decision shall, in accordance with the split established in Article 6(4), set the amount of funds to be made available as financial assistance, channelled directly to the national budget and the amount to be made available through the WBIF. In respect of those amounts, the decision shall constitute the condition referred to in Article 12 for the amount of funds to be made available as financial assistance channelled directly to the national budget and the preliminary validation referred to in Article 12 for the amount to be made available through the WBIF.

3. Where the Commission makes a positive assessment of the satisfactory fulfilment of all applicable conditions, it shall adopt without undue delay a decision authorising the release of funds corresponding to these conditions. The Commission shall share its assessment with the European Parliament and the Council prior to adopting its decision. That decision shall, in accordance with the split established in Article 6(4), set the amount of funds to be made available as financial assistance, channelled directly to the national budget and the amount to be made available through the WBIF. In respect of those amounts, the decision shall constitute the condition referred to in Article 12 for the amount of funds to be made available as financial assistance channelled directly to the national budget and the preliminary validation referred to in Article 12 for the amount to be made available through the WBIF.

Or. en

Amendment 113

Proposal for a regulation

Article 21 – paragraph 4

Text proposed by the Commission

Amendment

4. Where the Commission makes a negative assessment of the fulfilment of any conditions as per the indicative timetable, the release of funds corresponding to such conditions shall be withheld. The withheld amounts may only be released when the Beneficiary has duly justified, as part of the subsequent request for release of funds, that it has taken the necessary measures to ensure satisfactory fulfilment of the corresponding conditions.

4. Where the Commission makes a negative assessment of the fulfilment of any conditions as per the indicative timetable, the release of funds corresponding to such conditions shall be withheld. The Commission shall share its assessment with the European Parliament and Council prior to adopting its decision. The withheld amounts may only be released when the Beneficiary has duly justified, as part of the subsequent request for release of funds, that it has taken the necessary measures to ensure satisfactory fulfilment of the corresponding conditions.

Or. en

Amendment 114

Proposal for a regulation

Article 21 – paragraph 7

Text proposed by the Commission

Amendment

7. The Commission may reduce the amount of the non-repayable financial support, including by offsetting in line with Article 102 of Regulation (EU, Euratom) 2018/1046, or of the loan, in the event of identified cases of, or serious concerns in relation to, irregularities, fraud, corruption and conflicts of interests affecting the financial interests of the Union that have not been corrected by the Beneficiary, or a serious breach of an obligation resulting from the Facility Agreements or from the Loan Agreements, including on the basis of information provided by OLAF.

7. The Commission may reduce the amount of the non-repayable financial support, including by offsetting in line with Article 102 of Regulation (EU, Euratom) 2018/1046, or of the loan, in the event of identified cases of, or serious concerns in relation to, irregularities, fraud, corruption and conflicts of interests affecting the financial interests of the Union that have not been corrected by the Beneficiary, or a serious breach of an obligation resulting from the Framework Agreements or from the Loan Agreements, including on the basis of information provided on the basis of the reports of the Audit Board referred to in Article XX by OLAF. Information about such decisions shall be transferred to the European Parliament and the Council.

Or. en

Amendment 115

Proposal for a regulation

Article 21 – paragraph 8

Text proposed by the Commission

Amendment

8. The Commission may decide to redistribute any amount reduced pursuant to paragraph 6 or 7 among other Beneficiaries of the Facility by amending the implementing decisions referred to in Article 15(1).

8. The Commission may decide to redistribute any amount reduced pursuant to paragraph 6 or 7 among other Beneficiaries of the Facility by amending the delegated act referred to in Article 15(1). The Commission shall transmit its assessment to the European Parliament and the Council prior to taking any decision on the redistribution of financial support. The Commission shall use the methodology in Annex 1 and take into consideration the absorption capacity of Beneficiaries for the redistribution of such financial support, while based on clear and transparent criteria.

Or. en

Amendment 116

Proposal for a regulation

Article 21 – paragraph 11

Text proposed by the Commission

Amendment

11. Payment of funds under this Facility shall be made subject to the available funding. Funds shall be paid in instalments. An instalment may be paid in one or more tranches.

11. Payment of funds under this Facility shall be made subject to the available funding and in accordance with the annual budgetary procedure. Funds shall be paid in instalments. An instalment may be paid in one or more tranches.

Or. en

Amendment 117

Proposal for a regulation

Article 22 – paragraph 1

Text proposed by the Commission

Amendment

1. In implementing the Facility, the Commission and the Beneficiaries shall take all the appropriate measures to protect the financial interests of the Union, taking into account the principle of proportionality and the specific conditions under which the Facility will operate, the preconditions set out in Article 5(1) and conditions set out in the specific Framework Agreements, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interests and irregularities as well as the investigation and prosecution of criminal offences affecting the funds provided under the Facility. Each Beneficiary shall commit to a robust legal framework to fight fraud by means of criminal law, effective and efficient management and control systems and ensure that amounts wrongly paid or incorrectly used can be recovered. The beneficiaries shall also commit to ensure that the competent national authorities treat, without delay, mutual legal assistance requests and extradition requests by the EPPO and Member States’ competent authorities concerning criminal offences affecting the funds under the Facility.

Or. en

Amendment 118

Proposal for a regulation

Article 22 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

2. The Facility Agreement shall provide for the following obligations of the Beneficiary:

2. The Framework Agreement shall provide for the following obligations of the Beneficiary:

Or. en

Amendment 119

Proposal for a regulation

Article 22 – paragraph 2 – point a a (new)

Text proposed by the Commission

Amendment

(a a) to protect whistleblowers;

Or. en

Amendment 120

Proposal for a regulation

Article 22 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) take appropriate measures to prevent, detect and correct fraud, corruption, conflicts of interests and irregularities affecting the financial interests of the Union, to avoid double funding and to take legal actions to recover funds that have been misappropriated, including in relation to any measure for the implementation of reforms and investment projects or programmes under the Reform Agendas;

(b) take appropriate measures to prevent, detect and correct fraud, corruption, conflicts of interests and irregularities as well as to investigate and prosecute criminal offences affecting the financial interests of the Union, to detect and avoid double funding and to take legal actions to recover funds that have been misappropriated, including in relation to any measure for the implementation of reforms and investment projects or programmes under the Reform Agendas and to take appropriate measures to treat mutual legal assistance requests by the EPPO and Member States’ competent authorities concerning criminal offences affecting the funds under the Facility, without delay; where applicable, the competent national authorities shall report any criminal conduct affecting the funds under the Framework to the EPPO;

Or. en

Amendment 121

Proposal for a regulation

Article 22 – paragraph 2 – point d a (new)

Text proposed by the Commission

Amendment

(d a) insert all information related to project implementation, in particular concerning performance and financial implementation and final recipients in an interoperable information system provided by the Commission;

Or. en

Amendment 122

Proposal for a regulation

Article 22 – paragraph 2 – point d b (new)

Text proposed by the Commission

Amendment

(d b) to accompany a payment request by:

(i) a management declaration that the relevant payment conditions have been met with the support of the funds, that the information submitted with the request for payment is complete, accurate and reliable and that the control systems put in place give the necessary assurances that the funds were or will be managed in accordance with all applicable rules;

(ii) a list of all measures for the implementation of the Facility including a description of measures with the total amount of additional national funding, where applicable, of those measures and projects and indicating the amount of funds paid under the Framework and under other Union funds, including resources transferred from other Union programmes;

(iii) a summary of the audits carried out, including weaknesses identified and any corrective actions taken

Or. en

Amendment 123

Proposal for a regulation

Article 22 – paragraph 2 – point d c (new)

Text proposed by the Commission

Amendment

(d c) for the purpose of audit, control and discharge:

(i) to maintain, and ensure access by the competent Union authorities including the discharge authority to:

- detailed records on the implementation measures adopted, including information on national award procedures and contracts with intermediaries and recipients, indicating if applicable the total amount of any national co-financing, other national contributions, or other contributions under the Western Balkans Facility or under other Union funds; and

- evidence showing the correlation between the grants, non-repayable financial support or loans received and the costs incurred for the achievement of indicators.

Or. en

Amendment 124

Proposal for a regulation

Article 22 – paragraph 3

Text proposed by the Commission

Amendment

3. The Facility Agreement shall also provide for the right of the Commission to reduce proportionately the support provided under the Facility and recover any amount spent to achieve the objectives of the Facility or to ask for early repayment of the loan, in cases of irregularities, fraud, corruption and conflicts of interests affecting the financial interests of the Union that have not been corrected by the Beneficiary, or of a serious breach of an obligation resulting from such agreements. When deciding on the amount of the recovery and reduction, or the amount to be repaid early, the Commission shall respect the principle of proportionality and shall take into account the seriousness of the irregularity, fraud, corruption or conflict of interests affecting the financial interests of the Union, or of a breach of an obligation. The Beneficiary shall be given the opportunity to present its observations before the reduction is made or early repayment is requested.

3. The Framework Agreement shall also provide for the right of the Commission to reduce proportionately the support provided under the Facility and recover any amount spent to achieve the objectives of the Facility or to ask for early repayment of the loan, in cases of irregularities, fraud, corruption and conflicts of interests affecting the financial interests of the Union that have not been corrected by the Beneficiary, or of a serious breach of an obligation resulting from such agreements. When deciding on the amount of the recovery and reduction, or the amount to be repaid early, the Commission shall respect the principle of proportionality and shall take into account the seriousness of the irregularity, fraud, corruption or conflict of interests affecting the financial interests of the Union, or of a breach of an obligation. The Beneficiary shall be given the opportunity to present its observations before the reduction is made or early repayment is requested.

Or. en

Amendment 125

Proposal for a regulation

Article 22 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

4 a. Monthly update of the final recipients of funds from the Facility in a publicly accessible online register in accordance with the principle laid out in Article 4 (7). The Commission shall provide the Beneficiaries with a platform to publish this information and make the information available on an interactive map.

Or. en

Amendment 126

Proposal for a regulation

Article 22 a (new)

Text proposed by the Commission

Amendment

Article22a

Audit Board

1. The Commission shall establish an Audit Board before the submission by the Western Balkans Beneficiaries of the first payment request.

2. The Audit Board shall be composed of independent members appointed by the Commission. Representatives of Member States and other donors may be invited by the Commission to participate in the activities of the Audit Board.

3. At least one-fifth of the Audit Board should be composed of Beneficiaries’ nationals, given they have proven high professional competence and integrity and have no personal or professional affiliation to Beneficiaries’ authorities or officials as well as demonstrably independent international experts with a proven track record of understanding of the Beneficiaries’ economy and political system.

4. The Audit Board shall exercise its functions in complete objectivity and operate in compliance with best applicable international practices and standards. It shall act without prejudice to the powers of the Commission, OLAF, the Court of Auditors and, where applicable, the EPPO.

5. The Audit Board shall appoint an independent external auditor that provides an annual statement of assurance on the declarations by the Beneficiaries authorities that accompany a request for payment. It shall also approve the annual work plan of the independent external auditor.

6. The Audit Board shall decide on recommendations to the Commission and the Beneficiaries’ authorities on amounts to be recovered following the findings of the independent external auditor, and inform the Commission and the Beneficiaries’ authorities of those recommendations.

7. The Audit Board shall ensure regular dialogue and cooperation with the European Court of Auditors.

8. In carrying out their duties, the Audit Board, its members and its staff shall neither seek nor take instructions from the Beneficiaries’ governments or any institution, body, office or agency. Strong guarantees of independence shall apply for the selection of its staff, management and budget.

9. The Audit Board shall assist the Commission in fighting mismanagement of Union funding under the Facility and in particular fraud, corruption, conflict of interests and irregularities incurred in relation to any amount spent to achieve the objectives of the Facility.

10. For that purpose, the Audit Board shall regularly report to the Commission and the relevant committees of the European Parliament and the Council, and transmit to the Commission without delay any information it obtains or is made aware of, on any identified cases of, or serious concerns in relation to, mismanagement of public funding incurred in relation with any amount spent to achieve the objectives of the Facility, including its performance. In accordance with Article 24(1) of Regulation (EU) 2017/1939, the Audit Board shall report to the EPPO any criminal conduct in respect of which the latter could exercise its competence. In accordance with Article 24(1) of Regulation (EU) 2017/1939, the Audit Board shall report to the EPPO any criminal conduct in respect of which the latter could exercise its competence. In addition, the Audit Board shall adopt recommendations to the Beneficiaries on all cases where in its view competent Beneficiaries’ authorities have not taken the necessary steps to prevent, detect and correct fraud, corruption, conflict of interests and irregularities that have affected or seriously risk affecting the sound financial management of the expenditure financed under the Facility and in all cases where it identifies weaknesses affecting the design and functioning of the control system put in place by the Beneficiaries’ authorities. The Beneficiaries shall implement such recommendations, or provide a justification on why it has not done so. The reports of, and information from, the Audit Board shall also be sent to OLAF, and where applicable to the EPPO, and may be shared with the relevant Beneficiaries’ authorities, especially in case they need to take steps to prevent, detect and correct fraud, corruption, conflict of interests and irregularities, including its performance, as well as to investigate and prosecute criminal offences affecting the financial interests of the Union.

11. The Audit Board shall have access to information, databases and registries required to carry out its tasks. The facility agreement referred to in Article 9 shall define rules and details for the access to relevant information by the Audit Board and the provision of relevant information by the Beneficiaries to the Audit Board.

12. The Audit Board may assist the Commission in supporting the Beneficiaries with capacity building activities in the field of fight against mismanagement of public funding.

13. The functioning of the Audit Board shall be funded under Article 6 paragraph 2 (b), including the funding for the appointed independent external auditor.

Or. en

Amendment 127

Proposal for a regulation

Article 23 – paragraph 2

Text proposed by the Commission

Amendment

2. The Beneficiaries shall report any irregularities, including fraud, which have been the subject of a primary administrative or judicial finding, without delay, to the Commission and shall keep the Commission informed of the progress of any administrative and legal proceedings in relation to such irregularities. Such reporting shall be done by electronic means, using the Irregularity Management System, established by the Commission.

2. The Beneficiaries shall report any irregularities, including fraud, which have been the subject of a primary administrative or judicial finding, without delay, to the Audit Board and the Commission and shall keep the Commission informed of the progress of any administrative and legal proceedings in relation to such irregularities. Such reporting shall be done by electronic means, using the Irregularity Management System, established by the Commission.

Or. en

Amendment 128

Proposal for a regulation

Article 23 – paragraph 3

Text proposed by the Commission

Amendment

3. The entities referred to in paragraph 2 shall maintain regular dialogue with the European Court of Auditors, OLAF and, where appropriate, the EPPO.

3. The entities referred to in paragraph 2 shall maintain regular dialogue with the Audit Board, the European Court of Auditors, OLAF and, where appropriate, the EPPO.

Or. en

Amendment 129

Proposal for a regulation

Article 23 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission may carry out detailed systems reviews of the national budget implementation based on a risk-assessment and dialogue with National Audit Authorities, and issue recommendations for improvements in the systems.

Or. en

Amendment 130

Proposal for a regulation

Article 24 – paragraph 2

Text proposed by the Commission

Amendment

2. The Facility Agreement referred to in Article 9 shall set out rules and modalities for the Beneficiaries to report to the Commission for the purpose of paragraph 1.

2. The Framework Agreement referred to in Article 9 shall set out rules and modalities for the Beneficiaries to report to the Commission for the purpose of paragraph 1.

Or. en

Amendment 131

Proposal for a regulation

Article 24 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission shall provide an annual report to the European Parliament and the Council on progress towards the achievement of the objectives of this Regulation.

3. The Commission shall provide an annual report to the European Parliament and the Council on progress towards the achievement of the objectives of this Regulation. This report shall include an assessment of the additionality and added value of the Facility, an assessment of synergies and complementarities between support covered under the Facility and Regulation (EU) 2021/1529 for each of the general and specific objectives referred to in Article 3 as well as a description of the arrangements and measures taken by the Commission to avoid double funding, with a view to protecting the Union budget.

Or. en

Amendment 132

Proposal for a regulation

Article 24 a (new)

Text proposed by the Commission

Amendment

Article24a

WBF Scoreboard

1. The Commission shall establish a WBF scoreboard (the ‘Scoreboard’), which shall display the progress of the implementation of the reform agendas of the beneficiaries in each of objectives referred to in Article 3. The Scoreboard shall constitute the performance reporting system of the Facility.

2. The Commission shall be empowered to adopt a delegated act in accordance with Article 26 to supplement this Regulation by defining the detailed elements of the Scoreboard with a view to displaying the progress of the implementation of the Facility as referred to in paragraph 1.

3. The Scoreboard shall be operational by December 2024 and shall be continuously updated by the Commission, as soon as performance information and other essential documents described in article 24a.4 become available. The Scoreboard shall be made publicly available on a website or internet portal.

4. The Scoreboard shall also present the key documents, such as the Reform Agenda’s, the Commission’s assessments of the Reform Agenda’s, the payment requests from the Beneficiaries, the Commission’s assessment of the fulfilment of payment conditions, the implementing decision of the reform agenda’s and the decisions authorising the release of funds.

5. The Scoreboard shall also present information on the final recipients of funds from this Facility.

Or. en

Amendment 133

Proposal for a regulation

Article 25 – paragraph 1

Text proposed by the Commission

Amendment

1. After 31 December 2027, but by 31 December 2031 at the latest, the Commission shall carry out an ex-post evaluation of the Regulation. That ex-post evaluation shall assess the Union contribution to the achievement of the objectives of this Regulation.

1. After 31 December 2027, but by 31 December 2031 at the latest, the Commission shall carry out an ex-post evaluation of the Regulation by means of an independent external evaluation. That ex-post evaluation shall assess the Union contribution to the achievement of the objectives of this Regulation. The Commission shall take due account of proposals by the European Parliament and/or the Council for this independent external evaluation.

Or. en

Amendment 134

Proposal for a regulation

Article 25 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

The Commission shall communicate the findings and conclusions of this ex-post evaluation accompanied by its observations and follow-up, to the European Parliament, the Council and the Member States. This ex-post evaluation may be discussed at the request of Member States. The results shall feed into the preparation of future programmes and actions and resource allocation. This ex-post evaluation and follow-up shall be made publicly available.

The Commission shall communicate the findings and conclusions of this ex-post evaluation accompanied by its observations and follow-up, to the European Parliament, the Council and the Member States. This ex-post evaluation may be discussed at the request of Member States or the European Parliament. The results shall feed into the preparation of future programmes and actions and resource allocation. This ex-post evaluation and follow-up shall be made publicly available.

Or. en

Amendment 135

Proposal for a regulation

Article 26 – paragraph 1

Text proposed by the Commission

Amendment

1. The power to adopt delegated acts shall be conferred on the Commission subject to the conditions laid down in this Article.

1. The power to adopt delegated acts referred to in Articles 13, 15, 16, 18, 19, 20, 21 and 24 shall be conferred on the Commission subject to the conditions laid down in this Article.

Or. en

Amendment 136

Proposal for a regulation

Article 26 – paragraph 2

Text proposed by the Commission

Amendment

2. The power to adopt delegated acts referred to in Article 18 shall be conferred on the Commission for an indeterminate period from the date of entry into force of this Regulation.

2. The power to adopt delegated acts referred to in Article 18 shall be conferred on the Commission for a period of four years from seven days after the date of entry into force of this Regulation. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the four-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period. shall be conferred on the Commission for an indeterminate period from the date of entry into force of this Regulation.

Or. en

Amendment 137

Proposal for a regulation

Article 26 – paragraph 6

Text proposed by the Commission

Amendment

6. A delegated act adopted pursuant to Article 18 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of one month of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by one month at the initiative of the European Parliament or of the Council.

6. A delegated act adopted pursuant to Article 18 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Or. en

Amendment 138

Proposal for a regulation

Article 28 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission may engage in communication activities to ensure the visibility of the Union funding for the financial support envisaged in the Reform Agendas, including through joint communication activities with the Beneficiaries. The Commission may, as appropriate, ensure that support under the Facility is communicated and acknowledged through a funding statement.

1. The Commission and delegations of the European Union in the beneficiary countries shall engage in communication activities to ensure the visibility of the Union funding for the financial support envisaged in the Reform Agendas, including through joint communication activities with the Beneficiaries. The Commission shall ensure that support under the Facility is communicated and acknowledged through a funding statement. Actions financed under the facility shall be subject to requirements set out in the Communication and Visibility Manual for EU External Actions. The Commission shall adopt guidance for Union funded projects on visibility and communication actions for each beneficiary.

Or. en

Amendment 139

Proposal for a regulation

Article 28 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission shall implement information and communication actions relating to the Facility, to actions taken pursuant to the Facility and to the results obtained. Financial resources allocated to the Facility shall also contribute to the corporate communication of the political priorities of the Union, insofar as they are related to the objectives referred to in Article 3.

The Commission shall take measures to strengthen strategic communication and public diplomacy for communicating the values of the Union and highlighting the added value of the Union’s support.

Or. en

Amendment 140

Proposal for a regulation

Article 28 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

3 a. Information, communication and publicity shall be provided in accessible format, in accordance with the UN CRPD Article 9, and EU harmonised legislation, notably Directive 2019/882 of the European Parliament and of the Council of 17 April 2019 on accessibility requirements for products and services.

Or. en