Changes from plenary report to adopted text

RemovedCONTENTS

AddedP10_TA(2026)0294

Changedon the proposal for a regulation of the European Parliament and of the Council establishingEstablishing the Single Market and Customs Programme for the period 2028-2034 and repealing Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077

Removed(COM(2025)0590 – C100198/2025 – 2025/0590(COD))

AddedCommittee on the Internal Market and Consumer Protection

AddedPE785.258

AddedAmendments adopted by the European Parliament on 16 September 2026 on the proposal for a regulation of the European Parliament and of the Council establishing the Single Market and Customs Programme for the period 2028-2034 and repealing Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077 (COM(2025)0590 – C10-0198/2025 – 2025/0590(COD))

(Ordinary legislative procedure: first reading)

Change 1

RemovedThe European Parliament,

AddedRecital 1: (1) This Regulation lays down an indicative financial envelope for the ‘Single Market and Customs Programme for the period 2028-2034’ (the ‘programme’). That envelope should be implemented through a transparent and traceable programming structure, including a clear, publicly accessible breakdown of commitments and payments by programme component, by objective and by type of action. For the purpose of this Regulation, current prices are calculated by applying a fixed 2% deflator.

Removed– having regard to the Commission proposal to Parliament and the Council (COM (2025)0590),

AddedRecital 2: (2) In a rapidly changing economic, social and geopolitical environment, recent experience has shown the need for a more flexible multiannual financial framework and Union spending programmes. To that effect, and in line with the objectives of this regulation, the consolidation of the predecessor programmes into a single programme should primarily serve to simplify the administrative structure of the multiannual financial framework and to reduce the administrative burden on implementing bodies and beneficiaries. The funding should consider the evolving policy needs and Union’s priorities as identified in relevant documents published by the Commission, in Council conclusions and European Parliament resolutions while ensuring sufficient predictability for the budget implementation, without resulting in competition for funding between the distinct policy areas supported by this programme and ensuring that reallocation of resources does not weaken core enforcement capacities, in particular customs control and market surveillance.

Removed– having regard to Article 294(2), Article 33, Article 114(1), Article 169(3), Article 197(2), Article 207(2), Article 325(4) and Article 338(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100198/2025),

AddedRecital 4: (4) In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council4 , Council Regulations (EC, Euratom) No 2988/955 , (EC, Euratom) No 2185/966 and (EU) 2017/19397 , the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities, fraud, corruption as well as any types of conflict of interest and maladministration, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In accordance with Regulations (EU, Euratom) No 883/2013 and (EC, Euratom) No 2185/96, the European Anti-Fraud Office (OLAF) is empowered to carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) is empowered to investigate and prosecute fraud, corruption and other illegal activities affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council8. In accordance with Regulation (EU, Euratom) 2024/2509, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the ne…

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

Removed– having regard to the budgetary assessment of the Committee on Budgets,

Removed– having regard to the reasoned opinions submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Czech Senate and the Spanish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

Removed– having regard to the opinion of the Court of Auditors of 20 February 2026,

Removed– having regard to the opinion of the European Economic and Social Committee of 21 January 2026,

Removed– having regard to the opinion of the Committee of the Regions of 4 March 2026,

Removed– having regard to Rules 60 and 58 of its Rules of Procedure,

Removed– having regard to the report of the Committee on the Internal Market and Consumer Protection (A10-0216/2026),

Removed1. Adopts its position at first reading hereinafter set out;

Removed2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

Removed3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

RemovedRecital 1: (1) This Regulation lays down an indicative financial envelope for the ‘Single Market, and Customs Programme for the period 2028-2034’ (the ‘programme’). That envelope should be implemented through a transparent and traceable programming structure, including a clear, publicly accessible breakdown of commitments and payments by programme component, by objective and by type of action. For the purpose of this Regulation, current prices are calculated by applying a fixed 2% deflator.

RemovedRecital 2: (2) In a rapidly changing economic, social and geopolitical environment, recent experience has shown the need for a more flexible multiannual financial framework and Union spending programmes. To that effect, and in line with the objectives of this regulation, the consolidation of the predecessor programmes into a single programme should primarily serve to simplify the administrative structure of the multiannual financial framework and to reduce the administrative burden on implementing bodies and beneficiaries. The funding should consider the evolving policy needs and Union’s priorities as identified in relevant documents published by the Commission, in Council conclusions and Parliament resolutions while ensuring sufficient predictability for the budget implementation, without resulting in competition for funding between the distinct policy areas supported by this programme and ensuring that reallocation of resources does not weaken core enforcement capacities, in particular customs control and market surveillance.

RemovedRecital 4: (4) In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council4 , Council Regulations (EC, Euratom) No 2988/955 , (EC, Euratom) No 2185/966 and (EU) 2017/19397 , the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities, fraud, corruption as well as any types of conflict of interest and maladministration, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In accordance with Regulations (EU, Euratom) No 883/2013 and (EC, Euratom) No 2185/96, the European Anti-Fraud Office (OLAF) is empowered to carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) is empowered to investigate and prosecute fraud, corruption and other illegal activities affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council8 . In accordance with Regulation (EU, Euratom) 2024/2509, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the n…

Recital 5: (5) The programme is to be implemented in accordance with the provisions, rules and objectives defined in Regulation (EU, Euratom) 2025/XXXX of the European Parliament and of the Council9 (the ‘Performance Regulation’).

Recital 7: (7) The Single Market is governed by the fundamental principles of free movement of goods, services, people, and capital and has been a major contributor to growth, competitiveness and employment. A well-functioning and safe-guarded Single Market is a pre-requisite for a competitive, safe, resilient, sustainable and secure Union economy as well as for advancing the Savings and Investments Union. As stressed by the new approach proposed by the Single Market Strategy, more action is needed to address the unjustified barriers, stimulate reforms, reduce fragmentation and complete the Single Market, especially in the context of new global challenges. Deepening of the EU Single Market should contribute to upward convergence, social cohesion and ensuring a high level of environmental, consumer, safety, social and labour standards and rights. This has been and will continue to be reinforced by an effective cohesion policy as an additional key condition for the success of the Single Market. The Member States, local and regional authorities, where relevant, and the Commission share the responsibility for enforcing Union law to ensure compliance with Single Market rules and to protect people’s, businesses’ and workers’ rights. The Union-level responsibility combines three main aspects: removal of barriers, collaboration between Member States, across all levels, and corrective implementation and enforcement actions and stimulating reforms. Barriers such as access to information and knowl…

Change 2

ChangedRecital 8: (8) Under the multiannual financial framework for the years 2021 to 2027 laid down in Council Regulation (EU, Euratom) 2020/209311 , the Single Market Programme (‘SMP’) established by Regulation (EU) 2021/690 of the European Parliament and of the Council12 supports the design, implementation and enforcement of Union legislation underpinning the proper functioning of the Single Market, so that it can reach its full potential. The Customs programme established by Regulation (EU) 2021/444 of the European Parliament and of the Council13 and the Fiscalis programme established by Regulation (EU) 2021/847 of the European Parliament and of the Council14 accompany the customs and tax policies in the Union by supporting Union level digital solutions for customs and taxation, which are essential for the effective implementation of Union law, project based collaborative activities as well as human competency building activities. In addition, the Customs Control Equipment Instrument established as part of the Integrated Border Management Fund by Regulation (EU) 2021/1077 of the European Parliament and of the Council15 ,Council15, contributes to increasing the efficient and effective customs controls, essential for the facilitation of legitimate trade, while ensuring sufficient level of protection at the external borders. The Union Anti-Fraud Programme (‘UAFP’) established by Regulation (EU) 2021/785 of the European Parliament and of the Council16 funds actions which aim to prevent and combat fraud,…fraud, …

Recital 9: (9) With economic and security uncertainty caused by multitude of geopolitical challenges, including external shocks, strategic dependencies, climate change, security risks and trade tensions, the Single Market is our anchor for stability and resilience. At the same time, as global competition is intensifying and technological development accelerating at rapid speed, the internal market is facing critical challenges on several fronts, including in digital markets, the rapid development of e-commerce with the rise of uncompliant and illegal imported goods, trade distortions, a rise in fraud and illegal activities. Those challenges require a collective and coordinated Union response considering their scale and the high levels of interdependence among Member States and regions. In addition, a high level of protection and resulting benefits for citizens, consumers, investors and businesses could not be achieved solely through actions at national level, nor could it generate economies of scale, especially given the cross-border nature of those benefits.

Recital 9 a (new): (9a) Safeguarding the Single Market and Customs Union from fraud and illegal activities affecting the financial interests of the Union is a key objective of the programme. Article 325 of the Treaty on the Functioning of the European Union (TFEU) establishes shared responsibility between the Union and the Member States to counter fraud and any other illegal activities affecting the financial interests of the Union. Protecting the financial interests of the Union should cover all aspects of the Union budget, on both the revenue and expenditure sides. VAT fraud has a substantial negative impact on both the Union and Member States’ revenue and distorts competition in the Single Market. The ECA, the OLAF and EPPO have repeatedly identified VAT fraud as one of the most significant sources of losses to Union budget and to the Union’s own resources. Hence, in the context of the ongoing review of the Union anti-fraud architecture, the programme should continue supporting Member States in improving fraud detection, irregularity reporting and cooperation with investigate authorities.

Recital 10: (10) Union funding is required to enable the Commission to meet legal obligations of the Union that cannot be delegated to Member States, ensuring obligations under Union law are fulfilled, in particular in the areas of customs, market surveillance, product safety and compliance, including the products sold online, consumer protection, financial services, standard setting, competition policy, the provision of European statistics, taxation and anti-fraud as well as the digital economy.

Change 3

ChangedRecital 11: (11) It is therefore appropriate to establish a programme to deepen and enhance the functioning of the Single Market and a strong Customs Union and to protect the financial and economic interests of the Union and the Member States, and strengthen the Union’s strategic autonomy, with a design fostering European added value and flexibility, streamlining and creating synergies, while ensuring a high level of predictability, transparency and accountability, as well as adequate funding safeguards for core policy objectives, legal obligations and mandatory systems, and supporting the horizontal policy mainstreaming priorities including what is set out in the Performance Regulation. In addition, in light of the European Court of Auditor’sECA’s findings showing that EU budget flexibility instruments were often activated without adequate analysis or documentation, that their use reduced the visibility of reallocations and that limitations in their designed contributed to early depletion in the Multiannual Financial Framework (MFF) 2021-2027, it is critical that the programme flexibility is utilised responsibly, with sound and long-term financial management, transparency and clear prioritisation criteria at the core. The following four programmes should therefore be merged in one single programme: parts of the Single Market Programme, excluding the small and medium-sized enterprisesSMEs and food and feed strands, the Customs programme, including the Customs Control Equipment Instrument type int…interventions, the Fiscalis programme and the Union Ant…

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Recital 12: (12) In this regard, the programme should enable the implementation of the following generic types of actions: (a) digital capacity building and analysis tools, development and operation of centralised and decentralised European electronic systems and digital solutions, implementation tools and data; (b) support to policy, regulatory and enforcement work, for example, through studies, communication, capacity building, impact assessment, evaluation and simplification proposals; (c) collaboration and cooperation between Member States, the Commission, Union agencies, bodies and national, regional and local authorities and with stakeholders, including social partners, the civil society organisations and academia; (d) administrative and operational/technical capacity building, including purchase, maintenance, upgrade of equipment – notably customs control equipment – infrastructure and related costs; (e) human capacity and competency building; (f) joint tools, methods, data and statistics to support policy making and anti-fraud investigations; (g) other actions to achieve the general and specific objectives, such as innovation, testing. Those solutions should be interoperable with national systems.

Recital 12 a (new): (12a) In accordance with the objectives set out in the 2030 Consumer Agenda, which aims to empower consumers for the green and digital transitions while ensuring a high level of consumer protection across the Union, the programme should contribute to strengthening consumer resilience, trust, and participation in a fair and sustainable internal market. In particular, the programme should support actions that enhance consumers’ access to reliable information, promote sustainable consumption patterns, and address vulnerabilities exacerbated by digitalisation.

Recital 13: (13) In light of the growing digitalisation of the economy and society, there is an increasing need for citizens, consumers, investors, economic operators, businesses, and public administrations to have timely, accurate and accessible information, advice and direct support and services concerning the functioning of the Single Market and their rights and obligations under Union law. Furthermore, reinforced cooperation and integration to ensure digitally enabled, seamless implementation, consistent and effective enforcement across the Union and to prevent barriers and limitations hindering the proper functioning of the Single Market, taxation cooperation, tax fraud prevention, anti-fraud reporting, investigations and policies and the Customs Union, as well as to ensure high level of consumer protection, including online, and enforcement of EU citizens’ digital rights, should be enabled. Union authorities and bodies should maintain effective rulemaking, standard setting, as well as implementation and enforcement of Union law in the face of changing circumstances and to ensure enforcement of restrictive measures in the management of Union funds.

Recital 14: (14) The programme should therefore further improve the functioning of the Single Market, including the external dimension, protect and empower citizens, consumers and businesses. That should be achieved by developing, implementing and enforcing Union law, offering digital tools and solutions, facilitating market access and public procurement, ensuring resilience, management of emergencies and security threats or crisis, standard setting, and supporting the development of the Union regulatory framework. The programme’s actions should cover the areas of intellectual property rights, company law, anti-money laundering, the protection of Union financial interests, and contract law, and ensure a high level of consumer protection, including online, and protection of passenger rights, and market surveillance, financial and digital literacy, the free movement of capital and financial services, effective and efficient competition enforcement, customs, anti-fraud, effective and efficient enforcement of Union restrictive measures and taxation. The programme should also enhance cooperation between the competent authorities of Member States, the Commission, and relevant Union agencies and bodies, such as OLAF and EPPO, in particular cooperation and increased synergies between various national, regional and local authorities, including national enforcement bodies, as well as cooperation between all levels of government of Member States, the Commission and third countries, including by pro…

Change 4

ChangedRecital 15: (15) Reliable and comparable European statistics are essential, as they underpin the design, monitoring and evaluation of all Union policies and empower all members of society to make informed decisions and to actively participate in the democratic process. Relevant, high-quality, accurate, and comparable official European statistics should be produced and disseminated, in a timely manner, to provide valuable insights and address knowledge gaps, allowing citizens, consumers, investors and businesses to benefit fully from the Single Market. Funding should support the production of high-quality European statistics, modernising statistical systems, promoting statistical innovation and integrating digital tools to improve accuracy and speed. In view of its horizontal character, the legal framework for the development, production and dissemination of European statistics established by Regulation (EC) No 223/2009 of the European Parliament and of the Council[1]Council18 is subject to specific requirements, and in particular those laid down in that Regulation, with regard to respect for statistical principles, as well as the functioning of the European Statistical System and its governance, including the role and tasks assigned to the European Statistical System Committee and to the Commission (Eurostat), and the establishment and implementation of the programming of the statistical activities.

▸6 unchanged paragraphs

Recital 16: (16) The programme should ensure that the interests of consumers, including the end users of financial services, are represented at the Union level so that developments in the Single Market also respond to their needs and foster consumer and investor trust in the Single Market.

Recital 17: (17) The programme aims to foster business, consumer and investor trust in the Single Market and the Customs Union by ensuring regulatory streamlining, efficient processes and a high-level of consumer protection, including the protection of passengers and consumers online, product safety and consumer empowerment and education, thereby enabling consumers to fully benefit from the Single Market and their rights and to contribute to a competitive, innovative, and dynamic Single Market. The programme should promote consumers’ safety and rights, their financial interests and integrity, including online, as well as their legal and economic interests through concrete and effective measures which support, supplement and monitor the policy implemented by the Member States. Moreover, consumers should be empowered and encouraged to make sustainable and informed choices, exercise their rights for repair as set out in Directive 2024/1799, and assistance given to competent authorities in enforcing the provisions under Directive 2005/29/EC. It is necessary to ensure that consumer protection, rights and product safety requirements are effectively implemented, uniformly enforced, and consistently upheld across the Union, thereby contributing to the creation of a level-playing field for consumers, investors and businesses. Consumer organisations at both national and Union-level play a crucial role in promoting the interests of consumers, representing the interests of consumers in policy making…

Recital 18: (18) Activities in market surveillance are instrumental in meeting the objectives of Regulation (EU) 2019/1020 of the European Parliament and of the Council21 and other Union legal acts requiring the Commission to recognise accreditation bodies and support networks. Such activities should improve the cooperation between Member States and support the harmonisation of ways of working and e-commerce surveillance. Market surveillance activities contribute to protecting competitiveness of Union businesses, consumer safety and facilitate cross-border collaboration and sharing of expertise. Market surveillance ensures that non-food products produced in or imported to the Union market do not endanger Union consumers and workers. It also ensures the protection of other public interests such as environmental protection and climate action, security and fairness in trade. Market surveillance has an important role to play in helping the EU delivering its Green Deal agenda, for example by ensuring that prohibitions and restrictions related to sustainability are properly implemented on imported products. The governance of the Single Market could be improved to address structural problems in the area of standardisation, conformity assessment and market surveillance. The Single Market Strategy proposes to take effective action to increase product compliance by tapping into synergies with capacities of the EU and national customs and market surveillance authorities and establishing an EU Marke…

Recital 19: (19) European standards play an important role in supporting a well-functioning Single Market, fostering harmonisation across the Union and supporting key policy objectives. It is essential to ensure Union interests are represented and promoted in international standardisation landscape, while also enabling the participation of all relevant stakeholders. Harmonisation of standards and digital regulation can address the fragmentation in Union rulemaking and enforcement as a barrier to a well-functioning Single Market. The programme should deliver stronger coordination mechanisms, harmonised regulatory standards, and enhanced Union-level oversight.

Recital 19 a (new): (19a) To ensure that European standards reflect the public interest and Union policy objectives, the programme should provide stable and multi-annual funding to the European stakeholder organisations representing consumers, SMEs, environmental interests, and social interests in the standardisation process, as identified in Annex III to Regulation (EU) No 1025/2012. This funding is essential to allow these organisations to maintain the high-level technical expertise necessary to effectively participate in the work of the European and international standardisation organisations.

Recital 20: (20) The TFEU includes a system of rules ensuring that competition is not distorted in the internal market and provides that the Union has exclusive competence in establishing competition rules. The programme should contribute to the Union’s competition policy and the well-functioning of the Single Market, in particular effectively tackle the significant challenges resulting from the global market developments and the digitalisation, and fostering a clean, just, competitive and digital transition of the economy and business environment. Using the right technology and skills to monitor markets, collect, process and analyse information more effectively is crucial for strengthening and speeding up the enforcement of competition rules and for ensuring their effective and consistent application throughout the Union. Those technologies should modernise competition policy and help to enhance the analysis and assessment of market developments including through the development and deployment of common or interoperable digital tools, secure data-sharing systems and harmonised analytical methodologies. It is also essential that the programme supports networks, reinforces cooperation with national authorities and courts, strengthens international cooperation, and ensures an outreach to a wider group of stakeholders in communicating and explaining the rights, benefits and obligations of the Union’s competition policy. The programme should contribute to fair competition and a level playing…

Change 5

ChangedRecital 22: (22) The development of the Union regulatory framework in the areas of company law and corporate governance, and contract law, is essential to make businesses more efficient and competitive, while providing protection for all relevant stakeholders, in particular workers, affected by company operations, and to respond to emerging policy challenges. The support to appropriate evaluation, implementation (including digital development) and enforcement of the relevant acquis, which inform and assist stakeholders, facilitate secure information exchange and ensure legal certainty with regard to the companies in the Single Market. The upcoming European Innovation Act and 28th[1]28th22 regime for companies could directly contribute to the Union competitiveness. A clear and well-adapted legal framework for the data economy and innovation is necessary including digitalisation and information sharing between companies and administrations using the European Business Wallet, the Single Digital Gateway or other digital means for placing products in the Single Market such as the Digital Product Passport that should include relevant data in line with Union law. It would enhance legal certainty with regard to contractual and extra contractual obligations, in particular with regard to liability, security, ethics and privacy in the context of advanced and emerging technologies, including artificial intelligence and quantum technologies.

Change 6

ChangedRecital 23: (23) The Customs Union remains the foundation of the Union and a fundamental enabler and guardian of the competitive Single Market and other Union political priorities, including European economic security. The Customs Union is instrumental in implementing the Union’s commercial policy, in protecting the financial and economic interests of the Union and its Member States as well as ensuring safety and security within the Union. In response to the need to address the challenges, including the necessity to facilitate fair and rules-based international trade in the best interest of consumers, European businesses and competitiveness, the Customs Union and the related economic operators, as well as the national customs authorities face, in light of the evolution of their role and of the business models in which they operate, on 17 May 2023, the Commission put forward a proposal23 for the most ambitious and comprehensive reform of the Customs Union since its establishment in 1968.A1968. A more cost-efficient and effective cooperation framework governing the Customs Union is to be established, based on a new partnership among customs authorities, all relevant national authorities and Union bodies and agencies, and between customs and businesses, and by establishing the EU Customs Authority which should coordinate and facilitate operational cooperation between the customs authorities of Member States, as well as develop and manage the EU Customs Data Hub.

▸7 unchanged paragraphs

Recital 23 a (new): (23a) Customs authorities are the lead authorities for the control of goods entering the Single Market at the Union’s external borders. Effective customs controls are essential to protect consumers and to prevent unfair competition. In particular, the rise of e-commerce and the immense inflow of non-compliant low value parcels to the Single Market, that distorts competition and endangers consumers, pose significant challenges to customs authorities, the level playing field, health and safety of consumers, and the wider EU economy. The reform of the Union Customs Code aims to equip customs authorities with the tools and abilities needed to tackle these challenges. The Union Customs Code established a new digital infrastructure as the primary tool for ensuring a unified and effective European risk management strategy, through increased coordination and the EU Customs Data Hub. This will require adequate and dedicated resources to ensure a successful transition and a high-level performance at full capacity, and robust cybersecurity and resilience. Resources made available under the programme for cooperation between customs authorities and with market surveillance authorities and for the development of the EU Customs Data Hub should be clearly specified in the annual work programmes.

Recital 24: (24) Union tax policy plays a key role in the seamless functioning of the competitive internal market. It supports consistent tax practices across Member States, fostering a level playing field and minimising barriers to cross-border trade. Union tax policy does not only combat fragmentation and discrimination but also safeguards the financial interests of the Union and its Member States, promoting fair economic growth and encouraging investment within a competitive framework. Tax policy also contributes to the EU’s climate and environmental objectives. Preventing and fighting tax fraud, VAT fraud, tax evasion, tax avoidance and harmful tax practices, including aggressive tax planning and double non-taxation, through enhanced cooperation and exchange of information is crucial for safeguarding those interests, alignment with the Union's wider objectives and maintaining the trust of citizens and businesses in the integrity of the internal market. At a time when both national and EU budgets are under pressure due to global instability and rising costs, protecting national and the Union’s financial interest and combatting public revenue losses due to tax and customs fraud should remain a key policy priority. An efficient functioning of the Single Market also requires simplification of tax systems and digitalisation of public administrations to improve transparency and consistency, thereby promoting a competitive economic environment across Member States. The functioning of Union …

Recital 25: (25) In line with the established and future legal commitments at Union level, it is crucial to continue developing and operating Union components of digital solutions in the customs, taxation and market surveillance fields, including the EU Customs Data Hub. Those common components are essential for establishing a modern and efficient Customs Union and tax systems, for enhancing cooperation between national authorities and Union institutions, and for strengthening the preparedness, resilience and economic security of the Single Market. They contribute to enhancing the Union’s competitiveness at global level, supporting European businesses and ensuring the protection of consumers at Union level.

Recital 26: (26) The programme should enable the continuation of the Customs programme including customs control equipment support interventions deployed in the 2021-2027 period by the Customs Control Equipment Instrument, and the Fiscalis programme and their predecessors. The content and scope of the Fiscalis component should be maintained, given its proven success in supporting national tax cooperation and digital infrastructure. In that respect, the programme should enable the continuation of supporting the work of the customs and tax authorities not only by ensuring a solid digital customs and tax environment but also by reinforcing expert networks, the sharing of know-how and good practices, as well as by complementing the national efforts for training customs, market surveillance, law enforcement and tax officials and professionals with Union level solutions. In that sense, the programme should support the continued collaboration and cooperation between the national customs authorities as well as between national tax authorities and their cooperation with the Commission, Union bodies and agencies, and with other national authorities, and their digital, administrative, human and operational capacity building (development and operation of electronic systems and digital solutions and tools, equipment, infrastructure, training, innovation, studies, evaluations, etc.). The importance of ensuring adequate and equivalent results of customs controls, – amongst other aspects – calls for the…

Recital 28: (28) In accordance with Regulation (EU, Euratom) 2024/2509, the work programmes and the call documents are the appropriate place to set out more technical and policy implementation details for the budget across the set of policies supported by the programme, including specific eligibility and award criteria depending on the instrument of budget implementation, whether grant or procurement, and the specific policy objectives pursued. In order to ensure transparency and facilitate monitoring and evaluation, the work programmes should clearly demonstrate Union added value, and identify prioritisation choices, expected trajectories and indicative milestones for implementation. In accordance with Article 136 of the Financial Regulation, security requirements should be applied. Restrictions to high-risk suppliers should apply according to the relevant applicable provisions.

Recital 28 a (new): (28a) The power to adopt acts in accordance with Article 290 of the TFEU should be delegated to the Commission in respect of supplementing this Regulation by adopting work programmes. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Recital 29: (29) Europe must protect its security interest, including economic, financial, technological and digital, against suppliers which could pose a security or sovereignty risk to the Union, through the potential interference from third countries. It is therefore necessary that, for security reasons and in accordance with Union law, eligibility restrictions apply to high-risk suppliers, in order to reduce the risk of one-sided or persisting dependency on high-risk suppliers in the internal market, including in the ICT supply chain, as they could have serious potential negative impacts on security for consumers, users and companies across the Union and the Union’s critical infrastructure in terms of the integrity of data and services as well as the availability of service. This restriction should be based on a proportionate risk assessment and associated mitigation measures as defined in the Union policies and laws. In this context, the programme should contribute to reinforcing the security of customs control and scanning equipment, and digital solutions in the customs, market surveillance, tax and financial areas developed at national and Union levels.

Change 7

ChangedRecital 31: (31) Article 325 TFEU requires the Union and the Member States to counter fraud, corruption and any other illegal activities affecting the financial interests of the Union. The Union should support activities in those fields. In accordance with Council Regulation (EC) No 515/97[1]515/9725 and Council Decision 2009/917/JHA[2]2009/917/JHA26 the Union is to support mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission, and Union bodies and agencies, including the EPPO, where appropriate, in respect of those Member States participating in enhanced cooperation pursuant to Council Regulation (EU) 2017/1939, to ensure the correct application of the law on customs, tax and agricultural matters. That support covers not only anti-fraud activities in relation to combating customs fraud and tax fraud, but also in relation to illicit trade in the fields of safety and security, health and the protection of the environment and is provided to a number of operational activities. Those include the Anti-Fraud Information System (AFIS), an information technology platform which consists of a set of applications operated under a common information system, managed by the Commission, aimed to exchange fraud-related information between the competent national and EU administrations in a timely and secure manner and to store and analyse relevant data. That common information system comprising AFIS and IMS, dedicated to report to the Commission irr…irreg…

Change 8

ChangedRecital 32: (32) Third countries which are members of the European Economic Area (‘EEA’) may participate in the programme in the framework of the cooperation established under the Agreement on the EEA[1],EEA27, which provides for the association to the programmes on the basis of a decision adopted under that Agreement. Third countries may also participate on the basis of other legal instruments. Third countries should be required to grant the necessary rights and access required for the authorising officer responsible, OLAF and ECA to comprehensively exercise their respective competences. To ensure a fair balance of overall costs, the financial contributions of all third countries participating in the programme will be set out in the association agreements for participation and establish both an operational contribution and a participation fee. The financial contributions should be calculated following a GDP-based approach, which ensures financial contributions are fair, proportionate and predictable, while reflecting each country’s income level as well as its geographical and political proximity to the Union.

Change 9

ChangedRecital 33: (33) In line with the Commission’s commitment to ensure the coherence and simplification of funding programmes, as set out in its Communication of 11 February 2025 on ‘The road to the next multiannual financial framework’[1],framework’28, resources should be shared with other Union funding instruments if the actions envisaged under the programme pursue objectives that are common to various funding instruments, excluding double financing.

Recital 33 a (new): (33a) Actions under the programme should ensure coherence in the use of the Union’s resources supporting tax policy and its proper implementation in line with the Commission's legal obligations in the Union tax acquis. Through the development, continued operation and modernisation of the key digital infrastructures for taxation, enhanced cooperation and capacity building, the programme should further improve the capabilities of the Union to deliver a fair and efficient tax system. Such support should be linked to measurable improvements in tax compliance, reductions in VAT gaps and strengthened cross-border fraud detection capacity. The allocation of IT funding should follow transparent and risk-based criteria.

Recital 33 b (new): (33b) The complementarity between the programme and other Union instruments should not come at the expense of the traceability of expenditure or of the prerogatives of the budgetary authority. The contribution of the programme to jointly financed operations should remain explicitly identifiable at all stages of the budgetary cycle and should be duly reflected in the Programme Performance Statement.